Cardinal Infrastructure Q3 2026: Loss, No Guidance, CFO Out

Cardinal Infrastructure Group reported a GAAP diluted loss of $0.21 per share for the third quarter of 2026, missing expectations. The swing from a year-earlier profit to a net loss was driven most heavily by project estimate revisions as more cost data became available on certain contracts.

Revenue grew 65.1% year over year on organic growth and acquired businesses including ALGC, yet still came in short of consensus. Gross margin and Adjusted EBITDA margin both fell sharply on project estimate revisions, residential pricing pressure, and higher fuel and transportation costs.

CEO Jeremy Spivey called the results unacceptable, with COO Benji Wood taking a more direct role in standardizing project selection, estimating, and accountability and an independent third-party advisor brought in to assess estimating and project review processes. The company withdrew its full-year 2026 revenue and Adjusted EBITDA margin guidance entirely, saying only that fourth-quarter Adjusted EBITDA is expected to improve from the third quarter.

CFO Mike Rowe is departing, adding a leadership transition to an already stressed operational picture, and the proposed acquisition of Hughes Brothers has been postponed while Spivey focuses on strengthening execution across existing operations. Multiple law firms are now investigating Cardinal over securities law violations related to its acquisition disclosures, layering legal risk onto the pressures already facing the stock.

Cardinal ended the quarter with $335 million in cash and equivalents, and the board authorized a share repurchase program of up to $50 million of Class A common stock over the next 12 months, which management framed as a reflection of balance sheet strength. Backlog rose 26.2% year over year, primarily reflecting the ALGC acquisition, though converting it to profit will require the operational fixes management is now racing to put in place.