Breaking Down Cadre Holdings, Inc. (CDRE) Financial Health: Key Insights for Investors

You're looking at Cadre Holdings, Inc. (CDRE) because the safety and defense sector is showing real resilience, but you need to know if the numbers back up the story. Honestly, the 2025 picture is solid, but not without nuance. For the full fiscal year 2025, the company is guiding for net sales in a tight range of $624 million to $630 million, which is a clear signal of continued demand for their mission-critical equipment, especially after acquisitions like the nuclear-focused Carr's Engineering division earlier this year. Plus, the consensus earnings per share (EPS) estimate sits at a healthy $1.22 per share, reflecting strong execution. What's key is the Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) guidance of $112 million to $116 million, demonstrating that they are translating that revenue into real operating profit, which is defintely the metric to watch for a business built on strategic roll-ups. That's a good sign. But still, the stock's recent rally to around $43 per share suggests a premium valuation, so you need to understand the organic growth drivers versus the acquisition-fueled ones to map your next move.

Revenue Analysis

If you're looking at Cadre Holdings, Inc. (CDRE), the direct takeaway is that their growth engine is running hot, driven by strategic acquisitions and core demand for mission-critical gear. The company has reaffirmed its full-year 2025 revenue guidance at a midpoint of approximately $627 million, which signals confidence in their market position. This is a significant jump from prior years, and it's defintely worth a closer look at what's fueling it.

For the first nine months of 2025 alone, Cadre Holdings, Inc. reported net sales of $443.1 million. That's the quick math on their current trajectory, and it shows the stability of their core markets: law enforcement, first responder, military, and the rapidly expanding nuclear sector.

Breaking Down the Revenue Engine

Cadre Holdings, Inc.'s revenue comes from two primary, distinct segments: Products and Distribution. Understanding the margin difference here is crucial for assessing profitability.

• Products Segment: This is the high-margin core, encompassing manufactured items like body armor, duty gear, and specialized explosive ordnance disposal (EOD) tools. For the first nine months of 2025, this segment delivered a strong gross profit margin of 43.3%, showing the pricing power and value of their proprietary brands.
• Distribution Segment: This involves distributing third-party safety and survivability equipment. While important for a complete offering, the margin is much tighter, coming in at a gross profit margin of 22.0% for the first nine months of 2025.

The Products segment is the clear profit driver. You want to see management continue to push the mix toward these higher-margin, proprietary goods. The strong demand for armor and duty gear products specifically drove a lot of the recent sales surge.

Growth Rate and Strategic Shifts

The year-over-year growth rate tells an important story of both organic strength and inorganic expansion. In the third quarter of 2025, net sales of $155.9 million represented a massive year-over-year increase of 42.5%. This isn't just business as usual; it reflects a significant change in the revenue profile.

Looking at the full fiscal year 2025, the company's guidance implies a year-over-year revenue growth of 10.5% at the midpoint, compared to 2024. That's solid, but the recent acquisitions are the real game-changers that are altering the revenue streams for the long term.

Here's how the revenue streams are changing:

The addition of the nuclear-focused business, which was expected to contribute approximately $46 million in net sales to the 2025 guidance, is a clear strategic move to diversify their public safety revenue with structural tailwinds from the energy sector. This shift means Cadre Holdings, Inc. is less reliant on just the cyclical nature of law enforcement and military budgets. For a deeper dive into the valuation implications of these moves, check out our full post: Breaking Down Cadre Holdings, Inc. (CDRE) Financial Health: Key Insights for Investors.

Profitability Metrics

You need to know if Cadre Holdings, Inc. (CDRE) is turning its strong sales into real profit, and the short answer is yes, they are. Their focus on high-margin products and cost discipline is showing up clearly in the 2025 numbers. For the nine months ended September 30, 2025, Cadre Holdings, Inc. posted net sales of $443.1 million, translating into a solid net income of $32.4 million.

