Cadre Holdings, Inc. (CDRE) September 9, 2026 Conference Transcript

Thank you, and good afternoon, everyone. My name's Adam Samuelson, Senior Vice President on the Aerospace and Defense Equity Research Team here at Jefferies. Thanks for everyone continuing to attend our annual Jefferies Industrials Conference here in New York. Today, we're lucky enough to have Brad Williams, the CEO, and Blaine Bauer as the CFO from Cadre Homelings joining us. So Brad has served as president and chief executive officer of CADRE, joined in 2017 as the COO and was promoted to president in 2019, previously had various leadership roles at IDEX, Dan Hearn, Ingersoll-Rant. And Blaine Bowers, the Chief Financial Officer of CADRE since 2018. Before joining CADRE, he had progressively senior finance and IT leadership roles, also at IDEX, as well as Bandit, IDEX Optics, and Micropump, as well as previous roles at GE. So, Brad, Blaine, thank you both for joining us today. Okay. Maybe just to start, for those who are newer to the story, just maybe to level set, can you write just a high-level overview of Cadre today across public safety, nuclear safety, and maybe just how the portfolio has evolved since the IPO?

Yeah, absolutely. Thank you guys for joining us, for those here in the room and are listening in. So, again, I'm Brad Williams. I'm with Cadre Holdings, lead the company overall, and excited to talk about who we are here for a couple minutes. Thank you very much. Company, private company, 60-plus years, okay, before going public. So a very long heritage in the public safety space is where we grew up with a bunch of leading brands. We went public in November 2021 through a traditional IPO-type process, and when we went public, we talked about diversifying in terms of an industrial-type company. No surprise, based on mine and Blaine's backgrounds and others within the company, being with IDEX, Danaher, and Ingersoll Rand. So through that transition, we've done quite a few things. One, we've implemented our cadre operating model, which, for those that know industrial-type companies, it's the mainstay of what happens within industrial companies. So that's one change since going public that we've put in place, and we're doing extremely well with our operating model. The second piece has been our M&A story. So we've acquired seven companies since going public. Five of those companies have been within public safety to continue to build out our leading position within the public safety portfolio. And then two of those companies have been within the nuclear segment, which is our first diversification play since going public in 2021. I'll spend just a couple minutes on the main product categories within the company. We do focus on safety and survivability products. So think of our products as being very critical to those professionals that use our products on a daily basis. Within public safety, the big product categories are body armor. That's things like hard armor and soft armor. The second category is duty gear, mainly the holster being the main product category there. The third largest in terms of public safety is EOD, so explosive ordnance disposal. Think of that as bomb suits that bomb technicians wear around the world. And then the fourth category I already mentioned, which is nuclear safety, where we have products, everything ranging from highly engineered containers to ventilation systems to alarms that are used in facilities that we need to make sure we're alerting folks if there's a nuclear-type issue that's going on within those facilities. So a wide range of products within the nuclear portfolio also. So that's who we are in terms of what we were before going public, what we've been doing since going public, and then where we are today overall as an industrial-type compounder.

That's very helpful. So just as we think about kind of where we are today, kind of moving forward. Organic growth, tracking at the high end of that kind of 3% to 5% kind of framework in the second quarter, kind of maintained kind of a full-year outlook. As we think about where the business is trending in the second half of 26 and early 27, just help us think about kind of what are the biggest drivers that are going to sustain that organic growth range in that kind of mid-sync digit level.

