Cardinal Infrastructure (NASDAQ: CDNL) lifts 2026 outlook after 105% Q1 revenue surge
Rhea-AI Filing Summary
Cardinal Infrastructure Group Inc. reported very strong first quarter 2026 growth and raised its full-year outlook. Revenue reached $167.5 million, up 105% year over year, including 64% organic growth. Net income rose to $11.5 million, an increase of 73%, with diluted earnings per share of $0.23.
Adjusted EBITDA climbed to $26.8 million, up 84%, for a 16.0% Adjusted EBITDA margin. Backlog as of March 31, 2026 was $854 million, up 60% from a year earlier, supporting revenue visibility. Management raised 2026 revenue guidance to a range of $675 million to $685 million and reaffirmed an Adjusted EBITDA margin target of 20%+, reflecting confidence in continued growth and integration of recent acquisitions.
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Insights
Cardinal posts triple-digit revenue growth, strong backlog and raises 2026 guidance.
Cardinal Infrastructure Group delivered Q1 2026 revenue of $167.5 million, up 105% with 64% organic growth, highlighting both acquisitive and underlying expansion. Net income increased 73% to $11.5 million, while Adjusted EBITDA rose 84% to $26.8 million.
Backlog reached $854 million as of March 31, 2026, a 60% year-over-year increase that supports future activity across residential, commercial, industrial and municipal end markets. The quarter also absorbed higher general and administrative expenses and acquisition-related costs as the company scales as a public platform.
Management raised 2026 revenue guidance to $675 million–$685 million from a prior range of $665 million–$678 million and targets Adjusted EBITDA margins of 20%+. Significant acquisition spending of about $125.5 million and higher notes payable underline the importance of successful integration and disciplined execution in upcoming quarters.
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
Non-GAAP financial measures financial
backlog financial
EBITDA Margin financial
Tax receivable agreement liability financial
contingent consideration financial
Earnings Snapshot
For 2026, Cardinal expects revenue of $675M–$685M and targets Adjusted EBITDA margins of 20%+.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Item 2.02 Results of Operations and Financial Condition.
On May 12, 2026, Cardinal Infrastructure Group Inc. (the “Company”) issued a press release announcing its financial results of operations for the quarter ended March 31, 2026, and other related information. Also on May 12, 2026, the Company made available on its website at www.cardinalinfrastructuregroup.com certain supplemental information concerning the Company’s financial results and operations for the quarter ended March 31, 2026. Copies of such press release and supplemental information are furnished as Exhibits 99.1 and 99.2, respectively, to this Current Report on Form 8-K and are incorporated herein by reference.
In accordance with General Instructions B.2 and B.6 of Form 8-K, the information included in this Current Report on Form 8-K, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 7.01 Regulation FD Disclosure.
The disclosure contained in Item 2.02 is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit |
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Description |
99.1 |
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Press Release, Dated May 12, 2026 |
99.2 |
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Investor Presentation, Dated May 12, 2026 |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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CARDINAL INFRASTRUCTURE GROUP INC. |
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Date: |
May 12, 2026 |
By: |
/s/ Mike Rowe |
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Mike Rowe |
Cardinal Infrastructure Group Inc. Announces First Quarter 2026 Results and Raises 2026 Outlook
Raleigh, NC – May 12, 2026 – Cardinal Infrastructure Group Inc. (NASDAQ: CDNL) (“Cardinal” or the “Company”), today announced first quarter 2026 financial results and raised guidance for the full year 2026.
First Quarter Highlights*:
*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.
“Cardinal delivered an exceptional first quarter," said Jeremy Spivey, Cardinals’ Chairman and Chief Executive Officer. "Revenue grew significantly year over year, backlog reached an all-time high and ALGC has made strong contributions from day one. With results ahead of our expectations on a strong start to the year and the solid visibility we have into the year ahead, we are raising our full-year revenue guidance.”
