Cardinal Infrastructure Group (NASDAQ:CDNL) Announces Quarterly Earnings Results

Cardinal Infrastructure Group (NASDAQ:CDNL) released its quarterly earnings results on Thursday. The company reported ($0.21) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by ($0.70), FiscalAI reports. The business had revenue of $201.93 million during the quarter.

Here are the key takeaways from Cardinal Infrastructure Group’s conference call:

• Third-quarter revenue rose 65% to $202 million, but adjusted EBITDA fell to $9 million from $21 million and margin dropped to 4.2% from 17.5%; the company reported an $11 million net loss.
• Project estimate revisions, mainly on a handful of residential projects in the Carolinas, drove a major portion of the margin decline, alongside residential pricing pressure, lower initial bid margins on some commercial and industrial work, and higher fuel and transportation costs.
• Cardinal withdrew its full-year 2026 revenue and adjusted EBITDA margin guidance while it reviews projects and improves forecasting; management expects fourth-quarter adjusted EBITDA to improve sequentially but gave no specific outlook.
• Management plans tighter bid selection and estimating, more rigorous project reviews, and clearer accountability across the business, with COO Benji Wood taking a larger operating role and an independent advisor supporting the changes. The proposed Hughes Brothers acquisition has been postponed as the company prioritizes its existing operations.
• With $335 million in cash and cash equivalents and approximately $136 million in net cash, the board authorized a share repurchase program of up to $50 million over the next 12 months.

Cardinal Infrastructure Group Price Performance

Shares of Cardinal Infrastructure Group stock traded up $0.76 during trading on Friday, reaching $6.40. 6,205,601 shares of the stock traded hands, compared to its average volume of 733,140. The company has a market capitalization of $303.86 million and a price-to-earnings ratio of 11.61. The business has a fifty day simple moving average of $23.16 and a two-hundred day simple moving average of $42.82. The company has a debt-to-equity ratio of 0.32, a current ratio of 3.59 and a quick ratio of 3.59. Cardinal Infrastructure Group has a 52-week low of $5.22 and a 52-week high of $96.40.

Analyst Ratings Changes

A number of research analysts recently issued reports on the company. Weiss Ratings downgraded Cardinal Infrastructure Group from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Friday, October 23rd. Oppenheimer decreased their target price on shares of Cardinal Infrastructure Group from $80.00 to $70.00 and set an “outperform” rating on the stock in a research note on Wednesday, August 12th. Truist Financial lowered their price target on shares of Cardinal Infrastructure Group from $30.00 to $10.00 and set a “buy” rating on the stock in a report on Friday. Stifel Nicolaus dropped their price target on shares of Cardinal Infrastructure Group from $63.00 to $52.00 and set a “buy” rating for the company in a research report on Wednesday, August 12th. Finally, William Blair cut shares of Cardinal Infrastructure Group from an “outperform” rating to a “market perform” rating in a research note on Thursday. Four research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $41.75.

Insider Activity at Cardinal Infrastructure Group

In other news, Director Richard Bennett Wimmer bought 7,500 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were bought at an average cost of $39.13 per share, for a total transaction of $293,475.00. Following the completion of the transaction, the director owned 29,349 shares of the company’s stock, valued at approximately $1,148,426.37. This represents a 34.33% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate insiders own 61.70% of the company’s stock.

Hedge Funds Weigh In On Cardinal Infrastructure Group

Several institutional investors have recently added to or reduced their stakes in the company. First Trust Advisors LP raised its holdings in shares of Cardinal Infrastructure Group by 8,249.5% during the 3rd quarter. First Trust Advisors LP now owns 1,363,732 shares of the company’s stock worth $41,730,000 after acquiring an additional 1,347,399 shares in the last quarter. Conversant Capital LLC purchased a new position in shares of Cardinal Infrastructure Group in the first quarter valued at $18,702,000. Principal Financial Group Inc. grew its holdings in shares of Cardinal Infrastructure Group by 198.8% in the first quarter. Principal Financial Group Inc. now owns 428,263 shares of the company’s stock valued at $16,983,000 after purchasing an additional 284,918 shares in the last quarter. Engle Capital Management L.P. grew its holdings in shares of Cardinal Infrastructure Group by 142.7% in the first quarter. Engle Capital Management L.P. now owns 318,000 shares of the company’s stock valued at $12,610,000 after purchasing an additional 187,000 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its position in Cardinal Infrastructure Group by 81.4% in the third quarter. Russell Investments Group Ltd. now owns 180,627 shares of the company’s stock worth $5,527,000 after purchasing an additional 81,031 shares during the last quarter.

Cardinal Infrastructure Group News Roundup

Investors following CDNL have been watching these news items:

• Positive Sentiment: The board approved a $50 million share-repurchase program, allowing the company to buy back up to 7% of its shares. The authorization may signal management sees value in the stock, although it was announced in response to the guidance withdrawal. Cardinal outlines $50M share repurchase
• Positive Sentiment: Truist retained a Buy rating, though it cut its price target sharply from $30 to $10. Its continued bullish rating offers some support, but the reduced target reflects a much more cautious outlook. Truist rating and price target
• Negative Sentiment: Third-quarter results disappointed: CDNL reported a $0.21-per-share loss, versus consensus expectations for $0.49 in earnings, despite revenue of $201.93 million. Reports also highlighted a steep margin decline, withdrawal of full-year guidance and CFO departure—factors that have raised concerns about the company’s outlook. Third-quarter results

Cardinal Infrastructure Group declared that its board has approved a stock repurchase plan on Thursday, November 12th that authorizes the company to repurchase $50 million in outstanding shares. This buyback authorization authorizes the company to repurchase up to 7% of its stock through open market purchases. Share buyback plans are typically a sign that the company’s board believes its stock is undervalued.

About Cardinal Infrastructure Group

Cardinal Infrastructure Group is a vertically integrated civil infrastructure and site development platform serving residential, commercial, industrial and municipal projects. CDNL delivers its suite of comprehensive infrastructure services that support the planning, preparation, installation, and development of residential, commercial, industrial, municipal, and state infrastructure projects through wholly owned, market leading subsidiaries. Cardinal’s operations leverage in-house, highly skilled teams and equipment fleets 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.