Great. No, I appreciate the question. So I think first thing, when we think about the business, you know, we have a variety of products, as Brad kind of just walked through. One important thing is don't think about us just as a quarter over quarter business, right? There's a portion of our business that is more project based, which creates some seasonality or some lumpiness, you know, quarter to quarter. So that's one thing we talk a lot about. So when we think about that three to five, we think on an annual basis. And that's, I think, the right view to have on it. You know, when we talk about kind of how do we sustain the three to five, we start and kind of just split the business in two, you know, as Brad talked about public safety and the nuclear side, the public safety side, we're supplying primarily equipment for officers or military personnel. You know, on the law enforcement side, it is very steady. We have data in the U.S. law enforcement markets goes back into the early 2000s. So it was a very consistent 3% growth in that budget. Right. And that's through the financial crisis. I mean, I think that's the only year it dropped and it dropped, I think, down to just less than 1%. So it's always been on the upper trajectory, very, very consistent. And that kind of three to five, that's what gives us a lot of faith in that baseline, you know, kind of 3% growth for the business. And that's holsters, you know, and body armor. When we think about that three to five, that range, what really is the inflection point, here's a couple things. There are some large projects. The majority of our current business is with state and local agencies, so there's federal agency opportunities. We recently won as a partner for the body armor for the FBI. That's a five-year contract, IDIQ. That is a significant win. And, you know, second piece that out on the EOD side that can inflect us up, and there's really two opportunities that have come to fruition lately. One is we have a blast sensor. Which we're supplying to SOCOM, which measures concussive force that operators are exposed to. And that's a $50 million IDIQ award, with POs received over $18 million so far in the last nine months. So that's another kind of game changer for us. And then the third part, when we think about that, is it's a recent contract. It's a product we've had for a number of years. It's blast attenuation seats. So these go in military vehicles, and they are designed to absorb some of the force of a military vehicle is exposed to explosive forces. And that was an $87 million seven-year contract with GDELS, General Dynamics European Land System. So that's a really nice exposure to some of that European spend that's been going on. So those are on the public safety side. Those are some of the inflections. We also had recently acquired Tier Tactical, which is a global body armor company based in Phoenix, which is very focused internationally. Over half the revenue comes from international markets for Canada and Northern Europe, who have great exposure into European militaries. And they've seen and continue to see very consistent growth there, which we think will continue to drive that organic growth. On the nuclear safety side, those markets, when we look at them, we think about them as a 4% to 6% grower. And this is really, and we're not kind of betting, this isn't a bet on AI or SMRs. We acquired our first nuclear asset in 2024, started our diligence in 2023. So we really view there's three sectors or three verticals within nuclear. You know, there's national security. So think the nuclear weapons side, there's environmental remediation, and then the third is commercial nuclear. You know, and we look at that and say the first two are very, very steady. So there's a common problem for most Western countries that you have an aging weapons nuclear stockpile. So there's a, there's congressional funding as well as a mandate to increase pit production in the United States, which we have products that are used in the production and storage of those materials. So very steady, very consistent. And environmental remediation, just in the U.S. alone, there's over $500 billion of nuclear waste that has to be disposed of. This is primarily coldware storage, weapons production facilities, where we have material in the ground. In many cases that we're unaware of what it is, we haven't determined what level of radioactivity it has and how do we dispose of it. So we provide non-destructive assay, so the ability to characterize the material. We provide containers for over-the-road storage as well as permanent storage. And then the third vertical, we talk about commercial nuclear energy. We have a number of opportunities there. I think it's very exciting, the AI and the nuclear renaissance. Our view is probably still a little bit more conservative. There's certainly a lot of momentum. In the last nine months, we have seen really orders move from the sales funnel into POs being placed as people are starting to break ground on fuel enrichment. And our exposure there is robotic arms, those containment solutions. Brad mentioned the criticality accident alarm system. So a number of exposures. I think that nuclear side, there's a pretty steady kind of four to six. Because of the concentration, though, when you think kind of year to year, I think we're going to see years that are high singles, low teens, and we may see years that are kind of low singles, just depending on how the projects line up, because it's not a very wide customer base.

Got it. And is there – I just think about the funding side of that, especially – how do you feel about – clearly a lot of growth on the commercial nuclear side for kind of – is kind of a bit of another nuclear renaissance, so to speak. But how do you think about the funding on – especially on the remediation side, which doesn't seem like it ever gets the funding that people think it should get?

Well, I think – I think no one would argue it gets all the funding it should get because I think if it had all the funding right, we'd be cleaning up the sites immediately. But I'd say it's been very steady. You know, there is broad support regardless of administration to clean up these sites. There are some that are very sensitive where you have. There's radioactive materials stored near rivers and water sources that have to be cleaned up. So when we look over the long period, it's very sustained, very healthy, but we just haven't seen any major cuts on that side that would concern us.

Okay, great. Maybe going into kind of talking about some of the acquisitions that you've done recently, I think have been notable, TYR Tactical, kind of alien gear both this year, performed ahead of expectations. Maybe starting with TIR, which is one of the bigger acquisitions the company's ever done. Help us think about how that fit within the portfolio, kind of the revenue, kind of product synergies, as well as some of the cost opportunities that might be unlocking.

