Cardinal Infrastructure Group Inc. Reports Second Quarter 2026 Results and Updates 2026 Outlook, Announces Acquisition of Allied Paving

Rhea-AI Summary

Cardinal Infrastructure Group (NASDAQ: CDNL) reported second quarter 2026 revenue of $226.9 million, up 114% year-over-year, with approximately 64% organic growth. Adjusted EBITDA was $28.1 million, up 43%, while adjusted EBITDA margin declined to 12.4% from 18.6% a year earlier, reflecting higher subcontracting, equipment rental and corporate investment costs.

Year-to-date revenue reached $394.4 million (up 110%) and adjusted EBITDA $54.9 million (up 60%). Backlog as of June 30, 2026 increased 35% to $866 million. Cash and cash equivalents rose to $339.1 million, supported by stronger operating cash flow.

Cardinal raised its 2026 revenue guidance to $880–$900 million and now targets adjusted EBITDA margin of 16%–18%. The company also agreed to acquire Allied Paving Contractors of Atlanta for approximately $120 million, funded with about $62 million in cash and roughly $58 million in Class A stock, adding an estimated $108 million of annual revenue at a 20.3% adjusted EBITDA margin. Closing is expected in early October.

Positive

• Q2 2026 revenue $226.9M, up 114% year-over-year with ~64% organic growth
• YTD 2026 revenue $394.4M, up 110% with 64% organic growth
• Q2 2026 adjusted EBITDA $28.1M, up 43% year-over-year
• Backlog $866M at June 30, 2026, up 35% from prior year
• Cash and equivalents $339.1M vs. $97.1M at December 31, 2025
• Allied Paving acquisition ~$120M for $108M revenue at 20.3% margin (5.5x adj. EBITDA)

Negative

• Q2 gross margin fell to 10.8% from 13.9% year-over-year
• Q2 adjusted gross margin declined to 15.9% from 21.3% year-over-year
• Q2 adjusted EBITDA margin decreased to 12.4% from 18.6% a year earlier
• Q2 net income attributable to Cardinal fell to $4.7M from $7.2M
• Long-term notes payable rose to $186.1M from $113.2M at year-end 2025
• Q2 2026 capital expenditures $24.7M vs. $12.2M in Q2 2025, excluding acquisitions

News Explained

Cardinal has entered an agreement to acquire Allied Paving, with completion expected in early October; if completed, the approximately $58 million of Class A stock consideration would increase shares outstanding and reduce existing holders’ percentage ownership.

Market Context

Insiders recorded 20,000 shares bought and 0 sold in the 90-day context. That net-buying record adde...

Analysis

Insiders recorded 20,000 shares bought and 0 sold in the 90-day context. That net-buying record added ownership context, while margin execution and acquisition integration remained risks to monitor.

Key Figures

Q2 revenue: $226.9 million Q2 adjusted EBITDA: $28.1 million Adjusted EBITDA margin: 12.4% +5 more

8 metrics

Q2 revenue $226.9 million Second quarter 2026; up 114% year-over-year

Q2 adjusted EBITDA $28.1 million Second quarter 2026; up 43% year-over-year

Adjusted EBITDA margin 12.4% Q2 2026 versus 18.6% in Q2 2025

Backlog $866 million As of June 30, 2026; up 35% from prior year

2026 revenue guidance $880-$900 million Updated full-year 2026 outlook

Guidance midpoint increase $210 million Increase to the 2026 revenue guidance midpoint

Acquisition consideration $120 million Allied Paving acquisition; cash and Class A Common Stock

Allied annual revenue $108 million; 20.3% adjusted EBITDA margin Acquired annual revenue and margin profile

Previous Acquisition,earnings Reports

1 past event · Latest: Feb 18 (Positive)

Same Type Pattern 1 events

Date	Event	Sentiment	24h Move	Catalyst
Feb 18	Acquisition and guidance	Positive	+31.3%	Acquisition, preliminary results, and higher 2026 guidance preceded a 31.31% 24-hour gain.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

The tag-specific historical record showed a positive reaction to a comparable acquisition, earnings, and guidance announcement.

