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Cardinal Infrastructure posts Q3 net loss on higher costs, withdraws 2026 outlook

By Reuters News


Overview

  • US infrastructure service provider's Q3 revenue rose 65% yr/yr to $201.9 mln

  • Adjusted EBITDA margin dropped to 4.2% from 17.5% on project estimate revisions, pricing pressure, and higher costs

  • Company authorized $50 mln share buyback and withdrew full-year 2026 guidance


Outlook

  • Company is withdrawing previously issued full-year 2026 revenue and Adjusted EBITDA margin guidance

  • Cardinal expects Q4 Adjusted EBITDA to improve from Q3 but gives no specific outlook

  • Company is not providing specific revenue or margin outlook for Q4 or full year


Result Drivers

  • PROJECT ESTIMATE REVISIONS - Co said revisions to cost estimates on certain projects reduced gross profit by $13.2 mln in Q3

  • PRICING PRESSURE - Residential pricing pressure and lower initial bid margins on commercial and industrial work weighed on margins

  • HIGHER COSTS - Increased fuel and transportation costs contributed to lower profitability


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$201.90 mln


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the construction & engineering peer group is "buy."

  • Wall Street's median 12-month price target for Cardinal Infrastructure Group Inc. is $44.50, about 196.9% above its November 11 closing price of $14.99


Reuters Recommended Reads

  • Nov 9 - Alta Equipment Group Q3 revenue misses analyst estimates despite construction growth

  • Nov 12 - Construction firm MT Hoejgaard Q3 revenue rises 12%

  • Nov 9 - Babcock & Wilcox Q3 revenue more than doubles driven by an increase in large project volume


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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