Yeah, absolutely. So starting with TIER, tactical. So there's a few reasons why we acquired TIER, even though we've had body armor companies for many, many years, and it's a long heritage that we've had body armor within the portfolio. So when you look at TIER's revenue, it's actually the opposite of Safariland Armour's revenue. Okay, so what does that mean? What it means is TIER has, as Blaine already mentioned, a larger concentration of international, mainly Northern Europe, revenue of militaries there or MODs within Europe. The second piece is they also have a large concentration of government agencies in the U.S. So for example, like ICE or they had the FBI contract before Safariland won it, the recent contract. So they have that government presence. Okay. So mix of customer and geography was a big benefit to that acquisition. So that's one. The second reason we acquired them is their excellent abilities with hard armor. Okay. Okay, so Safariland, on the armor side of things, sells hard armor, but it's a small part of what the company manufactures and innovates. The capabilities of hard armor within Safariland is very limited compared to a tier tactical. And, in fact, new advanced raw materials, ballistic materials that we buy from various suppliers like Honeywell and Dyneema and others, Those materials, to get the performance that we need out of them, require a very, very, very high pressing power. All right, I won't get too technical there, but just think of pressing power. And TIER has two large presses that we estimate there's only about four of these presses in the entire world, and they have two of them. You know, very large presses that compress the materials at the temperatures and the pressure and the heat and everything we need with redundant equipment to basically manufacture those next-generation hard armor-type products for the companies, either TIER or Safariland. So that's the second reason. The third reason is TIER has put a lot of focus into female body armor. And there's females within agencies in the U.S. about 15 to 20 percent of the population of law enforcement, and the same in some militaries around the world. So that's really important because that female voice within law enforcement and military has increased significantly to making sure that the body armor that they wear is also comfortable for wearing the body armor 10, 12, 14 hours a day, depending on what their profession is. TIER has done a lot of work in the female body armor side of things to the point that they have patents on female body armor, and then they also have done empirical testing on females doing athletic activities. This was done through a third party in a university where they've got test results showing that those activities are less strenuous wearing the body armor of TIER with those designs versus other competitive designs. So we like the company for those three reasons. We think it's a great, phenomenal fit with a lot of synergies, both channel, product, cost, facility, footprint, you name it, across the board. There's almost any synergy that you can check the box. Now, those synergies don't happen overnight because you're talking about products that are there saving lives. That is our mission. Together, we save lives when you look at our portfolio of products today. So we do have to take care with testing requirements and making sure that we get recipes and products right before we release those things to the market. So we're taking a step of time with the integration. We're done with all the functional integration activities, all your standard stuff, finance, accounting, legal, tax, treasury. You know, we're right on track with that side of things. And then the rest of it will come as we go along here.

Yeah, that's helpful. Maybe staying in the body armor and kind of that police force kind of customer set. How do we think about, and you talk about how steady that overall kind of business was and some of the funding for different police budgets are. What's happening with hiring? I mean, are you seeing that kind of, especially I think about Homeland Security, is that creating opportunities on the, They're creating new opportunities and new demand vectors that you maybe hadn't seen for a number of years.

I wouldn't say demand vectors we haven't seen for a number of years. The other thing we love about our business are what we call replacement cycles for these products. So in the U.S., body armor is about every five years based on the warranty of the product. In the U.S. is about five years. And so when you hit the five-year point, you get resized because you may have been. At Dunkin' Donuts, maybe a little too much, right? And your body shape and type changes. It just happens to all of us as we get older, typically. So you'll get resized, you'll get new body armor, okay? So we love the replacement cycle from that perspective on body armor. And then when you look at the duty gear side of things, or the holster, because that's the majority of the revenue in that category, it's every five to seven years. And that's a different reason there's a replacement. There's actually a few reasons. One is wear and tear. It doesn't happen a whole lot, but it can happen. That doesn't drive most of the revenue. It's a very small portion of the revenue. The second one is when accessories are added to weapons. So if you add a light to a weapon, which is a big trend that's been going on around the world, or you add a red dot sight, which is there for those that may not know, it's there to help you shoot more accurately. It depends on who you are in terms of shooting and how accurate you can shoot, but it does help some people. So when you add those two things to a weapon, it significantly changes the dimension of that weapon. If you think about it, that becomes part of the weapon, either under the barrel for the light or on top of the barrel for the optics. You need a new holster, okay, because these holsters are not, you know, your old leather. Well, we do have leather, but that's kind of a smaller part of the business, but they're not holsters that doesn't retain the weapon. It actually locks the weapon in place. That's why we consider it a lifesaving critical device for law enforcement or military. In fact, if I had one on right now and I said, hey, sir, come up and try to take the weapon from the holster, you would not get the weapon out of the holster. In fact, Not our last save that we just received today, but the save right before that, because we have a prestigious saves club where folks that are using or wearing our products and their lives are saved. They go into this club. And we had a duty year saved. And the officer sent us pictures of his holster. He had gotten to a fight with a perpetrator that was trying to take his weapon. Okay. And what do you think would happen if that weapon was taken? They would either be, the officer would either be shot or killed or one of us because as an innocent bystander. So don't take for granted that these products aren't life-saving devices. They truly are. So the replacement cycles are extremely important to our business. Typically agencies, so now I'm going to come back around to your question real quick, agencies follow those replacement cycles pretty well. Okay. So even if we launch a new product, it's not to trip that replacement cycle typically and make it pull in. It just doesn't happen, no matter how great that product is. I didn't mention it, but our share of holsters in the U.S. is greater than 85%. In law enforcement, we have most of the U.S. military. Our bomb suits around the world, we've got about 90% share, so we're the leader in bomb suits. So we launched new products to help us maintain and protect share. We don't launch those products typically that will help pull in that replacement cycle. So some of these additions that you've seen, we did see some revenue in Q4 of last year and a little bit at the beginning of this year related to ICE headcount increases that you had mentioned using your example. And when that happens, when there's more feet on the street, that adds more of our products, okay, because it's like one for one. All right. These products typically are not in inventory at an agency. And in fact, body armor is a fitted product to your body shape and type. So in law enforcement, it's not small, medium, large, extra large. It's typically fitted to you because you want to have maximum protection for your safety. Holsters is specific, and those are usually also bought whenever you add another officer. So we haven't seen, other than when large increases happen, like happened with ICE, we don't see premature, you know, replacement cycle increases along these categories.

