Overview
Cadre Holdings 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/Miss | Actual | Consensus Estimate |
Q3 Sales | Miss | $155.90 mln | $158 mln (6 Analysts) |
Q3 Net Income | $10.90 mln | ||
Q3 Adjusted EBITDA | Beat | $29.80 mln | $27.51 mln (6 Analysts) |
Q3 Gross Margin | 42.70% | ||
Q3 Adjusted EBITDA Margin | 19.10% |
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 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: ID:nBw5sGyzya
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.
(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.)
Comments