Cardinal Infrastructure Group Inc. (CDNL)

Price$32.43Cached quoteAs of 2026-09-17 07:37 UTC

AI: Fair-priced

Price checkThe valuation looks reasonable, but weak cash conversion prevents a clear bargain rating.

Using the 47.5 million economic units reported at June 30, the quote implies about $1.69 billion of equity value. Subtracting $308.5 million of net cash gives roughly $1.39 billion; adding the pending $120 million Allied purchase produces about $1.51 billion. Against 2026 guidance of $141 million to $162 million in adjusted profit before financing, taxes, and asset-wear costs, that is roughly nine to eleven times. Recent negative free cash flow makes that valuation fair rather than clearly cheap.

Big pictureSales are surging, but profits and cash have grown much more slowly.

Revenue increased 45% to $456.0 million in 2025, while net income rose only 6% to $22.7 million. Operating cash was $37.9 million, below $43.8 million of capital spending. During the first half of 2026, operating cash totaled about $22.0 million against $34.0 million of capital spending. Free cash flow—cash left after running and investing in the business—was therefore negative in both periods. The $866 million backlog supports demand, but 66% of 2025 revenue came from residential builders, creating housing-cycle exposure.

Business strengthA cash-rich balance sheet offers protection, although shareholders funded most of that strength.

At June 30, Cardinal held $339.1 million of cash against $30.6 million of debt, leaving $308.5 million of net cash. However, first-half financing inflows totaled roughly $387 million, including $318.4 million of net proceeds from June’s offering. Total economic units rose from 38.3 million at year-end to 47.5 million, partly through 4.6 million offered shares and 4.2 million seller rollover units. There were no dividends or buybacks. This supports acquisitions but shows that expansion has relied heavily on dilution rather than retained cash.

What could change the storyBetter margins and positive cash after equipment spending would make the shares more attractive.

The strongest bull evidence is 64% organic second-quarter growth, backlog up 35%, and new paving capacity that could replace outside suppliers. Allied also reportedly earns a 20.3% adjusted margin. The bear evidence is that Cardinal’s second-quarter adjusted margin fell to 12.4% from 18.6%, while full-year guidance dropped from above 20% to 16%–18%. Higher subcontractor and equipment-rental costs exposed scaling problems. Sustained margins near 18% and positive cash after capital spending would strengthen the case; continued dilution or weak cash conversion would undermine it.

AI: News

Profitability outlook cutRecord sales came with weaker margins, sharply reducing confidence in the quality of growth.

On August 11, Cardinal reported second-quarter revenue of $226.9 million, up 114%, including 64% organic growth. However, its adjusted operating margin before financing, taxes, and asset-wear costs fell to 12.4% from 18.6%. Management lowered full-year margin guidance from above 20% to 16%–18%, citing subcontracted labor, rented equipment, weather, and scaling costs. Shares fell about 26% in premarket trading; the timing indicates investor concern about profitability, though it cannot prove the announcement was the only cause.

Allied Paving dealCardinal agreed to buy a profitable paving contractor using both cash and new shares.

Announced August 11 and expected to close in October, the Allied Paving acquisition carries approximately $120 million of consideration: about $62.5 million in cash and $57.5 million in shares. Allied contributes roughly $108 million of annual revenue at a reported 20.3% adjusted margin, implying a purchase price around 5.5 times that profit measure. Bringing paving in-house could improve scheduling and retain supplier margins, but the stock component adds dilution and integration risk after several other acquisitions.

Large equity raiseA major share sale strengthened the balance sheet while materially expanding the ownership base.

Cardinal closed an upsized offering on June 26, selling 4.6 million Class A shares for approximately $336 million gross and $318.4 million net. The transaction explains much of the subsequent jump in cash and supplied capital for acquisitions. The new shares equaled about 12% of year-end economic units before considering other 2026 issuances. Existing owners gained financial flexibility and lower balance-sheet risk, but each share now represents a smaller claim on the operating business unless management earns strong returns on the new capital.