Okay.

Well, that's very helpful. So kind of thinking about the growth where there is new products driving or new applications driving kind of incremental demand due to the contracts you want with SOCOM for blast sensors. You talked about the blast seats with General Dynamics. Help us think about the opportunity you said that those could potentially unlock as kind of key proofs of concept for the different military applications.

So let's talk about sensors. And people are getting, and that's partly potentially our fault, but there's sensors and there's seats. Let's take the word blast out because people kind of confuse those for a minute. So let's talk sensors for a minute. So, as I mentioned, we are the leader in EOD, explosive awareness disposal, bomb suits in the world. Most any military or law enforcement agency that has an EOD team, they're wearing our Med-Eng. M-E-D-E-N-G is the brand name, just like Safariland is well known for holsters and body armor. So, when you look at sensors, we've been doing sensors for many, many years within the bomb suit category. So we were, got involved in a paid R&D program with SOCOM to take our sensor technology and their specification and design a sensor that can be mounted on field soldiers. Okay, now you might ask, well, why? They've got all kinds of stuff they're wearing on their body. Why do they want to wear something else? Well, it's to help them. Okay, traumatic brain injuries, TBI, is a big problem for our folks in the military. I don't know if we have any veterans in the audience, if you are. Raise your hand if you don't mind. Okay, no veterans here, but if we got any veterans out there, thank you for your service, because that's what we live every day, which is to try to help our folks in the military or in public safety. Okay, so TBI is a big problem. So these sensors are placed on field soldiers. All right. And so far, not only did we do the R&D program with SOCOM, but we won, I think we had mentioned already, a $50 million IDIQ with SOCOM, you know, to supply these blast sensors that we've been doing. So what does that blast sensor do? Well, it does a couple things. One, I'll simplify it, but if you're doing field training and you're around a lot of blast exposure, the sensors will tell you you've maxed out on your blast exposure. So think of it like if you're playing a football game, and I'm talking American football, and there's a concussion on the field. What happens? There's rules against that. You're in the game or you're out of the game. So think of the sensor saying, Blaine's been exposed to too much blast. He's out of the game. Go sit down. So we're trying to help those folks that are in the military that are out there protecting us to make sure that we can help them from a TBI perspective. So that's one. The second thing that happens is the data that our sensors collect, there's a significant amount of data. That data is pinned to you and your medical history, okay, so that clinicians and folks can then determine, you know, is there something going on that we need to try to help with new products and things like that that can help more protect these folks. So how big is the opportunity? It's large. We sized it when we were going public in 2021 at about $500 million if every field soldier gets a blast sensor. That's the extreme. That's the high end. Will that happen? Probably not every field soldier out there, but we do think over time we'll see an adoption of blast sensors for soldiers as we go forward. In fact, we have, and we haven't disclosed them, but we've got, I think we're up to seven countries now that have requested our blast sensor. We've shipped the blast sensor to them, and they're doing testing on the blast sensor. I think the biggest question that's out there will be, will every country and every branch of the U.S. military, at some point, when they do decide, or if they decide to move in this direction, will they want the blast sensor that we currently have done the R&D work on for SOCOM, or they want their own flavor? Okay. And if they want their own flavor, what we've experienced, it takes a while to get that to the point that you actually have a product that you can then hand over and sell to them. So that's where that one's at. From a blast, I said I wouldn't say the word, from a seats perspective, that is a product, not a new product for us. It's a product we've had for many, many years. We ship seats on a monthly basis. Okay. It's just the programs have been much smaller. Okay. So we're applying seats to OEMs around the world that are going in vehicles. This program happens to be very large. As Blaine mentioned, it's $86-87 million over a seven-year period. It's going to general dynamic European land systems, and the end customer is the German military. So what we're seeing there is we're seeing that increase in defense spending at various countries. We're seeing it. We also won the German military, German MOD holster contract through our Italian holster company that we acquired in 2022, a company called Radar Holster in Italy, and they did a phenomenal job, and they won that one, for example. Uh, we're seeing, uh, through our crowd control business, we're seeing growth in South America. Uh, we've also got some significant body armor opportunities that we're seeing in South America also. So, um, you know, that, that influx of focus, let's call it in, in the defense spending, um, we've seen it help us, um, at times, you know, we're not the folks that are playing offense. We're the folks with defensive survivability type products that, you know, are also important to what's going on out there. But there is that replacement cycle that typically happens once these products are acquired.

