Monitor Q4 2026 for deal close and integration updates; watch for any regulatory delays and the earn-out performance of Hughes Brothers' 2026 adjusted EBITDA. The low pro forma leverage (1.4x) leaves room for further M&A in Florida.
Price Chart
Executive Summary
Cardinal Infrastructure Group (CDNL) announced the acquisition of Hughes Brothers Construction, Inc., a Central Florida heavy civil contractor, for $357.5 million in cash and stock, with potential earn-out of up to $97.5 million. The deal is expected to close in Q4 2026, is immediately accretive to guided 2026 adjusted EBITDA margin, and establishes a scaled platform in the fast-growing Central Florida market.
Key Financial Metrics
Key Facts
- Acquisition of Hughes Brothers Construction for $357.5 million in cash and stock, with potential earn-out of up to $97.5 million bringing total to ~$455 million.
- Transaction expected to close in Q4 2026, subject to regulatory approvals and customary closing conditions.
- Hughes Brothers has trailing 12-month revenue of more than $220 million as of June 30, 2026, and ~$350 million in backlog.
- Deal is immediately accretive to Cardinal's guided 2026 adjusted EBITDA margin range.
- Pro forma net leverage of 1.4x, below Cardinal's stated maximum target of 2.5x.
- Hughes Brothers' founders Chad Hughes and Justin Hughes will continue to lead the business.
Financial Impact
$357.5 million base consideration plus up to $97.5 million earn-out; target has >$220 million TTM revenue and ~$350 million backlog; pro forma net leverage 1.4x
Risk Factors
- Integration of Hughes Brothers' operations may be more costly or difficult than expected.
- Earn-out based on 2026 adjusted EBITDA may not be achieved, reducing total consideration but also signaling underperformance.
- Reliance on new debt financing and cash on hand could increase leverage if cash flows underperform.
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302906370 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | SC 13G | $15.20 | awaiting T+20 | — | $14.55 (−4.28%) |
Oct 19, 2026 7d ago | 8-K | $15.87 | awaiting T+20 | — | $14.55 (−8.32%) |
Oct 19, 2026 8d ago | Press Release | $15.87 | awaiting T+20 | — | $14.55 (−8.32%) |
Oct 13, 2026 14d ago | Press Release | $18.62 | awaiting T+20 | — | $14.55 (−21.86%) |
Oct 1, 2026 25d ago | 8-K | $30.73 | awaiting T+20 | — | $14.55 (−52.65%) |
Oct 1, 2026 25d ago | Press Release | $30.73 | awaiting T+20 | — | $14.55 (−52.65%) |
Aug 18, 2026 9w ago | Insider Cluster | $43.33 $31.75 | ▼ −26.73% | ▼ −25.89% | $14.55 (−66.42%) |
Aug 17, 2026 10w ago | Insider Cluster | $45.14 $33.64 | ▼ −25.49% | ▼ −24.50% | $14.55 (−67.77%) |
Aug 11, 2026 11w ago | 8-K | $38.27 $34.57 | ▼ −9.67% | ▼ −8.61% | $14.55 (−61.98%) |
Aug 11, 2026 11w ago | Press Release | $38.27 $34.57 | ▼ −9.67% | ▼ −8.61% | $14.55 (−61.98%) |
US Market Status
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