Third quarter 2026
Filed Nov 4, 2026Cadre reported third-quarter net sales of $202.9 million, net income of $16.0 million, and Adjusted EBITDA of $41.1 million, raised full-year 2026 guidance, and authorized a $100 million stock repurchase program.
Third-quarter net sales increased 30%, net income increased 46%, Adjusted EBITDA margin expanded to 20.2%, and the Company raised full-year 2026 sales and Adjusted EBITDA guidance for the second consecutive quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026GAAP | $202.9M | – | 30% |
| Net sales, nine months ended September 30, 2026GAAP | $565.4M | – | – |
| Cost of goods sold, three months ended September 30, 2026GAAP | $114.8M | – | – |
| Cost of goods sold, nine months ended September 30, 2026GAAP | $330.0M | – | – |
| Gross profit, three months ended September 30, 2026GAAP | $88.1M | – | – |
| Gross profit, nine months ended September 30, 2026GAAP | $235.4M | – | – |
| Gross profit margin, three months ended September 30, 2026GAAP | 43.4% | – | – |
| Gross profit margin, nine months ended September 30, 2026GAAP | 41.6% | – | – |
| Selling, general and administrative expense, three months ended September 30, 2026GAAP | $58.88M | – | – |
| Selling, general and administrative expense, nine months ended September 30, 2026GAAP | $170.9M | – | – |
| Restructuring and transaction costs, three months ended September 30, 2026GAAP | $863K | – | – |
| Restructuring and transaction costs, nine months ended September 30, 2026GAAP | $4.16M | – | – |
| Related party expense, three months ended September 30, 2026GAAP | — | – | – |
| Related party expense, nine months ended September 30, 2026GAAP | $2,000 | – | – |
| Total operating expenses, three months ended September 30, 2026GAAP | $59.74M | – | – |
| Total operating expenses, nine months ended September 30, 2026GAAP | $177.1M | – | – |
| Operating income, three months ended September 30, 2026GAAP | $28.35M | – | – |
| Operating income, nine months ended September 30, 2026GAAP | $58.30M | – | – |
| Interest expense, net, three months ended September 30, 2026GAAP | −$5.41M | – | – |
| Interest expense, net, nine months ended September 30, 2026GAAP | −$14.70M | – | – |
| Other income (expense), net, three months ended September 30, 2026GAAP | $984K | – | – |
| Other income (expense), net, nine months ended September 30, 2026GAAP | $66K | – | – |
| Income before provision for income taxes, three months ended September 30, 2026GAAP | $23.93M | – | – |
| Income before provision for income taxes, nine months ended September 30, 2026GAAP | $43.67M | – | – |
| Provision for income taxes, three months ended September 30, 2026GAAP | −$7.95M | – | – |
| Provision for income taxes, nine months ended September 30, 2026GAAP | −$14.31M | – | – |
| Net income, three months ended September 30, 2026GAAP | $16M | – | 46% |
| Net income, nine months ended September 30, 2026GAAP | $29.4M | – | – |
| Diluted net income per share, three months ended September 30, 2026GAAP | $0.37 | – | – |
| Diluted net income per share, nine months ended September 30, 2026GAAP | $0.68 | – | – |
| Basic net income per share, three months ended September 30, 2026GAAP | $0.37 | – | – |
| Basic net income per share, nine months ended September 30, 2026GAAP | $0.69 | – | – |
| Adjusted EBITDA, three months ended September 30, 2026non-GAAP | $41.1M | – | – |
| Adjusted EBITDA, nine months ended September 30, 2026non-GAAP | $104.2M | – | – |
| Adjusted EBITDA margin, three months ended September 30, 2026non-GAAP | 20.2% | – | 110 basis points |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 18.4% | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026GAAP | $67.58M | – | – |
| Capital expenditures, three months ended September 30, 2026GAAP | $2.9M | – | – |
| Capital expenditures, nine months ended September 30, 2026GAAP | $9.3M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Product, three months ended September 30, 2026Product segment gross profit margin was 43.7%, compared to 43.9% for the prior year period. | $188.7M | – | – |
| Distribution, three months ended September 30, 2026Distribution segment gross profit margin was 23.4%, compared to 21.3% for the prior year period. | $23.63M | – | – |
| Product, nine months ended September 30, 2026Product segment gross profit margin was 42.3%, compared to 43.3% for the prior year period. | $519.4M | – | – |
| Distribution, nine months ended September 30, 2026Distribution segment gross profit margin was 22.1%, compared to 22.0% for the prior year period. | $71.03M | – | – |
Full-year 2026 outlook
- Revenuebetween $756 million and $769 million
- NoteAdjusted EBITDA: between $140 million and $144 million
- NoteCapital expenditures: in the range of $11 million to $14 million
- NoteThe Company has not provided net income guidance.
Capital returns
- Declared quarterly cash dividend of $0.10 per share in October 2026.
- The dividend is $0.40 per share on an annualized basis.
- Dividend payment will be made on November 13, 2026 to shareholders of record as of the close of business on October 30, 2026.
- On November 4, 2026, the board authorized a share repurchase program for up to an aggregate of $100 million of common stock.