No, that's very helpful. Maybe pivoting a little bit, and we think about kind of how that growth is starting to translate into the bottom line, kind of second quarter, strong margins, EBITDA, margins of a little over 20%. Maybe that was a... Timing and volume leverage and mix and kind of a lot of favorables kind of all kind of uniting as one, but the company does have longer term aspirations for kind of mid-20% adjusted EBITDA margins. How do we think about bridging to that from where the company's running today in that high teens 20% reach?

Yeah, so absolutely. We believe the company and the products has the ability to be in the mid-20s, and that's organically, just to be clear. That's not buying our way there with new assets, just the core products we have today. And we really boil it down to a couple things. One is a focus around price. So we target getting 1% price net of material inflation, something we've hit every quarter since we've IPO'd in prior. But to give you a little bit more of a flavor, we don't see large material inflation. A big material inflation for us, even during COVID, would have been less than 1% of revenue. So our pricing doesn't need to be 5-6. That price to get that 1% is a 0.25, 0.5, maybe 1.75. So I think that's the first pillar. You know, second pillar is really. And productivity, right? So kind of the idea of continuous improvement Kaizen. We have the Cadre operating model, which has many, many tools underneath which we can leverage. But if you think about it fundamentally, every plant, every business has a 12-month rolling productivity funnel where they're focused on how do you do things a little bit better, right? How do we make life a little bit easier, right? And that's there to combat inflation, labor inflation, as well as overhead inflation, and also add to the bottom line. You know, and the third piece is really, you know, operating leverage. You know, a lot of the markets, you know, Brad and I've talked through our mature markets, right? We're not growing at 10, 20%. We don't need to field a brand new sales force or spend, you know, 10s and 20s, 10 or $20 million in R&D. So there's this operating leverage because we have that footprint out in the market. So when you add those three together, you can take a three to 5% grower and get, you know, 10% bottom line. I won't say easy. It's a lot of hard work. But, you know, all the tools are there. And, you know, kind of go back and just make a point of emphasis on the operating model. Yeah, I talked about it really when I was talking productivity, but the operating model really kind of bridges across, right? Those tools are applicable in price, whether it's power pricing, leveraging 80-20, and how you view your customers, how you price, MOQs, through productivity and operating leverage, right? The idea of, you know, empty chair Kaizen, right? So when someone leaves, you don't immediately kind of go to fill, right? You ask first, like, what responsibilities are there? What were they doing? What do we still need, right? Because a lot of times in companies, things just kind of carry on without adding value. So, you know, a lot of the company and core focus, you know, is really just on how do we get a little bit better broadly across. And that's not, again, not just on the manufacturing floor. That extends to the back office out to our customers. No, that's very helpful.

Maybe just before we start to wrap up, I want to make sure we touch on the M&A piece, because M&A and organic growth has been an important part of the story, pre- and post-IPO. Just remind us where we are on Dry Powder. What does the funnel look like as you think about the opportunity set across public safety and nuclear, and how do we think about what are the non-negotiables in M&A for you guys? You guys have done a range of businesses, profitability-wise, size-wise, geographic. It's interesting. We've done a lot of different types of deals.