"Our vertical integration model is winning work that broadens our end market mix in a real way, including the data center project we announced, and a series of manufacturing and industrial awards added to backlog this quarter. The bidding environment across our markets remains robust and our M&A pipeline is the most active it has ever been. The runway in front of Cardinal is significant, and we are focused on executing for our customers and our shareholders.”
First Quarter Results:
Cardinal reported revenue of $167.5 million for the first quarter 2026, an increase of $86 million, or 105%, compared to $81.8 million in the first quarter of 2025. Growth was driven by 64% organic expansion alongside strong contributions from our 2025 acquisitions and A.L. Grading Contractors (ALGC), which closed mid-February 2026. These results reflect growth in all regions across our footprint, as well as the diversification of our end-market mix, with continued strength in residential alongside expanding contributions from commercial, manufacturing and industrial projects.
Gross profit for the quarter was $24.9 million, or 14.9% gross profit margin, compared to $9.9 million and 12.1% in the prior year. The 280-basis point increase in margins reflects strong cost control, scale benefits across higher revenue volumes and disciplined project execution across our core markets. Adjusted gross profit was $34.2 million, or 20.4% adjusted gross profit margin, an increase of approximately $18 million or 20 basis points year-over-year.
Net income increased 73% to $11.5 million, compared to $6.6 million in 2025. EBITDA was $24.0 million for the quarter, representing an EBITDA Margin of 14.4%, compared to $14.3 million and 17.4% in the prior year. Adjusted EBITDA for first quarter was $26.8 million, reflecting Adjusted EBITDA margin of 16.0%, compared to $14.6 million and 17.8% in the first quarter of 2025. Adjusted EBITDA margins reflect the increase in gross profit, offset by acquisition-related costs and increased general and administrative expenses related to annual public company costs, including audit and reporting cycle expenses.
Backlog
Cardinal's total backlog as of March 31, 2026, was $854 million, a 60% increase from $532 million as of March 31, 2025. The expansion reflects strong bid activity and continued project award momentum across each of Cardinal's core markets, along with the addition of ALGC.
Balance Sheet
As of March 31, 2026, Cardinal had $44.0 million in cash and cash equivalents, compared to $22.8 million in cash and cash equivalents at the end of the prior year. Capital expenditures for the quarter ended March 31, 2026, were $9.3 million, excluding acquisitions, compared to $10.3 million in 2025.
2026 Consolidated Guidance
Cardinal today increased outlook for the full year 2026:
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.
Contacts
Emily Lear – Director of Investor Relations
Elear@CardinalCivil.com
(984)267-3821
Liz Hester – Director of Marketing and Public Relations
LHester@CardinalCivil.com
(984)202-4236
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,” 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 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)
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Three months ended March 31, |
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2026 |
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2025 |
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Revenues |
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$ |
167,508,716 |
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$ |
81,801,265 |
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Cost of revenues, excluding depreciation and amortization |
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133,319,083 |
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65,277,978 |
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General and administrative |
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10,142,131 |
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2,125,970 |
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Depreciation expense |
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5,702,410 |
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5,071,341 |
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Amortization expense |
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3,567,348 |
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1,527,500 |
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(Gain) on disposal of property and equipment |
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(2,397) |
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(110,945) |
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Income from operations |
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14,780,141 |
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7,909,421 |
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Other expense: |
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Interest expense, net |
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(2,245,876) |
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(1,026,276) |
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Other expense, net |
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— |
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(241,400) |
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Total other expense, net |
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(2,245,876) |
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(1,267,676) |
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Net income before taxes |
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12,534,265 |
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6,641,745 |
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Income tax expense |
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(1,053,229) |
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— |
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Net income |
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11,481,036 |
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6,641,745 |
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Less: Net income attributable to noncontrolling interests |
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8,062,598 |
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1,164,764 |
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Net income attributable to Cardinal Infrastructure Group Inc. |
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$ |
3,418,438 |
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$ |
5,476,981 |
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Three months ended March 31, 2026 |
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Earnings per share(1): |
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Basic |
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$ |
0.23 |
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Diluted |
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$ |
0.23 |
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Weighted average shares of Class A common stock outstanding(1): |
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Basic |
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15,104,788 |
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Diluted |
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15,126,679 |
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(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 Sheet (Unaudited)
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March 31, 2026 (unaudited) |
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December 31, 2025 |
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ASSETS |
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Current assets: |
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Cash |
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$ |
43,982,867 |
