Key Highlights

  • USD 115.0 million is the approximate price Cardinal Infrastructure Group (NASDAQ:CDNL) paid for Allied Paving Contractors, closed October 1, 2026, made up of about USD 88.9 million in cash and 1,006,796 Class A shares.
  • USD 88.9 million, not the unit-less 88.9 in some summaries, is the cash portion confirmed in the company 8-K, leaving roughly USD 26.1 million of stock, by simple arithmetic on two published numbers.
  • 7.9% was the intraday decline published market data showed on October 7, 2026, at USD 26.44, versus the 11.3% in the headline, which could not be verified; the shares are far below August levels.
  • USD 120 million was the consideration first announced with second quarter results, with Allied at 5.5 times adjusted EBITDA; the closing price of about USD 115.0 million is subject to customary adjustments.

The Allied Paving Closing

Cardinal Infrastructure Group (NASDAQ:CDNL) completed its Acquisition of Allied Paving Contractors, Inc. on October 1, 2026. The 8-K states consideration of approximately USD 115.0 million, comprising approximately USD 88.9 million in cash and 1,006,796 shares of Class A common stock, subject to customary post-closing adjustments. The shares were issued without registration under Section 4(a)(2) and cannot be resold without registration or an exemption. Allied generated about USD 100 million of standalone Revenue in the closing materials, although some work will be performed on Cardinal projects and recorded in margin. Allied chief executive John McLean joins the Leadership team to manage paving across Georgia. Cardinal had first described the deal as about USD 120 million with an annual revenue base of USD 108 million.

Context: Growth and a Margin Reset

The deal extends a fast expansion. Second quarter 2026 revenue was USD 226.9 million, up 114%, with adjusted EBITDA of USD 28.1 million and Backlog of USD 866 million; full year revenue guidance was raised to USD 880 million to USD 900 million. Simple arithmetic: USD 28.1 million over USD 226.9 million is a 12.4% adjusted EBITDA margin, and adjusted gross margin fell to 15.9% from 21.3%, partly from subcontracted labor and weather. Shares fell about 36% on August 11, 2026, after the report, and a law firm has announced an investigation, which is an allegation, not a finding. Earnings Per Share of USD 0.26 reportedly missed a USD 0.48 consensus. The paving crews are meant to follow Cardinal's grading teams and shorten project timelines.

Risks and What to Watch

Integration risk is the central issue: Cardinal has completed three acquisitions in 2026, and the earlier shortfall tied to a recent acquisition shows how acquired margins can disappoint. The USD 88.9 million cash outlay, with financing not detailed in the filing, and 1,006,796 new shares add to Leverage and dilution. Insiders reportedly bought about USD 8.3 million of stock in the last quarter, which does not guarantee results. Investors can watch the third quarter report, expected in November 2026 if timing follows the prior pattern, for Allied revenue, adjusted EBITDA margins, any change to the guidance range and updates on the law firm investigation, which has not produced any finding.

Where Things Stand

Cardinal Infrastructure Group (NASDAQ:CDNL) fell after closing a USD 115.0 million acquisition, but the filing does not link the deal to the decline; the more likely drivers are the margin reset reported in August, the cost of the cash and share consideration, and continued weakness in a stock that is down sharply since then. The October 7 decline was 7.9% in the data found, not the 11.3% in the headline. Allied adds Atlanta paving capacity at a lower price than first announced. Whether it lifts margins is the test.