Key Highlights

  • Net sales were USD 202.88 million against an estimate of USD 190.67 million and USD 155.87 million last year.
  • Diluted EPS was USD 0.37 against an estimate of USD 0.28, and Net Income was USD 15.99 million.
  • Orders Backlog stood at USD 338.2 million at September 30, against USD 189.8 million at December 31, 2025.
  • The board authorized a share repurchase program of up to USD 100 million on November 4.

Cadre Holdings (NYSE:CDRE), which does Business as The Safariland Group, makes safety equipment for law enforcement, first responders, military and nuclear markets. Its stated approach combines acquisitions, such as TYR Tactical in January 2026 for USD 186.1 million and Alien Gear holsters in April 2026 for USD 10.3 million, with Research and Development for new products. The company has since added Robadair in October for approximately USD 14.8 million.

Priorities, Acquisitions and Backlog

The company monitors orders backlog as an indicator of potential sales, and it was USD 338.2 million at September 30, against USD 189.8 million at year end 2025. It listed increases of USD 93.4 million from vehicle blast attenuation seats, blast exposure monitoring sensors and remotely operated vehicles, USD 39.7 million from the current year acquisition, USD 10.6 million from nuclear safety products and USD 9.7 million from duty gear holsters. The Distribution segment was USD 6.5 million lower.

Management said net sales growth in the quarter came primarily from current year acquisitions and increased Demand for explosive ordnance disposal (EOD) products. Most products ship within one to three weeks of an order, while EOD equipment can take three months or longer.

Financial Results

Net sales were USD 202.88 million against USD 155.87 million, and the estimate was USD 190.67 million. Diluted EPS was USD 0.37 against an estimate of USD 0.28 and USD 0.27 a year earlier. Net income was USD 15.99 million against USD 10.94 million, which the company attributed to higher gross profit, partly offset by Acquisition operating expenses, higher tax expense and higher compensation expense.

Gross profit was USD 88.09 million against USD 66.63 million, and selling, general and administrative expense was USD 58.88 million against USD 45.63 million, mainly from acquisitions and higher compensation. Operating Income was USD 28.35 million against USD 18.67 million. Adjusted EBITDA, a non-GAAP measure, was USD 41.07 million against USD 29.82 million. Interest expense, net was USD 5.41 million against USD 3.03 million because of borrowings used for acquisitions, and the effective tax rate was 33.2% against 26.3%.

Segments and Balance Sheet

Product segment net sales were USD 188.7 million against USD 138.8 million. The company cited USD 36.2 million from current year acquisitions and USD 13.4 million from increased EOD demand. Product Gross Profit was 43.7% of net sales against 43.9%. Distribution net sales were USD 23.6 million against USD 26.5 million on lower demand for hard and soft goods, with gross profit of 23.4% of net sales against 21.3%.

Nine-month Operating Cash Flow was USD 67.6 million, and cash and cash equivalents were USD 63.9 million at September 30. Outstanding debt, net of discounts and issuance costs, was USD 369.5 million against USD 307.3 million at December 31, primarily term loans. The 2024 Credit agreement's facilities mature on December 20, 2029. A Dividend of USD 0.10 per share was declared in the quarter.

Quarter in Numbers

Net sales of USD 202.88 million sit alongside diluted EPS of USD 0.37, adjusted EBITDA of USD 41.07 million and an orders backlog of USD 338.2 million.

Management named the Robadair acquisition completed in October and the share repurchase program of up to USD 100 million authorized on November 4. The program allows purchases through open market transactions, block trades, privately negotiated transactions or Rule 10b5-1 plans at management's discretion. The company also said the 2024 credit agreement requires a maximum consolidated total net Leverage Ratio of 3.50 to 1.00 and a minimum fixed charge coverage ratio of 1.25 to 1.00.