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$ |
97,149,425 |
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Accounts receivable, net |
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96,631,099 |
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61,282,268 |
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Contract assets |
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85,238,241 |
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54,894,260 |
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Prepaid expenses |
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1,686,826 |
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1,892,615 |
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Other assets |
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540,049 |
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432,584 |
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Total current assets |
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228,079,082 |
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215,651,152 |
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Property and equipment, net |
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125,541,991 |
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84,901,602 |
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Operating lease right-of-use assets |
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20,438,873 |
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8,929,742 |
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Goodwill |
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128,619,937 |
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23,510,649 |
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Intangible assets, net |
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109,046,343 |
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15,513,692 |
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Deferred tax assets |
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45,095,262 |
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46,080,518 |
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Other non-current assets |
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430,427 |
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— |
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Total assets |
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$ |
657,251,915 |
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$ |
394,587,355 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Current portion of notes payable |
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$ |
10,129,136 |
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$ |
6,128,674 |
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Current portion of finance lease liabilities |
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3,487,722 |
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|
3,349,359 |
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Current portion of operating lease liabilities |
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|
5,455,264 |
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|
|
3,814,686 |
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Accounts payable |
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|
94,734,950 |
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60,600,099 |
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Accrued expenses |
|
|
8,172,033 |
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|
|
2,956,314 |
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Deferred consideration payable |
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|
200,001 |
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|
|
3,966,618 |
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March 31, 2026 (unaudited) |
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December 31, 2025 |
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Contract liabilities |
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9,669,372 |
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|
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10,831,564 |
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Other current liabilities |
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|
22,178 |
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|
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— |
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Total current liabilities |
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131,870,656 |
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|
|
91,647,314 |
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Notes payable, less current portion, net of unamortized debt issuance costs |
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185,898,921 |
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|
113,152,864 |
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Finance lease liabilities, less current portion |
|
|
4,993,315 |
|
|
|
4,974,309 |
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Operating lease liabilities, less current portion |
|
|
17,255,749 |
|
|
|
5,851,516 |
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Tax receivable agreement liability |
|
|
39,423,529 |
|
|
|
39,423,529 |
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Contingent consideration |
|
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15,254,000 |
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— |
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Other non-current liabilities |
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|
554,159 |
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— |
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Total liabilities |
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395,250,329 |
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|
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255,049,532 |
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Stockholders' equity |
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Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued and outstanding as of March 31, 2026 and December 31 2025 |
|
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— |
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— |
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Class A common stock, $0.0001 par value, 500,000,000 shares authorized; 15,292,984 and 14,947,318 shares issued and outstanding as of March 31, 2026 and December 31 2025, respectively |
|
|
1,530 |
|
|
|
1,495 |
|
Class B common stock, $0.0001 par value, 500,000,000 shares authorized; 27,573,875 and 23,387,813 shares issued and outstanding as of March 31, 2026 and December 31 2025, respectively |
|
|
2,757 |
|
|
|
2,339 |
|
Additional paid-in capital |
|
|
66,275,188 |
|
|
|
57,593,814 |
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Retained earnings |
|
|
4,282,031 |
|
|
|
863,593 |
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Accumulated other comprehensive loss |
|
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(151,904) |
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|
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— |
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Noncontrolling interests |
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|
191,591,984 |
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|
|
81,076,582 |
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Total stockholders’ equity |
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|
262,001,586 |
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|
|
139,537,823 |
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Total liabilities and stockholders’ equity |
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$ |
657,251,915 |
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$ |
394,587,355 |
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Cardinal Infrastructure Group Inc.