Key Terms

adjusted ebitda, backlog, organic growth, lock-up

4 terms

adjusted ebitda financial

"Second quarter adjusted EBITDA of $28.1 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

backlog financial

"Backlog as of June 30, 2026 was $866 million"

A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.

organic growth financial

"The Company's 2026 guidance reflects management's current expectations for organic growth"

Organic growth is the increase in a company's sales or profits that comes from its own activities, such as selling more products or services, rather than through acquisitions or mergers. It is like a plant growing taller on its own, without needing outside help. For investors, it indicates the company's ability to expand steadily and sustainably through its existing business efforts.

lock-up financial

"The shares of Class A Common Stock to be issued in the transaction will be subject to a six month lock-up"

A lock-up is an agreement that prevents company insiders, early investors or employees from selling their shares for a set period after a public share offering. It matters to investors because it temporarily limits the number of shares available to trade—like a scheduled hold on extra inventory—and when that hold ends a large number of shares can enter the market, potentially putting downward pressure on the stock price and revealing insiders’ confidence in the company.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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RALEIGH, N.C., Aug. 11, 2026 /PRNewswire/ -- Cardinal Infrastructure Group Inc. (NASDAQ: CDNL) ("Cardinal" or the "Company"), today announced the Company's second quarter and year-to-date 2026 financial results, updated guidance for the full year 2026 and the acquisition of Allied Paving out of Atlanta.

Financial Highlights*:  

• Record quarterly revenue of $226.9 million; up 114% year-over-year; up 64% organically
• Year-to-date revenue of $394.4 million; up 110% year-over-year; up 64% organically
• Second quarter adjusted EBITDA of $28.1 million; up 43% year-over-year
• Year-to-date adjusted EBITDA of $54.9 million; up 60% year-over-year
• Backlog as of June 30, 2026 was $866 million; up 35% from the prior year
• Raising 2026 revenue guidance to $880-$900 million; midpoint increases by $210 million

Allied Paving Acquisition:

• $108 million in acquired annual revenue at 20.3% adjusted EBITDA margin
• Highly accretive purchase at 5.5x adj. EBITDA
• Third acquisition of 2026, supporting further verticalization in the Atlanta market

*See "Non-GAAP Financial Measures" below for a discussion of our use of Non-GAAP financial measures in this release and reconciliations to the most directly comparable GAAP financial measures.

"This was one of the strongest growth quarters in Cardinal's history," said Jeremy Spivey, Chairman and Chief Executive Officer. "We delivered record revenue, our backlog climbed to an all-time high, and today we announced Allied Paving, our ninth acquisition since 2021, following Piedmont Pipe in Charlotte in May. Keeping pace with this level of customer demand, and investing to capture the opportunity it represents, cost more than we expected this quarter, resulting in margins below plan."

"Demand across our footprint remains exceptionally strong, a direct reflection of how differentiated Cardinal's turnkey offering is in this market. That strength is why we're both raising our full-year revenue guidance, to a midpoint reflecting over 95% growth from 2025, and accelerating our investment in corporate infrastructure to fully capture the opportunity in front of us, which reshapes our 2026 margin outlook. Even so, our conviction in this platform's medium-term profitability is unchanged, and we still see a clear path to grow margins from here," continued Spivey. "The runway in front of Cardinal remains significant, and we remain focused on executing for our customers, our employees and our shareholders."

Second Quarter Results:
Cardinal reported revenue of $226.9 million for the second quarter 2026, an increase of 114% compared to $106.1 million in the second quarter of 2025. Growth was driven by organic expansion of 64%, as well as contributions from acquisitions completed in late 2025, ALGC, and Piedmont Pipe. These results reflect continued growth and market share gains across our footprint, as well as continued diversification of our end-market mix, with continued strength in residential alongside expanding contributions from commercial, industrial, mission critical and retail projects.

Gross profit for the quarter was $24.5 million, or 10.8% gross profit margin, compared to $14.7 million and 13.9% in the second quarter of 2025. Adjusted gross profit was $36.0 million, or 15.9% adjusted gross profit margin, compared to $22.6 million or 21.3% in the prior year. Adjusted gross profit margin was impacted by increased subcontracted labor and equipment rental costs in certain developing markets, reflecting both customer demand and an intentional shift toward a more diversified, less residential-weighted project mix. Intense weather-related disruptions in parts of the Southeast further weighed on results. The Company expects to recover a portion of these costs in the second half of 2026 as project deployment schedules progress.

