GET DAILY SIGNALSCadre Holdings (CDRE) Delivers +30% Sales Growth in Q3 2026 with Raised Outlook
Key Takeaways
- Net sales rose 30% year over year to $202.9 million in the third quarter of 2026, up from $155.9 million a year earlier.
- Net income increased 46% to $16.0 million, or $0.37 per diluted share, compared with $10.9 million, or $0.27 per diluted share, in the prior-year quarter.
- Adjusted EBITDA reached $41.1 million, with margin expanding to 20.2% from 19.1%.
- Cadre raised its full-year 2026 outlook for the second consecutive quarter and announced a $100 million inaugural share repurchase program.
- Gross profit margin improved to 43.4% from 42.7%, driven primarily by favorable pricing.
Earnings Context and Why It Matters
Cadre Holdings, Inc. (NYSE: CDRE) is a global leader in safety and survivability equipment for law enforcement, first responder, military, and nuclear markets. This quarterly report carries extra weight because the company has been expanding aggressively through acquisitions, including the TIER Tactical and Alien Gear Holsters deals earlier in 2026. Investors are watching whether that growth strategy is translating into profitable, high-margin expansion rather than simply larger revenue. The third quarter provides a fresh read on demand for body armor, EOD equipment, and nuclear safety products against a backdrop of heightened geopolitical uncertainty. With guidance raised for the second straight quarter, this report offers important evidence on Cadre's ability to sustain momentum, protect margins, and deliver on its capital-allocation commitments. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
For the three months ended September 30, 2026, Cadre reported net sales of $202.9 million, a 30% increase from $155.9 million in the same period a year earlier. Growth was driven by current-year acquisitions and increased demand for EOD products. Net income climbed 46% to $16.0 million, or $0.37 per diluted share, compared with $10.9 million, or $0.27 per diluted share, a year ago. Management characterized the results as better than expected, and the figures topped the widely tracked consensus estimates heading into the print.
Gross profit rose to $88.1 million from $66.6 million, and gross profit margin improved to 43.4% from 42.7%, reflecting favorable pricing partially offset by unfavorable operating leverage. Adjusted EBITDA increased to $41.1 million from $29.8 million, with adjusted EBITDA margin expanding 110 basis points to 20.2%. For the first nine months of 2026, net sales reached $565.4 million versus $443.1 million in the prior-year period, while nine-month net income was $29.4 million, or $0.68 per diluted share.
The company also raised its full-year 2026 guidance, now projecting net sales between $756 million and $769 million and Adjusted EBITDA between $140 million and $144 million, with capital expenditures expected in the range of $11 million to $14 million.
Market Reaction and Investor Sentiment
Heading into the report, sentiment around Cadre was shaped by its aggressive acquisition pace and a series of margin and backlog milestones. The stock has been volatile over the past year, and investors were focused on whether integration costs would weigh on profitability. The quarter's combination of 30% sales growth, expanding Adjusted EBITDA margin, and a second consecutive guidance increase is likely to be read constructively. The announcement of a $100 million share repurchase program and a $0.10 quarterly dividend also signals management's confidence in cash generation and a disciplined approach to capital allocation. That said, acquisition-related operating expenses, higher tax expense, and increased compensation costs remain factors investors weigh against the company's strong top-line trajectory. From what I see, this combination of results and capital returns stands out as a positive signal.
Forward Outlook and Key Factors to Monitor
Looking ahead, investors will want to track whether Cadre can sustain its margin expansion while continuing to integrate recent acquisitions. Management has emphasized the Cadre Operating Model, with a focus on manufacturing productivity, sourcing, pricing discipline, and overhead efficiency. The company also pointed to AI initiatives aimed at automating repetitive workflows and improving decision-making, which could support operating leverage over time.
Demand drivers remain worth watching closely. Heightened geopolitical uncertainty, evolving public-safety requirements, and investment in nuclear infrastructure are cited as enduring tailwinds for Cadre's mission-critical products. However, the balance sheet warrants attention: net debt increased materially during 2026 as the company funded acquisitions, so free cash flow generation and leverage trends will be important signals for future M&A capacity.
Finally, monitor the integration of TIER Tactical and Alien Gear Holsters, the pace of order-to-revenue conversion from the company's record backlog, and any further updates to full-year guidance. While the raised outlook and buyback authorization provide a constructive backdrop, acquisition-related costs and higher interest expense remain variables that could influence near-term profitability. I'm watching this closely for signs of sustained execution.
Using Tickeron’s AI Tools for Research
In my analysis of names like CDRE, I often turn to Tickeron’s AI Screener to quickly filter for comparable companies based on margins, growth trends, and technical signals. It helps surface ideas and context without spending hours on manual screens, which keeps my process efficient when evaluating quarterly results and forward guidance.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for CDRE turns positive, indicating new upward trend
CDRE saw its Momentum Indicator move above the 0 level on October 13, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 84 similar instances where the indicator turned positive. In 76 of the 84 cases, the stock moved higher in the following days. The odds of a move higher are at 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for CDRE just turned positive on October 06, 2026. Looking at past instances where CDRE's MACD turned positive, the stock continued to rise in 34 of 43 cases over the following month. The odds of a continued upward trend are 79%.
CDRE moved above its 50-day moving average on October 22, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for CDRE crossed bullishly above the 50-day moving average on October 28, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 18 of 24 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 75%.
Following a +2.17% 3-day Advance, the price is estimated to grow further. Considering data from situations where CDRE advanced for three days, in 256 of 322 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
Bearish Trend Analysis
The 10-day RSI Indicator for CDRE moved out of overbought territory on November 03, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 43 similar instances where the indicator moved out of overbought territory. In 29 of the 43 cases, the stock moved lower in the following days. This puts the odds of a move lower at 67%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 14 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CDRE declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 65%.
CDRE broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for CDRE entered a downward trend on October 20, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 43 (best 1 - 100 worst), indicating steady price growth. CDRE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 58 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.835) is normal, around the industry mean (5.157). P/E Ratio (36.116) is within average values for comparable stocks, (18.245). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (3.110). Dividend Yield (0.013) settles around the average of (0.058) among similar stocks. P/S Ratio (1.720) is also within normal values, averaging (18.367).
The Tickeron SMR rating for this company is 68 (best 1 - 100 worst), indicating slightly better than average sales and a considerably profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 73 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CDRE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock worse than average.
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