Condensed Consolidated Statements of Cash Flows (Unaudited)
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Three months ended March 31, |
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2026 |
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2025 |
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Cash flows from operating activities: |
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Net income |
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$ |
11,481,036 |
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$ |
6,641,745 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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|
|
|
|
|
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Depreciation expense |
|
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5,702,410 |
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|
|
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5,071,341 |
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Amortization of debt issuance costs |
|
|
130,328 |
|
|
|
|
— |
|
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Amortization of other intangible assets |
|
|
3,567,348 |
|
|
|
|
1,527,500 |
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(Gain) loss on disposal of property and equipment |
|
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(2,397) |
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|
|
|
(110,945) |
|
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Noncash stock compensation |
|
|
191,852 |
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|
|
— |
|
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(Earnings) losses from investments in unconsolidated affiliates |
|
|
— |
|
|
|
|
(47,204) |
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Provision for deferred income taxes |
|
|
1,031,051 |
|
|
|
|
— |
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Changes in operating assets and liabilities: |
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|
|
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Accounts receivable, net |
|
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(18,417,868) |
|
|
|
|
3,429,615 |
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Contract assets |
|
|
(19,716,683) |
|
|
|
|
(1,273,858) |
|
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Prepaid expenses |
|
|
642,344 |
|
|
|
|
(201,690) |
|
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Other assets |
|
|
249,389 |
|
|
|
|
(1,596,519) |
|
|
Accounts payable |
|
|
22,586,565 |
|
|
|
|
789,417 |
|
|
Accrued expenses |
|
|
3,902,484 |
|
|
|
|
(517,531) |
|
|
Contract liabilities |
|
|
(2,053,018) |
|
|
|
|
(1,619,189) |
|
|
Other liabilities |
|
|
22,178 |
|
|
|
|
— |
|
|
Net cash provided by operating activities |
|
9,317,019 |
|
|
|
12,092,682 |
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Cash flows from investing activities: |
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|
|
|
|
|
|
|
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Proceeds from the sale of property and equipment |
|
|
56,214 |
|
|
|
|
144,011 |
|
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Purchases of property and equipment |
|
|
(9,317,980) |
|
|
|
|
(10,372,126) |
|
|
|
|
Three months ended March 31, |
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2026 |
|
|
|
2025 |
|
|
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Acquisitions, net of cash acquired |
|
|
(125,532,857) |
|
|
|
|
(13,992,969) |
|
|
Net cash used in investing activities |
|
|
(134,794,623) |
|
|
|
|
(24,221,084) |
|
|
|
|
|
|
|
|
|
|
|
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Cash flows from financing activities: |
|
|
|
|
|
|
|
|
||
Proceeds from notes payable |
|
|
80,000,000 |
|
|
|
|
21,736,705 |
|
|
Principal payments on notes payable |
|
|
(2,545,308) |
|
|
|
|
(4,280,528) |
|
|
Payment of debt issuance costs |
|
|
(838,501) |
|
|
|
|
— |
|
|
Principal payments on finance lease obligations |
|
|
(538,528) |
|
|
|
|
(599,006) |
|
|
Payments of deferred consideration |
|
|
(3,766,617) |
|
|
|
|
— |
|
|
Member distributions |
|
|
— |
|
|
|
|
(2,865,337) |
|
|
Net cash provided by (used in) financing activities |
|
|
72,311,046 |
|
|
|
|
13,991,834 |
|
|
Net change in cash |
|
|
(53,166,558) |
|
|
|
|
1,863,432 |
|
|
Cash |
|
|
|
|
|
|
|
|
||
Beginning of period |
|
|
97,149,425 |
|
|
|
|
20,917,108 |
|
|
End of period |
|
$ |
43,982,867 |
|
|
|
$ |
22,780,540 |
|
|
|
|
|
|
|
|
|
|
|
||
Non-GAAP Measures
Cardinal present 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.
