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Cadre Holdings Inc

Cadre Holdings Reports First Quarter 2026 Financial Results

Q1 Net Sales Grew 19% Year-Over-Year

Record Orders Backlog of $355 Million; Organic Backlog Increased $108 Million from Q4 to Q1

Reaffirms 2026 Full-Year Guidance

JACKSONVILLE, Fla.--(BUSINESS WIRE)--May 11, 2026-- Cadre Holdings, Inc. (NYSE: CDRE) (“Cadre” or “Company”), a global leader in the manufacturing and distribution of safety equipment and other related products for the law enforcement, first responder, military and nuclear markets, announced today its consolidated operating results for the three months ended March 31, 2026.

  • Net sales of $155.4 million for the first quarter
  • Gross profit margin of 38.7% for the first quarter
  • Net income of $2.0 million, or $0.05 per diluted share, for the first quarter
  • Adjusted EBITDA of $21.1 million for the first quarter
  • Adjusted EBITDA margin of 13.6% for the first quarter
  • Declared quarterly cash dividend of $0.10 per share in April 2026.

“Following a year of meaningful financial and strategic progress, we began 2026 with significant momentum and delivered another quarter of strong performance,” said Warren Kanders, CEO and Chairman. “Our orders backlog ended the first quarter at $355 million, a record for Cadre, up $166 million from the start of the year, driven largely by the blast attenuation seat contract award and the TYR acquisition, as well as strong demand in duty gear and armor. The substantial backlog growth represents an important forward indicator and gives us confidence in our outlook as we progress through the remainder of 2026. Overall, we continue to see strong and recurring demand for our suite of leading, mission-critical safety products, and today’s environment of heightened geopolitical tension and increased defense spending, reinforces our belief in Cadre’s growth trajectory.”

Mr. Kanders added, “Since January 2024, Cadre has deployed over $400 million in targeted M&A, including our latest acquisition of Alien Gear Holsters, a recognized brand with an established direct-to-consumer presence. We continue to strengthen our diversified platform of durable safety businesses and remain well positioned to capitalize on attractive growth opportunities ahead, supported by a robust acquisition pipeline and significant financial flexibility. Looking forward, we are focused on further embedding the Cadre Operating Model across our full portfolio with its principles of lean operations, continuous improvement, and leadership accountability driving value as we scale.”

First Quarter 2026 Operating Results

For the quarter ended March 31, 2026, Cadre generated net sales of $155.4 million, as compared to $130.1 million for the quarter ended March 31, 2025, primarily as a result of recent acquisitions, partially offset by timing-related order fluctuations and lower demand for existing nuclear safety products and lower agency demand for hard goods in the Distribution segment.

For the quarter ended March 31, 2026, Cadre generated gross profit of $60.2 million, as compared to $56.1 million for the quarter ended March 31, 2025.

Gross profit margin was 38.7% for the quarter ended March 31, 2026, as compared to 43.1% for the quarter ended March 31, 2025, mainly driven by an increase in inventory step-up amortization and unfavorable product mix, partially offset by favorable pricing, net of material inflation.

Net income was $2.0 million for the quarter ended March 31, 2026, as compared to net income of $9.2 million for the quarter ended March 31, 2025, primarily as a result of increases in compensation expense, interest expense, transaction expense and related party expense, partially offset by increased gross profit.

Cadre generated $21.1 million of Adjusted EBITDA for the quarter ended March 31, 2026, as compared to $20.5 million for the quarter ended March 31, 2025. Adjusted EBITDA margin was 13.6% for the quarter ended March 31, 2026, as compared to 15.8% for the prior year period.

Product segment gross profit margin was 39.9% for the first quarter, compared to 44.4% for the prior year period.

Distribution segment gross profit margin was 19.7% for the first quarter, compared to 21.6% for the prior year period.

