Cadre Holdings Q4 sales miss estimates
Overview
US safety equipment maker's Q4 sales fell and missed analyst expectations
Q4 adjusted EBITDA missed analyst expectations
Outlook
Cadre Holdings expects 2026 net sales of $736 mln to $758 mln
Company sees 2026 adjusted EBITDA between $136 mln and $141 mln
Cadre expects 2026 capital expenditures of $10 mln to $14 mln
Result Drivers
PRIOR-YEAR SHIPMENT TIMING - Q4 sales decline was mainly due to higher-than-normal shipments in the prior year following a cyber incident in Q3 2024
ACQUISITIONS AND DUTY GEAR DEMAND - Full-year sales growth was driven by recent acquisitions and higher demand for duty gear products, partially offset by declines in EOD and nuclear safety products
GROSS MARGIN PRESSURE - Q4 gross margin narrowed due to lower volumes and increased inventory step-up amortization, partially offset by favorable pricing net of material inflation
Company press release: ID:nBw453fVMa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Miss | $167.2 mln | $182.94 mln (5 Analysts) |
Q4 Net Income |
| $11.7 mln |
|
Q4 Adjusted EBITDA | Miss | $34.4 mln | $37.29 mln (5 Analysts) |
Q4 Gross Margin |
| 43.4% |
|
Q4 Adjusted EBITDA Margin |
| 20.6% |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Cadre Holdings Inc is $51.50, about 17% above its March 9 closing price of $44.00
The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 31 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