- Dividends distributed were $(12,844) for the nine months ended September 30, 2026, compared with $(11,584) for the nine months ended September 30, 2025.
What drove it
- Third-quarter sales growth was primarily driven by current-year acquisitions and increased demand for EOD products.
- Nine-month sales growth was mainly driven by current- and prior-year acquisitions and higher demand for EOD, crowd control and chemiluminescent products.
- Third-quarter gross profit margin was mainly driven by favorable pricing, partially offset by unfavorable operating leverage.
- Management cited manufacturing productivity, sourcing and pricing discipline, overhead efficiency, and AI initiatives targeting repetitive workflows, improved decision-making and more efficient scaling.
- Management cited heightened geopolitical uncertainty, evolving public-safety requirements, and investment in nuclear infrastructure as demand drivers.
Concerns
- Nine-month net income was $29.4 million versus $32.4 million for the prior year period, with acquisition operating expenses, increased compensation expense, interest expense, and adverse foreign currency fluctuations cited as drivers.
- Total debt increased to $369.5 million and net debt increased to $305.6 million as of September 30, 2026.
- Nine-month gross profit margin was 41.6%, compared to 42.2% for the prior year period.
- Product segment gross profit margin was 43.7% in the third quarter and 42.3% for the nine-month period, compared to 43.9% and 43.3%, respectively, for the prior year periods.
What to watch
- Delivery against full-year 2026 net sales guidance of between $756 million and $769 million.
- Delivery against full-year 2026 Adjusted EBITDA guidance of between $140 million and $144 million.
- Capital expenditures against the expected range of $11 million to $14 million.
- The pace of acquisitions, their impact on debt and net debt, and the application of the Cadre Operating Model across acquired businesses.
- Execution of the up to $100 million share repurchase program and future dividend declarations.
Balance sheet and cash flow
- Cash and cash equivalents were $63.9 million as of September 30, 2026, down $59.0 million from $122.9 million as of December 31, 2025.
- Total debt was $369.5 million as of September 30, 2026, up $62.2 million from $307.3 million as of December 31, 2025.
- Net debt was $305.6 million as of September 30, 2026, up $121.2 million from $184.4 million as of December 31, 2025.
- Net cash used in investing activities was $(174,623) for the nine months ended September 30, 2026, compared with $(93,166) for the nine months ended September 30, 2025.
- Business acquisitions, net of cash acquired, were $(164,769) for the nine months ended September 30, 2026, compared with $(89,590) for the nine months ended September 30, 2025.
- Net cash provided by financing activities was $50,126 for the nine months ended September 30, 2026, compared with $75,352 for the nine months ended September 30, 2025.
Analysis
Cadre delivered strong third-quarter growth, with net sales of $202.9 million versus $155.9 million and net income of $16.0 million versus $10.9 million. The Company attributed sales growth primarily to current-year acquisitions and increased demand for EOD products. For the nine-month period, net sales increased to $565.4 million from $443.1 million, supported by current- and prior-year acquisitions and demand for EOD, crowd control and chemiluminescent products.
Profitability improved in the quarter. Gross profit margin was 43.4%, compared with 42.7%, with favorable pricing partly offset by unfavorable operating leverage. Adjusted EBITDA was $41.1 million versus $29.8 million, while Adjusted EBITDA margin was 20.2% versus 19.1%. The nine-month margin picture was also favorable on an adjusted basis, with Adjusted EBITDA margin at 18.4% versus 17.4%, although GAAP gross profit margin was 41.6% versus 42.2%.
The nine-month results show the cost of acquisitions and financing. Net income was $29.4 million compared with $32.4 million in the prior year period, as acquisition operating expenses, increased compensation expense, interest expense and adverse foreign currency fluctuations more than offset increased gross profit. Total debt reached $369.5 million and net debt reached $305.6 million as of September 30, 2026. Net cash provided by operating activities was $67,585, while business acquisitions, net of cash acquired, totaled $(164,769).
Capital allocation included both shareholder returns and continued acquisition funding. The Company declared a quarterly cash dividend of $0.10 per share and authorized an inaugural repurchase program of up to $100 million. It also raised full-year 2026 guidance to net sales of between $756 million and $769 million and Adjusted EBITDA of between $140 million and $144 million. Management is targeting further operating-margin expansion through manufacturing productivity, sourcing, pricing discipline, overhead efficiency and AI initiatives.
Management, verbatim
Our third-quarter results reflect strong execution across Cadre’s businesses, with double-digit organic growth and contributions from acquisitions driving a 30% increase in sales.
Warren Kanders, CEO and Chairman
Net income increased 46% and Adjusted EBITDA margin expanded 110 basis points to 20.2%.
Warren Kanders, CEO and Chairman
Heightened geopolitical uncertainty, evolving public-safety requirements and investment in nuclear infrastructure create enduring demand drivers for our mission-critical products.
Warren Kanders, CEO and Chairman
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so no comparison of actual results with prior guidance is available.
- Prior-quarter comparatives were not reported for the operating metrics.
- Free cash flow was not reported.
- Full-year 2026 guidance for gross margin, operating expenses and tax rate was not provided.
- Full-year 2026 GAAP net income guidance was not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.