Liquidity, Cash Flows and Capital Allocation

  • Cash and cash equivalents decreased by $81.6 million from $122.9 million as of December 31, 2025 to $41.3 million as of March 31, 2026.
  • Total debt increased by $58.5 million from $307.3 million as of December 31, 2025 to $365.8 million as of March 31, 2026.
  • Net debt (total debt net of cash and cash equivalents) increased by $140.2 million from $184.4 million as of December 31, 2025 to $324.6 million as of March 31, 2026.
  • Capital expenditures totaled $3.1 million for the three months ended March 31, 2026, compared with $1.4 million for the three months ended March 31, 2025.

Acquisition of Alien Gear Holsters

On April 7, 2026, Cadre completed its acquisition of Alien Gear Holsters and certain assets from Tedder Industries, LLC, through a court-supervised bankruptcy auction. Alien Gear Holsters is a leading manufacturer of proprietary holsters and gear for the consumer, law enforcement, military, and security markets.

GDELS Contract Award

On March 10, 2026, Cadre announced that its subsidiary Med-Eng, LLC had been awarded two contracts totaling $86.4 million by General Dynamics European Land Systems (GDELS) to provide blast attenuation seats. The seats will be deployed in the upcoming production of Mowag EAGLE V 4x4 command and control vehicles, and the Mowag EAGLE V 6x6 medium protected ambulance military vehicles. Production is expected to start this year with smaller deliveries occurring in 2026 with full scale deliveries occurring in 2027.

Acquisition of TYR Tactical

On January 30, 2026, Cadre completed its acquisition of TYR Tactical, LLC, a leading global manufacturer of tactical gear and equipment for military, law enforcement, and government agencies worldwide.

Dividend

On April 21, 2026, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.10 per share, or $0.40 per share on an annualized basis. Cadre's dividend payment will be made on May 15, 2026 to shareholders of record as of the close of business on the record date of May 1, 2026. The declaration of any future dividend is subject to the discretion of the Company's Board of Directors.

2026 Outlook

For the full year 2026, Cadre expects to generate net sales in the range of $736 million to $758 million and adjusted EBITDA in the range of $136 million and $141 million. We expect capital expenditures to be in the range of $10 million to $14 million. Cadre has not provided net income guidance due to the inherent difficulty of forecasting certain types of expenses and gains, which affect net income but not adjusted EBITDA. Therefore, we do not provide a reconciliation of adjusted EBITDA guidance to net income guidance.

Conference Call

Management will host a conference call on Tuesday, May 12, 2026, at 10:00 a.m. EST to discuss the latest corporate developments and financial results. The dial-in number for callers in the US is (800)-715-9871 and the dial-in number for international callers is 646-307-1963. The access code for all callers is 9511718. A live webcast will also be available on the Company’s website at https://www.cadre-holdings.com/.

A replay of the call will be available through May 26, 2026. To access the replay, please dial 800-770-2030 in the U.S. or +1-609-800-9909 if outside the U.S., and then enter the access code 9511718.

About Cadre

Headquartered in Jacksonville, Florida, Cadre is a global leader in the manufacturing and distribution of safety products. Cadre's equipment provides critical protection to allow users to safely and securely perform their duties and protect those around them in hazardous or life-threatening situations. The Company's core products include body armor, explosive ordnance disposal equipment, duty gear and nuclear safety products. Our highly engineered products are utilized in over 100 countries by federal, state and local law enforcement, fire and rescue professionals, explosive ordnance disposal teams, and emergency medical technicians. Our key brands include Safariland® and Med-Eng®, amongst others.

Use of Non-GAAP Measures

The Company reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). The press release contains the non-GAAP measures: (i) earnings before interest, taxes, other income or expense, depreciation and amortization (“EBITDA”), (ii) adjusted EBITDA and (iii) adjusted EBITDA margin. The Company believes the presentation of these non-GAAP measures provides useful information for the understanding of its ongoing operations and enables investors to focus on period- over-period operating performance, and thereby enhances the user’s overall understanding of the Company’s current financial performance relative to past performance and provides, along with the nearest GAAP measures, a baseline for modeling future earnings expectations. Non-GAAP measures are reconciled to comparable GAAP financial measures within this press release. We do not provide a reconciliation of the non-GAAP guidance measure adjusted EBITDA for the fiscal year 2026 to net income for the fiscal year 2026, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, without unreasonable effort, which affect net income but not adjusted EBITDA. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company’s reported GAAP results. Additionally, the Company notes that there can be no assurance that the above referenced non-GAAP financial measures are comparable to similarly titled financial measures used by other publicly traded companies.

