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Record growth lifted the outlook: Second-quarter revenue surged 114% year over year to $227 million, including 56% organic growth, while backlog reached $866 million. Cardinal raised 2026 revenue guidance to $880 million–$900 million.
Profitability weakened amid expansion costs: Adjusted EBITDA rose 43% to $28.1 million, but the margin fell to 12.4% from 18.6% due to higher labor and equipment costs, project delays, underutilized crews and severe Georgia weather. Full-year adjusted EBITDA margin guidance was lowered to 16%–18%.
Acquisitions and vertical integration remain central: Cardinal acquired Atlanta-based Allied Paving, adding $108 million in annual revenue and paving capabilities that should reduce subcontractor reliance. The company also continues investing in asphalt production, wet-utility capacity and fleet expansion while maintaining substantial liquidity.
Cardinal Infrastructure Group (NASDAQ:CDNL) reported record second-quarter revenue and backlog while raising its full-year revenue outlook, though profitability fell below management's expectations as the company absorbed higher labor, equipment and weather-related costs.
#million #costs #second
Record growth lifted the outlook: Second-quarter revenue surged 114% year over year to $227 million, including 56% organic growth, while backlog reached $866 million. Cardinal raised 2026 revenue guidance to $880 million–$900 million.
Profitability weakened amid expansion costs: Adjusted EBITDA rose 43% to $28.1 million, but the margin fell to 12.4% from 18.6% due to higher labor and equipment costs, project delays, underutilized crews and severe Georgia weather. Full-year adjusted EBITDA margin guidance was lowered to 16%–18%.
Acquisitions and vertical integration remain central: Cardinal acquired Atlanta-based Allied Paving, adding $108 million in annual revenue and paving capabilities that should reduce subcontractor reliance. The company also continues investing in asphalt production, wet-utility capacity and fleet expansion while maintaining substantial liquidity.
Cardinal Infrastructure Group (NASDAQ:CDNL) reported record second-quarter revenue and backlog while raising its full-year revenue outlook, though profitability fell below management's expectations as the company absorbed higher labor, equipment and weather-related costs.
#million #costs #second
3 days ago
