Cadre Holdings, Inc. (CDRE)

Cadre Holdings, Inc. (CDRE) Industrial Operations Profile

Cadre Holdings, Inc. provides safety and survivability equipment, including body armor and bomb disposal tools, to first responders and federal agencies globally. Operating through its Products and Distribution segments, the company distinguishes itself with established brands like Safariland and Protech Tactical, addressing critical protection needs in hazardous environments.

What Is the Investment Thesis for CDRE?

Cadre Holdings presents a compelling investment case based on its established market position and consistent demand for safety and survivability equipment. With a market capitalization of $1.31B and a P/E ratio of 27.6, the company demonstrates solid financial health. A key value driver is its diversified product portfolio and strong relationships with government agencies and first responders. Growth catalysts include increasing global security concerns and rising demand for advanced protective gear. Potential risks include economic downturns affecting government spending and intense competition within the aerospace and defense sector. The company's 7.2% profit margin and 41.6% gross margin highlight its operational efficiency.

Based on FMP financials and quantitative analysis

CDRE Key Highlights

• Market capitalization of $1.31B, reflecting substantial investor confidence in the company's market position.
• P/E ratio of 27.6, indicating a premium valuation based on earnings expectations.
• Gross margin of 41.6%, showcasing efficient cost management and strong pricing power.
• Profit margin of 7.2%, demonstrating the company's ability to convert revenue into profit.
• Dividend yield of 1.31%, providing a steady income stream for investors.

Who Are CDRE's Competitors?

CDRE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are CDRE's Key Strengths?

• Strong brand recognition with Safariland and Protech Tactical.
• Established relationships with key government and law enforcement agencies.
• Diversified product portfolio addressing various safety and security needs.
• Consistent revenue stream from long-term contracts.

What Are CDRE's Weaknesses?

• Dependence on government spending, which can be subject to budget cuts.
• Exposure to economic downturns affecting demand for discretionary safety equipment.
• Limited presence in emerging international markets.
• Potential supply chain disruptions affecting production and distribution.

What Could Drive CDRE Stock Higher?

• Increasing global security threats driving demand for safety and survivability equipment.
• Government initiatives to enhance first responder capabilities and preparedness.
• Potential new contracts with federal agencies for advanced protective gear.
• Expansion into new international markets with strategic partnerships.

What Are the Key Risks for CDRE?

• Economic downturns affecting government spending on defense and security.
• Intense competition from established players in the aerospace and defense industry.
• Changing regulatory requirements impacting product compliance and certification.
• Supply chain disruptions affecting production and distribution.
• Product liability claims related to safety equipment failures.

What Are the Growth Opportunities for CDRE?

• Expansion into International Markets: Cadre has the opportunity to expand its international presence by targeting emerging markets with increasing security concerns. The global market for safety and security equipment is projected to reach $500 billion by 2030, offering significant growth potential. By establishing strategic partnerships and tailoring products to meet local requirements, Cadre can capitalize on this expanding market.
• Development of Advanced Protective Technologies: Investing in research and development to create advanced protective technologies, such as lighter and more durable body armor, can provide a competitive edge. The market for advanced materials in defense is expected to grow at a CAGR of 6% over the next five years. Cadre's focus on innovation can attract new customers and increase market share.
• Increased Focus on Cybersecurity Solutions: As cyber threats become more prevalent, Cadre can expand its offerings to include cybersecurity solutions for first responders and government agencies. The cybersecurity market is projected to reach $300 billion by 2027. By integrating cybersecurity products and services into its portfolio, Cadre can address a critical and growing need.
• Strategic Acquisitions to Broaden Product Portfolio: Cadre can pursue strategic acquisitions to expand its product portfolio and enter new market segments. Identifying companies with complementary technologies and customer bases can accelerate growth and increase market share. The mergers and acquisitions activity in the defense sector remains robust, providing numerous opportunities for Cadre.
• Leveraging E-commerce Platforms for Direct Sales: Enhancing its e-commerce capabilities can enable Cadre to reach a broader customer base and increase direct sales. The online market for safety equipment is growing rapidly, with e-commerce sales projected to account for 30% of total sales by 2028. By investing in its online platform and digital marketing, Cadre can capture a larger share of the market.

What Opportunities Does CDRE Have?

• Expansion into international markets with increasing security concerns.
• Development of advanced protective technologies to gain a competitive edge.
• Increased focus on cybersecurity solutions for first responders and government agencies.
• Strategic acquisitions to broaden product portfolio and enter new market segments.

