CDRE · Cadre Holdings, Inc.

Cadre Holdings delivered Q1 2026 results with net sales of $155.4 million, a 19% increase from $130.1 million in Q1 2025, primarily fueled by contributions from recent acquisitions including TYR Tactical, though partially offset by timing-related order fluctuations, lower demand for nuclear safety products, and reduced agency demand for hard goods in the Distribution segment. Gross profit rose to $60.2 million from $56.1 million, but the margin contracted to 38.7% from 43.1% due to increased inventory step-up amortization from acquisitions and unfavorable product mix, mitigated somewhat by favorable pricing net of material inflation. Operating expenses climbed to $52.7 million from $42.6 million, driven by higher selling, general and administrative costs, restructuring and transaction expenses, and a $2.0 million related party expense tied to the TYR acquisition. This resulted in operating income of $7.5 million versus $13.6 million last year, with net income falling to $2.0 million or $0.05 per diluted share from $9.2 million or $0.23. Adjusted EBITDA edged up to $21.1 million from $20.5 million, with margin at 13.6% versus 15.8%, reflecting acquisition-related impacts. CEO Warren Kanders highlighted strong momentum, a record $355 million orders backlog (up $166 million sequentially, including $87 million from the GDELS blast attenuation seat contracts, $57 million from TYR, and $22 million organic growth in armor and duty gear), and confidence in the outlook amid geopolitical tensions and rising defense spending. The company completed the TYR Tactical acquisition on January 30, 2026, and Alien Gear Holsters on April 7, 2026, for $10.3 million, bolstering its tactical gear and direct-to-consumer presence. Liquidity shifted with cash dropping to $41.3 million from $122.9 million at year-end, total debt rising to $365.8 million, and net debt to $324.6 million, reflecting acquisition funding via $62.5 million revolver drawdowns. Cadre reaffirmed FY2026 guidance for net sales of $736-758 million and adjusted EBITDA of $136-141 million, signaling sustained growth trajectory, and declared its 18th consecutive quarterly dividend of $0.10 per share, payable May 15, 2026.