Cardinal Infrastructure Stock Plunges 39% After Q3 Miss, Guidance Withdrawal and CFO Resignation

Cardinal Infrastructure Group (NASDAQ: CDNL) reported a sharp third-quarter 2026 earnings miss on November 12, sending shares down roughly 39% in premarket trading. Revenue for the quarter grew 65.1% year over year to $201.9 million, but Adjusted EBITDA margin collapsed to just 4.2%, well below expectations. CEO Jeremy Spivey cited project estimate revisions, residential pricing pressure, lower initial bid margins on commercial and industrial work, and higher fuel and transportation costs as the primary drivers of the margin deterioration.

On the bottom line, Cardinal missed analyst EPS estimates by $0.73 and fell short on revenue as well. For the nine months ended September 30, 2026, net income dropped to $11.7 million from $26.2 million in the same period of 2025, while nine-month Adjusted EBITDA margin narrowed to 10.6% from 17.9% a year earlier.

The company withdrew its previously issued full-year 2026 revenue and Adjusted EBITDA margin guidance entirely. While management indicated it expects fourth-quarter Adjusted EBITDA to improve from Q3 levels, it declined to provide a specific forecast. Separately, the board authorized a $50 million share buyback program.

Adding to investor concern, CFO Mike Rowe notified the company on November 9 of his decision to resign, effective upon the appointment of a successor. Law firm Block and Leviton announced it is investigating Cardinal Infrastructure for potential securities law violations, inviting investors who suffered losses to come forward.