# EDGAR Filing Document

**Accession Number:** 0002079999
**File Stem:** 0001193125-26-209128
**Filing Date:** 2026-5
**Character Count:** 112720
**Document Hash:** c6a93503f70ba52f33401870b6c62980
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-209128.hdr.sgml**: 20260506

**ACCESSION NUMBER**: 0001193125-26-209128

**CONFORMED SUBMISSION TYPE**: 8-K/A

**PUBLIC DOCUMENT COUNT**: 16

**CONFORMED PERIOD OF REPORT**: 20260218

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260506

**DATE AS OF CHANGE**: 20260506

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Cardinal Infrastructure Group Inc.
- **CENTRAL INDEX KEY:** 0002079999
- **STANDARD INDUSTRIAL CLASSIFICATION:** HEAVY CONSTRUCTION OTHER THAN BUILDING CONST - CONTRACTORS [1600]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 393180206
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K/A
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-43004
- **FILM NUMBER:** 26949010

**BUSINESS ADDRESS:**
- **STREET 1:** 100 E. SIX FORKS ROAD, #300
- **CITY:** RALEIGH
- **STATE:** NC
- **ZIP:** 27609
- **BUSINESS PHONE:** (919) 324-1964

**MAIL ADDRESS:**
- **STREET 1:** 100 E. SIX FORKS ROAD, #300
- **CITY:** RALEIGH
- **STATE:** NC
- **ZIP:** 27609

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Civil Infrastructure Group Inc.
- **DATE OF NAME CHANGE:** 20250805

?xml version='1.0' encoding='ASCII'? 8-K/A

**UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549**

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## FORM 8-K/A

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**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported):** February 18, 2026<br>

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![img266389836_0.gif](img266389836_0.gif)

Cardinal Infrastructure Group Inc.

**(Exact name of Registrant as Specified in Its Charter)**

------

---

| | | |
|:---|:---|:---|
| Delaware | 001-43004 | 39-3180206 |
| **(State or Other Jurisdiction<br>of Incorporation)** | **(Commission File Number)** | **(IRS Employer<br>Identification No.)** |
| 100 E. Six Forks Road, #300 |  |  |
| Raleigh**,** North Carolina |  | 27609 |
| **(Address of Principal Executive Offices)** |  | **(Zip Code)** |

---

**Registrant's Telephone Number, Including Area Code:** 919 324-1964<br>

**(Former Name or Former Address, if Changed Since Last Report)**

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | |
|:---|:---|
| **<br>Title of each class** | **<br>Name of each exchange on which registered** |
| Class A Common Stock, $0.0001 Par Value<br> CDNL | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

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**Explanatory Note**

As previously disclosed in the Current Report on Form 8-K filed by Cardinal Infrastructure Group Inc. (the "Company") with the Securities and Exchange Commission on February 19, 2026 (the "Initial Form 8-K"), on February 18, 2026, the Company and its controlled subsidiary, Cardinal Civil Contracting Holdings LLC, consummated the acquisition of 100% of the equity interests in A.L. Grading Contractors, LLC ("ALGC") on February 18, 2026.

This Amendment No. 1 to the Initial Form 8-K (this "Amendment") is being filed solely to amend the Initial Form 8-K to include the financial statements of a business acquired required by Item 9.01(a) of Form 8-K and the pro forma financial information required by Item 9.01(b) of Form 8-K. Except for the foregoing, this Amendment does not modify or update any other disclosure contained in the Initial Form 8-K.

**Item 9.01. Financial Statements and Exhibits.**

*(a) Financial Statements of Business Acquired.*

The audited consolidated financial statements as of and for the years ended December 31, 2025 and 2024 for A.L. Grading

Contractors, Inc. (the predecessor corporation to ALGC) are attached as Exhibit 99.1, to this Form 8-K/A and incorporated herein by reference. Such financial statements were prepared in accordance with U.S. generally accepted accounting principles as issued by the Financial Accounting Standards Board.

*(b) Pro Forma Financial Information.*

The unaudited pro forma condensed consolidated financial information as of December 31, 2025 and for the year ended December 31, 2025, related to the Company's acquisition of ALGC are attached as Exhibit 99.2 to this Form 8-K/A and incorporated herein by reference.

*(c) Exhibits.*

---

| | |
|:---|:---|
| **Exhibit<br>Number** | **Description** |
| 23.1 | [<u>Consent of Warren Averett, LLC.</u>](cdnl-ex23_1.htm) |
| 99.1 | [<u>Audited consolidated financial statements of A.L. Grading Contractors, Inc. and affiliates as of and for the years ended December 31, 2025 and December 31, 2024.</u>](cdnl-ex99_1.htm) |
| 99.2 | [<u>Unaudited pro forma condensed consolidated financial information of the Company as of December 31, 2025 and for the year ended December 31, 2025.</u>](cdnl-ex99_2.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **CARDINAL INFRASTRUCTURE GROUP INC.** |
| Date: | May 6, 2026 | By:  | /s/ Mike Rowe |
|  |  |  | Mike Rowe<br>Chief Financial Officer |

---

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## Exhibit 23.1

**Exhibit 23.1**

**CONSENT OF INDEPENDENT ACCOUNTING FIRM**

We hereby consent to the incorporation by reference in this Current Report on Form 8-K/A and the Registration Statement on Form S-8 (File No. 333-292034) of Cardinal Infrastructure Group Inc. of our report dated April 9, 2026, relating to the financial statements of A. L. Grading Contractors, Inc. and Affiliates as of and for the years ended December 31, 2025 and December 31, 2024, appearing in this Current Report on Form 8-K/A of Cardinal Infrastructure Group Inc.