|
Quarter ended March 31, |
|
||||||
|
2026 |
|
|
2025 |
|
|||
Revenues |
$ |
167,508,716 |
|
|
$ |
81,801,265 |
|
|
Cost of revenues, exclusive of depreciation and amortization shown separately |
|
(133,319,083) |
|
|
|
(65,277,978) |
|
|
Depreciation and amortization expense |
|
(9,269,758) |
|
|
|
(6,598,841) |
|
|
Gross Profit |
$ |
24,919,875 |
|
|
$ |
9,924,446 |
|
|
Depreciation and amortization expense |
|
9,269,758 |
|
|
|
6,598,841 |
|
|
Adjusted Gross Profit |
$ |
34,189,633 |
|
|
$ |
16,523,287 |
|
|
Gross Profit Margin % |
|
14.9% |
|
|
|
12.1% |
|
|
Adjusted Gross Profit Margin % |
|
20.4% |
|
|
|
20.2% |
|
|
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 , 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, and (viii) 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:
|
Quarter ended March 31, |
||||||||
|
2026 |
|
|
2025 |
|||||
Net income |
$ |
11,481,036 |
|
|
$ |
6,641,745 |
|||
Interest expense, net |
|
2,245,876 |
|
|
|
1,026,276 |
|||
Income tax expense |
|
1,053,229 |
|
|
|
— |
|||
Depreciation and amortization expense |
|
9,269,758 |
|
|
|
6,598,841 |
|||
EBITDA |
$ |
24,049,899 |
|
|
$ |
14,266,862 |
|||
Transaction fees and acquisition-related costs(1) |
|
2,318,645 |
|
|
|
155,227 |
|||
Legal matters(2) |
|
— |
|
|
|
— |
|||
Transition and consulting arrangements(3) |
|
117,832 |
|
|
|
150,000 |
|||
Customer claims(4) |
|
— |
|
|
|
— |
|||
Loss on extinguishment and refinancing costs(5) |
|
— |
|
|
|
— |
|||
Stock-based compensation |
|
191,852 |
|
|
|
— |
|||
Non-recurring IPO related travel and compensation |
|
– |
|
|
|
— |
|||
Other(6) |
|
121,739 |
|
|
|
486 |
|||
Adjusted EBITDA |
$ |
26,799,967 |
|
|
$ |
14,572,575 |
|||
Net Income Margin(7) |
|
6.9% |
|
|
|
8.1% |
|||
EBITDA Margin(7) |
|
14.4% |
|
|
|
17.4% |
|||
Adjusted EBITDA Margin(7) |
|
16.0% |
|
|
|
17.8% |
|||
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 |
105% |
– |
41% |
+ |
0% |
= |
64% |
Q1 2026 Earnings May 12, 2026
This presentation 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,” 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 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. Forward- Looking Statements
Non-GAAP Financial Measures We present our results of operations in a way that we believe will be the most meaningful and useful to investors, analysts, rating agencies and others who use our financial information to evaluate our performance. Some of our financial measures are not prepared in accordance with generally accepted accounting principles (“Non-GAAP”). For example, in this presentation, we present 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 the Company’s most recent Form 10-K. 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. See “Appendix A” for a discussion of the Non-GAAP financial measures and a reconciliation to the most comparable GAAP financial measure. Key Performance Indicators In addition to the foregoing non-GAAP financial measures, management uses backlog as a key performance metrics to assess future revenue visibility and anticipate business activity. Backlog develops as a result of new awards, which represent the potential revenue value realizable pursuant to new project commitments received by us during a given period. Backlog is measured and defined differently by companies within our industry. We refer to “backlog” as the unearned revenue we expect to earn in future periods on our executed contracts. As the construction on our projects progresses, we increase or decrease backlog to take into account newly signed contracts, revenue earned during the period and our estimates of the effects of changes in estimated quantities, changed conditions, change orders and other variations from previously anticipated contract revenues, including completion penalties and incentives. In the event of a project cancellation, termination or scope adjustment, we typically have no contractual right to the total revenues reflected in our backlog. The timing of contract awards, duration of large new contracts and the mix of services, subcontracted work and material in our contracts can significantly