Cardinal Infrastructure Group (NASDAQ:CDNL) executives highlighted strong growth, a record backlog, and a step-up in profitability expectations as the company discussed full-year 2025 results and provided 2026 guidance on its earnings call. Management also detailed the company’s acquisition activity, its recent initial public offering, and ongoing investments aimed at expanding capacity and vertical integration.
Full-year 2025 results: revenue up 45% with broad-based growth
Chairman and CEO Jeremy Spivey said 2025 was a “landmark year” for Cardinal, citing strong revenue growth, three acquisitions completed during the year, a record backlog, and the company’s IPO in December.
CFO Mike Rowe reported gross profit of $64 million compared to $47 million a year earlier. On an adjusted basis, gross profit was $96 million, representing a 21.1% adjusted gross margin, up 40 basis points year-over-year, which he attributed to execution quality and scale benefits.
Rowe said general and administrative expense totaled $23 million, or 5% of revenue, with the increase year-over-year reflecting $8.5 million in non-recurring costs tied to acquisitions and building public company infrastructure around the IPO. Excluding non-recurring items, continuing G&A was 3.3% of revenue compared with 3.4% in 2024.
For the year, Cardinal reported EBITDA of approximately $72 million (a 15.8% margin) and adjusted EBITDA of $81.5 million, a 44% increase versus 2024, with an adjusted EBITDA margin of 17.9%.
Backlog reaches a record $682 million
Spivey said the company ended 2025 with a record backlog of $682 million. Rowe added that the backlog equals roughly 1.5x 2025 revenue, which he said provides strong coverage for 2026 guidance and improved visibility into the timing of revenue throughout the year.
During the Q&A portion of the call, Spivey addressed questions about why Cardinal’s activity appears stronger than broader housing headlines. He pointed to the company’s footprint in Southeastern markets with positive net migration and what he described as an “undersupply of housing and an overdemand” in the region. He said North and South Carolina were “flat year-over-year to slightly up,” with Georgia “more towards the flat.”
Spivey also said Cardinal benefits from visibility into projects well before they begin because the company assists clients with underwriting, entitlements, and value engineering. While he cited interest-rate tailwinds as a potential positive, he also referenced geopolitical uncertainty and inflation impacts on materials as headwinds affecting trades as projects go vertical.
Acquisitions and geographic expansion, including post-year-end ALGC deal
Management emphasized acquisitions as a key feature of 2025. Spivey said Cardinal closed three acquisitions during the year: Purcell Construction in Charlotte, Page & Associates in Greensboro, and Charlotte-based Red Clay Industries, which expanded paving and services capabilities across North and South Carolina. He said the integration effort was a “meaningful test” and that all three businesses are operational and contributing.
After year-end, Cardinal closed its largest acquisition to date. Spivey said the company completed the acquisition of A.L. Grading Contractors (ALGC) on February 18. He described ALGC as a fourth-generation site development business based in Sugar Hill, Georgia, providing grading, underground utilities, and clearing for large-scale commercial, industrial, and residential projects across Georgia and South Carolina.
Spivey said ALGC brings approximately $160 million in annual revenue and is “meaningfully accretive” to Cardinal’s consolidated business. He described the transaction as Cardinal’s first expansion outside of the Carolinas and a deliberate move to build density and vertical integration in high-growth Southeast markets.
Cash flow, capital spending, and balance sheet update
Rowe reported operating cash flow of approximately $38 million for the year, which he said reflected solid working capital management through the IPO process. Capital expenditures totaled approximately $44 million, elevated versus prior periods due to construction of an asphalt manufacturing plant and fleet investments to support acquisition-driven growth.
Rowe said the asphalt plant is expected to come online toward the end of the second quarter and described it as a vertical integration initiative intended to reduce reliance on third-party asphalt supply in the Raleigh market and potentially serve external customers.
On financing and leverage, Rowe said Cardinal raised nearly $140 million through financing activities, including IPO proceeds and its credit facility, and deployed over $101 million toward acquisitions and capital expenditures. The company ended the year with $120 million outstanding on its term loan and nothing drawn on its $75 million revolver, resulting in 0.4x year-end net leverage.
Subsequent to year-end, the company amended its credit facilities to provide an incremental $80 million to fund the ALGC acquisition. On a pro forma basis including ALGC, Rowe said net leverage is approximately 1.27x, below the company’s 2.5x covenant.
2026 guidance calls for revenue of $664.9 million to $678.3 million, with adjusted EBITDA margin above 20%
Management reiterated 2026 guidance first provided with the ALGC announcement. Cardinal expects full-year 2026 revenue in the range of $664.9 million to $678.3 million and adjusted EBITDA margins of 20% or above.
Rowe said the expected margin expansion versus 2025 is supported by ALGC’s “meaningfully accretive” margin profile and continued vertical integration intended to reduce reliance on third-party suppliers and contractors and improve input cost control. In response to an analyst question, management referenced three drivers supporting the move to 20%+ margins, including the accretive margin profile of ALGC, vertical integration, and volume-driven “drop through,” while also pointing to the asphalt plant as another contributor.
Cardinal expects 2026 capital expenditures of approximately $58 million, as it completes the asphalt facility and continues fleet upgrades while remaining active in evaluating strategic acquisitions.
Rowe also outlined typical seasonality expectations: the company anticipates 40% to 45% of revenue in the first half of the year, with the first quarter as the seasonal low point for revenue and profitability and the third quarter historically the strongest due to summer weather.
- 2025 revenue: $456 million (up 45%)
- 2025 backlog: $682 million (record)
- 2026 revenue guidance: $664.9 million to $678.3 million
- 2026 adjusted EBITDA margin guidance: 20% or above
- 2026 capex guidance: approximately $58 million
In closing remarks, Spivey thanked employees for what he described as an outstanding year, and he highlighted the company’s focus on safety, customer commitment, and culture as it enters 2026 with expanded scale following its IPO and acquisitions.
About Cardinal Infrastructure Group (NASDAQ:CDNL)
We provide a comprehensive suite of infrastructure services to the residential, commercial, industrial, municipal, and state infrastructure markets. Our operations leverage a large highly skilled workforce and a fleet of specialized equipment to deliver wet utility installations (water, sewer, and stormwater systems), as well as grading, site clearing, erosion control, drilling and blasting, paving, and other related site services. We are becoming the platform of choice for a diverse array of infrastructure construction projects in our target geographies that require high-level technical expertise and sophistication.
