Raleigh, February 20, 2026
Cardinal Infrastructure Group, Inc. experienced a significant stock price surge of over 30% following the announcement of its first acquisition since going public. The Raleigh-based construction service provider purchased A.L. Grading Contractors for approximately $245.5 million, marking a strategic expansion into the Georgia market. This move is set to enhance Cardinal’s operational scale and market position while solidifying investor confidence, reflected in a record high share price of $33.
Raleigh
Cardinal Infrastructure Group’s Shares Soar Following Inaugural Post-IPO Acquisition
Cardinal Infrastructure Group, Inc. (NASDAQ: CDNL), a Raleigh-based construction services provider, witnessed a substantial surge in its stock price, climbing over 30% in midday trading on Thursday, February 19, 2026. This notable increase followed the company’s announcement of its first acquisition since going public on December 10, 2025. The strategic move involves the purchase of Sugar Hill, Georgia-based A.L. Grading Contractors (ALGC) for an estimated $245.5 million. This pivotal acquisition underscores Cardinal’s aggressive growth strategy and has been met with strong investor confidence, propelling its shares to a new record high of $33, an impressive 57% increase from its initial public offering price of $21 per share.
A Strategic Expansion into New Markets
The acquisition of A.L. Grading Contractors marks a significant geographical expansion for Cardinal Infrastructure Group, extending its footprint beyond the Carolinas into the burgeoning Georgia market. ALGC, a fourth-generation leader in site development solutions, brings a comprehensive suite of services including grading, underground utilities, erosion control, and clearing, primarily supporting large-scale commercial, industrial, and residential construction projects in Georgia and South Carolina. This strategic alignment is anticipated to bolster Cardinal’s Southeast project backlog and enhance its market position. The transaction is expected to be immediately accretive, strengthening Cardinal’s margin profile and supporting its projected 2026 consolidated Adjusted EBITDA margin guidance of at least 20%.
Acquisition Details and Financial Structure
The $245.5 million acquisition of A.L. Grading Contractors was financed through a combination of mechanisms. This included 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, demonstrating a commitment from the newly integrated parties. Before this acquisition, Cardinal Infrastructure Group had approximately 1,335 employees. The addition of A.L. Grading Contractors brings over 300 employees and approximately $160 million in revenue from its last fiscal year into the fold. This integration is poised to significantly increase Cardinal’s operational scale and capabilities.
Cardinal’s Journey Since IPO
Cardinal Infrastructure Group made its debut as a publicly traded company on December 10, 2025, with its shares trading on the Nasdaq Global Select Market under the ticker symbol “CDNL”. The initial public offering (IPO) successfully raised approximately $241.5 million at $21 per share, providing the company with substantial capital for its ambitious growth plans and debt repayment. Since its founding in 2013 by CEO Jeremy Spivey, acquisitions have been a cornerstone of Cardinal’s expansion strategy, accounting for approximately 27% of its growth. The company specializes in essential infrastructure services such as wet utility installations, including water, sewer, and stormwater systems, along with grading, paving, and other critical site development work for various projects. Cardinal maintains offices across North Carolina, including Raleigh, Charlotte, and the Greensboro area, with a presence also in South Carolina.
Leadership Integration and Future Outlook
As part of the acquisition, key leadership from A.L. Grading Contractors will transition into roles within Cardinal Infrastructure Group. Lee Wood, President of A.L. Grading, is expected to join Cardinal’s board of directors, while Benji Wood, Vice President of A.L. Grading, will assume the role of Chief Operating Officer for Cardinal. Rick Leeson, A.L. Grading’s CFO, will retain his position within the newly expanded entity. This integration of experienced leadership is expected to facilitate a smooth transition and harness the strengths of both organizations. The market’s robust response to this acquisition, evidenced by the significant stock price increase, reflects investor confidence in Cardinal’s ability to execute its strategic objectives and achieve enhanced profitability and market share in the competitive infrastructure services sector. Cardinal’s market capitalization now exceeds $1.2 billion, demonstrating its growing stature in the industry. With preliminary 2025 revenue estimates ranging from $452 million to $459 million and a positive outlook for 2026, Cardinal Infrastructure Group is positioned for continued expansion and success.
Frequently Asked Questions
What company recently announced its first acquisition since its IPO?
Raleigh-based Cardinal Infrastructure Group, Inc. (NASDAQ: CDNL) recently announced its first acquisition since its initial public offering (IPO).
How did Cardinal Infrastructure Group’s shares react to the acquisition news?
Cardinal Infrastructure Group’s shares experienced a significant surge, climbing over 30% in midday trading on Thursday, February 19, 2026, reaching a new record high of $33.
Which company did Cardinal Infrastructure Group acquire?
Cardinal Infrastructure Group acquired Sugar Hill, Georgia-based A.L. Grading Contractors (ALGC).
When did Cardinal Infrastructure Group go public?
Cardinal Infrastructure Group went public on December 10, 2025.
What was the acquisition cost for A.L. Grading Contractors?
The acquisition cost for A.L. Grading Contractors was an estimated $245.5 million.
What services does Cardinal Infrastructure Group provide?
Cardinal Infrastructure Group specializes in construction services, including wet utility installations (water, sewer, and stormwater systems), grading, site clearing, erosion control, drilling, blasting, paving, and other related site development work.
What is the strategic importance of this acquisition for Cardinal?
This acquisition marks Cardinal’s first expansion outside the Carolinas into the Georgia market, extending its geographic reach and boosting its Southeast project backlog. It is expected to be immediately accretive and enhance the company’s margin profile.
Key Features of Cardinal Infrastructure Group’s Acquisition
| Feature | Description |
|---|---|
| Acquiring Company | Cardinal Infrastructure Group, Inc. (NASDAQ: CDNL), Raleigh, North Carolina-based |
| Acquired Company | A.L. Grading Contractors (ALGC), Sugar Hill, Georgia-based |
| Acquisition Date Announced | February 19, 2026 |
| Acquisition Cost | $245.5 million |
| Financing Structure | $80M credit facility extension, $116.9M equity, $48.6M cash |
| Impact on Stock Price | Over 30% increase in shares following announcement |
| Cardinal’s IPO Date | December 10, 2025 |
| Acquired Company Employees | Over 300 employees |
| Acquired Company Revenue | Approximately $160 million (last fiscal year) |
| Strategic Benefits | Geographic expansion into Georgia, increased Southeast project backlog, strengthened margin profile |
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