Cadre Holdings Inc (NYSE:CDRE)

Q2 2026 Cadre Holdings Inc Earnings Call Transcript

Aug 6, 2026 / 02:00 PM GMT

Release Date Price: $35.02 (+12.86%)

Transcript 10-Q8-K

Key Points

Positve

Cadre Holdings Inc (CDRE) delivered outstanding Q2 2026 results with net sales up 32% year-over-year and adjusted EBITDA up 56%, driven by strong demand across all core markets.
The company raised its full-year 2026 guidance, now expecting revenue and adjusted EBITDA growth of 24.4% and 26.7% respectively at the midpoints, reflecting strong confidence in the back half of the year.
Record backlog for the second consecutive quarter, with significant increases in armor, duty gear, and nuclear segments, provides strong forward visibility and supports the upwardly revised outlook.
Major strategic wins include a second $8.4 million purchase order for the U.S. Military's Blast Exposure Monitoring (BMO) program and the selection of Safariland's SXHP ballistic panel for the FBI's five-year, $61 million IDIQ contract.
Successful M&A execution with the acquisition of Alien Gear Holsters, which is performing above expectations, and a robust pipeline that includes at least one more acquisition expected in 2026.
Strong balance sheet with net leverage down to 2.5 times, providing ample financial flexibility to pursue both tuck-in and larger strategic acquisitions.
Nuclear vertical showing robust demand with backlog increasing $13 million year-to-date, driven by national defense priorities, environmental remediation, and the commercial nuclear renaissance.
Gross margins expanded 120 basis points year-over-year (209 basis points adjusted for inventory step-up), driven by favorable product mix and volume leverage.

Negative

Cadre Holdings Inc (CDRE) faces FX headwinds, with $6.6 million adversely impacting bottom-line earnings in Q2 2026.
The down blending executive order is causing margin and mix pressure in a nuclear subsegment, impacting less than 8% of nuclear revenue and creating some uncertainty.
Q3 2026 revenue is expected to be lower at around $190 million with adjusted EBITDA margins of about 18%, indicating a sequential slowdown from Q2's strong performance.
The company noted that some Q2 revenue was pulled forward from Q3 due to earlier-than-expected customer shipments, which could create a tougher comparison in the following quarter.
European nuclear margins are expected to normalize in the back half after a favorable Q2 mix driven by robotic arms, potentially leading to lower profitability in that segment.
The integration of recent acquisitions like Alien Gear and Tier Tactical is still in early stages, with the Cadre operating model benefits not expected to show up in financial results this year.
Organic growth of 5% in Q2 was at the high end of the 3% to 5% range, but the company continues to monitor municipal budget pressures that could impact future demand for discretionary products.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CDRE.N - Cadre Holdings Inc
Q2 2026 Cadre Holdings Inc Earnings Call
Aug 06, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning and welcome to Cadre Holdings' second-quarter 2026 conference call. Today's call is being recorded. All lines have been placed on mute.

If you would like to ask a question at the end of the prepared remarks, please press the star key, then the number 1 on your touchtone phone.

At this time, I would like to turn the conference over to Matt Berkowitz of the IGB Group for the introductions and the reading of the Safe Harbor Statement. Please go ahead, sir.

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Unidentified_2 [2]
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Thank you.

And welcome to today's conference

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