Forward-Looking Statements

Please note that in this press release we may use words such as “appears,” “anticipates,” “believes,” “plans,” “expects,” “intends,” “future,” and similar expressions which constitute forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on our expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. We caution that forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in the forward-looking statements. Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this press release, include, but are not limited to, those risks and uncertainties more fully described from time to time in the Company's public reports filed with the Securities and Exchange Commission, including under the section titled “Risk Factors” in the Company's Annual Report on Form 10-K, and/or Quarterly Reports on Form 10-Q, as well as in the Company’s Current Reports on Form 8-K. All forward-looking statements included in this press release are based upon information available to the Company as of the date of this press release and speak only as of the date hereof. We assume no obligation to update any forward- looking statements to reflect events or circumstances after the date of this press release.

CADRE HOLDINGS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

March 31, 2026

 

December 31, 2025

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

41,272

 

 

$

122,898

Restricted cash

 

 

2,380

 

 

 

2,429

Accounts receivable, net of allowance for doubtful accounts of $300 and $273, respectively

 

 

111,292

 

 

 

110,607

Inventories

 

 

130,989

 

 

 

100,263

Prepaid expenses

 

 

15,782

 

 

 

14,574

Other current assets

 

 

17,049

 

 

 

15,095

Total current assets

 

 

318,764

 

 

 

365,866

Property and equipment, net of accumulated depreciation and amortization of $64,925 and $63,125, respectively

 

 

124,115

 

 

 

78,822

Operating lease assets

 

 

22,885

 

 

 

19,778

Deferred tax assets, net

 

 

4,731

 

 

 

4,816

Intangible assets, net

 

 

173,321

 

 

 

114,984

Goodwill

 

 

231,225

 

 

 

181,406

Other assets

 

 

4,695

 

 

 

4,359

Total assets

 

$

879,736

 

 

$

770,031

 

 

 

 

 

 

 

Liabilities, Mezzanine Equity and Shareholders' Equity

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

39,901

 

 

$

22,325

Accrued liabilities

 

 

82,387

 

 

 

61,066

Income tax payable

 

 

2,618

 

 

 

4,838

Current portion of long-term debt

 

 

16,263

 

 

 

16,266

Total current liabilities

 

 

141,169

 

 

 

104,495

Long-term debt

 

 

349,567

 

 

 

290,987

Long-term operating lease liabilities

 

 

14,969

 

 

 

15,039

Deferred tax liabilities

 

 

30,097

 

 

 

30,058

Other liabilities

 

 

7,818

 

 

 

11,648

Total liabilities

 

 

543,620

 

 

 

452,227

 

 

 

 

 

 

 

Mezzanine equity

 

 

 

 

 

 

Preferred stock ($0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2026 and December 31, 2025)

 

 

—

 

 

 

—

 

 

 

 

 

 

 

Shareholders' equity

 

 

 

 

 

 

Common stock ($0.0001 par value, 190,000,000 shares authorized, 42,797,451 and 42,160,656 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively)

 

 

4

 

 

 

4

Additional paid-in capital

 

 

305,897

 

 

 

282,570

Accumulated other comprehensive (loss) income

 

 

(2,248

)

 

 

460

Accumulated earnings

 

 

32,463

 

 

 

34,770

Total shareholders’ equity

 

 

336,116

 

 

 

317,804

Total liabilities, mezzanine equity and shareholders' equity

 

$

879,736

 

 

$

770,031

CADRE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2026

 

2025

Net sales

 

$

155,429

 

 

$

130,106

 

Cost of goods sold

 

 

95,263

 

 

 

73,975

 

Gross profit

 

 

60,166

 

 

 

56,131

 

Operating expenses

 

 

 

 

 

 

Selling, general and administrative

 

 

48,833

 

 

 

41,753

 

Restructuring and transaction costs

 

 

1,842

 

 

 

698

 

Related party expense

 

 

2,000

 

 

 

128

 

Total operating expenses

 