Net income increased 18% to $11.1 million, compared to $9.4 million in the second quarter of 2025. EBITDA was $25.2 million for the quarter, representing an EBITDA margin of 11.1%, compared to $19.6 million and 18.5% in the prior year. Adjusted EBITDA for the second quarter was $28.1 million, reflecting Adjusted EBITDA margin of 12.4%, compared to $19.7 million and 18.6% in the second quarter of 2025. The change in Adjusted EBITDA margin reflects increased, accelerated, general and administrative expenses associated with continued investment across the Company's maturing corporate function and scaling operational footprint, in addition to the gross margin dynamics outlined above.

Year-To-Date Results: 
For the six months ended June 30, 2026, Cardinal reported revenue of $394.4 million, an increase of 110% compared to $187.9 million in the same period of 2025. These results reflect 64% organic growth.

Gross profit for the six months ended June 30, 2026 was $49.4 million, or 12.5% gross profit margin, compared to $24.6 million and 13.1% in the same period of 2025. Adjusted gross profit was $70.2 million, or 17.8% adjusted gross profit margin, compared to $39.1 million or 20.8% in the same period of 2025.

Net income increased 41% to $22.6 million, compared to $16.1 million in the same period of 2025. EBITDA was $49.2 million for the six months ended June 30, 2026, representing an EBITDA margin of 12.5%, compared to $33.9 million and 18.0% in the same period of 2025. Adjusted EBITDA for the first half of 2026 was $54.9 million, reflecting Adjusted EBITDA margin of 13.9%, compared to $34.3 million and 18.2% in the same period of 2025.

Backlog 
Cardinal's total backlog as of June 30, 2026, was $866 million, a 35% increase from June 30, 2025. The expansion reflects strong bid activity and continued project award momentum across each of Cardinal's markets.

Balance Sheet 
As of June 30, 2026, Cardinal had $339.1 million in cash and cash equivalents, compared to $97.1 million in cash and cash equivalents at the end of the prior year. Cash flows from operations increased to $12.7 million for the quarter ended June 30, 2026 compared to $4.2 million in the prior year. Capital expenditures for the quarter ended June 30, 2026, were $24.7 million, excluding acquisitions, compared to $12.2 million in 2025.

Allied Paving Acquisition
Today, the Company entered into an agreement and plan of merger, pursuant to which it will acquire Allied Paving Contractors, Inc. ("Allied"), an Atlanta-based paving and heavy site construction contractor. Total consideration is approximately $120 million, subject to customary post-closing adjustments, consisting of approximately $62 million of cash and Class A Common Stock valued at approximately $58 million, subject, in each case, to adjustments. The shares of Class A Common Stock to be issued in the transaction will be subject to a six month lock-up. The cash portion of the acquisition consideration will be funded with cash on hand.

Allied generates approximately $108 million in annual revenue at a 20.3% Adjusted EBITDA margin. The transaction brings paving capabilities in-house in Atlanta and supports meaningful margin capture and shorter project timelines across the region. The acquisition is expected to be completed in early October.

2026 Consolidated Guidance
Cardinal today increased outlook for the full year 2026:

• Revenue in the range of $880 million to $900 million
• Adjusted EBITDA margin of 16% to 18%

The Company's 2026 guidance reflects management's current expectations for organic growth and project execution across its core markets and includes the expected contribution of ALGC following the close of that acquisition on February 18, 2026. The guidance is based on current economic conditions and assumes no significant changes in the overall economy or other conditions in the Southeastern United States in 2026. The guidance does not include the potential impact of any future acquisitions, significant weather events or other items outside the ordinary course of business. See "Forward-Looking Statements" below.

Conference Call
Cardinal management will discuss results and outlook during its quarterly investor conference call today starting at 10:30 a.m. ET. The call and accompanying slide presentation will be webcast on the "Events & Presentations" section of Cardinal's website. A replay of the webcast will be available at the same location shortly after the conclusion of the presentation. 

About Cardinal 
Cardinal Infrastructure Group Inc. (NASDAQ: CDNL) is one of the Southeast's fastest-growing, full-service infrastructure service providers. The Company delivers integrated civil and site development solutions across high growth markets through a self-performing model supported by skilled labor, specialized fleets and market leading subsidiaries. This model enables efficient, turnkey project execution at scale while maintaining focus on building long-term client relationships. Cardinal's strategy is grounded in operational discipline, market expansion and a commitment to integrity from the ground up. 

