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