 

52,675

 

 

 

42,579

 

Operating income

 

 

7,491

 

 

 

13,552

 

Other expense

 

 

 

 

 

 

Interest expense, net

 

 

(4,271

)

 

 

(2,231

)

Other (expense) income, net

 

 

(389

)

 

 

1,287

 

Total other expense, net

 

 

(4,660

)

 

 

(944

)

Income before provision for income taxes

 

 

2,831

 

 

 

12,608

 

Provision for income taxes

 

 

(856

)

 

 

(3,360

)

Net income

 

$

1,975

 

 

$

9,248

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

Basic

 

$

0.05

 

 

$

0.23

 

Diluted

 

$

0.05

 

 

$

0.23

 

Weighted average shares outstanding:

 

 

 

 

 

 

Basic

 

 

42,558,154

 

 

 

40,618,554

 

Diluted

 

 

43,363,704

 

 

 

40,980,861

 

CADRE HOLDINGS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

 

2026

 

2025

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net income

 

$

1,975

 

 

$

9,248

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

5,728

 

 

 

3,856

 

Amortization of original issue discount and debt issue costs

 

 

241

 

 

 

500

 

Amortization of inventory step-up

 

 

2,559

 

 

 

—

 

Deferred income taxes

 

 

78

 

 

 

533

 

Stock-based compensation

 

 

1,926

 

 

 

1,968

 

Remeasurement of contingent consideration

 

 

(564

)

 

 

331

 

Recoveries from losses on accounts receivable

 

 

(329

)

 

 

(17

)

Unrealized foreign exchange transaction loss (gain)

 

 

643

 

 

 

(731

)

Other loss

 

 

217

 

 

 

41

 

Changes in operating assets and liabilities, net of impact of acquisitions:

 

 

 

 

 

 

Accounts receivable

 

 

10,255

 

 

 

10,633

 

Inventories

 

 

(10,492

)

 

 

(9,143

)

Prepaid expenses and other assets

 

 

(3,252

)

 

 

1,340

 

Accounts payable and other liabilities

 

 

13,536

 

 

 

(1,168

)

Net cash provided by operating activities

 

 

22,521

 

 

 

17,391

 

Cash Flows From Investing Activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(2,680

)

 

 

(1,309

)

Business acquisitions, net of cash acquired

 

 

(153,553

)

 

 

—

 

Net cash used in investing activities

 

 

(156,233

)

 

 

(1,309

)

Cash Flows From Financing Activities:

 

 

 

 

 

 

Proceeds from revolving credit facilities

 

 

62,500

 

 

 

—

 

Principal payments on term loans

 

 

(4,031

)

 

 

(2,813

)

Taxes paid in connection with employee stock transactions

 

 

(1,241

)

 

 

(1,140

)

Dividends distributed

 

 

(4,282

)

 

 

(3,859

)

Other

 

 

(54

)

 

 

—

 

Net cash provided by (used in) financing activities

 

 

52,892

 

 

 

(7,812

)

Effect of foreign exchange rates on cash, cash equivalents and restricted cash

 

 

(855

)

 

 

228

 

Change in cash, cash equivalents and restricted cash

 

 

(81,675

)

 

 

8,498

 

Cash, cash equivalents and restricted cash, beginning of period

 

 

125,327

 

 

 

124,933

 

Cash, cash equivalents and restricted cash, end of period

 

$

43,652

 

 

$

133,431

 

Supplemental Disclosure of Cash Flows Information:

 

 

 

 

 

 

Cash paid for income taxes, net

 

$

3,800

 

 

$

2,017

 

Cash paid for interest

 

$

4,907

 

 

$

3,527

 

Supplemental Disclosure of Non-Cash Investing and Financing Activities:

 

 

 

 

 

 

Accruals and accounts payable for capital expenditures

 

$

418

 

 

$

104

 

Non-cash consideration

 

$

31,647

 

 

$

—

 

CADRE HOLDINGS, INC.

SEGMENT INFORMATION

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2026

 

 

 

 

 

 

 

 

Reconciling

 

 

 

 

 

Product

 

Distribution

 

Items(1)

 

Total

Net sales

 

$

140,639

 

$

20,295

 

$

(5,505)

 

$

155,429

Cost of goods sold

 

 

84,463

 

 

16,307

 

 

(5,507)

 

 

95,263

Gross profit

 

$

56,176

 

$

3,988

 

$

2

 

$

60,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31, 2025

 

 

 

 

 

 

 

 

Reconciling

 

 

 

 

 

Product

 

Distribution

 

Items(1)

 

Total

Net sales

 

$

112,735

 

$

27,862

 

$

(10,491

)

 

$

130,106

Cost of goods sold

 

 

62,625

 

 

21,841

 

 

(10,491

)

 

 

73,975

Gross profit

 

$

50,110

 

$

6,021

 

$

—

 

 

$

56,131

 

(1)

Reconciling items consist primarily of intercompany eliminations and items not directly attributable to operating segments.

CADRE HOLDINGS, INC.

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended

 

Three Months Ended

 

Last Twelve

 

 

December 31,

 

March 31,

 

Months

 

 

2025

 

2026

 

2025

 

March 31, 2026

Net income

 

$

44,139

 

 

$

1,975

 

 

$

9,248

 

 

$

36,866

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

18,633

 

 

 

5,728

 

 

 

3,856

 

 

 

20,505

 

Interest expense, net

 

 

12,480

 

 

 

4,271

 

 

 

2,231

 

 

 

14,520

 

Provision for income taxes

 

 

18,187

 

 

 

856

 

 

 

3,360

 

 

 

15,683

 

EBITDA

 

$

93,439

 

 

$

12,830

 

 

$

18,695

 

 

$

87,574

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and transaction costs(1)

 

 

8,696

 

 

 

3,842

 

 

 

698

 

 

 

11,840

 

Other expense (income), net(2)

 

 

(7,455

)

 

 

389

 

 

 

(1,287

)

 

 

(5,779

)

Stock-based compensation expense(3)

 

 

12,239

 

 

 

1,926

 

 

 

1,968

 

 

 

12,197

 

Stock-based compensation payroll tax expense(4)

 

 

1,566

 

 

 

129

 

 

 

92

 

 

 

1,603

 

Amortization of inventory step-up(5)

 

 

1,296

 

 

 

2,559

 

 

 

—

 

 

 

3,855

 

Contingent consideration expense(6)

 

 

1,927

 

 

 

(564

)

 

 

331

 

 

 

1,032

 

Adjusted EBITDA

 

$

111,708

 

 

$

21,111

 

 

$

20,497

 

 

$

112,322

 

Adjusted EBITDA margin(7)

 

 

18.5

 

%

 

13.6

 

%

 

15.8

 

%

 

 

 

(1)

Reflects the “Restructuring and transaction costs” line item on our condensed consolidated statements of operations, which primarily includes transaction costs composed of legal and consulting fees. In addition, this line item reflects a $1.0 million fee paid to Kanders & Company, Inc. for services related to the acquisition of Zircaloy for the year ended December 31, 2025 and a $2.0 million fee paid to Kanders & Company, Inc. for services related to the acquisition of TYR for the three months ended March 31, 2026, which are included in related party expense in the Company’s condensed consolidated statements of operations.

(2)

Reflects the “Other (expense) income, net” line item on our condensed consolidated statements of operations and primarily includes transaction gains and losses due to fluctuations in foreign currency exchange rates.

(3)

Reflects compensation expense related to equity classified stock-based compensation plans.

(4)

Reflects payroll taxes associated with vested stock-based compensation awards.

(5)

Reflects amortization expense related to the step-up inventory adjustment recorded as a result of our recent acquisitions.

(6)

Reflects contingent consideration expense related to the acquisition of ICOR and TYR.

(7)

Reflects adjusted EBITDA divided by net sales for the relevant periods.

 

Gray Hudkins
Cadre Holdings, Inc.
203-550-7148
gray.hudkins@cadre-holdings.com

Investor Relations:
IGB Group
Leon Berman / Matt Berkowitz
212-477-8438 / 212-227-7098

Source: Cadre Holdings, Inc.