affect backlog reporting. We cannot guarantee that the revenue projected in our backlog will be realized, or if realized, will result in earnings. Given these factors, our backlog at any point in time may not accurately represent the revenue that we expect to realize during any period, and our backlog as of the end of a fiscal year may not be indicative of the revenue we expect to earn in the following fiscal year. Given that backlog is an operational measure and that the Company’s methodology for calculating backlog does not meet the definition of a non-GAAP financial measure, a quantitative reconciliation is not required or provided. Non-GAAP Financial Measures & Key Performance Indicators
Q1 2026: Solid Execution Across All Metrics Diversified End-Market Demand Continues to Broaden Results reflect growth in all regions and solid execution on projects across residential, commercial, municipal and industrial end markets. ALGC Contributions Making Solid Impact Quickly deployed adjacent services to reduce subcontract labor. Well positioned to accelerate consolidated margin expansion as integration synergies build through 2026. Backlog of $854M at March 31; +60% YoY Organic backlog growth +30% from the prior year; reflecting key project wins across a variety of end markets. Announced first mission-critical data center award; $24M for phase 1 of a multi-phase campus development with full self-performed civil scope. Raising Full Year 2026 Outlook Now expecting revenues in the range of $675 million to $685 million and adjusted EBITDA margins of 20%+ NOTE: See “Non-GAAP Financial Measures” in the appendix for definitions and reconciliations to the most directly comparable GAAP measures. $167.5M +105% YoY; +64% organically Revenue $11.5M +73% YoY Net Income Gross Profit & Margin $24.9M 14.9% $34.2M 20.4% Adj. Gross Profit & Margin EBITDA & Margin $24.0M 14.4% Adj. EBITDA & Margin $26.8M 16.0%
The Vertical Integration Advantage While competitors outsource key scopes and buy materials at market, Cardinal controls the full project stack; capturing margin, compressing timelines and delivering with single-source accountability Margin Capture Schedule Control Strong Relationships ▶ A CARDINAL PROJECT — one team, turnkey delivery Business Development - Site Award › Clearing & Erosion Control › Rock Removal & Blasting Earthwork & Retaining Walls Wet Utilities › Curb, Stone, Asphalt Owned asphalt online Q2'26 ~6 weeks Est. reduction in timeline 20%+ 2026E Adj. EBITDA Margins 80%+ Repeat Customers
Built in the Carolinas, Expanding Across the Southeast Deep density across the Carolinas and Georgia: operating at the center of one of the fastest-growing and most durable construction regions in the U.S EXPANDING THE FOOTPRINT Adjacent Southeast states (VA, TN, AL, FL) share the same demand drivers and customer base as our core markets. Cardinal captures the runway through two distinct acquisition tracks: CARDINAL TODAY $854M Backlog at 03/31/26 2,500+ Total employees 160+ Wet utility related crews 3 States of operation Add crews, focusing on specialized labor Fill service-line gaps and pull margin in-house in markets where we already have density TUCK-INS · Deepen Existing Markets PLATFORMS · Enter Adjacent States Establish Cardinal in new geographies with strong local leadership and deploy a proven operational playbook ALGC (Atlanta) is the proof point
Disciplined Acquisition Strategy & Economics Cardinal has built a repeatable, value-accretive acquisition model, targeting companies that fill geographic or service line gaps, integrating rapidly and immediately deploying a proven growth playbook. ACQUISITION CRITERIA ✓ Strong culture fit to lead a new market ✓ Leads with wet utility install ✓ Residential end market focus with opportunity to diversify ✓ Capable of vertical integration and service-line expansion ✓ Supports in-market density or new geographic entry Financial Metrics Tuck-in Target Platform Target Target Revenue $10m – $50m $100m – $300m Target EBITDA $2m – $10m $20m – $75m Valuation Multiple ~4x EBITDA ~6x EBITDA Primary Value Driver Grow crew/fleet; Fill vertical integration gaps New Market Entry Integration Focus Tuck into existing ops Standalone w/ local leadership 7 Acquisitions since 2021 3 Markets entered via M&A $310M In annual pro-forma acquired revenue ~90 Day avg. integration TRANSACTION ECONOMICS PROVEN EXECUTION
