Cardinal Infrastructure To Acquire Hughes Brothers Construction For $357.5M

Purchase price multiple consistent with Cardinal's typical range for new market platform acquisitions. The transaction is expected to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions.

Cardinal management will host a conference call and live webcast for investors and analysts today, October 13, 2026, at 10:30 a.m. ET to discuss the acquisition. The call will be webcast on the "Events & Presentations" section of Cardinal's website. A replay of the webcast will be available at the same location shortly after the conclusion of the presentation.

Strategic Highlights

Establishes a scaled platform in the attractive Central Florida market

Leading Central Florida heavy civil and site development contractor with 500+ employees

Longstanding customer relationships across residential, commercial, industrial and municipal end markets

Adds a highly complementary, turnkey business with differentiated capabilities and scale

Turnkey operating model supported by a fleet of owned equipment

Underground utility and site development capabilities

Proven ability to execute complex, large-scale projects, with the average project size exceeding 80 acres

Immediately accretive financial profile and a substantial backlog enhance revenue visibility

Immediately accretive to Cardinal's guided 2026 adjusted EBITDA margin range with trailing 12-month (TTM) revenue of more than $220 million as of June 30, 2026.

~$350 million in backlog provides significant visibility into future activity

Creates multiple opportunities for continued growth and value creation

Complementary service capabilities and deep-rooted customer relationships create multiple opportunities to expand across end markets, capture additional share and drive organic growth

Establishes a platform to actively pursue targeted M&A across the fast-growing Florida market

Disciplined transaction structure consistent with Cardinal's proven M&A framework

The consideration of $357.5 million will be funded through a combination of cash and Cardinal Class A common stock, with shares issued to the selling stockholders subject to a 180-day lock-up; the cash portion  is expected to be funded with new debt financing, together with cash on hand.

Selling stockholders may earn additional consideration of up to $97.5 million, payable in cash and in Cardinal Class A common stock, based on Hughes Brothers' adjusted EBITDA performance for the 12 months ending December 31, 2026, bringing total potential transaction value to approximately $455 million.

Proforma net leverage of 1.4x, below Cardinal's stated maximum target of 2.5x

Experienced local leadership team to remain in place and drive continued growth

Hughes Brothers President and Co-Founder Chad Hughes and Vice President and Co-Founder Justin Hughes will continue to lead the business and play key roles in driving Cardinal's growth and expansion across Central Florida