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Revenue

2023

2024

2025

Net income

2023

2024

2025

Free cash flow

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023
Revenue	$456.0M	$315.2M	$247.9M
Gross profit	$96.1M	$65.3M	$48.8M
Gross margin	21.08%	20.72%	19.70%
Operating expenses	$55.7M	$29.4M	$19.3M
Operating income	$40.4M	$35.9M	$29.5M
Operating margin	8.86%	11.40%	11.91%
EBITDA	$72.8M	$54.7M	$42.7M
EBITDA margin	15.96%	17.35%	17.23%
Net income	$22.7M	$21.4M	$20.6M
Net profit margin	4.97%	6.78%	8.30%
Basic EPSper basic share	$0.06	$1.62	$1.56
Diluted EPSper diluted share	$0.06	$1.62	$1.56

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

14.61%of listed shares

FMR LLC2.96M shares · Jun 30, 2026

View holders

Top 20 reported holders of CDNL
Holder	% owned
FMR LLC	14.61%2.96M shares
Driehaus Capital Management LLC	5.97%1.21M shares
BlackRock, Inc.	5.97%1.21M shares
ALLIANCEBERNSTEIN L.P.	4.86%982.77K shares
LORD, ABBETT & CO. LLC	4.25%859.43K shares
BERNER ROSS	≈4.25%859.37K shares
EMERALD ADVISERS, LLC	4.19%847.97K shares
MCKINNEY MARK	≈3.82%773.44K shares
AMERIPRISE FINANCIAL INC	3.81%771.01K shares
PRICE T ROWE ASSOCIATES INC /MD/	3.72%752.94K shares
FRED ALGER MANAGEMENT, LLC	3.59%727.03K shares
AMERICAN CENTURY COMPANIES INC	3.51%710.88K shares
VANGUARD CAPITAL MANAGEMENT LLC	3.48%704.19K shares
VICTORY CAPITAL MANAGEMENT INC	3.29%666.65K shares
PRINCIPAL FINANCIAL GROUP INC	3.20%646.9K shares
EMERALD MUTUAL FUND ADVISERS TRUST	2.71%549.3K shares
FRANKLIN RESOURCES INC	2.59%524.12K shares
KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC	2.25%455.37K shares
Engle Capital Management, L.P.	2.21%447.66K shares
GEODE CAPITAL MANAGEMENT, LLC	2.08%421.71K shares

Percentages use 20.24M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys10$2.14M disclosed value

Sells (SEC code S)0$0.00 disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 27, 2026Form 4	Wood BenjaminCHIEF OPERATING OFFICER	BuyClass A Common Stock	100	$54.33	$5.4K	20.0K
May 27, 2026Form 4	Wood BenjaminCHIEF OPERATING OFFICER	BuyClass A Common Stock	3.6K	$53.90	$194.0K	19.9K
May 27, 2026Form 4	Wood BenjaminCHIEF OPERATING OFFICER	BuyClass A Common Stock	4.2K	$51.90	$218.3K	16.3K
May 27, 2026Form 4	Wood BenjaminCHIEF OPERATING OFFICER	BuyClass A Common Stock	5.4K	$50.78	$271.9K	12.1K
May 27, 2026Form 4	Wood BenjaminCHIEF OPERATING OFFICER	BuyClass A Common Stock	6.7K	$49.89	$336.2K	6.7K

Review ownership filings at SEC.gov ↗

Community posts

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@tickerstat16 days ago
Cardinal completes syndication of $550 million credit package
Cardinal Infrastructure Group ($CDNL) completed syndication of an expanded credit package with $550 million in commitments. The structure includes a $100 million revolving facility, an existing term loan originally totaling $200 million and ...
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Cardinal Infrastructure Group Inc. (CDNL)

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Cardinal completes syndication of $550 million credit package