+105% Total +64% Organic 16.0% Adj. EBITDA Margin +84% Q1 2026: Sustained Revenue & Adj. EBITDA Expansion Vertical Integration Cardinal's structural differentiator The platform delivered 64% organic growth in Q1. Self-performing the full civil scope compresses schedules, wins us new customers and makes Cardinal a single accountable partner for complex work. End Market Diversification Winning work the platform is built for Serving a broader and more durable mix of end markets, reducing concentration risk and supporting more consistent growth. Disciplined M&A A repeatable acquisition framework Cardinal's M&A framework has delivered $310 million of acquired annual revenue across seven deals since 2021. ALGC is the latest example, contributing meaningfully to Q1 results. Margin Expansion Runway Multiple compounding drivers Q1 absorbed the deliberate investments in our public company costs and ALGC integration. Margin expansion from here is supported by vertical integration and operating leverage as the platform scales. NOTE: See “Non-GAAP Financial Measures” in the appendix for definitions and reconciliations to the most directly comparable GAAP measures. +60%
2026 Consolidated Revenue Guidance $675M – $685M 2026 Adj. EBITDA Margin Target 20%+ Q1 Outperformance First quarter revenue, Adjusted EBITDA and Backlog ahead of internal expectations. With Organic revenue growth +64% YoY. ALGC tracking to Underwriting Updated guidance includes ~10.5 months of ALGC contribution, with margin profile strengthening the consolidated business. Record Backlog & Strong Visibility Record $854M backlog at quarter-end is up 60% YoY and provides strong visibility into the year ahead. NOTE: See “Non-GAAP Financial Measures” in the appendix for definitions and reconciliations to the most directly comparable GAAP measures. NOTE: Guidance reflects management's current estimates and is forward-looking. Actual results may differ materially. 2026 Guidance: Raising Full Year Outlook Raised from previous $665M-$678M range Maintained
Investment Thesis Cardinal is a differentiated, high-growth infrastructure services platform positioned to capture the multi-decade buildout of the Southeastern United States I Differentiated Turnkey Model One of the few scaled, full-service site prep providers in the Southeast. 97% of revenue from negotiated contracts, reflecting pricing power and customer preference for speed and quality. II Proven, Repeatable, Growth Flywheel A repeatable four-step market entry model: launch in residential, vertically integrate, expand into commercial/DOT and expand into adjacent markets. Now operating across Raleigh, Charlotte, Greensboro and Atlanta and surrounding areas. III Powerful Secular Tailwinds Structural demand from Southeastern population growth, corporate reshoring, manufacturing + data center buildout and NC DOT improvement plan through 2033 creates durable, multi-cycle demand across end markets. IV Highly Visible Revenue $854M backlog as of 03/31/26 (1.3x 2026E revenue coverage), with ~80% of revenue from repeat customers and diversification across residential, commercial and industrial, DOT/municipal and paving end markets. V Industry-Leading Financial Profile FY’25 results reflect 45% revenue growth, 21.1% Adj. Gross Profit Margin and 17.9% Adjusted EBITDA Margin. Cardinal leads public peers on revenue CAGR and backlog/revenue ratio, and offers top-tier Adj. EBITDA margins VI Management Aligned, Proven Team Founder-led management team with 30+ years of infrastructure and construction experience, remaining the largest shareholders post-IPO. NOTE: See “Non-GAAP Financial Measures” in the appendix for definitions and reconciliations to the most directly comparable GAAP measures. NOTE: Repeat customers defined as customers with billings in more than one FY. Metric based on 2024 to 2025 billings.
