Q2 2026 Cardinal Infrastructure Group Inc Earnings Call Transcript
Key Points
- Record Q2 revenue of $227 million, up 114% year-over-year, driven by strong demand across commercial/industrial and residential markets.
- Record backlog of $866 million, up 35% year-over-year, providing strong visibility into future revenue.
- Raised full-year 2026 revenue guidance to $880-$900 million, reflecting 95% growth at the midpoint.
- Completed ninth acquisition (Allied Paving) since 2021, sourced and executed by the ALGC team, demonstrating platform's ability to grow organically and via M&A.
- Strong balance sheet with $339 million cash and net cash position, providing capacity for continued investments and acquisitions.
- Adjusted EBITDA margin fell to 12.4% in Q2, down from 18.6% year-over-year, due to higher subcontractor costs, weather disruptions in Georgia, and deployment inefficiencies.
- Adjusted gross margin declined 540 basis points year-over-year to 15.9%, impacted by one-time costs and underutilized crew capacity.
- Full-year adjusted EBITDA margin guidance lowered to 16%-18% from previous 20%+ expectation, reflecting ongoing cost pressures and investments.
- Weather-related impacts in Georgia slowed deployment of high-margin work at ALGC, negatively affecting quarterly results.
- Increased general and administrative expenses (4% of revenue) due to investments in corporate infrastructure, systems, and compliance, which are expected to continue.
Good morning, ladies and gentlemen, and welcome to Cardinal Infrastructure Group's second quarter 2026 earnings conference call and webcast.
At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you would need to press *11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Emily Lear, Cardinal. Director of Investor Relations, please go ahead.
Good morning, everyone, and welcome to Cardinal Infrastructure Group's second quarter 2026 earnings conference call and webcast. I'm pleased to be here today to discuss our results with Jeremy Spivey, Cardinal's Chairman and Chief Executive Officer Benji Wood, Chief Operating Officer and Mike Rao, Chief Financial Officer.
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