Cadre Q2 Earnings Call Highlights

Cadre NYSE: CDRE reported second-quarter results marked by higher sales, profitability and backlog, citing demand across public safety and nuclear safety markets and contributions from recent acquisitions. Chairman and CEO Warren Kanders said net sales increased 32% year over year in the second quarter, while adjusted EBITDA rose 56%. The company also reported 5% organic top-line growth. Kanders said the results reflected recurring demand for mission-critical products serving law enforcement, first responders, military customers and nuclear markets. “Our performance through the first half of the year, combined with our record orders backlog and continued momentum, reinforces our confidence in Cadre’s outlook,” Kanders said.

Chief Financial Officer Blaine Browers said second-quarter net sales totaled $207.1 million, up 32% from a year earlier, with growth in armor, duty gear, nuclear products and distribution. Gross profit rose 36% to $87.1 million. Gross margin expanded 120 basis points year over year, or 209 basis points excluding inventory step-up amortization. Second-quarter net income included $2 million of inventory step-up amortization and $5.9 million of contingent consideration expense, Browers said. Foreign-exchange headwinds adversely affected bottom-line earnings by $6.6 million.

Cadre raised its 2026 guidance and now expects: Net sales of $749 million to $769 million. Adjusted EBITDA of $139 million to $144 million. Adjusted EBITDA margin of approximately 18.6%. Organic revenue growth of 3% to 5% for the full year. At the midpoint of the updated ranges, the outlook implies revenue growth of 24.4% and adjusted EBITDA growth of 26.7% year over year, according to Browers. The guidance incorporates the acquisition of Alien Gear Holsters and reflects the company’s improved view of full-year revenue and profitability. For the third quarter, Cadre expects revenue of about $190 million and adjusted EBITDA margins of roughly 18%. Browers said the company expects the fourth quarter to have a financial profile similar to the second quarter. The company’s net leverage stood at 2.5 times as of June 30, 2026.

President Brad Williams said Cadre’s backlog reached a record level for the second consecutive quarter and increased $13 million sequentially. The increase was supported by demand for explosive ordnance disposal, or EOD, products. Browers said backlog also rose in armor, duty gear and nuclear operations, with armor backlog up 10% to 15% from year-end even excluding the impact of large EOD-related awards. During the quarter, Med-Eng received an $8.4 million purchase order under its five-year, $50 million indefinite-delivery, indefinite-quantity contract for the U.S. military’s Blast Exposure Monitoring program. The order brought total purchase orders received under the program to $18.4 million. Separately, Safariland’s SX HP ballistic panel was selected as the ballistic pack...