Cardinal Infrastructure Group (CDNL) 46th Annual William Blair Growth Stock Conference summary

Business model and growth strategy

• Operates as a turnkey infrastructure services platform, vertically integrating civil services for development projects, starting with residential and expanding into other end markets through M&A and organic growth.

• Focuses on seamless project execution by minimizing handoffs, ensuring schedule adherence, and delivering consistent quality across all services.

• Growth is driven by entering new states via disciplined M&A, advancing vertical integration, and diversifying into new metropolitan areas.

• Eight acquisitions completed, with a deliberate approach to cultural fit and management alignment.

• Targets fragmented, multi-generational businesses that are stable but lack the risk appetite or resources for further expansion.

M&A and integration approach

• Prioritizes cultural fit and management partnership in acquisitions, ensuring smooth integration and retention of skilled labor.

• Platform acquisitions serve as entry points into new markets, followed by organic service expansion and tuck-in acquisitions, especially in wet utilities.

• Wet utility services are the most complex and critical for vertical integration, often requiring M&A to meet backlog demands.

• Hybrid tuck-ins, such as paving and concrete, operate under their own names and serve both internal and third-party clients.

• Maintains a disciplined acquisition playbook, evaluating many targets but selecting only those that align with strategic and cultural goals.

Market expansion and financial outlook

• Expanded from North Carolina into Charlotte and Atlanta, with Atlanta being a significantly larger market and still in early stages of penetration.

• Achieved a 36% revenue CAGR and 30%+ EBITDA CAGR from 2023-2025, with a 2026 revenue outlook of $680 million and 20%+ adjusted EBITDA margins.

• Pipeline of acquisition opportunities in the Southeast remains robust, with many potential platform and tuck-in targets similar to previous successes.

• Organic growth in Q1 reached 64%, with expectations of continued double-digit growth, though growth rates may be lumpy due to integration cycles.

• End market diversification follows full vertical integration, leveraging strong residential relationships as a foundation.