Cardinal Infrastructure acquires A.L. Grading for $245.5 million

Cardinal Infrastructure Group Inc. (NASDAQ: CDNL) announced the acquisition of A.L. Grading Contractors, a Sugar Hill, Georgia-based site development contractor, for $245.5 million.

The transaction consists of an $80 million extension of Cardinal's existing credit facility, $116.9 million in issued equity, and $48.6 million in cash. The equity consideration is subject to a six-month post-closing lockup period.

A.L. Grading Contractors provides site development services including grading, underground utilities, erosion control, and clearing for commercial, industrial, and residential construction projects in Georgia and South Carolina. The company reported unaudited annual revenue of $160 million and a 26.3% adjusted EBITDA margin for the trailing 12 months ended September 30, 2025.

Cardinal also released preliminary estimated results for 2025, projecting full-year revenue between $452.3 million and $459.7 million, representing approximately 45% growth versus 2024. The company expects full-year adjusted EBITDA margin between 17.8% and 18.0%, with record backlog ranging from $678.3 million to $685.7 million.

For 2026, Cardinal provided consolidated guidance of revenue between $664.9 million and $678.3 million, with adjusted EBITDA margin of at least 20%. The guidance reflects an estimated 10.5-month contribution from A.L. Grading Contractors.

Lee Wood will continue as president of the acquired company and is expected to join Cardinal's board of directors. Benji Wood will become chief operating officer of Cardinal, while Rick Leeson will continue serving as CFO of the acquired operations.

The acquisition marks Cardinal's first expansion in the Southeast outside the Carolinas. Cardinal's pro forma net tangible leverage following the transaction is 1.27x, below its maximum target of 2.5x.

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