Cadre Raises 2026 Outlook Floor After Q3 Sales Rise 30%

Cadre Holdings (CDRE) increased the lower ends of its 2026 sales and adjusted EBITDA outlook after third-quarter results exceeded the company’s guidance, supported by acquisitions and stronger demand for explosive ordnance disposal products.

The safety-equipment maker now expects full-year net sales of $756 million to $769 million, compared with its previous range of $749 million to $769 million. It forecasts adjusted EBITDA of $140 million to $144 million, versus $139 million to $144 million previously. The upper ends of both ranges were unchanged. Cadre maintained its 2026 capital expenditure outlook of $11 million to $14 million.

For the three months ended September 30, net sales rose 30% year over year to $202.9 million, above the company’s guidance of approximately $190 million. Adjusted EBITDA increased 38% to $41.1 million, surpassing guidance of about $34 million, while adjusted EBITDA margin expanded to 20.2% from 19.1%.

GAAP net income climbed 46% to $16.0 million, or $0.37 per diluted share, from $10.9 million, or $0.27 per diluted share, a year earlier. Operating income increased to $28.4 million from $18.7 million.

EOD demand and acquisitions support growth

Cadre reported 10% organic sales growth excluding its Distribution business, attributing the increase primarily to strong EOD demand. Total revenue also benefited from current-year acquisitions, partly offset by lower Distribution revenue.

TYR Tactical contributed $31.2 million of third-quarter revenue. Cadre said TYR and Alien Gear were performing in line with its expectations. The company completed an additional EOD bolt-on acquisition in November, bringing its total to eight acquisitions and more than $475 million deployed on transactions since 2022, including over $200 million in 2026.

The company also highlighted several public safety and defense awards. Safariland was selected to provide ballistic panels for an FBI armor-kit program that is ramping up. Cadre received a third purchase order worth $3.6 million for the BEMO sensor program and secured a Royal Canadian Mounted Police ballistic-shield award estimated at $24 million over five years.

Gross profit increased 32% to $88.1 million, with gross margin rising 70 basis points to 43.4%. Cadre attributed the margin improvement to pricing and product mix. Positive gross-margin flow-through supported earnings, although acquisition-related operating expenses provided a partial offset. Selling, general and administrative expenses rose to $58.9 million from $45.6 million.

For the first nine months of 2026, sales reached $565.4 million, up from $443.1 million in the prior-year period. Adjusted EBITDA increased to $104.2 million from $77.3 million. GAAP net income, however, declined to $29.4 million from $32.4 million as interest expense rose and the prior-year period included higher other income.

Capital allocation remains focused on acquisitions and shareholder returns

Net cash provided by operating activities increased to $67.6 million for the first nine months from $42.5 million a year earlier. Cadre spent $164.8 million in cash on acquisitions during the period and $9.2 million on property and equipment.

At September 30, the company had $63.9 million in cash and cash equivalents and $369.5 million of total debt, net of discounts and issuance costs. Net debt was $305.6 million, equal to 2.2 times last-12-month adjusted EBITDA. Management said that leverage level leaves capacity to continue pursuing acquisitions while paying dividends.

Cadre also announced an inaugural $100 million share-repurchase program in November. The company has paid $72.8 million in dividends since its initial public offering, including the dividend scheduled for the fourth quarter of 2026.

Management continues to evaluate acquisition opportunities in both nuclear safety and public safety markets. Its stated criteria include leading market positions, defensible technology, recurring revenue, strong margins and asset-light operating models.

Cadre identified demand opportunities across law enforcement, defense and nuclear safety, including equipment replacement cycles, European defense spending, government-funded nuclear cleanup and warhead modernization programs. Still, the presentation noted increasing attention to state and local budget constraints in U.S. law enforcement. The company also cautioned that its outlook and other forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from current expectations.