Cadre (NYSE:CDRE) reported a 19% year-over-year increase in first-quarter 2026 net sales and reaffirmed its full-year outlook, with management pointing to record backlog, recent acquisitions and sustained demand across public safety and nuclear safety markets.
Chairman and CEO Warren Kanders said Cadre entered 2026 with “greater scale and an expanded set of growth opportunities” and delivered “another quarter of financial and operational progress.” The company reported first-quarter net sales of $155.4 million, up 19% from the prior-year period.
Kanders said demand remained strong and recurring across Cadre’s law enforcement, first responder, military and nuclear categories. He also said the company is “on pace for record net sales and Adjusted EBITDA in 2026,” based on the midpoint of its reaffirmed guidance ranges.
Backlog Reaches Record Level
Cadre ended the quarter with a record orders backlog of $355 million, up $166 million from the prior quarter. President Brad Williams said the increase included $108 million of organic backlog growth and $57 million from the acquisition of TYR Tactical.
The largest contributor to organic backlog growth was an $87 million increase tied to the Blast Attenuation Seat contract announced in March. Williams described the seven-year contract with General Dynamics European Land Systems as “a key milestone” and evidence of increased European defense spending. Another $22 million of organic backlog growth came primarily from demand for duty gear and armor products.
Williams said the company still has larger opportunities in play across armor, duty gear, explosive ordnance disposal and crowd control. He said the backlog increase is an “important forward indicator” and supports management’s confidence in the full-year outlook.
In response to an analyst question, Williams said the Blast Attenuation Seat contract could generate small shipments this year, but most of that revenue is expected to move into 2027. He said shorter-cycle categories such as armor, duty gear, crowd control and chemiluminescence are expected to ship in the current year, and the previously announced $10 million Blast Sensor contract is expected to ship completely in 2026.
Acquisitions Remain Central to Growth Strategy
Management emphasized that mergers and acquisitions remain a key part of Cadre’s strategy. Since its initial public offering, the company has completed seven acquisitions, including TYR Tactical in January and Alien Gear Holsters in April. Kanders described TYR as a $175 million strategic platform acquisition and Alien Gear as a $10 million bolt-on.
Chief Financial Officer Blaine Browers said Cadre has deployed more than $400 million toward targeted M&A since the start of 2024. He said the company continues to focus on businesses with strong margins, defensible market positions and recurring revenues and cash flows.
Alien Gear Holsters was acquired for $10.3 million through a court-supervised bankruptcy auction. Browers said the company is a recognized holster brand with a single-site operation in Idaho and integrated injection molding capabilities.
Williams said Alien Gear produced about $20 million in revenue last year and EBITDA “a little north of 10%,” though he cautioned that the bankruptcy process makes historical results less indicative of the current year. Alien Gear is not included in Cadre’s guidance, he said, because the transaction closed only a few weeks before the call.
On TYR Tactical, Williams said the acquisition is “meeting and exceeding expectations” and that Cadre has begun work on projects involving TYR, Safariland and Med-Eng, including new products and go-to-market strategies.
Guidance Reaffirmed for 2026
Cadre reaffirmed its 2026 outlook for net sales of $736 million to $758 million and Adjusted EBITDA of $136 million to $141 million. Browers said the guidance implies an Adjusted EBITDA margin of 18.5% and year-over-year growth of 22.4% in revenue and 24% in Adjusted EBITDA at the midpoints.
The company continues to expect full-year organic revenue growth of 3% to 5%. Browers said second-quarter revenue is expected to be around $178 million, with Adjusted EBITDA margins around 17.5%. He said the back half of the year is expected to account for about 55% of full-year revenue.
Browers said the expected sequential increase from the first quarter to the second quarter reflects a full quarter of TYR, as well as improvements in distribution, EOD and armor. He said margins should improve through the year due to mix and leverage on higher revenue.
Cadre’s net leverage was just under 3 times as of March 31, or less than 2.5 times after factoring in a full year of TYR earnings. Browers said free cash flow, excluding acquisitions, would be used primarily for debt reduction while maintaining the dividend. Williams noted that Cadre’s May dividend payment will mark its 17th consecutive dividend since the IPO.
Market Trends: Public Safety and Nuclear
Management said Cadre continues to see durable demand in public safety and nuclear safety markets, supported by replacement cycles, geopolitical tension and defense spending. Williams said the company stands to benefit from the current U.S. administration’s commitment to public safety and investment in federal agencies.
However, Williams said Cadre is monitoring signs of softness in its company-owned distribution segment, particularly for discretionary third-party items. He said this is the first such softness since the COVID period and the “Defund the Police” movement. Still, he said the company has not seen weakness in Cadre-made products, which management attributes to their mission-critical nature.
In Cadre’s consumer channel, Williams said the Safariland brand and new product introductions are driving share gains despite a challenging consumer environment. He said the channel was up 6.7% year-over-year in the first quarter.
In nuclear, Williams said the Department of Energy’s 2027 budget submitted to Congress was up 10% overall, while non-NNSA funding was down 11%. He said the budget reflects a shift toward defense-related applications, potentially supporting demand for Cadre’s critical alarm systems, ventilation, containment, robotic arms and container businesses.
Asked about plutonium down blending, Williams said there had been no change since Cadre’s prior earnings update. He said the company continues to see a long-term need tied to the DOE’s obligations to remove surplus plutonium, though there is currently “a bit of a lull” in demand for that specific product and application.
Williams closed the call by saying Cadre remains focused on executing its strategy and building on its market positions. “Our outlook for 2026 reflects confidence in the durability of our business, the resilience of our end markets, and the effectiveness of the Cadre Operating Model,” he said.
About Cadre (NYSE:CDRE)
Cadre (NYSE:CDRE) is a technology‐driven real estate investment platform that offers accredited and institutional investors direct access to institutional‐grade commercial properties. Established in 2014, Cadre leverages a data-centric approach to identify, underwrite and manage investments in multifamily, office, retail and industrial assets across major U.S. markets. The firm's platform is designed to streamline the investment process, from deal sourcing and due diligence to ongoing asset management and reporting.
Through its online marketplace, Cadre provides a curated selection of equity and preferred equity offerings, allowing investors to participate in individual properties or diversify across a managed portfolio.
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