Cardinal Infrastructure Acquires A. L. Grading Contractors
Cardinal Infrastructure Group (NASDAQ: CDNL) announced it has acquired A.L. Grading Contractors (ALGC), a Georgia-based firm. Cardinal also provided preliminary operating results for 2025 and updated its consolidated guidance for 2026 following the acquisition. ALGC is described as a fourth-generation market leader in its sector.
- The total value of the acquisition is $245.5 million, which consists of an $80 million extension of Cardinal's existing credit facility, $116.9 million in issued equity, and $48.6 million in cash. - This acquisition marks Cardinal Infrastructure's first expansion into the Southeast outside of the Carolinas, establishing a footprint in the Georgia market. - A.L. Grading Contractors brings a strong financial profile to the deal, with unaudited annual revenue of $160 million and an Adjusted EBITDA margin of 26.3% for the trailing 12 months ended September 30, 2025. - A.L. Grading Contractors, a family-owned business since 1935, specializes in site development services including grading, underground utilities, and land clearing for residential, commercial, and industrial projects. - Cardinal's preliminary results for 2025 show full-year revenue expected to be between $452.3 million and $459.7 million, which represents approximately 45% growth compared to 2024. - Following the acquisition, Cardinal reported a record backlog in the range of $678.3 million to $685.7 million, an increase of about 33% from the previous year. - The acquisition is expected to be immediately accretive and will strengthen Cardinal's margin profile, which is reflected in the company's revised 2026 consolidated Adjusted EBITDA margin guidance. - Cardinal Infrastructure Group, founded in 2013 and headquartered in Raleigh, North Carolina, went public on the Nasdaq in December 2025.