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the Company's future performance. Statements that are predictive in nature, that depend upon or refer to future events or conditions or that include the words "may," "could," "plan," "project," "budget," "predict," "pursue," "target," "seek," "objective," "believe," "expect," "anticipate," "intend," "estimate," "will," and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. These statements involve risks and uncertainties and Cardinal's actual results could differ materially from the results expressed or implied by such forward-looking statements. The potential risks, uncertainties and other factors that could cause actual results to differ from those expressed by the forward-looking statements in this press release include, but are not limited to, difficulty in sustaining rapid revenue growth, which may place significant demands on Cardinal's administrative, operational and financial resources; fluctuations in Cardinal's revenue and the concentration of Cardinal's business in the Southeastern United States; Cardinal's ability to integrate recent acquisitions and achieve anticipated benefits and synergies; expectations regarding backlog and Cardinal's ability to secure future contracts; expectations regarding demand in the markets that Cardinal serves and in general. Cardinal has based these forward-looking statements largely on its current expectations and projections regarding future events and trends that it believes may affect its business, financial condition and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section entitled "Risk Factors" in Cardinal's Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"), and elsewhere in the Annual Report. Accordingly, you should not rely upon forward-looking statements as predictions of future events. Cardinal cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those projected in the forward-looking statements. Although forward-looking statements reflect the good faith beliefs of Cardinal's management at the time they are made, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements. Cardinal undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, changed circumstances or otherwise, unless required by law. These cautionary statements qualify all forward-looking statements attributable to Cardinal or persons acting on its behalf.

Cardinal Infrastructure Group Inc. Condensed Consolidated Statements of Operations (Unaudited)
	Three months ended June 30,								Six months ended June 30,
	2026				2025				2026				2025
Revenues	$	226,934,438			$	106,110,909			$	394,443,154			$	187,912,174
Cost of revenues, excluding depreciation and amortization		190,886,964				83,511,347				324,206,047				148,789,325
General and administrative		9,024,651				2,965,982				19,166,782				5,091,952
Depreciation expense		6,768,987				6,105,814				12,471,397				11,177,155
Amortization expense		4,824,386				1,782,179				8,391,734				3,309,679
Gain on disposal of property and equipment		(48,998)				—				(51,395)				(110,945)
Income from operations		15,478,448				11,745,587				30,258,589				19,655,008
Other expense:
Interest expense, net		(3,466,263)				(1,581,192)				(5,712,139)				(2,607,468)
Other expense, net		(1,875,001)				(7)				(1,875,001)				(241,407)
Total other expense, net		(5,341,264)				(1,581,199)				(7,587,140)				(2,848,875)
Net income before taxes		10,137,184				10,164,388				22,671,449				16,806,133
Income tax benefit (provision)		1,011,122				(714,261)				(42,107)				(714,261)
Net income		11,148,306				9,450,127				22,629,342				16,091,872
Less: Net income attributable to noncontrolling interests		6,472,939				2,282,422				14,535,537				3,447,186
Net income attributable to Cardinal Infrastructure Group Inc.	$	4,675,367			$	7,167,705			$	8,093,805			$	12,644,686
Earnings per share(1):
Basic	$	0.30							$	0.53
Diluted	$	0.26							$	0.53
Weighted average shares of Class A common stock outstanding(1):
Basic		15,586,953								15,349,112
Diluted		43,127,603								15,353,808

(1) Represents earnings per share of Class A common stock and weighted-average shares of Class A common stock outstanding for the period following the recapitalization transactions and IPO

 

