Cadre Holdings — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales reached $202.9 million for the quarter ended September 30, 2026, a 30% increase year-over-year from $155.9 million; nine-month net sales totaled $565.4 million, up from $443.1 million.
• Net income was $16.0 million ($0.37 per diluted share) for the quarter, compared to $10.9 million ($0.27 per diluted share) in the prior year; nine-month net income was $29.4 million ($0.68 per diluted share), down from $32.4 million ($0.80 per diluted share).
• Adjusted EBITDA was $41.1 million for the quarter, up from $29.8 million, with an Adjusted EBITDA margin of 20.2% compared to 19.1% in the prior year; nine-month Adjusted EBITDA was $104.2 million, up from $77.3 million, with a margin of 18.4% versus 17.4%.
• Gross profit margin was 43.4% for the quarter (up from 42.7%) and 41.6% for the nine months (down from 42.2%).
• Cash and cash equivalents decreased to $63.9 million as of September 30, 2026, from $122.9 million at December 31, 2025.
• Total debt increased to $369.5 million as of September 30, 2026, from $307.3 million at December 31, 2025; net debt rose to $305.6 million from $184.4 million.
• Capital expenditures totaled $2.9 million for the quarter and $9.3 million for the nine months, compared to $0.6 million and $3.6 million in the prior year periods, respectively.

Guidance and Future Outlook:

• Cadre raised full-year 2026 guidance for the second consecutive quarter, projecting net sales between $756 million and $769 million and Adjusted EBITDA between $140 million and $144 million.
• Capital expenditures for 2026 are expected to range from $11 million to $14 million.
• The company does not provide net income guidance due to the difficulty of forecasting certain expenses and gains that affect net income but not Adjusted EBITDA.
• Management targets further operating margin expansion through the Cadre Operating Model, focusing on manufacturing productivity, sourcing, pricing discipline, and overhead efficiency.
• AI initiatives are planned to target repetitive workflows, improve decision-making, and enable teams to scale more efficiently.

Business Segments and Product Lines:

• Product segment gross profit margin was 43.7% for the quarter and 42.3% for the nine months, compared to 43.9% and 43.3% in the prior year periods.
• Distribution segment gross profit margin was 23.4% for the quarter and 22.1% for the nine months, compared to 21.3% and 22.0% in the prior year periods.
• Sales growth was driven by current-year acquisitions and increased demand for EOD (Explosive Ordnance Disposal) products.
• Nine-month sales growth was also driven by higher demand for crowd control and chemiluminescent products.

Market and Competitive Landscape:

• Demand drivers include heightened geopolitical uncertainty, evolving public-safety requirements, and investment in nuclear infrastructure.
• Cadre operates as a global leader in manufacturing and distribution of safety equipment for law enforcement, first responders, military, and nuclear markets.
• The company continues to pursue complementary acquisitions to drive profitable growth.

Risks and Challenges:

• Net income for the nine months was negatively impacted by acquisition operating expenses, increased compensation expense, interest expense, and adverse foreign currency fluctuations.
• Quarterly gross profit margin was partially offset by unfavorable operating leverage despite favorable pricing.
• Forward-looking statements involve risks and uncertainties, including those described in the company's public reports filed with the SEC.

Management Commentary and Tone:

• CEO Warren Kanders stated that results reflect strong execution with double-digit organic growth and acquisition contributions driving a 30% sales increase.
• Management expressed confidence in enduring demand drivers and cited healthy customer demand as the basis for raising guidance.
• The tone emphasized a disciplined approach to capital allocation and the application of the operating model across existing and newly acquired businesses.

Other Key Points:

• The Board of Directors authorized a $100 million inaugural stock repurchase program for common stock.
• A quarterly cash dividend of $0.10 per share was declared in October 2026, with an annualized rate of $0.40 per share; payment is scheduled for November 13, 2026.
• Business acquisitions, net of cash acquired, totaled $164.8 million for the nine months ended September 30, 2026.
• Goodwill increased to $233.7 million as of September 30, 2026, from $181.4 million as of December 31, 2025.
• Intangible assets increased to $170.9 million as of September 30, 2026, from $115.0 million as of December 31, 2025.