Cardinal Infrastructure Group Inc.

Second quarter revenue was $227 million, up $115 million year over year, with organic growth of approximately 56%. Gross profit was $24.5 million, up 67% year over year; adjusted gross profit was $36 million, up 60%; adjusted gross margin was 15.9%, down 400 basis points. Adjusted EBITDA was $28.1 million, up 43% year over year, with adjusted EBITDA margin at 12.4% versus 18.6% in the prior year. Backlog ended at a record $866 million, up 35% year over year. For 2026, management raised revenue guidance to $880 million to $900 million, versus the prior $680 million midpoint mentioned earlier, and updated adjusted EBITDA margin guidance to 16% to 18%. Capital expenditures guidance was reiterated at $58 million, excluding acquisitions. The company ended the quarter with $339 million of cash, $195 million outstanding on its term loan, and nothing drawn on its $75 million revolver, leaving it in a net cash position. Allied Paving is expected to contribute $28 million of revenue into the updated outlook, and Cardinal said the deal was acquired at roughly 5.5x EBITDA.

Jeremy Spivey framed the quarter as a record result and emphasized that Cardinal is gaining share, expanding vertically integrated capabilities, and using capital quickly after its follow-on offering. He highlighted the Allied Paving acquisition as proof that local teams can now source and close deals themselves, which he said frees leadership to pursue more organic growth and M&A. His tone was highly optimistic, but he also acknowledged that the company is investing ahead of demand and is not willing to leave the opportunity in front of it on the table.

Mike Rowe said Q2 revenue of $227 million, gross profit of $24.5 million, adjusted gross profit of $36 million, adjusted EBITDA of $28.1 million, and a 12.4% adjusted EBITDA margin reflected a mix of one-time labor and subcontractor costs, deployment shifts, and weather disruption in Georgia. He noted SG&A was $9 million, or 4% of revenue, and said that level is likely a run-rate reference going forward while the company builds public-company infrastructure. He also pointed to a strong balance sheet with $339 million of cash, no revolver borrowings, and $195 million of term loan debt, and said 2026 capex remains guided to $58 million excluding acquisitions.

Analysts focused on why margins missed despite strong revenue, asking how much was due to one-time costs versus weather and whether the pressure was concentrated in Georgia or broader. Management said the issues included subcontracted labor and equipment rental, deployment shifts from a more diversified project mix, weather in Georgia, and higher public-company SG&A, but stressed the margin impact is transitional, not structural. Questions also centered on the second-half margin rebound, Allied Paving’s contribution timing, data center execution, and customer pricing concessions; management said Allied is included for about $28 million of revenue, the data center project is going well and ahead of schedule, and pricing concession requests have appeared but have not yet pressured results because Cardinal will walk away if economics do not work.