03. Cadre Holdings, Inc. (NYSE:CDRE)
Upside Potential as of June 23: 30%
Cadre Holdings, Inc. (NYSE:CDRE) is steadily building a reputation as a resilient, high margin player in the safety and defense space, and Wall Street is taking notice. With a target price of $42.67, analysts are signaling a 30% upside from its current share price of $32.87 as of June 22, making Cadre one of the more attractive stocks in the aerospace and defense sector right now.
Cadre Holdings, Inc. (NYSE:CDRE) specializes in mission critical safety and survivability products for law enforcement, first responders, and the military. It operates through two segments: a Product segment that manufactures these life saving tools, and a Distribution segment that serves as a one stop shop for agencies across the country. The company’s value proposition lies in its ability to offer highly engineered, dependable products through deep rooted customer relationships and an increasingly diversified portfolio.
In Q1 2025, Cadre Holdings, Inc. (NYSE:CDRE) delivered stronger than expected results, underscoring the stability and demand for its premium offerings. Net sales came in at $130.1 million, while adjusted EBITDA hit $20.5 million, representing 11.5% year over year growth. Notably, gross margin expanded 130 basis points, driven by favorable pricing and improved cost efficiency, further proof of Cadre’s ability to navigate uncertain environments while maintaining profitability.
Backing this growth is a disciplined M&A strategy. The recent acquisition of the engineering division from Cars Group deepens Cadre’s presence in the nuclear safety vertical and introduces high tech capabilities in robotics and remote handling. With operations now spanning the U.S., U.K., and Germany, Cadre is poised to expand globally, especially in areas like nuclear defense, automation, and nuclear medicine.
Financially, the company remains rock solid. Even after the acquisition, Cadre Holdings, Inc. (NYSE:CDRE) net leverage ratio is under 1.75x, giving it ample flexibility to pursue both organic growth and further acquisitions. For FY2025, the company projects net sales between $618M - $648M and adjusted EBITDA between $112M - $122M, implying an impressive 18.5% EBITDA margin.
What truly sets Cadre apart is its recession resistant business model. Demand for law enforcement and nuclear safety equipment remains stable regardless of macro volatility. With a robust backlog, recurring revenue, and a commitment to innovation, like its new holsters with integrated Axon camera technology, Cadre Holdings, Inc. (NYSE:CDRE) is a top pick for long term investors looking for growth and stability in the defense sector.