Cadre Holdings Reports Strong Q2 Sales & Record Backlog, Adjusted EBITDA Up 55% Amid Acquisition Integration
CDRE sits 24% above its 52-week low of $25.73.
Summary
Cadre Holdings announced strong Q2 sales and a near-doubling of its orders backlog, with Adjusted EBITDA up 55%, despite a GAAP net income decline driven by non-cash acquisition-related expenses.
Key Events · Earnings and Guidance · CDRE
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Strong Sales Growth Driven by Acquisitions
Net sales increased by $50.0 million (+31.8%) to $207.1 million for Q2 2026 compared to Q2 2025, primarily due to current year acquisitions (TYR Tactical and Alien Gear) and increased demand for nuclear safety, armor, and duty gear products.
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Adjusted EBITDA Shows Significant Improvement
Adjusted EBITDA rose by $15.0 million (+55.5%) to $42.0 million for Q2 2026, reflecting increased gross profit from acquisitions, partially offset by higher selling, general, and administrative expenses.
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Orders Backlog Nearly Doubles
Orders backlog increased by $177.9 million (+93.7%) to $367.7 million as of June 30, 2026, compared to December 31, 2025, indicating strong future revenue potential from new orders and acquisitions.
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GAAP Net Income and EPS Decline Due to Non-Cash Items
Net income decreased by $0.8 million (-6.6%) to $11.4 million, and diluted EPS fell to $0.26 for Q2 2026. This was mainly due to increased non-cash contingent consideration expense, higher stock-based compensation, and increased interest expense from debt used to finance acquisitions.
Analysis · CDRE · Industrial Applications And Services
Cadre Holdings reported robust second-quarter results, with significant sales growth and a near-doubling of its orders backlog, primarily driven by recent acquisitions. While GAAP net income and EPS declined, this was largely due to non-cash contingent consideration adjustments, increased stock-based compensation, and higher interest expense from acquisition financing. Adjusted EBITDA, which excludes these non-cash items, showed strong growth, indicating solid operational performance. The substantial increase in backlog provides a strong forward-looking indicator for future revenue.
At the time of this filing, CDRE was trading at $32.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $1.3B. The 52-week trading range was $25.73 to $48.76. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.