Cadre : Presentation Q1 2026

Published: 2026-05-11 16:58:33 ET CDRE

Published on 05/11/2026 at 04:58 pm EDT

FIRST QUARTER 2026

May 12, 2026

TODAY'S PRESENTERS

WARREN KANDERS

CEO and Chairman of the Board

BRAD WILLIAMS

President

BLAINE BROWERS

Chief Financial Officer

AGENDA

Q1 Highlights

Business Overview

M&A Execution

Financial Summary

Full Year Outlook

Conclusion and Q&A

CONTINUED EXECUTION IN Q1

Cadre continues to deliver on strategic objectives and capitalize on favorable market trends driving strong demand for mission-critical safety equipment

Commentary:

Pricing Growth:

Exceeded target

Q1 Mix:

Unfavorable mix driven by Armor, Nuclear and Distribution

Orders Backlog:

Q1 backlog increased $166M sequentially primarily due to the blast attenuation seat contract award and TYR acquisition, as well as strong demand in duty gear and armor

M&A Execution:

Acquired Alien Gear Holsters in April 2026

Healthy M&A Funnel:

Continuing to actively evaluate pipeline of opportunities

Returned Capital to Shareholders:

Declared 18th consecutive quarterly dividend

LONG-TERM INDUSTRY TAILWINDS SUPPORTING SUSTAINABLE GROWTH OPPORTUNITY

Rising safety threats globally

Environmental management to address nuclear clean up

Resilient and growing spend worldwide

Ongoing and expanding national defense initiatives

Catalysts drive steady, recurring demand

Commercial nuclear energy renaissance

LATEST MARKET TRENDS: CORE L.E.

Admin has demonstrated commitment to prioritizing public safety but growing focus on balancing state and local budgets

Environments within conflict zones have not changed at this point to allow for unexploded ordnance cleanup

While overall consumer demand for handguns is down, Cadre has benefited from strong brand awareness and new products, driving market share gains and growth in this channel

Successful new product launches over the past 2+ years continue to provide customers with new options in the market

LATEST MARKET TRENDS: NUCLEAR

Suspension of plutonium downblending program represents near-term headwind, but billions still committed annually to support mission-critical/mandated initiatives

Geopolitical uncertainties driving weapons modernization and production

"Follow the fuel" strategy continues to generate significant opportunities tied to new nuclear economy

RECORD ORDERS BACKLOG OF $355 MILLION

Backlog growth represents an important forward indicator and gives us confidence in FY outlook

Organic blast seat contract

Q4 Backlog:

$189M

Core organic armor & duty gear

TYR acquisition

+ $87M

Q1 Backlog:

$355M

+ $22M

M&A MOMENTUM

Including Alien Gear Holsters, completed seven acquisitions in line with disciplined and patient approach

Highly selective key criteria consistently met, focused on strong margins, leading and defensible market positions, recurring revenues and cash flows

Actively evaluating robust funnel of opportunities in both nuclear and public safety markets

Cadre's Key M&A Criteria Met

Leading market position

Cost structure where material > labor Mission-critical to customer

Strong consumer brand recognition Asset-light

Attractive ROIC Niche market

No large-cap competition Resiliency through market cycles

LATEST ACQUISITION OVERVIEW

Acquired Alien Gear Holsters and certain assets from Tedder Industries, LLC, through a court-supervised bankruptcy auction.