Here's the quick math on their core profitability ratios (margins) for the first nine months of the 2025 fiscal year:

• Gross Profit Margin: 42.2%
• Operating Margin (GAAP): 10.6% (Calculated from $46.911 million in operating income)
• Net Profit Margin (GAAP): 7.3% (Calculated from $32.4 million net income)

The real story is in the gross margin, which is a great sign of pricing power and efficient manufacturing. You want to see that number climb, and it is.

Operational Efficiency and Margin Trends

Cadre Holdings, Inc.'s operational efficiency is defintely improving, especially when you look at the gross margin (Gross Profit Margin is gross profit divided by net sales, showing how efficiently they produce goods). The gross profit margin for the nine months ended September 30, 2025, sat at 42.2%, up from 39.9% in the comparable 2024 period.

This jump is driven by a few things: increased volume, favorable pricing, and better cost management, which is exactly what you want to see from a mature company. The third quarter of 2025 was particularly strong, with gross margin hitting 42.7%, a significant improvement from 36.6% in Q3 2024. This points to the success of their 'Cadre operating model' and strong demand for their armor and duty gear products.

The company also tracks Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which is a good proxy for core operating cash flow, stripping out non-cash and non-recurring items. They are guiding for a full-year 2025 Adjusted EBITDA of between $112 million and $116 million, implying an Adjusted EBITDA Margin of around 18.2% at the midpoint of their sales guidance.

Industry Comparison and Actionable Insights

Comparing Cadre Holdings, Inc.'s profitability to its industry peers shows they are a top-tier performer. While a direct competitor's average isn't public, the median gross profit margin for the broader commercial integration industry, which is a related sector that installs and maintains security systems, is about 34.2% for 2025. Cadre Holdings, Inc.'s 9-month gross margin of 42.2% is substantially higher, indicating a strong competitive advantage, likely due to their focus on proprietary, mission-critical products like EOD (Explosive Ordnance Disposal) equipment and body armor.

Here is a snapshot of the key profitability metrics for the nine months ended September 30, 2025:

What this estimate hides is the impact of acquisitions; for instance, the recent agreement to acquire TYR Tactical will likely cause a near-term dip in GAAP gross margins due to inventory step-up amortization, even though it is expected to be accretive to Adjusted EBITDA. Your action here is to monitor Q4 2025 and Q1 2026 earnings for the integration costs, but the overall trend is positive. To understand the strategic foundation of this performance, you should review their core values: Mission Statement, Vision, & Core Values of Cadre Holdings, Inc. (CDRE).

Debt vs. Equity Structure

You're looking at Cadre Holdings, Inc. (CDRE) because you know a company's balance sheet tells the real story about its growth strategy. The core takeaway here is that Cadre is using debt-smartly and moderately-to fuel its aggressive acquisition strategy, keeping its financial structure flexible for future deals.

As of the first quarter of 2025, Cadre's total debt stood at approximately $220.5 million. This is a manageable figure, especially considering its recent growth. The debt is primarily long-term, which is what you want to see for strategic, long-horizon investments like acquisitions.

• Long-term debt (Q1 2025): $209.134 million.
• Short-term debt (Current portion of long-term debt, Q1 2025): $11.380 million.

Debt-to-Equity: A Strategic Lever

The debt-to-equity (D/E) ratio is your quick measure of financial leverage-how much of the business is financed by creditors versus shareholders. Cadre's ratio sits at about 0.87 as of November 2025. This means for every dollar of shareholder equity, the company has 87 cents of debt. To be fair, this is higher than the Security & Protection Services industry average of roughly 0.56. But here's the quick math: the higher ratio is a direct result of its M&A strategy, not financial distress.

The company is intentionally using debt to buy high-margin businesses, like the Carr's Engineering Division acquisition completed in April 2025. This approach is about maximizing returns on equity (ROE), even if it means a slightly higher D/E ratio than its peers. The pro forma net leverage ratio, which is net debt divided by Adjusted EBITDA, is estimated to be under 1.75x, which is a very manageable level for a company focused on growth via acquisition. It's a calculated risk, defintely.

Recent Refinancing and Future Funding

In December 2024, Cadre Holdings, Inc. (CDRE) strategically refinanced its debt by closing a new credit agreement, providing senior secured credit facilities of up to $590 million. This move was all about flexibility and extending maturities until December 2029. This new structure is the key to understanding how they plan to finance future growth without diluting shareholders.

The facility includes a fully drawn $225 million term loan that refinanced existing debt, but more importantly, it offers delayed draw term loans of up to $115 million and $75 million specifically earmarked for future acquisitions. They are essentially keeping a significant M&A war chest available for when the right target appears. This capital allocation strategy is clearly laid out in the Mission Statement, Vision, & Core Values of Cadre Holdings, Inc. (CDRE).

The balance is struck by using debt for growth, but also returning capital to shareholders through an increased quarterly cash dividend of $0.095 per share, which annualizes to $0.38 per share. This mix signals management's confidence in their cash flow generation to service the debt while still rewarding equity holders. They are leveraging their balance sheet, but they are not over-leveraged.

Liquidity and Solvency

You're looking for a clear picture of how Cadre Holdings, Inc. (CDRE) manages its short-term obligations, and honestly, their liquidity position is strong. The company has a significant buffer, meaning they can defintely cover their immediate bills without stress. This financial stability is a key reason why Cadre Holdings, Inc. (CDRE) can pursue strategic acquisitions and return capital to shareholders.

The core of this strength lies in their current and quick ratios, which tell us how many dollars of liquid assets they have for every dollar of current debt (liabilities). The numbers speak for themselves:

• Current Ratio: A robust 3.64. This means Cadre Holdings, Inc. (CDRE) has $3.64 in current assets for every $1.00 in current liabilities.
• Quick Ratio (Acid-Test): A very healthy 2.38. This ratio strips out inventories-which can be slow to sell-showing they have $2.38 in the most liquid assets (cash, receivables) for every $1.00 in current liabilities.

The difference between the two ratios is manageable, but it's worth noting that inventories of $112.20 million as of September 30, 2025, are a significant part of their current assets. Still, a quick ratio above 1.0 is a sign of excellent health, and 2.38 is outstanding. Here's the quick math on their working capital (Current Assets minus Current Liabilities) as of Q3 2025, which shows the sheer dollar amount of their operational cushion.

Looking at the cash flow statement for the nine months ended September 30, 2025, we see a clear trend of internally generated cash funding strategic growth. Net cash provided by operating activities (OCF) was a strong $42.46 million. This is the cash generated from day-to-day business, and it's a big jump from the same period in the prior year.

The other two cash flow areas tell the story of their growth strategy:

• Investing Cash Flow (ICF): Net cash used was ($93.17 million). This outflow is primarily due to business acquisitions, net of cash acquired, which is a key part of their growth model.
• Financing Cash Flow (FCF): Net cash provided was approximately $84.72 million. This inflow mostly relates to proceeds from term loans to fund those acquisitions, which is a responsible use of debt when liquidity is this high.

What this overview hides is the increase in total debt to $311.2 million as of September 30, 2025, up $88.0 million since the end of 2024, but that was largely for strategic M&A. The net debt to Adjusted EBITDA ratio of 1.4x indicates a conservative leverage profile, so the debt is manageable and tied to growth. The overall liquidity position is a significant strength, signaling flexibility for future investments or economic downturns. For a deeper dive into their overall financial picture, check out the full post: Breaking Down Cadre Holdings, Inc. (CDRE) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking at Cadre Holdings, Inc. (CDRE) and wondering if the market has priced in all the good news, or if there's still room to run. The short answer is that Cadre Holdings, Inc. appears to be trading at a premium compared to its historical averages and the broader Industrials sector, suggesting a fully-valued, if not slightly overvalued, stock based on traditional multiples.

As of mid-November 2025, the stock has shown impressive momentum, with its price increasing by over 30.51% this year alone, reaching an all-time high of $46.64 on November 4, 2025. The current price sits near the top of its 52-week range of $27.07 to $46.64, which tells you the market is optimistic. Strong performance, but you pay for it.

Here's a quick look at the core valuation multiples for Cadre Holdings, Inc. using 2025 fiscal year data:

• Price-to-Earnings (P/E): The trailing P/E ratio is approximately 37.99, with a forward P/E of 29.75. This is significantly higher than the Industrials sector average of around 25.79, indicating investors are willing to pay more for Cadre Holdings, Inc.'s earnings growth potential.
• Price-to-Book (P/B): The P/B ratio is roughly 5.03. A P/B ratio over 3.0 often suggests a stock is overvalued relative to its net assets, so this multiple points to a rich valuation, driven by intangible assets and brand value like Safariland® and Med-Eng®.
• Enterprise Value-to-EBITDA (EV/EBITDA): The EV/EBITDA stands at about 18.09. This figure is used to compare companies with different capital structures and is also on the high end, suggesting a premium valuation for its operating cash flow (EBITDA).

The high multiples-P/E at 37.99 and EV/EBITDA at 18.09-signal that the market expects Cadre Holdings, Inc. to deliver substantial future growth, making it a growth stock, not a value play. What this estimate hides is the potential for multiple compression if earnings growth slows down even slightly.

The company does pay a dividend, but it's not a primary driver for the stock price. The annual dividend is $0.38 per share, translating to a modest dividend yield of approximately 0.90%. The payout ratio is a healthy 33.93%, which means the dividend is well-covered by earnings and leaves plenty of cash for reinvestment and acquisitions, which is defintely a good sign for a growth-by-acquisition strategy.

Wall Street analysts are generally positive, but not unanimously bullish. The consensus rating is a 'Moderate Buy,' with 4 Buy ratings and 1 Sell rating among the 5 most recent analyst reports. The average 12-month price target is in the range of $37.67 to $43.17, which suggests a near-term ceiling or even a slight downside from the current price, depending on which exact price you use.

To dive deeper into who is driving this valuation, you should read Exploring Cadre Holdings, Inc. (CDRE) Investor Profile: Who's Buying and Why?

Risk Factors

You need to be clear-eyed about the risks facing Cadre Holdings, Inc. (CDRE), especially given the company's recent acquisition spree and its reliance on government contracts. The direct takeaway is that while the company's financial foundation is strong, the near-term volatility will be driven by government procurement cycles and the immediate, non-cash impacts of integrating new businesses.

The biggest external risk is the persistent timing uncertainty around large contract opportunities in the law enforcement, military, and nuclear segments. For a company focused on mission-critical equipment, a prolonged U.S. government shutdown, for example, can cause immediate order slippages and procurement delays. Management has stated that their full-year 2025 guidance, which projects Net Sales between $624 million and $630 million, already accounts for possible shutdown disruptions. That's a necessary caveat, but it doesn't eliminate the risk of revenue shifting into 2026.

Operationally, the focus is on disciplined mergers and acquisitions (M&A). The agreement to acquire TYR Tactical, its largest deal since the IPO, is a strategic positive but introduces integration risk. Also, the deal is expected to pressure GAAP gross margin in the near term because of inventory step-up and intangibles amortization, even though it is anticipated to be accretive to Adjusted EBITDA. This is a classic financial analyst's split: Adjusted EBITDA looks great, but reported GAAP earnings will take a temporary hit. Honestly, you defintely need to watch that margin pressure closely.

In terms of financial risks, the debt profile is changing. The TYR acquisition is projected to push the pro forma net debt over $300 million, resulting in a net leverage ratio of around 2.7x. While this is manageable given the company's strong free cash flow generation, it reduces the immediate financial flexibility for further large, debt-funded acquisitions.

Here's a quick map of the key risks and the company's stated mitigation strategies:

• Government Procurement Delays: Timing uncertainty in contract fulfillment, especially in the nuclear and military segments. Mitigation: Guidance incorporates potential shutdown impacts; strong backlog growth of approximately $20 million in Q3 2025 helps buffer against delays.
• M&A Integration: Risk of cultural or operational misalignment with recent acquisitions like TYR Tactical and Carr's Engineering. Mitigation: Cadre is applying its operating model to unlock value and is excited about the cultural adoption of its tools.
• Valuation & Expectations: The stock trades at a high forward earnings multiple (around 28x), meaning any miss on organic growth could trigger a correction. Mitigation: Continued focus on high-margin, mission-critical products and a robust M&A pipeline to drive inorganic growth.

What this estimate hides is the broader weakening trends in the consumer channel, which could impact the distribution segment. Still, the core business is government and professional, which tends to be more resilient.

For a deeper dive into the valuation and opportunities, check out the full article at Breaking Down Cadre Holdings, Inc. (CDRE) Financial Health: Key Insights for Investors.

Here is a summary of the 2025 financial guidance that frames the risk context:

Growth Opportunities

You want to know where Cadre Holdings, Inc. (CDRE) is headed, and the answer is clear: the company is executing a disciplined, two-pronged strategy of organic growth in core markets and strategic, accretive acquisitions. This approach is mapping a clear path to high-margin expansion, especially in the nuclear safety vertical, which is a big tailwind right now.

For the full year 2025, Cadre Holdings, Inc. has reaffirmed its guidance, projecting net sales between $624 million and $630 million, with Adjusted EBITDA expected to land between $112 million and $116 million. Here's the quick math: the consensus estimate for 2025 earnings per share (EPS) is already at $1.22 per share, reflecting confidence in their operational efficiency and pricing power. They just beat Q3 expectations with $155.9 million in net sales, up 42% year-over-year. That's a strong signal.

Key Growth Drivers and Strategic Expansion

The growth story for Cadre Holdings, Inc. isn't about one product; it's about owning mission-critical niches. Their focus is on three areas: public safety, military/defense, and the rapidly scaling nuclear market.

• Nuclear Safety Vertical: This is a major area of investment. Demand is spiking from Department of Energy environmental cleanup needs, expanding national defense programs, and the global push for clean nuclear energy. The acquisition of the Engineering Division from Carr's Group in April 2025 was a critical move, expected to contribute roughly $46 million in net sales and $6.5 million in EBITDA for 2025 alone.
• Strategic M&A: Cadre Holdings, Inc. has deployed over $400 million on M&A in the last 24 months. The agreement to acquire TYR Tactical, announced in late 2025, is their sixth and largest deal since the IPO, immediately enhancing their market leadership in protective equipment and expanding their reach to key military customers in Northern Europe.
• Defense Contracts: Their Explosive Ordnance Disposal (EOD) business, Med-Eng, secured a significant win in September 2025 with a $50 million Indefinite Delivery/Indefinite Quantity (IDIQ) contract from the U.S. Department of Defense for the Blast Exposure Monitoring System (BEMO). That kind of long-term contract visibility is gold.

The organic backlog increased by $20 million sequentially in Q3 2025, which defintely reinforces the positive outlook for the near term.

Competitive Advantages and Margin Focus

Cadre Holdings, Inc.'s competitive edge is built on a few core pillars that create a high barrier to entry for rivals like Avon Protection or MSA Safety.

First, they own a portfolio of best-in-class brands, like Safariland® and Med-Eng®, which allows them to maintain a disciplined pricing strategy. Second, their business model has proven resilient through economic and geopolitical cycles, a crucial factor when dealing with government and first-responder budgets. Third, they are not just buying companies; they are integrating them using the 'Cadre operating model' to drive margin expansion. Analysts expect profit margins to climb from 6.7% to 9.5% within three years, a sharper improvement than top-line growth forecasts for the same period. They are focused on growing earnings faster than revenue. You can dive deeper into the ownership structure and rationale behind these moves by Exploring Cadre Holdings, Inc. (CDRE) Investor Profile: Who's Buying and Why?

What this estimate hides is the potential for further upside from the acquisition pipeline, which remains robust in both the public safety and nuclear markets. The company's strong free cash flow generation and balanced sheet (pro forma net leverage around 2.7x post-TYR Tactical) give them the flexibility to keep acquiring.