Cadre Holdings Q1 sales slightly beat estimates

Overview

• US safety equipment maker's Q1 net sales rose 19% yr/yr, slightly beating analyst expectations

• Adjusted EPS for Q1 was $0.05; net income declined due to higher expenses

Outlook

• Cadre reaffirms 2026 net sales guidance 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

• ACQUISITIONS AND CONTRACTS - Net sales growth was primarily driven by recent acquisitions and a blast attenuation seat contract award, as well as strong demand in duty gear and armor

• GROSS MARGIN PRESSURE - Gross margin declined due to higher inventory step-up amortization and unfavorable product mix, partially offset by favorable pricing, net of material inflation

• HIGHER EXPENSES - Net income declined primarily due to increases in compensation, interest, transaction, and related party expenses

Company press release: ID:nBw8TVkrna

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 no "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 $45.00, about 50.8% above its May 8 closing price of $29.85

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 29 three months ago

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