Integrity from the ground up
This presentation contains references to “Adjusted Gross Profit,” “Adjusted Gross Profit Margin,” “EBITDA,” “Adjusted EBITDA,” and “Adjusted EBITDA Margin” financial measures which are, in each case, Non-GAAP financial measures. Adjusted Gross Profit: We define Adjusted Gross Profit as total revenue less cost of sales, exclusive of depreciation and amortization. Adjusted Gross Profit Margin represents Adjusted Gross Profit as a percentage of total revenue. Adjusted Gross Profit Margin: We define Adjusted Gross Profit Margin represents Adjusted Gross Profit as a percentage of total revenue. Adjusted EBITDA: 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-cash stock-based compensation and non-routine transactions. Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of revenue Organic Revenue Growth: We define organic revenue growth as the difference between current year and prior year revenues less the impact of acquired or divested companies in the past 12 months Non-GAAP Financial Measures
Non-GAAP Financial Measure Reconciliations Quarter ended March 31, 2026 2025 Revenue $ 167,508,716 $ 81,801,265 Cost of revenues, excluding of depreciation and amortization (133,319,083) (65,277,978) Depreciation and amortization expense (9,269,758) (6,598,841) Gross Profit $ 24,919,875 $ 9,924,446 Depreciation and amortization expense 9,269,758 6,598,841 Adjusted Gross Profit $ 34,189,633 $ 16,523,287 Gross Profit Margin % 14.9% 12.1% Adjusted Gross Profit Margin % 20.4% 20.2% GAAP Revenue Growth Acquisitions Divestitures Non-GAAP Organic Revenue Growth 105% – 41% + 0% = 64% The table directly below reconciles Adjusted Gross Profit to Gross Profit, the most directly comparable to 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 audited financial statements for the quarters ended March 31, 2026, and 2025, we present Gross Profit in the below table solely to facilitate the reconciliation of Adjusted Gross Profit, a non-GAAP measure, to the most directly comparable GAAP measure. We define Organic revenue growth or organic growth as the difference between total current and prior year sales less the impact of companies acquired and divested in the past three months divided by prior year sales. This non-GAAP measure, as reconciled to GAAP above, 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 GAAP Revenue Growth, the most closely comparable GAAP financial measure, to Non-GAAP Organic Revenue Growth:
Non-GAAP Financial Measure Reconciliations Quarter ended March 31, 2026 2025 Net income $ 11,481,036 $ 6,641,745 Interest expense, net 2,245,876 1,026,276 Income tax expense 1,053,229 — Depreciation and amortization expense 9,269,758 6,598,841 EBITDA $ 24,049,899 $ 14,266,862 Transaction fees and acquisition-related costs(1) 2,318,645 155,227 Legal matters(2) — — Transition and consulting arrangements(3) 117,832 150,000 Customer claims(4) — — Loss on extinguishment and refinancing costs(5) — — Stock-based compensation 191,852 — Non-recurring IPO related travel and compensation – — Other(6) 121,739 486 Adjusted EBITDA $ 26,799,967 $ 14,572,575 Net Income Margin(7) 6.9% 8.1% EBITDA Margin(7) 14.4% 17.4% Adjusted EBITDA Margin(7) 16.0% 17.8% (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 certain other gains and charges that we do not believe reflect our underlying business performance. (7) Calculated as a percentage of revenue. 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-cash related stock-based compensation and non-routine transactions. 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:
