Cardinal Infrastructure Shares Fall 33% as Q3 Loss and Margin Decline Offset Revenue Growth

Cardinal Infrastructure Group Inc. (NASDAQ:CDNL) shares declined 33% in pre-market trading on Thursday after the company reported a third-quarter loss that missed analyst expectations and withdrew its full-year financial guidance.

For the quarter ended September 30, 2026, Cardinal reported a loss of $0.21 per share, compared with analyst expectations for earnings of $0.41 per share.

Revenue increased 65.1% year over year to $201.9 million from $122.3 million. However, net income shifted to a loss of $11 million from a profit of $10.1 million in the corresponding period of 2025.

Cardinal Reports Decline in Operating Margins

Adjusted EBITDA margin fell to 4.2% from 17.5% a year earlier, reflecting $13.2 million in project estimate revisions, residential pricing pressures, lower initial bid margins on commercial and industrial projects, and increased fuel and transportation expenses.

Gross margin decreased to 5.4% from 15.9%, representing a decline of 10.5 percentage points.

“Revenue grew 65.1% this quarter to $201.9 million, but our third-quarter Adjusted EBITDA margin fell to 4.2%, well below our expectations,” said Chairman and Chief Executive Jeremy Spivey.

“These results are not acceptable, and they make clear that we need to strengthen how we estimate, manage and execute projects across Cardinal,” he added.

Company Withdraws FY2026 Guidance and Delays Acquisition

Following the quarterly results, Cardinal withdrew its full-year 2026 revenue and adjusted EBITDA margin guidance and postponed its proposed acquisition of Hughes Brothers.

The company also announced operational changes, including an expanded role for Chief Operating Officer Benji Wood in establishing operating standards across its businesses.

Additionally, Cardinal authorized a $50 million share repurchase program over the next 12 months.

Backlog Reaches $815.5 Million

Cardinal reported a total backlog of $815.5 million as of September 30, 2026, representing a 26.2% increase from the previous year.

The company held $335 million in cash and $198.5 million in total debt at quarter-end, resulting in a net cash position of $136.5 million.

Cardinal Infrastructure Group stock price