Cardinal Infrastructure Group Inc. Condensed Consolidated Balance Sheets (Unaudited)
		Three Months Ended
ASSETS		June 30, 2026				Dec. 31,2025
Current assets:
Cash		$	339,092,289			$	97,149,425
Accounts receivable, net			114,413,290				61,282,268
Contract assets			98,171,438				54,894,260
Prepaid expenses			2,099,136				1,892,615
Other assets			1,306,912				432,584
Total current assets			555,083,065				215,651,152
Property and equipment, net			150,212,265				84,901,602
Operating lease right-of-use assets			20,664,409				8,929,742
Goodwill			133,216,343				23,510,649
Intangible assets, net			101,851,956				15,513,692
Deferred tax assets			52,888,382				46,080,518
Other non-current assets			554,739				—
Total assets		$	1,014,471,159			$	394,587,355
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of notes payable		$	10,970,395			$	6,128,674
Current portion of finance lease liabilities			3,433,406				3,349,359
Current portion of operating lease liabilities			6,187,695				3,814,686
Accounts payable			111,988,244				60,600,099
Accrued expenses			11,486,477				2,956,314
Deferred consideration payable			1,200,000				3,966,618
Contract liabilities			9,230,997				10,831,564
Total current liabilities			154,497,214				91,647,314
Notes payable, less current portion, net of unamortized debt issuance costs			186,069,703				113,152,864
Finance lease liabilities, less current portion			4,071,911				4,974,309
Operating lease liabilities, less current portion			16,886,049				5,851,516
Tax receivable agreement liability			47,156,582				39,423,529
Contingent consideration			12,300,000				—
Total liabilities			420,981,459				255,049,532
Stockholders' equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of June 30, 2026 and December 31, 2025		—						—
Class A common stock, $0.0001 par value, 500,000,000 shares authorized; 20,238,610 and 14,947,318 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively			2,025				1,495
Class B common stock, $0.0001 par value, 500,000,000 shares authorized; 27,234,449 and 23,387,813 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively			2,723				2,339
Additional paid-in capital			236,061,238				57,593,814
Retained earnings			8,957,398				863,593
Accumulated other comprehensive income			33,630				—
Total Cardinal Infrastructure Group Inc. stockholders' equity			245,057,014				58,461,241
Noncontrolling interests			348,432,686				81,076,582
Total equity			593,489,700				139,537,823
Total liabilities and stockholders' equity			1,014,471,159			$	394,587,355

 

Cardinal Infrastructure Group Inc. Condensed Consolidated Statements of Cash Flows (Unaudited)
		Six months ended June 30,
		2026				2025
Cash flows from operating activities:
Net income		$	22,629,342				16,091,872
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense			12,471,397				11,177,155
Amortization of debt issuance costs			275,751				—
Amortization of other intangible assets			8,391,734				3,309,679
Gain on disposal of property and equipment			(51,395)				(110,945)
Noncash stock compensation			461,517				—
Change in fair value of tax receivable agreement liability			1,974,349				—
Earnings from investments in unconsolidated affiliates			—				(95,393)
Provision for deferred income taxes			(43,438)				—
Changes in operating assets and liabilities:
Accounts receivable, net			(34,379,220)				(913,222)
Contract assets			(32,710,166)				(14,340,614)
Prepaid expenses			230,034				(333,966)
Other assets			424,275				(1,707,595)
Accounts payable			39,648,363				7,052,718
Accrued expenses			7,160,234				764,403
Contract liabilities			(4,371,898)				(4,572,010)
Other liabilities			(115,455)				—
Net cash provided by operating activities			21,995,424				16,322,082
Cash flows from investing activities:
Proceeds from the sale of property and equipment			334,291				144,011
Purchases of property and equipment			(33,985,056)				(22,621,352)
Acquisitions, net of cash acquired			(133,432,856)				(19,139,168)
Net cash used in investing activities			(167,083,621)				(41,616,509)
Cash flows from financing activities:
Proceeds from notes payable			113,000,000				38,505,712
Principal payments on notes payable			(38,090,709)				(7,753,497)
Payment of debt issuance costs			(838,501)				—
Principal payments on finance lease obligations			(1,514,248)				(1,436,760)
Payments of deferred consideration			(3,966,618)				(312,501)
Member distributions			—				(5,448,838)
Proceeds from equity offering, net of underwriting discounts			319,010,000				—
Payment of issuance costs			(568,863)				—
Net cash provided by financing activities			387,031,061				23,554,116
Net change in cash			241,942,864				(1,740,311)
Cash
Beginning of period			97,149,425				20,917,108
End of period		$	339,092,289			$	19,176,797

Non-GAAP Measures
Cardinal presents results of operations in a way that it believes will be the most meaningful and useful to investors, analysts, rating agencies and others who use Company financial information to evaluate performance. Some of these financial measures are not prepared in accordance with generally accepted accounting principles ("Non-GAAP") under Securities and Exchange Commission ("SEC") rules and regulations. For example, in this press release, Cardinal presents Organic Growth, Adjusted Gross Profit, Adjusted Gross Profit Margin, EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin, all of which are Non-GAAP financial measures as defined " in Cardinal's Annual Report on Form 10-K for the year ended December 31, 2025 (the "Annual Report"), and elsewhere in the Annual Report. These Non-GAAP financial measures are presented for supplemental informational purposes only and are not intended to be substitutes for any GAAP financial measures, including net income, and, as calculated, may not be comparable to companies in other industries or within the same industry with similarly titled measures of performance.

