Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) shares moved higher in pre-market trading on Tuesday after the infrastructure services company reported record second-quarter revenue and sharply increased its full-year sales forecast, despite earnings coming in slightly below expectations.
Adjusted earnings per share reached $0.26, missing the analyst consensus of $0.28 by $0.02. Revenue, however, jumped 114% year on year to a record $226.9 million, supported by 64% organic growth and contributions from acquisitions.
Cardinal shares gained 1.92% in pre-market trading following the announcement.
Revenue guidance rises well above analyst expectations
Following the strong top-line performance, Cardinal increased its full-year 2026 revenue forecast to between $880 million and $900 million.
The midpoint of $890 million is substantially higher than the analyst consensus of $717.7 million, putting the raised outlook at the centre of the market reaction.
Adjusted EBITDA increased 43% year on year to $28.1 million during the quarter. However, adjusted EBITDA margin fell to 12.4% from 18.6% in the comparable period last year.
Cardinal attributed the margin compression to higher costs for subcontracted labour and equipment rentals in developing markets, weather-related disruption and accelerated investment in corporate infrastructure needed to support its rapid expansion.
Backlog reaches record $866 million
Cardinal’s backlog stood at an all-time high of $866 million as of June 30, 2026, representing a 35% increase from a year earlier.
The company said the increase reflected strong bidding activity across its markets, providing additional visibility as it works toward its higher full-year revenue target.
“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.”
Allied Paving acquisition adds to expansion strategy
Alongside its quarterly results, Cardinal announced an agreement to acquire Allied Paving Contractors for approximately $120 million.
The consideration consists of $62 million in cash and $58 million in Class A Common Stock, with the transaction expected to close in early October.
Allied generates approximately $108 million in annual revenue and has an adjusted EBITDA margin of 20.3%. The deal will become Cardinal’s ninth acquisition since 2021.
For investors, Cardinal’s record revenue, 64% organic growth, higher full-year forecast and expanding backlog point to significant business momentum. The key counterweight is margin compression, making cost control and the profitability of its rapid expansion important areas to watch as Cardinal integrates recent acquisitions and scales its operations.
Cardinal Infrastructure Group stock price
