Cadre’s third quarter results were met positively by the market, reflecting strong operational execution and notable progress in both core and emerging business areas. Management attributed the quarter’s performance to broad-based margin improvements across major categories, fueled by disciplined pricing, favorable product mix, and productivity initiatives. CEO Warren Kanders pointed to robust demand for explosive ordnance disposal (EOD) products and a significant $20 million sequential increase in backlog as key contributors. The recent Blast Exposure Monitoring System award—a $50 million contract with the U.S. Department of Defense—was highlighted as a milestone achievement for the company’s Med-Eng unit.
Is now the time to buy CDRE? Find out in our full research report (it’s free for active Edge members).
Cadre (CDRE) Q3 CY2025 Highlights:
- Revenue: $155.9 million vs analyst estimates of $160.2 million (42.5% year-on-year growth, 2.7% miss)
- Adjusted EPS: $0.34 vs analyst estimates of $0.28 (24% beat)
- Adjusted EBITDA: $29.82 million vs analyst estimates of $27.66 million (19.1% margin, 7.8% beat)
- The company reconfirmed its revenue guidance for the full year of $627 million at the midpoint
- EBITDA guidance for the full year is $114 million at the midpoint, in line with analyst expectations
- Operating Margin: 12%, up from 5% in the same quarter last year
- Market Capitalization: $1.76 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Cadre’s Q3 Earnings Call
- Lawrence Solow (CJS Securities) asked about the drivers of sequential margin improvement; CFO Blaine Browers explained that productivity gains and positive sales mix led to broad-based margin expansion across business units.
- Jeff Van Sinderen (B. Riley Securities) questioned the impact of the TYR Tactical acquisition on future gross margins; Browers responded that while integration costs may temporarily pressure GAAP gross margins, adjusted EBITDA is expected to benefit.
- Eegan McDermott (Jefferies) inquired about the proportion of organic growth versus easier comparisons from last year’s cyber incident; Browers noted that both armor and duty gear saw real growth, with increased backlog supporting confidence in sustained momentum.
- Matt Koranda (ROTH Capital) asked about the effect of a possible prolonged government shutdown on delivery schedules; President Brad Williams said that potential risks are contemplated in guidance, with teams monitoring at-risk product lines weekly.
- Jordan Lyonnais (Bank of America) sought clarification on downside risk from ongoing government shutdowns and the impact of new security funding for large events; Williams and Browers indicated preparedness for delays and emphasized Cadre’s readiness to pursue emerging security opportunities.
Catalysts in Upcoming Quarters
In the upcoming quarters, the StockStory team will be closely monitoring (1) the pace and profitability of integrating TYR Tactical into Cadre’s platform, (2) the conversion of large backlog orders—especially the BEMO contract—into realized revenue, and (3) the company’s ability to mitigate any disruptions from government spending delays or shutdowns. Progress in these areas will be critical to sustaining margin expansion and growth.
Cadre currently trades at $43.32, up from $42.60 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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