Cardinal Infrastructure Group Inc. (CDNL) Investigation

On June 24, 2026, Cardinal Infrastructure completed a secondary public offering of 4.6 million shares of Class A common stock at $73.00 per share, raising over $318 million in net proceeds. In the offering materials and May 2026 investor updates, Cardinal emphasized its growing project backlog—which reached $866 million as of June 30—as evidence of strong execution and accelerating demand.

However, on August 11, 2026, Cardinal released its Q2 2026 financial results, revealing severe profit margin compression despite reporting record top-line revenue:

• Earnings Miss: Adjusted EPS plummeted 51% year-over-year to $0.26 per share, drastically missing consensus analyst estimates of $0.47 per share.
• Margin Compression: Adjusted gross profit margin collapsed to 15.9% (down from 21.3% in Q2 2025), while Adjusted EBITDA margin fell to 12.4% (down from 18.6% in Q2 2025).
• Slashing Profitability Guidance: Management was forced to cut its full-year 2026 Adjusted EBITDA margin target down to 16%–18% (from prior guidance of greater than 20%)

Management attributed the margin collapse to escalating labor shortages, heavy reliance on expensive third-party equipment, and high subcontractor costs required to execute its rapidly expanding backlog in non-turnkey expansion markets.

Following these disclosures, Cardinal’s stock price plunged over 36% in a single trading session, inflicting losses on investors.

FREQUENTLY ASKED QUESTIONS ABOUT THE CASE

What is the CDNL investigation about?

Our investigation focuses on whether Cardinal was obligated to disclose cost pressures and equipment dependencies at the time it was emphasizing its expanding backlog.

WHAT SHOULD I DO?

I worked at CDNL. What should I do?

If you were an employee of CDNL, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].

There are multiple law firms participating, do I need to contact all of them?

No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.

AM I ELIGIBLE?

What is the threshold amount to be eligible? What are “substantial” losses?

The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.

CAN I PARTICIPATE?

Am I affected? What do I need to do to participate?

If you were an investor in CDNL, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.

Can any CDNL investor participate?

In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.

I bought on a non-U.S. Exchange. Can I participate?

No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.

Am I included if I still hold my shares, or do I need to sell to participate?

Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.