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Cardinal Infrastructure Group, Inc. (CDNL) AI Stock Analysis
Cardinal Infrastructure Group, Inc.
(NASDAQ:CDNL)
The score is driven primarily by mixed fundamentals: strong growth and profitability are tempered by higher leverage and a 2025 swing to negative free cash flow. Technicals are a major headwind with the stock far below key moving averages and very weak momentum indicators. Offsetting these risks, valuation looks attractive on a low P/E, and the latest earnings call was constructive with raised revenue guidance and record backlog despite acknowledged near-term margin pressure.
Cardinal Infrastructure Group, Inc. (CDNL) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $233.22M
- Dividend Yield
- ―
- Average Volume (3M)
- 885.39K
- Price to Earnings (P/E)
- 9.3
- Beta (1Y)
- 0.62
- Revenue Growth
- 89.75%
- EPS Growth
- -20.34%
- Country
- US
- Employees
- 1,480
- Sector
- General
- Sector Strength
- 55
- Industry
- Engineering & Construction
Cardinal Infrastructure Group, Inc. Business Overview & Revenue Model
Company Description
Cardinal Infrastructure Group Inc., a civil contracting company, provides site development and infrastructure services to the residential, commercial, industrial, municipal, and state infrastructure markets in the southeastern United States. It offer...
Cardinal Infrastructure Group, Inc. Earnings Call Summary
The call conveyed strong topline momentum and strategic progress—record quarterly revenue, record backlog, aggressive revenue guidance raise, accretive M&A and a strong liquidity position. These positives were tempered by near-term margin compression driven by one-time costs, weather impacts, higher subcontractor/rental expenses in newer markets, and elevated G&A as the company matures as a public entity. Management described the margin headwinds as transitional and outlined clear operational levers (vertical integration, asphalt plant, Piedmont Pipe, equipment and CRM investments, and recovering one-time costs) expected to drive margin recovery later in the year and into 2027.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management raised full‑year revenue guidance to $880–$900 million (midpoint $890M, ~95% YoY growth) supported by a record $866M backlog (up 35% YoY) and Q2 revenue of $227M (up 114% YoY; ~56% organic growth). They updated profitability guidance to a 16%–18% adjusted EBITDA margin for 2026 (midpoint implying full‑year adjusted EBITDA >$150M vs. prior ~$136M), noted Q2 adjusted EBITDA of $28.1M (12.4% margin) and H1 adjusted EBITDA of $55M, reiterated capex guidance of $58M (ex‑acquisitions), and ended the quarter with $339M cash, $195M term‑loan outstanding, $0 drawn on a $75M revolver (net cash). The outlook includes roughly $28M of Allied Paving revenue baked into the back half; Allied brings ~$108M of annual revenue at a ~20.3% adjusted EBITDA margin at ~5.5x EBITDA, management expects to recover $1M–$2M of Q2 one‑time costs, and continues to target longer‑term adjusted EBITDA margins in the low‑20s.
Cardinal Infrastructure Group, Inc. Financial Statement Overview
Summary
Strong growth and solid 2025 profitability (revenue up ~15.4% YoY; gross margin ~21.1%; net margin ~5.0%), but the risk profile is held back by sharply higher leverage (debt ~$137.3M vs. ~$63.4M; debt/equity ~2.35x) and weaker cash quality as free cash flow turned negative in 2025 (~-$5.9M) despite positive operating cash flow (~$37.9M).
