Cadre (CDRE) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales rose 19–19.5% year-over-year to $155.4 million, driven by acquisitions and strong demand in law enforcement, first responder, military, and nuclear markets.

• Orders backlog reached a record $355–$355.4 million, up $165.6–$166 million from year-end, reflecting new contracts, EOD orders, and acquisitions.

• Net income for Q1 2026 was $2.0 million ($0.05 per diluted share), down 78.6% year-over-year due to higher compensation, interest, and transaction expenses.

• Adjusted EBITDA increased to $21.1 million (up 3% year-over-year), with a margin of 13.6%.

• Major acquisitions included TYR Tactical ($175–$185.2 million) and Alien Gear Holsters ($10–$10.3 million), supporting multi-vertical expansion.

Financial highlights

• Q1 2026 net sales: $155.4 million (up 19–19.5% year-over-year); gross profit: $60.2 million; gross margin: 38.7% (down from 43.1% year-over-year).

• Adjusted EBITDA: $21.1 million (up from $20.5 million year-over-year); margin: 13.6% (down from 15.8% year-over-year).

• Net income: $2.0 million; operating income: $7.5 million (down from $13.6 million year-over-year).

• Cash and cash equivalents at quarter-end: $41.3 million, down from $122.9 million at year-end 2025.

• Total debt rose to $365.8 million from $307.3 million at year-end.

Outlook and guidance

• Full-year 2026 net sales guidance: $736–$758 million; Adjusted EBITDA: $136–$141 million; capital expenditures: $10–$14 million.

• Organic revenue growth expected in the 3%–5% range for 2026.

• Management expects continued growth from acquisitions and backlog, with 44% of remaining performance obligations to be recognized within 12 months.

• Liquidity considered sufficient for at least the next 12 months, supported by cash flows and available credit.

• Second half of 2026 expected to account for about 55% of full-year revenue, with higher margins due to operating leverage and large order shipments.