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Performance in 2025 was driven by strong recurring demand for mission-critical safety products and the successful integration of specialist acquisitions such as CARS Engineering.
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The backlog increased nearly 50% year-over-year, bolstered by a major contract win for the U.S. military in explosives detection monitoring and advanced sensor technologies.
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Management noted that while some major global opportunities have been delayed and some categories are facing challenges with the outlook for closing complex projects, the company’s full-year net sales increased significantly and the order backlog grew by nearly 50% compared to last year.
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The acquisition of TIER Tactic expands the company’s hard armor capabilities and provides significant entry points into international and US federal markets with minimal customer additions.
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Operational focus has shifted to a “coherent platform” model, prioritizing joint engineering capabilities and coordinated leadership across a diverse security and defense portfolio.
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The nuclear group is experiencing a strategic pivot as the government shifts resources from waste disposal and denuclearization toward plutonium mine production and weapons modernization.
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Guidance for 2026 assumes organic growth of 3% to 5% for both the public safety and nuclear businesses, supported by a pricing strategy that targets 1% net of inflation.
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Revenue is expected to weigh in at half, with Q1 affected by inventory constraints and project time before new product lines such as explosion sensors reach full production.
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The company anticipates a short-term margin headwind in the nuclear segment due to a negative mix change in the Alpha Safety business unit, where declines in high-margin low-mix products are offset by growth in commercial nuclear ventilation and critical alarm systems.
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Management maintains an active M&A pipeline, targeting high-profile businesses with defensible market positions to further diversify the mission-critical safety portfolio.
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Capital expenditures are estimated to increase to $10,000,000-$14,000,000 to support capacity development, particularly for site construction at nuclear business units.
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A recent US executive order reorganizing plutonium stockpiles has slowed the fusion program, creating near-term financial acceleration for special alpha safety products.
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Geopolitical conflicts drive long-term demand for EOD (explosive ordnance disposal) offerings, although the primary revenue opportunity is typically the end of hostilities.
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The company pointed to potential short-term uncertainty related to the transition to a new US agency, which has historically affected the timing of federal agency spending.
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Inventory step-up costs and amortization related to the TIER tactical acquisition are expected to impact GAAP results beginning in 2026 but are excluded from adjusted EBITDA guidance.
