The acquisition is immediately accretive to adjusted EBITDA per share and establishes a scaled platform in Central Florida. Monitor Q4 2026 close for regulatory approvals and integration progress; the earnout provides additional upside if Hughes Brothers' EBITDA targets are met.
Price Chart
Executive Summary
Cardinal Infrastructure Group amended its agreement to acquire Hughes Brothers Construction, keeping the $357.5 million purchase price but shifting consideration to 60% cash / 40% stock (from 50/50). Hughes Brothers generated $220M revenue with a 25% adjusted EBITDA margin and a $350M backlog. The deal is expected to close in Q4 2026 and be immediately accretive to adjusted EBITDA per share.
Key Financial Metrics
Key Facts
- Purchase price unchanged at $357.5 million
- Consideration changed to 60% cash ($214.5M) and 40% stock (5,255,420 shares at $27.21/share), from 50/50 previously
- Earnout up to $162.5 million based on Hughes Brothers' adjusted EBITDA for 12 months ending June 30, 2027, payable 60% cash / 40% stock
- Hughes Brothers had $220M revenue and 25% adjusted EBITDA margin for the 12 months ended June 30, 2026
- Backlog of approximately $350 million
- Transaction expected to close in Q4 2026
- Cash consideration funded through cash on hand and existing credit facility
Financial Impact
$357.5 million total purchase price; $214.5 million cash plus 5,255,420 shares at $27.21/share; earnout up to $162.5 million
Risk Factors
- Integration risk and retention of key employees
- Regulatory approvals and customary closing conditions may delay or delay expected benefits
- Earnout dependent on Hughes Brothers' adjusted EBITDA performance
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-prn-302912091 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | SC 13G | $15.20 | awaiting T+20 | — | $15.08 (−0.79%) |
Oct 19, 2026 8d ago | 8-K | $15.87 | awaiting T+20 | — | $15.08 (−4.98%) |
Oct 19, 2026 8d ago | Press Release | $15.87 | awaiting T+20 | — | $15.08 (−4.98%) |
Oct 13, 2026 14d ago | Press Release | $18.62 | awaiting T+20 | — | $15.08 (−19.01%) |
Oct 1, 2026 25d ago | 8-K | $30.73 | awaiting T+20 | — | $15.08 (−50.93%) |
Oct 1, 2026 25d ago | Press Release | $30.73 | awaiting T+20 | — | $15.08 (−50.93%) |
Aug 18, 2026 9w ago | Insider Cluster | $43.33 $31.75 | ▼ −26.73% | ▼ −25.89% | $15.08 (−65.20%) |
Aug 17, 2026 10w ago | Insider Cluster | $45.14 $33.64 | ▼ −25.49% | ▼ −24.50% | $15.08 (−66.59%) |
Aug 11, 2026 11w ago | 8-K | $38.27 $34.57 | ▼ −9.67% | ▼ −8.61% | $15.08 (−60.60%) |
Aug 11, 2026 11w ago | Press Release | $38.27 $34.57 | ▼ −9.67% | ▼ −8.61% | $15.08 (−60.60%) |
US Market Status
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