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Cardinal Infrastructure Group's Strategic Acquisition

On February 18, 2026, Cardinal Infrastructure Group, Inc. (NASDAQ: CDNL) made headlines with its strategic acquisition of A. L. Grading Contractors (ALGC), a prominent site development firm based in Sugar Hill, Georgia. This transaction marks Cardinal's first expansion into the Southeast beyond the Carolinas and is aimed at reinforcing its growth strategy.

Who is A. L. Grading Contractors?

A. L. Grading Contractors, having established a reputation as a high-growth leader over four generations, specializes in a variety of site development services. These include grading, underground utilities, erosion control, and land clearing, notably in large-scale construction projects across Georgia and South Carolina. This acquisition not only broadens Cardinal’s operational reach but also aligns with regional trends favoring development investment in the Southeast.

Strategic Benefits of the Acquisition

Growth in a High-Demand Market

ALGC holds a pivotal position in a critical market sector, poised for continued expansion. By integrating ALGC’s capabilities, Cardinal aims to leverage existing relationships and drive growth through the alignment with reputable customers in the due course.

Financial Highlights

The transaction, valued at $245.5 million, consists of an extension of Cardinal's existing credit facility and equity issuance, alongside cash considerations. This acquisition is immediately accretive, allowing Cardinal to fortify its margin profile through enhanced operational efficiency. Highlights from ALGC’s financial profile include:

• - Unaudited Annual Revenue: $160 million
• - Adjusted EBITDA Margin: 26.3% for the previous trailing 12 months

Revised Consolidated Guidance for 2026

With the integration of ALGC, Cardinal has also updated its financial guidance for 2026:

• - Projected Revenue: $664.9 million to $678.3 million
• - Adjusted EBITDA Margin: At least 20%

Key Personnel Leadership Changes

Importantly, the leadership within ALGC will continue to play vital roles at Cardinal.

• - Lee Wood, ALGC President: Will join Cardinal’s board while overseeing strategic operations.
• - Benji Wood, ALGC Vice President: Will step into the role of chief operating officer at Cardinal, bringing his expertise in project execution and client management.

Management Commentary

Jeremy Spivey, CEO of Cardinal Infrastructure Group, expressed enthusiasm for the acquisition, stating, "We are thrilled to welcome the ALGC team into the Cardinal family. Their exceptional culture and leadership align seamlessly with our values, positioning us for enhanced collaboration and innovation."

Future Plans and Outlook

This acquisition is not just about immediate financial gains; it sets Cardinal up for long-term growth in the expanding Southeast market. With plans to deploy specialized services from the Carolinas into Georgia, Cardinal expects to accelerate project timelines while enhancing its margins. The integration is anticipated to streamline operations, ultimately providing Cardinal with a competitive edge in site development.

As Cardinal Infrastructure Group continues to shape its identity in the industry, the acquisition of A. L. Grading Contractors is a significant step towards solidifying its position as a leader in the Southeast site development landscape. This move not only reaffirms Cardinal's commitment to growth but also highlights the company's strategy of achieving expansion through strategic acquisitions, further bolstering its robust infrastructure capabilities.