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 large contract wins 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 expenses from acquisitions and interest.

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

• Declared 17th and 18th consecutive quarterly dividends, reflecting ongoing capital returns to shareholders.

Financial highlights

• Q1 2026 net sales: $155.4 million (up 19–19.5% y/y); gross margin: 38.7% (down from 43.1% y/y); net income: $2.0 million.

• Adjusted EBITDA: $21.1 million (up from $20.5 million y/y); margin: 13.6% (down from 15.8% y/y).

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

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

• Net cash provided by operating activities was $22.5 million; investing activities used $153.6–$156.2 million, mainly for acquisitions.

Outlook and guidance

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

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

• Back half of 2026 expected to account for about 55% of full-year revenue, with margin improvement anticipated.

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