The drop followed Cardinal’s second-quarter earnings report, which revealed an adjusted EBITDA margin of 12.4%. This figure fell significantly short of the 20% threshold the company had previously signaled to the market. The shortfall, linked to scalability issues and rising costs at A.L. Grading Contractors, wiped $21.73 off the stock price in a single trading session, dragging shares down from $60.00 to $38.27.

Cardinal Infrastructure, which entered the public market in December 2025, built much of its growth strategy on a series of aggressive acquisitions. Bleichmar Fonti & Auld LLP is now evaluating potential claims on behalf of investors who suffered losses during the price collapse. The firm, known for high-profile shareholder litigation including recent recoveries involving Tesla and Teva Pharmaceutical, is managing the investigation on a contingency fee basis.