Income Statement
78PositiveBalance Sheet
45NeutralCash Flow
52Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 |
|---|---|---|---|---|
Income Statement | ||||
| Total Revenue | 662.58M | 456.05M | 315.19M | 247.92M |
| Gross Profit | 115.67M | 96.15M | 46.64M | 48.84M |
| EBITDA | 90.13M | 72.26M | 57.46M | 43.25M |
| Net Income | 18.14M | 22.69M | 21.36M | 20.57M |
Balance Sheet | ||||
| Total Assets | 1.01B | 394.59M | 140.31M | 118.77M |
| Cash, Cash Equivalents and Short-Term Investments | 339.09M | 97.15M | 20.92M | 7.22M |
| Total Debt | 227.62M | 137.27M | 63.40M | 55.21M |
| Total Liabilities | 420.98M | 255.05M | 116.96M | 111.30M |
| Stockholders Equity | 245.06M | 58.46M | 11.76M | 443.32K |
Cash Flow | ||||
| Free Cash Flow | -11.60M | -5.91M | 21.87M | 18.62M |
| Operating Cash Flow | 43.57M | 37.90M | 42.63M | 30.88M |
| Investing Cash Flow | -226.97M | -101.50M | -20.97M | -22.36M |
| Financing Cash Flow | 503.31M | 139.83M | -7.96M | -2.69M |
Cardinal Infrastructure Group, Inc. Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDNL, the sentiment is Negative. The current price of 15.55 is below the 20-day moving average (MA) of 17.62, below the 50-day MA of 27.27, and below the 200-day MA of 43.60, indicating a bearish trend. The MACD of -3.93 indicates Negative momentum. The RSI at 29.94 is Positive, neither overbought nor oversold. The STOCH value of 75.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDNL.
Cardinal Infrastructure Group, Inc. Risk Analysis
Cardinal Infrastructure Group, Inc. disclosed 71 risk factors in its most recent earnings report. Cardinal Infrastructure Group, Inc. reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksCardinal Infrastructure Group, Inc. Peers Comparison
Overall Rating
GATX75Outperform
AER73Outperform
PAC71Outperform
CDNL61Neutral
GBX54Neutral
WSC52Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| 75Outperform | $6.39B | 17.39 | 14.10% | 1.37% | 29.67% | 25.84% | |
| 73Outperform | $24.48B | 8.25 | 16.95% | 0.90% | -0.30% | -8.36% | |
| 71Outperform | $13.91B | 17.61 | 32.98% | ― | 20.11% | 7.98% | |
| 61Neutral | $723.96M | 9.33 | 17.54% | ― | 89.75% | -20.34% | |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| 54Neutral | $1.21B | 16.56 | 4.73% | 3.13% | -23.97% | -60.98% | |
| 52Neutral | $3.32B | -52.05 | -7.45% | 1.45% | -2.51% | -162.51% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| CDNL | Cardinal Infrastructure Group, Inc. | 15.40 | -8.10 | -34.47% | |
| AER | AerCap Holdings NV | 163.34 | 33.76 | 26.05% | |
| GATX | GATX Corporation | 188.68 | 38.80 | 25.89% | |
| WSC | Willscot Mobile Mini Holdings Corp. | 19.26 | -1.38 | -6.67% | |
| GBX | Greenbrier Companies | 42.22 | 1.64 | 4.05% | |
| PAC | Grupo Aeroportuario Del Pacifico | 235.37 | 22.66 | 10.65% |
Cardinal Infrastructure Group, Inc. Corporate Events
Cardinal Infrastructure expands via Hughes Brothers acquisition
PositiveOn October 13, 2026, Cardinal Infrastructure Group, Inc. signed a definitive agreement to acquire Hughes Brothers Construction Inc., a leading heavy civil and site development contractor in Central Florida, for approximately $357.5 million in cash an...
Cardinal Infrastructure Acquires Allied Paving to Expand Georgia
PositiveOn October 1, 2026, Cardinal Infrastructure Group Inc. closed its acquisition of Allied Paving Contractors, Inc. for approximately $115 million in a mix of cash and Class A common stock issued in a private transaction to accredited investors. The dea...
Subsidiary Expands Credit Facility to Support Infrastructure Growth
PositiveOn September 10, 2026, Cardinal Civil Contracting, LLC, a subsidiary of Cardinal Infrastructure Group Inc., entered into a second amendment to its existing credit agreement with Truist Bank and other lenders. The company itself is not a party to this...
Cardinal Infrastructure Lifts Outlook, Plans Allied Paving Acquisition
PositiveCardinal Infrastructure Group Inc. reported that in the second quarter of 2026 it more than doubled revenue year over year to a record $226.9 million, with 64% organic growth, while adjusted EBITDA rose 43% to $28.1 million despite margin pressure fr...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 19, 2026