Cadre (CDRE) Q2 2026 earnings summary

Executive summary

• Net sales grew 32% year-over-year to $207.1 million in Q2 2026, driven by strong demand in law enforcement, first responder, military, and nuclear markets, as well as acquisitions.

• Adjusted EBITDA increased 56% year-over-year to $42.0 million, with margin expanding to 20.3%.

• Orders backlog reached a record $368 million, up $13 million sequentially and $177.9 million from year-end, reflecting strong demand and recent acquisitions.

• Major contract wins include a $61 million FBI IDIQ for ballistic panels and $18.4 million in orders under the Dept. of War BEMO program.

• Completed acquisitions of TYR Tactical and Alien Gear Holsters, both contributing above expectations and expanding product offerings.

Financial highlights

• Q2 2026 net sales: $207.1 million (+32% YoY); gross profit: $87.1 million (+36% YoY); gross margin: 42.1% (up 120 bps YoY).

• Adjusted EBITDA for Q2 2026: $42.0 million (+$15.0 million YoY); margin: 20.3% (up 310 bps YoY).

• Net income for Q2 2026: $11.4 million, down 6.6% YoY, impacted by FX and acquisition-related costs.

• Cash and cash equivalents at June 30, 2026: $54.0 million; net cash from operations for six months: $44.7 million.

• Net debt/Adjusted EBITDA at 2.5x as of June 30, 2026.

Outlook and guidance

• Full-year 2026 net sales guidance raised to $749–$769 million; adjusted EBITDA guidance raised to $139–$144 million (18.6% margin).

• Organic revenue growth expected in the 3%-5% range for the year.

• Q3 revenue projected at ~$190 million with adjusted EBITDA margin of ~18%; Q4 expected to mirror Q2 profile.

• Capital expenditures for 2026 expected between $10 million and $14 million.

• Continued strong demand anticipated in public safety and nuclear safety markets.