In addition, these Non-GAAP measures should not be construed as an inference that our future results will be unaffected by unusual or non-recurring items. Therefore, Non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.

Reconciliation to Non-GAAP Measures 
The table directly below reconciles Adjusted Gross Profit to Gross Profit, the most directly comparable GAAP measure and shows Gross Profit calculated as revenues less cost of revenues (excluding depreciation and amortization) and depreciation and amortization expense. While Gross Profit is not presented as a separate line item or subtotal in our financial statements, we present Gross Profit in the table below solely to facilitate the reconciliation of Adjusted Gross Profit, a Non-GAAP measure, to the most directly comparable GAAP measure.

	Three months ended June 30,								Six months ended June 30,
	2026				2025				2026				2025
Revenues	$	226,934,438			$	106,110,909			$	394,443,154			$	187,912,174
Cost of revenues, excluding depreciation and amortization		(190,886,964)				(83,511,347)				(324,206,047)				(148,789,325)
Depreciation and amortization expense		(11,593,373)				(7,887,993)				(20,863,131)				(14,486,834)
Gross Profit	$	24,454,101			$	14,711,569			$	49,373,976			$	24,636,015
Depreciation and amortization expense		11,593,373				7,887,993				20,863,131				14,486,834
Adjusted Gross Profit	$	36,047,474			$	22,599,562			$	70,237,107			$	39,122,849
Gross Profit Margin %		10.8	%			13.9	%			12.5	%			13.1	%
Adjusted Gross Profit Margin %		15.9	%			21.3	%			17.8	%			20.8	%

We define EBITDA as net income for the period adjusted for interest expense, net income tax expense, depreciation and amortization expense. Adjusted EBITDA further adjusts EBITDA for certain expenses associated with non-routine transactions, including (i) transaction fees and acquisition-related costs incurred in connection with acquisitions and planned acquisitions, (ii) non-routine costs associated with legal matters in which the Company is a defendant (iii) certain consulting and recruiting costs related to acquisitions and public company readiness, (iv) non-routine revenue impact from customer claims, (v) non-routine loss on extinguishment and refinancing costs, (vi) stock-based compensation, (vii) non-routine IPO related travel and compensation, (viii) remeasurement losses recorded in other expense net, and (ix) other non-routine gains and charges that we do not believe reflect our underlying business performance. We define EBITDA Margin as EBITDA as a percentage of revenue, and Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of revenue. The following table provides a reconciliation of net income and net income margin, the most closely comparable GAAP financial measure, to EBITDA, Adjusted EBITDA, EBITDA Margin and Adjusted EBITDA Margin:

	Three months ended June 30,								Six months ended June 30,
	2026				2025				2026				2025
Net income	$	11,148,306			$	9,450,127			$	22,629,342			$	16,091,872
Interest expense, net		3,466,263				1,581,192				5,712,139				2,607,468
Income tax (benefit) expense		(1,011,122)				714,261				42,107				714,261
Depreciation and amortization expense		11,593,373				7,887,993				20,863,131				14,486,834
EBITDA	$	25,196,820			$	19,633,573			$	49,246,719			$	33,900,435
Transaction fees and acquisition-related costs(1)		455,214				68,417				2,773,859				223,644
Legal matters(2)		566				—				566				-
Transition and consulting arrangements(3)		194,708				—				312,539				150,000
Customer claims(4)		—				—				—				—
Loss on extinguishment and refinancing costs(5)		—				—				—				—
Stock-based compensation		269,664				—				461,516				—
Tax Receivable Agreement Remeasurement(6)		1,974,349				—				1,974,349				—
Other(7)		48,141				222				169,881				708
Adjusted EBITDA	$	28,139,462			$	19,702,212			$	54,939,429			$	34,274,787
Net Income Margin(8)		4.9	%			8.9	%			5.7	%			8.6	%
EBITDA Margin(8)		11.1	%			18.5	%			12.5	%			18.0	%
Adjusted EBITDA Margin(8)		12.4	%			18.6	%			13.9	%			18.2	%

(1)	Represents transaction fees and acquisition-related costs incurred in connection with acquisitions and planned acquisitions.
(2)	Represents costs associated with legal matters in which the Company is a defendant.
(3)	Represents certain consulting and recruiting costs related to acquisitions and public company readiness.
(4)	Represents revenue impact from customer claims.
(5)	Represents financing and extinguishment-related expenses.
(6)	Represents Tax Receivable Agreement Liability Remeasurement losses recognized in other expense, net.
(7)	Represents certain other gains and charges that we do not believe reflect our underlying business performance.
(8)	Calculated as a percentage of revenue.

