IPO Stock Jumps Past Buy Point On Booming Preliminary Revenue, Outlook

IPO stock Cardinal Infrastructure Group (CDNL) made its first breakout above a buy point Thursday. The move followed release of preliminary 2025 results and the company’s current-year outlook.

Cardinal said late Wednesday its 2025 revenue jumped an estimated $452.3 million-$459.7 million, about a 45% increase at the midpoint on a year-over-year basis. Full-year adjusted EBITDA margin was 17.8% to 18%. The provider of mostly residential construction site preparation services said its backlog grew 33% at the midpoint of its $678.3 million-$685.7 million estimate.

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For 2026, the company forecast revenue of $664.9 million to $678.3 million and adjusted EBITDA margin of at least 20%. Analysts had estimated $618.4 million in sales, according to FactSet.

Raleigh, N.C.-based Cardinal also announced it acquired A.L. Grading Contractors, a Georgia-based provider of construction-site services with $160 million in annual sales. The $245.5 million deal marks Cardinal’s first expansion outside the Carolinas.

The IPO stock soared 28% Thursday morning, blazing past the 28.45 buy point of a cup-with-handle base. The buy range goes to 29.87, so shares are already extended. Investors could wait for the stock to pull back to the buy zone or wait for another chart pattern to appear.

Cardinal Infrastructure went public Dec. 10 in an initial public offering that raised $242 million. The IPO priced at 21 a share, at the midpoint of the expected range of 20 to 22, according to Renaissance Capital.

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Analysts Bullish On IPO Stock

William Blair initiated coverage of the company on Jan. 5 with an outperform rating. Stifel Nicolaus and D.A. Davidson are the only other analysts covering Cardinal, and both have buy or outperform ratings. Stifel raised its price target to 31 from 28 on Thursday.

“In the face of the severely challenging national residential real estate market, Cardinal has achieved an exceptional three-year 28% organic revenue growth rate by providing its turnkey residential site-development services to three North Carolina markets: Raleigh, Charlotte, and Greensboro,” William Blair analyst Louie DiPalma said in a research note.

Cardinal has gained market share through its integration of seven site-development services offered as a bundle with a focus on water and other “wet” utilities, the analyst added. That means Cardinal can perform jobs much faster than the fragmented competitor base.

The analyst expects the IPO stock to climb more than 20% over the next year as the company makes acquisitions and expands its execution. Over the next five years, Cardinal’s revenue from outside North Carolina could at least equal that from within the state, he added.

The IPO stock has an IBD Composite Rating of 80, placing it about in the middle of the heavy construction industry group.

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