Cadre (CDRE) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales rose 19.5% year-over-year to $155.4 million, driven by acquisitions and strong demand in duty gear and armor, despite lower demand in some segments.

• Orders backlog reached a record $355.4 million, up $166 million since year-end, reflecting new contracts, large EOD orders, and acquisitions.

• Net income for Q1 2026 was $2.0 million ($0.05 per diluted share), down 78.6% from $9.2 million in Q1 2025 due to higher compensation, interest, and transaction expenses.

• Adjusted EBITDA increased 3% to $21.1 million, with a margin of 13.6%.

• Major acquisitions included TYR Tactical for $185.2 million in January and Alien Gear Holsters for $10.3 million in April.

Financial highlights

• Gross profit for Q1 2026 was $60.2 million, up from $56.1 million year-over-year; gross margin declined to 38.7% from 43.1% due to inventory step-up amortization and product mix.

• Adjusted EBITDA increased to $21.1 million from $20.5 million year-over-year, but margin fell from 15.8% to 13.6%.

• Operating income for Q1 2026 was $7.5 million, down from $13.6 million year-over-year, impacted by higher SG&A, restructuring, and related party expenses.

• Cash and cash equivalents at quarter-end were $41.3 million, down from $122.9 million at year-end, reflecting acquisition outflows.

• Total debt rose to $365.8 million from $307.3 million at year-end 2025.

Outlook and guidance

• Full-year 2026 net sales guidance: $736 million–$758 million; Adjusted EBITDA: $136 million–$141 million; capital expenditures: $10 million–$14 million.

• Management expects continued growth from recent acquisitions, strong backlog, and attractive end markets, with 44% of remaining performance obligations to be recognized within 12 months.

• Liquidity is considered sufficient for at least the next 12 months, supported by cash flows and available credit.