Yeah, absolutely. So I think first, maybe before we dive in to some of the details, just kind of overlay. The M&A is a core part of who we are as a company. And with that 3% to 5% top line, and we're very low CapEx, less than 2% of revenue, we generate a lot of free cash. So we view a lot of the business as generating cash, and the current focus is really, as you mentioned, on M&A. We ended Q2 at two and a half times net leverage. So we've always said three and a half is our upper limit. So that leaves us with about $120 million of dry powder. Kind of adjacent to that, equity is always an option, right, depending on where the stock is trading. Actually, Tier Tactical, which we closed in January, was the first acquisition. We leveraged equity, but that's something we're thoughtful and prudent on, right? Certainly stock price will depend. So today we'd look at it and say about $120 million of dry powder. You know, when we think about, you know, M&A, you can ask what's really important to us. You know, a couple things are equally important. One is that free cash flow generation, right? You know, we're not interested. We've looked at. Numbers of businesses that are really attractive, have nice end markets, but are not generating cash flow, right? So it's that low CapEx model generating cash flow is really, really important to us. The second piece is those macro tailwinds. So we're not looking for, you know, I know we have the nuclear and we talked about this nuclear renaissance and AI, but keep in mind, we made that foray into nuclear well before that was there. That's not what attracted us to the market. So we're looking for steady tailwinds over the long run. So for us, that four to six in nuclear without the nuclear response is what really makes it attractive. That recurring profile is important. And then kind of the last piece that's really important to us is not being a major component to our suppliers or to our customers. So we don't want to be the large component. When we think about price, one of the advantages, if you're, you know, a small percentage of the overall finished product for your customer, you have that ability to price. And think about that dynamically, not as a widget that goes into a bigger widget, but think about a law enforcement officer, right? You're talking about, you know, holster, $102 holster. When you think about what they're wearing overall, right, between body armor, radios, guns, all the equipment. We like to stay at that low component cost that allows us to have some freedom on price. That's not to be greedy on price. We're very thoughtful on that and that approach. To keep the margins and the shares we have, you can't overdo that price piece. That's the final piece that's really important to us.

Let me add one thing to that really quick is the safety part of the products is critical in the engineered side of things. So, you know, Blaine's referencing the invoice value versus the total, but when you look at the products that we have, we want them to be really sticky. We want you to think twice about going from one body armor supplier to another one because you're concerned about potentially their product exposing you to danger, for example, or going from one holster to another holster. Or like one of our customers, we unfortunately lost a bomb suit. We don't lose very many because of the share I talked about earlier, but we lost a bomb suit opportunity. And when the technicians go out and they actually go on a real call, guess whose bomb suits they use? Hours. And then guess whose bomb suits they use for training our competitors. All right. And that shows you that somebody in procurement got involved and helped that decision along based on something that was out of the technician's control so they trust our equipment. All right. And that's extremely important to us. Back to that mission of saving lives. So highly engineered products, super sticky, super critical. We don't want you to leave those products. We want you to think twice about that.

Great. Well, we're almost out of time. So maybe just as a final closing question, just to wrap up, if we're sitting here five years from now, kind of what do you hope investors recognize in five years that they that today is the most underappreciated part of that of the country story?

I would say in general that People would probably underestimate the amount of runway that our operating model has for the business. That's one thing we get quite a few questions about. It's, you know, well, what does a nuclear business have to do with a body armor business or a public safety company that you own? I don't see any similarities. You can't collapse the channels down. You can't share the sales force. You know, in terms of manufacturing, you're doing cut and sew over here typically in a lot of cases in body armor and bomb suits and injection molding and holsters and leather work and things like that. But then you're cutting metal and you're machining over here on the nuclear side. The one common thread is our operating model, and I can't stress that enough. If you grew up in industrial companies like we have and a bunch of others on our team and you drink that Kool-Aid, you really begin to understand what operating models do for a company in terms of those long-term synergies, no matter if it's on the shop floor where you're manufacturing products or what I call carpet land, where you're out in a cubicle or in an office. business and you're manufacturing something else. Okay. Those synergies go across both and it applies no matter what the business is. And I have a feeling as you fast forward five years, that'd be the one that I want to continue to stress for folks.

Great. Well, on that, I think we're going to be just about out of time. Brad, Lane, thank you so much for the time.

Thank you. Thank you. Appreciate it. Appreciate it.