8-K: Cadre Holdings Reports Q1 2026 Results, Record Backlog

Cadre Holdings announced its first quarter 2026 financial results, showcasing a 19% year-over-year net sales increase and a record orders backlog of $355 million.

Summary

• Cadre Holdings reported first quarter 2026 net sales of $155.4 million, a 19% increase compared to $130.1 million in the prior year period.
• The company achieved a record orders backlog of $355 million, up $166 million from the start of the year, driven by acquisitions and strong demand.
• Net income for the quarter was $2.0 million ($0.05 per diluted share), a decrease from $9.2 million ($0.23 per diluted share) in Q1 2025.
• Adjusted EBITDA was $21.1 million, a slight increase from $20.5 million in the prior year period, with an Adjusted EBITDA margin of 13.6%.
• The company reaffirmed its full-year 2026 guidance for net sales between $736 million and $758 million, and Adjusted EBITDA between $136 million and $141 million.
• Cadre Holdings completed the acquisition of Alien Gear Holsters on April 7, 2026, for $10.3 million.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a mixed result; while top-line growth and backlog are strong positives, the significant decline in net income and margins presents a concern.

Positives

• Net sales increased by 19% year-over-year to $155.4 million.
• Record orders backlog of $355 million, up $166 million sequentially, indicating strong future demand.
• Acquisition of Alien Gear Holsters strengthens the company's product portfolio and direct-to-consumer presence.
• Reaffirmed full-year 2026 guidance for net sales and Adjusted EBITDA.
• Declared its 18th consecutive quarterly cash dividend of $0.10 per share.

Negatives

• Net income decreased significantly to $2.0 million from $9.2 million in the prior year quarter.
• Gross profit margin declined to 38.7% from 43.1% due to inventory step-up amortization and unfavorable product mix.
• Adjusted EBITDA margin decreased to 13.6% from 15.8% in the prior year period.
• Cash and cash equivalents decreased by $81.6 million from December 31, 2025, to $41.3 million as of March 31, 2026.
• Total debt increased by $58.5 million to $365.8 million, and net debt increased by $140.2 million to $324.6 million.

Risks

• Potential risks and uncertainties that could cause actual results to differ materially from forward-looking statements are described in the company's SEC filings.
• The company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, reported GAAP results.
• There can be no assurance that the non-GAAP financial measures used are comparable to similarly titled measures used by other companies.
• The suspension of the plutonium downblending program represents a near-term headwind for the nuclear sector.

Future Outlook

For the full year 2026, Cadre expects net sales in the range of $736 million to $758 million and Adjusted EBITDA between $136 million and $141 million. Capital expenditures are projected to be between $10 million and $14 million.

Management Comments

• Following a year of meaningful financial and strategic progress, we began 2026 with significant momentum and delivered another quarter of strong performance.
• 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.
• 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.

Industry Context

StockSavvy.ai notes that Cadre Holdings operates in markets benefiting from increased defense spending and ongoing demand for safety equipment, aligning with broader geopolitical trends and the continued focus on public safety initiatives.

Comparison to Industry Standards

• The company's Adjusted EBITDA margin of 13.6% in Q1 2026 is lower than its prior year period margin of 15.8%, suggesting potential pressure on profitability compared to its own historical performance.
• While specific industry benchmarks for safety equipment manufacturers are not detailed in the filing, the decline in gross profit margin and net income warrants attention relative to peer performance if available.

Related Party Transactions

• A $2.0 million fee was paid to Kanders & Company, Inc. for services related to the acquisition of TYR, included in related party expense.

Stakeholder Impact

• Shareholders benefit from the declared quarterly cash dividend, continuing a streak of payments.
• The acquisition of Alien Gear Holsters may lead to expanded product offerings for customers.
• Increased debt levels could impact future financial flexibility for creditors and the company.

Next Steps

• Continue to embed the Cadre Operating Model across the full portfolio.
• Focus on improving gross and Adjusted EBITDA margins.
• Actively evaluate and execute on the acquisition pipeline.
• Management will host a conference call on May 12, 2026, to discuss results and developments.

Key Dates

Recommendation

The company shows strong revenue growth and a record backlog, indicating positive operational momentum and strategic execution through acquisitions. However, the significant decrease in net income and margins, coupled with increased debt, suggests a need for caution. A 'hold' recommendation reflects the balance between growth prospects and profitability concerns, pending further operational improvements and integration success.

Keywords

Cadre Holdings, 8-K, Financial Results, Q1 2026, Net Sales, Adjusted EBITDA, Acquisition, Backlog