Second quarter 2026
Filed Aug 11, 2026Cardinal Infrastructure Group Inc. Reports Second Quarter 2026 Results and Updates 2026 Outlook, Announces Acquisition of Allied Paving
Record revenue, 64% organic growth and backlog growth were offset by lower gross and adjusted EBITDA margins, while the full-year adjusted EBITDA margin outlook is 16% to 18%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $226.9 million | – | 114% |
| Organic revenue growthother | 64% | – | – |
| Gross profitGAAP | $24.5 million | – | – |
| Gross profit marginGAAP | 10.8% | – | – |
| Adjusted gross profitnon-GAAP | $36.0 million | – | – |
| Adjusted gross profit marginnon-GAAP | 15.9% | – | – |
| Net incomeGAAP | $11.1 million | – | 18% |
| EBITDAother | $25.2 million | – | – |
| EBITDA marginother | 11.1% | – | – |
| Adjusted EBITDAnon-GAAP | $28.1 million | – | 43% |
| Adjusted EBITDA marginnon-GAAP | 12.4% | – | – |
| Year-to-date revenueGAAP | $394.4 million | – | 110% |
| Year-to-date organic revenue growthother | 64% | – | – |
| Year-to-date gross profitGAAP | $49.4 million | – | – |
| Year-to-date gross profit marginGAAP | 12.5% | – | – |
| Year-to-date adjusted gross profitnon-GAAP | $70.2 million | – | – |
| Year-to-date adjusted gross profit marginnon-GAAP | 17.8% | – | – |
| Year-to-date net incomeGAAP | $22.6 million | – | 41% |
| Year-to-date EBITDAother | $49.2 million | – | – |
| Year-to-date EBITDA marginother | 12.5% | – | – |
| Year-to-date adjusted EBITDAnon-GAAP | $54.9 million | – | 60% |
| Year-to-date adjusted EBITDA marginnon-GAAP | 13.9% | – | – |
| Backlogother | $866 million | – | 35% |
| Allied annual revenueother | $108 million | – | – |
| Allied Adjusted EBITDA marginnon-GAAP | 20.3% | – | – |
| Allied purchase multiplenon-GAAP | 5.5x adjusted EBITDA | – | – |
full year 2026 outlook
- Revenue$880 million to $900 million
- NoteAdjusted EBITDA margin of 16% to 18%
What drove it
- Second-quarter growth was driven by organic expansion of 64% and contributions from acquisitions completed in late 2025, ALGC, and Piedmont Pipe.
- The Company cited continued growth and market share gains across its footprint and diversification toward commercial, industrial, mission critical and retail projects alongside residential strength.
- Backlog expansion reflected strong bid activity and continued project award momentum across each of Cardinal's markets.
- The Allied transaction brings paving capabilities in-house in Atlanta and is intended to support margin capture and shorter project timelines across the region.
Concerns
- Adjusted gross profit margin was impacted by increased subcontracted labor and equipment rental costs in certain developing markets.
- The Company cited an intentional shift toward a more diversified, less residential-weighted project mix as a gross-margin factor.
- Intense weather-related disruptions in parts of the Southeast weighed on results.
- Accelerated general and administrative expenses tied to corporate-function and operational-footprint investments affected adjusted EBITDA margin.
- Guidance assumes no significant changes in the overall economy or other conditions in the Southeastern United States and excludes significant weather events.
What to watch
- Recovery of a portion of subcontracted labor and equipment rental costs in the second half of 2026 as project deployment schedules progress.
- Execution against the full-year revenue range of $880 million to $900 million and adjusted EBITDA margin of 16% to 18%.
- Completion of the Allied acquisition, expected in early October, and its integration into the Atlanta market.
- Backlog conversion from the $866 million balance as of June 30, 2026.
- The pace of corporate infrastructure investment and its effect on margins.
Balance sheet and cash flow
- Cash and cash equivalents as of June 30, 2026 were $339.1 million, compared to $97.1 million in cash and cash equivalents at the end of the prior year.
- Cash flows from operations were $12.7 million for the quarter ended June 30, 2026, compared to $4.2 million in the prior year.
- Capital expenditures were $24.7 million for the quarter ended June 30, 2026, excluding acquisitions, compared to $12.2 million in 2025.
- Total consideration for Allied 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 cash portion of the Allied acquisition consideration will be funded with cash on hand.
Analysis
Cardinal delivered record second-quarter revenue of $226.9 million, up 114% from $106.1 million, with 64% organic growth. Year-to-date revenue was $394.4 million, up 110%, also reflecting 64% organic growth. Management attributed the expansion to organic growth, late-2025 acquisitions, ALGC, Piedmont Pipe, market share gains and a broader end-market mix. Backlog reached $866 million as of June 30, 2026, up 35% from the prior year, supporting management's description of strong bid activity and project awards.
Profitability did not keep pace with revenue growth. Second-quarter gross profit margin was 10.8%, compared with 13.9% in the prior year, while adjusted gross profit margin was 15.9%, compared with 21.3%. Adjusted EBITDA margin was 12.4%, compared with 18.6%, despite adjusted EBITDA increasing 43% to $28.1 million. For the first half, adjusted EBITDA increased 60% to $54.9 million, while its margin was 13.9%, compared with 18.2% in the same period of 2025.
Management identified increased subcontracted labor and equipment rental costs in developing markets, a less residential-weighted project mix, and weather-related disruption in parts of the Southeast as gross-margin pressures. It also cited accelerated general and administrative expense associated with investment in the corporate function and operating footprint. The Company expects to recover a portion of the cost impact in the second half of 2026 as project deployment schedules progress.
Cash and cash equivalents were $339.1 million as of June 30, 2026, compared with $97.1 million at the end of the prior year. Quarterly cash flows from operations increased to $12.7 million from $4.2 million, while capital expenditures, excluding acquisitions, were $24.7 million compared with $12.2 million in 2025. Cardinal also agreed to acquire Allied for approximately $120 million, including approximately $62 million of cash and Class A Common Stock valued at approximately $58 million. Allied generates approximately $108 million in annual revenue at a 20.3% Adjusted EBITDA margin, and the cash consideration will be funded with cash on hand.
The Company raised full-year 2026 revenue guidance to $880 million to $900 million and guided to an adjusted EBITDA margin of 16% to 18%. The guidance includes the expected contribution of ALGC following its February 18, 2026 close, but excludes the potential impact of future acquisitions, significant weather events and other items outside the ordinary course of business. The key execution issue is whether Cardinal can translate high backlog and demand into the guided margin range while absorbing labor, rental, weather and corporate-investment pressures.
Management, verbatim
This was one of the strongest growth quarters in Cardinal's history,
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.
Jeremy Spivey, Chairman and Chief Executive Officer
Demand across our footprint remains exceptionally strong, a direct reflection of how differentiated Cardinal's turnkey offering is in this market.
Jeremy Spivey, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- GAAP diluted earnings per share
- non-GAAP diluted earnings per share
- GAAP operating income
- non-GAAP operating income
- free cash flow
- debt balance
- share repurchases
- dividends
- reportable segment revenue
- prior-quarter comparisons for reported metrics
- full-year 2026 gross margin guidance
- full-year 2026 operating expenses guidance
- full-year 2026 tax rate guidance
- previous-quarter outlook for comparison
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.