Highlights & Strategic Rationale

Leading manufacturer of holsters and gear for the consumer, law enforcement, military, and security markets

Purchase price of $10.3 million

Recognized holster brand with an established direct-to-consumer presence

Single site business located in Idaho with fully integrated injection molding and sewing capabilities

Kicked off with teams to develop strategies and action plans for functional, consumer, professional, and operational integrations

Business

Leading market position

Cost structure where material > labor High cost of substitution

Leading and defensible technology Mission-critical to customer Strong brand recognition

Financial

Recurring revenue profile Asset-light

Attractive ROIC

Market

Niche market

No large-cap competition Resiliency through market cycles

DISCIPLINED M&A STRATEGY

Q1 FINANCIAL RESULTS

FIRST QUARTER 2026 HIGHLIGHTS

Q1 2026

Q4 2025

Q1 2025

NET SALES

$155.4M

$167.2M

$130.1M

GROSS MARGIN

38.7%

43.4%

43.1%

$2.0M /

$11.7M /

$9.2M /

NET INCOME

$0.05 per

$0.27 per

$0.23 per

diluted share

ADJUSTED EBITDA 1

$21.1M

$34.4M

$20.5M

ADJUSTED EBITDA MARGIN 1

13.6%

20.6%

15.8%

Q1 net sales improved 19% y/y

Q1 2026 includes $2.6M of inventory step-up and $1M D&A related to Zircaloy and TYR

1A non-GAAP financial measure. See slide 24 for definitions and reconciliations to the nearest GAAP measures.

NET SALES AND ADJUSTED EBITDA

NET SALES ($MM) ADJ. EBITDA1 ($MM)

FY 2023

$482.5M

FY 2024

$567.6M

$155.4M 1Q26

15.7%

$130.1M 1Q25

FY 2025

$610.3M

FY 2026

Guidance Range

$736M to

$758M

% CAGR

% Y/Y GROWTH

22.4% at guidance midpoint

% CAGR % Y/Y GROWTH

FY 2026

Guidance Range

$736M to

$758M

17.3% 24.0% at guidance midpoint

$20.5M 1Q25

FY 2025

$111.7M

$21.1M 1Q26

FY 2026

Guidance Range

$136M to

$141M

FY 2023

$85.8M

FY 2024

$104.8M

2023 2024 2025 2026 2023 2024 2025 2026

1A non-GAAP financial measure. See slide 24 for definitions and reconciliations to the nearest GAAP measures.

Q1 2026 CAPITAL STRUCTURE

March

31, 2026

(in thousands)

Cash and cash equivalents

41,272

Debt:

Revolver

62,500

Current portion of long-term debt

16,263

Long-term debt

288,795

Capitalized discount/issuance costs

(1,728)

Total debt, net

365,830

Net debt (Total debt net of cash)

324,558

Total debt / Adj. EBITDA(1)

3.3x

Net debt / Adj. EBITDA(1)

2.9x

LTM Adj. EBITDA(1)

112,322

1A non-GAAP financial measure. See slide 24 for definitions and reconciliations to the nearest GAAP measures.

2026 MANAGEMENT OUTLOOK

Attractive end markets and consistent execution driving growth

NET SALES

$736M to $758M

ADJ. EBITDA

$136M to $141M

CAPITAL EXPENDITURES

$10M to $14M

1A non-GAAP financial measure. See slide 24 for definitions and reconciliations to the nearest GAAP measures.

CONCLUSION

Execution in line with strategic objectives

Ongoing implementation of Cadre operating model

Committed to improving gross and Adj. EBITDA margins

Executing on M&A pipeline, building capabilities and gaining exposure to new markets

Capitalizing on strong macro tailwinds driving demand and visibility for Cadre's mission-critical products

APPENDIX

Total shareholders' equity

336,116

317,804

Total liabilities, mezzanine equity and shareholders' equity

$ 879,736

$ 770,031

BALANCE SHEET

UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

March 31, 2026

December 31, 2025

Assets

Current assets

Cash and cash equivalents

41,272

122,898

Restricted cash

2,380

2,429

Accounts receivable, net of allowance for doubtful accounts of $300 and $273, respectively

111,292

110,607

Inventories

130,989

100,263

Prepaid expenses

15,782

14,574

Other current assets

17,049

15,095

Total current assets

318,764

365,866

Property and equipment, net of accumulated depreciation and amortization of $64,925 and $63,125, respectively