We are not able to provide the most directly comparable GAAP financial measure, or a quantitative reconciliation thereto, for the forward-looking guidance of estimated Adjusted EBITDA Margin without unreasonable effort due to the inherent uncertainty and difficulty in predicting the timing and amount of certain items, including but not limited to amortization of intangible assets and depreciation, which may be significant and difficult to project with a reasonable degree of accuracy, as the allocation of purchase price to intangible assets and property and equipment has not yet been performed. Because these adjustments are inherently variable and uncertain and depend on various factors that are beyond our control, we are also unable to predict their probable significance. The variability of these items could have an unpredictable, and potentially significant, impact on our future GAAP financial results.

We define Organic growth as the difference between total current and prior year sales less the impact of companies acquired and divested in the past twelve months divided by prior year sales. This Non-GAAP measure, as reconciled to GAAP below, is considered relevant to aid analysis and understanding of the Company's results, business trends and outlook measures aside from the material impact of the acquisition-related and other charges and ensures appropriate comparability to operating results of prior periods. The following table provides a reconciliation of the Non-GAAP financial measure, Organic Growth, to the most closely comparable GAAP financial measure, GAAP Revenue Growth:

GAAP Revenue Growth		Acquisitions		Divestitures		Non-GAAP Organic Revenue Growth
114 %	–	50 %	+	0 %	=	64 %

 

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SOURCE Cardinal Infrastructure Group Inc.

FAQ

How did Cardinal Infrastructure Group (CDNL) perform in Q2 2026?

Cardinal reported strong top-line growth in Q2 2026, with $226.9 million revenue, up 114% year-over-year. According to Cardinal, adjusted EBITDA rose 43% to $28.1 million, though adjusted EBITDA margin declined to 12.4% from 18.6% due to higher costs and investments.

What is Cardinal Infrastructure Group’s updated 2026 outlook for revenue and EBITDA (CDNL)?

Cardinal raised 2026 revenue guidance to $880–$900 million and now targets adjusted EBITDA margin of 16%–18%. According to Cardinal, this outlook assumes continued organic growth, execution across core markets, and includes ALGC’s contribution, but excludes future acquisitions and unusual events.

What are the key terms of Cardinal Infrastructure Group’s Allied Paving acquisition (CDNL)?

Cardinal agreed to acquire Allied Paving for approximately $120 million, paid with about $62 million in cash and roughly $58 million in Class A stock. According to Cardinal, Allied generates about $108 million annual revenue with a 20.3% adjusted EBITDA margin, and closing is expected in early October.

How fast is Cardinal Infrastructure Group’s backlog growing as of June 30, 2026 (CDNL)?

Cardinal’s backlog reached $866 million as of June 30, 2026, representing a 35% increase versus June 30, 2025. According to Cardinal, this growth reflects strong bid activity and continued project awards across all of its markets in the Southeastern United States.

What happened to Cardinal Infrastructure Group’s profit margins in Q2 2026 (CDNL)?

Cardinal’s profitability margins compressed in Q2 2026 despite revenue growth. According to Cardinal, gross margin fell to 10.8% and adjusted gross margin to 15.9%, while adjusted EBITDA margin declined to 12.4%, driven by higher subcontracting, equipment rental and accelerated corporate expenses.

How strong is Cardinal Infrastructure Group’s balance sheet and cash position in mid-2026 (CDNL)?

Cardinal reported cash and cash equivalents of $339.1 million at June 30, 2026, up from $97.1 million at year-end 2025. According to Cardinal, operating cash flow for the first half of 2026 increased to $22.0 million, while long-term notes payable rose to $186.1 million.

How much organic growth did Cardinal Infrastructure Group achieve in Q2 and year-to-date 2026 (CDNL)?

Cardinal delivered significant organic expansion in 2026, with approximately 64% organic revenue growth in both Q2 and year-to-date. According to Cardinal, this growth came alongside contributions from recent acquisitions and diversified demand across residential, commercial, industrial, mission critical and retail projects.