What Threats Does CDRE Face?

• Intense competition from established players in the aerospace and defense industry.
• Changing regulatory requirements affecting product compliance and certification.
• Potential product liability claims related to safety equipment failures.
• Geopolitical instability impacting demand for safety and security products.

What Are CDRE's Competitive Advantages?

• Established brand reputation with Safariland and Protech Tactical.
• Strong relationships with government agencies and first responders.
• Diversified product portfolio catering to various safety and security needs.
• High barriers to entry due to regulatory requirements and specialized expertise.

What Does CDRE Do?

Founded in 1964 and headquartered in Jacksonville, Florida, Cadre Holdings, Inc. has evolved into a leading manufacturer and distributor of safety and survivability equipment. The company operates through two primary segments: Products and Distribution. The Products segment focuses on manufacturing body armor under the Safariland and Protech Tactical brands, survival suits, remotely operated vehicles, specialty tools, blast sensors, vehicle blast attenuation seats, and bomb suits. The Distribution segment offers a broader range of products, including duty gear, communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products, along with third-party products like uniforms, optics, boots, firearms, and ammunition. Cadre serves a diverse customer base, including state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing and wildlife enforcement, departments of corrections, and federal agencies such as the U.S. Department of State, U.S. Department of Defense, U.S. Department of Interior, U.S. Department of Justice, U.S. Department of Homeland Security, and various foreign government agencies.

What Products and Services Does CDRE Offer?

• Manufactures body armor under the Safariland and Protech Tactical brands.
• Produces survival suits and remotely operated vehicles for hazardous environments.
• Offers specialty tools and blast sensors for bomb safety technicians.
• Provides duty gear, including belts and accessories, for law enforcement.
• Distributes communications gear and forensic investigation products.
• Supplies firearms cleaning solutions and crowd control products.
• Offers third-party products like uniforms, optics, boots, firearms, and ammunition.

How Does CDRE Make Money?

• Manufacturing and selling safety and survivability equipment.
• Distributing third-party products to complement its own offerings.
• Securing contracts with government agencies and first responder organizations.
• Generating revenue through product sales and distribution agreements.

What Industry Does CDRE Operate In?

Cadre Holdings operates within the aerospace and defense industry, which is characterized by high barriers to entry and long-term government contracts. The market is driven by increasing global security threats and the need for advanced protective equipment. The competitive landscape includes companies like Kennametal Inc. (KMT), which also serve the defense sector. The industry is experiencing growth due to rising defense budgets and technological advancements in safety equipment. Cadre's focus on first responders and federal agencies positions it well within this growing market.

Who Are CDRE's Key Customers?

• State and local law enforcement agencies.
• Fire and rescue departments.
• Explosive ordnance disposal technicians.
• Federal agencies, including the U.S. Department of Defense and Homeland Security.
• Departments of corrections.

FY2026 estForward Outlook

Wall Street analysts project Cadre Holdings, Inc. revenue of about $737.1M for fiscal 2026, with EPS near $1.14. The estimate reflects 4 contributing analysts.

F-Score 4/9Financial Health

Cadre Holdings, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.66 places it in the grey zone, a middle ground that warrants monitoring.

ROE 11%Key Financial Metrics

Return on equity for Cadre Holdings, Inc. stands at 11.1%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 4.2%, showing how much profit it generates from its asset base. CDRE trades at a trailing price-to-earnings ratio of 27.63, roughly in line with the Industrials sector average of ~30x. Its free cash flow yield is 4.7%, a gauge of the cash the business throws off relative to its market value. A current ratio of 2.26 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 2.9%, the inverse of the P/E and a quick read on earnings relative to price.

Cadre Holdings, Inc. (CDRE) Valuation Context

Valued at $1.31B, CDRE is classified as a small-cap stock. Relative to its peer group, CDRE's quantitative score of 54/100 is below the peer average of 66/100.

CDRE Revenue & Earnings Trend

In Q1 2026, CDRE generated $155.4M in top-line revenue, marking a sequential decrease of 7.1%. The company recorded net income of $2.0M, with diluted EPS of $0.05. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Industrials. Across the four most recent quarters, CDRE averaged $0.22 in diluted EPS.

Company Profile

Cadre Holdings, Inc. operates in the Aerospace & Defense industry within the Industrials sector. It is headquartered in Jacksonville, US. The company is led by CEO Warren Kanders. CDRE has traded publicly since 2021.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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