124,115

78,822

Operating lease assets

22,885

19,778

Deferred tax assets, net

4,731

4,816

Intangible assets, net

173,321

114,984

Goodwill

231,225

181,406

Other assets

4,695

4,359

Total assets

879,736

770,031

Liabilities, Mezzanine Equity and Shareholders' Equity

Current liabilities

Accounts payable

39,901

22,325

Accrued liabilities

82,387

61,066

Income tax payable

2,618

4,838

Current portion of long-term debt

16,263

16,266

Total current liabilities

141,169

104,495

Long-term debt

349,567

290,987

Long-term operating lease liabilities

14,969

15,039

Deferred tax liabilities

30,097

30,058

Other liabilities

7,818

11,648

Total liabilities

543,620

452,227

Mezzanine equity

Preferred stock ($0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2026 and December 31, 2025) - -

Shareholders' equity

Common stock ($0.0001 par value, 190,000,000 shares authorized, 42,797,451 and 42,160,656 shares issued and outstanding as of March 31, 2026 and

December 31, 2025, respectively)

Additional paid-in capital

305,897

282,570

Accumulated other comprehensive (loss) income

(2,248)

460

Accumulated earnings

32,463

34,770

STATEMENT OF OPERATIONS

UNAUDITED (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

Three Months Ended March 31,

2026

2025

Net sales

$ 155,429

$ 130,106

Cost of goods sold

95,263

73,975

Gross profit

60,166

56,131

Operating expenses

Selling, general and administrative

48,833

41,753

Restructuring and transaction costs

1,842

698

Related party expense

2,000

128

Total operating expenses

52,675

42,579

Operating income

7,491

13,552

Other expense

Interest expense, net

(4,271)

(2,231)

Other (expense) income, net

(389)

1,287

Total other expense, net

(4,660)

(944)

Income before provision for income taxes

2,831

12,608

Provision for income taxes

(856)

(3,360)

Net income

Net income per share:

$ 1,975

$ 9,248

Basic

0.05

0.23

Diluted

0.05

0.23

Weighted average shares outstanding:

Basic

42,558,154

40,618,554

Diluted

43,363,704

40,980,861

STATEMENT OF CASH FLOWS

UNAUDITED (IN THOUSANDS)

Cash Flows From Operating Activities:

Three Months Ended March 31, 2026 2025

Net income

1,975

9,248

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

5,728

3,856

Amortization of original issue discount and debt issue costs

241

500

Amortization of inventory step-up

2,559

Deferred income taxes

533

Stock-based compensation

1,926

1,968

Remeasurement of contingent consideration

(564)

331

Recoveries from losses on accounts receivable

(329)

(17)

Unrealized foreign exchange transaction loss (gain)

643

(731)

Other loss

217

Changes in operating assets and liabilities, net of impact of acquisitions:

Accounts receivable

10,255

10,633

Inventories

(10,492)

(9,143)

Prepaid expenses and other assets

(3,252)

1,340

Accounts payable and other liabilities

13,536

(1,168)

Net cash provided by operating activities

22,521

17,391

Cash Flows From Investing Activities:

Purchase of property and equipment

(2,680)

(1,309)

Business acquisitions, net of cash acquired

(153,553)

Net cash used in investing activities

(156,233)

(1,309)

STATEMENT OF CASH FLOWS - CONTINUED

UNAUDITED (IN THOUSANDS)

Three Months Ended March 31

2026

2025

Cash Flows From Financing Activities:

Proceeds from revolving credit facilities

62,500

Principal payments on term loans

(4,031)

(2,813)

Taxes paid in connection with employee stock transactions

(1,241)

(1,140)

Dividends distributed

(4,282)

(3,859)

Other

(54)

Net cash provided by (used in) financing activities

52,892

(7,812)

Effect of foreign exchange rates on cash, cash equivalents and restricted cash

(855)

228

Change in cash, cash equivalents and restricted cash

(81,675)

8,498

Cash, cash equivalents and restricted cash, beginning of period

125,327

124,933

Cash, cash equivalents and restricted cash, end of period

$ 43,652

$ 133,431

Supplemental Disclosure of Cash Flows Information:

