Cadre (CDRE) Q4 2025 earnings summary

Executive summary

• Achieved record annual adjusted EBITDA for the third consecutive year, driven by strong demand in public safety, defense, and nuclear markets, and successful execution of strategic objectives.

• Completed acquisitions of Carr's Engineering and TYR Tactical, expanding capabilities, product offerings, and international reach.

• Declared the 17th consecutive quarterly dividend, with an annualized increase to $0.40 per share.

• Secured major contract wins in advanced sensor technologies and blast mitigation seating, increasing backlog and supporting future growth.

• Maintained a strong balance sheet, enabling disciplined investments and ongoing M&A activity.

Financial highlights

• FY 2025 net sales rose to $610.3 million from $567.6 million year-over-year; Q4 2025 net sales were $167.2 million, down from $176.0 million in Q4 2024.

• FY 2025 net income was $44.1 million ($1.02 per diluted share), up from $36.1 million ($0.90) in FY 2024.

• FY 2025 adjusted EBITDA reached $111.7 million (18.3% margin), a record for the third consecutive year.

• FY 2025 gross margin improved by 140 basis points year-over-year to 43.9%.

• Q4 results were down versus last year's record Q4 due to timing shifts and distribution softness.

Outlook and guidance

• FY 2026 net sales guidance is $736–$758 million, with adjusted EBITDA expected between $136–$141 million (18.5% margin).

• Organic growth for public safety and nuclear businesses expected at 3%-5%.

• H2 2026 expected to be stronger, with Q1 revenue similar to Q3 2025 and margins around 39%.

• Capital expenditures for 2026 projected at $10–$14 million, mainly for nuclear capacity expansion.