Overview

* Cadre Holdings ( CDRE ) Q3 net sales grow 42% yr/yr but slightly misses analyst expectations

* Adjusted EBITDA for Q3 beats analyst estimates, reflecting strong operational performance

* Company announces acquisition of TYR Tactical, largest since going public

Outlook

* Company expects 2025 net sales between $624 mln and $630 mln

* Cadre anticipates 2025 Adjusted EBITDA between $112 mln and $116 mln

* Capital expenditures for 2025 expected to be $7 mln to $8 mln

Result Drivers

* ACQUISITIONS AND DEMAND - Net sales growth driven by recent acquisitions and strong demand for armor and duty gear products

* GROSS PROFIT DRIVERS - Gross profit increase due to higher volume, favorable pricing, and decreased inventory amortization

* BACKLOG INCREASE - Organic backlog increased by $20 mln from Q2 to Q3, indicating strong future demand

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Sales Miss $155.90 $158 mln

mln (6

Analysts

)

Q3 Net $10.90

Income mln

Q3 Beat $29.80 $27.51

Adjusted mln mln (6

EBITDA Analysts

)

Q3 Gross 42.70%

Margin

Q3 19.10%

Adjusted

EBITDA

Margin

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the aerospace & defense peer group is "buy"

* Wall Street's median 12-month price target for Cadre Holdings Inc ( CDRE ) is $46.50, about 8.7% above its November 3 closing price of $42.46

* The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)