Cash paid for income taxes, net

$ 3,800

$ 2,017

Cash paid for interest

$ 4,907

$ 3,527

Supplemental Disclosure of Non-Cash Investing and Financing Activities:

Accruals and accounts payable for capital expenditures

418

104

Non-cash consideration

31,647

NON-GAAP RECONCILIATION

(IN THOUSANDS)

Year ended Three Months Ended March 31, LTM

December 31, 2025

2026

2025

March 31, 2026

Net income

$ 44,139

$ 1,975

$ 9,248

$ 36,866

Add back:

Depreciation and amortization

18,633

5,728

3,856

20,505

Interest expense, net

12,480

4,271

2,231

14,520

Provision for income taxes

18,187

856

3,360

15,683

EBITDA

$ 93,439

$ 12,830

$ 18,695

$ 87,574

Add back:

Restructuring and transaction costs(1)

8,696

3,842

698

11,840

Other expense (income), net(2)

(7,455)

389

(1,287)

(5,779)

Stock-based compensation expense(3)

12,239

1,926

1,968

12,197

Stock-based compensation payroll tax expense(4)

1,566

129

1,603

Amortization of inventory step-up(5)

1,296

2,559

3,855

Contingent consideration expense(6)

1,927

(564)

331

1,032

Adjusted EBITDA

$ 111,708

$ 21,111

$ 20,497

$ 112,322

Adjusted EBITDA margin(7)

18.5 %

13.6 %

15.8 %

1. Reflects the "Restructuring and transaction costs" line item on our condensed consolidated statements of operations, which primarily includes transaction costs composed of legal and consulting fees. In addition, this line item reflects a $1.0 million fee paid to Kanders & Company, Inc. for services related to the acquisition of Zircaloy for the year ended December 31, 2025 and a $2.0 million fee paid to Kanders & Company, Inc. for services related to the acquisition of TYR for the three months ended March 31, 2026, which are included in related party expense in the Company's condensed consolidated statements of operations.

2. Reflects the "Other (expense) income, net" line item on our condensed consolidated statements of operations and primarily includes transaction gains and losses due to fluctuations in foreign currency exchange rates.

3. Reflects compensation expense related to equity classified stock-based compensation plans.

4. Reflects payroll taxes associated with vested stock-based compensation awards.

5. Reflects amortization expense related to the step-up inventory adjustment recorded as a result of our recent acquisitions.

6. Reflects contingent consideration expense related to the acquisition of ICOR and TYR.

7. Reflects adjusted EBITDA divided by net sales for the relevant periods.

USE OF NON-GAAP MEASURES

The Company reports its financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). The press release

contains the non-GAAP measures: (i) earnings before interest, taxes, other income or expense, depreciation and amortization ("EBITDA"),

(ii) Adjusted EBITDA and (iii) Adjusted EBITDA margin. The Company believes the presentation of these non-GAAP measures provides useful information for the understanding of its ongoing operations and enables investors to focus on period- over-period operating performance, and thereby enhances the user's overall understanding of the Company's current financial performance relative to past performance and provides, along with the nearest GAAP measures, a baseline for modeling future earnings expectations. Non-GAAP measures are reconciled to comparable GAAP financial measures within this press release. We do not provide a reconciliation of the non-GAAP guidance measure Adjusted EBITDA for the fiscal year 2026 to net income for the fiscal year 2026, the most comparable GAAP financial measure, due to the inherent difficulty of forecasting certain types of expenses and gains, without unreasonable effort, which affect net income but not Adjusted EBITDA. The Company cautions that non-GAAP measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results. Additionally, the Company notes that there can be no assurance that the above referenced non-GAAP financial measures are comparable to similarly titled financial measures used by other publicly traded companies.

Disclaimer

Cadre Holdings Inc. published this content on May 11, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 11, 2026 at 20:50 UTC.