/s/Warren Averett, LLC

Warren Averett, LLC

May 1, 2026

------

## Exhibit 99.1

**Exhibit 99.1**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. L. GRADING CONTRACTORS, INC. AND AFFILIATES

**CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2025 AND 2024**

The report accompanying this deliverable was issued by Warren Averett, LLC.

www.warrenaverett.com

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES **TABLE OF CONTENTS****

**DECEMBER 31, 2025 AND 2024**

---

| | |
|:---|:---|
| **INDEPENDENT AUDITORS' REPORT**<br>| 1 |
| **FINANCIAL STATEMENTS**<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Balance Sheets<br>| 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Income and Retained Earnings<br>| 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated Statements of Cash Flows<br>| 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;Notes to the Consolidated Financial Statements<br>| 6 |

---

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![img4722214_0.jpg](img4722214_0.jpg)

3500 Lenox Road, Suite 1600

Atlanta, GA 30326

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;770.396.1100 warrenaverett.com

# INDEPENDENT AUDITORS' REPORT
To the Stockholders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. L. Grading Contractors, Inc.

# Opinion
We have audited the accompanying consolidated financial statements of A. L. Grading Contractors, Inc. and Affiliates, which comprise the consolidated balance sheets as of December 31, 2025 and 2024, and the related consolidated statements of income and retained earnings, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of A. L. Grading Contractors, Inc. and Affiliates as of December 31, 2025 and 2024, and the results of their operations and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

# Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audits of the Financial Statements section of our report. We are required to be independent of A. L. Grading Contractors, Inc. and Affiliates and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

# Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. L. Grading Contractors, Inc. and Affiliates' ability to continue as a going concern within one year after the date that the consolidated financial statements are available to be issued.

------

# Auditors' Responsibilities for the Audits of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and, therefore, is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Exercise professional judgment and maintain professional skepticism throughout the audits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Obtain an understanding of internal control relevant to the audits in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness A. L. Grading Contractors, Inc. and Affiliates' internal control. Accordingly, no such opinion is expressed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about A. L. Grading Contractors, Inc. and Affiliates' ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audits, significant audit findings and certain internal control related matters that we identified during the audits.

![img4722214_1.jpg](img4722214_1.jpg)

Atlanta, Georgia April 9, 2026

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES**

**CONSOLIDATED BALANCE SHEETS**

**AS AT DECEMBER 31, 2025 AND 2024**

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;**ASSETS** |  |  |
|  |  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;**CURRENT ASSETS**<br>Cash |  | &nbsp;&nbsp; <br>$6551063 | &nbsp;&nbsp; <br>$3277643 |
| &nbsp;&nbsp;&nbsp;Contract receivables |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16468250 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22626641 |
| &nbsp;&nbsp;&nbsp;Contract assets |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14079147 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13467520 |
| &nbsp;&nbsp;&nbsp;Other current assets |  | 802333 | 143863 |
| Total current assets |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37900793 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;39515667 |
| &nbsp;&nbsp;&nbsp;**PROPERTY AND EQUIPMENT**<br>Heavy machinery |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>64537862 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>61096068 |
| &nbsp;&nbsp;&nbsp;Vehicles |  | 6290243 | 5125703 |
| &nbsp;&nbsp;&nbsp;Building |  | 1219035 | 1219035 |
| &nbsp;&nbsp;&nbsp;Land |  | 572217 | 572217 |
| &nbsp;&nbsp;&nbsp;Computer equipment and software |  | 54531 | 42871 |
| &nbsp;&nbsp;&nbsp;Furniture and fixtures |  | 140342 | 70585 |
| &nbsp;&nbsp;&nbsp;Leasehold improvements |  | 331242 | 331242 |
|  |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;73145472 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68457721 |
| &nbsp;&nbsp;&nbsp;Less accumulated depreciation |  | (37863976) | (32524271) |
| Net property and equipment |  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35281496 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35933450 |
| **OTHER ASSETS** |  | 36000 | 336000 |
| **TOTAL ASSETS** |  | &nbsp;&nbsp;$73218289 | &nbsp;&nbsp;$75785117 |

---

# LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;Accounts payable | $12701534 | $10698625 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 772177 | 913308 |
| &nbsp;&nbsp;&nbsp;Contract liabilities | 2054252 | 8361315 |
| &nbsp;&nbsp;&nbsp;Notes payable, current portion | 6936685 | 7961000 |
| Total current liabilities | 22464648 | 27934248 |
| **LONG-TERM LIABILITIES** |  |  |
| &nbsp;&nbsp;&nbsp;Notes payable, less current portion | 4142635 | 7933051 |
| **TOTAL LIABILITIES** | 26607283 | 35867299 |
| **STOCKHOLDERS' EQUITY** |  |  |
| &nbsp;&nbsp;&nbsp;Common stock – $1 par value; 100,000 shares | &nbsp;&nbsp;&nbsp;Common stock – $1 par value; 100,000 shares | &nbsp;&nbsp;&nbsp;Common stock – $1 par value; 100,000 shares |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;authorized; 424 shares issued and outstanding |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as of December 31, 2025 and 2024 | 424 | 424 |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 30791 | 330791 |
| &nbsp;&nbsp;&nbsp;Retained earnings | 46579791 | 39586603 |
| Total stockholders' equity | 46611006 | 39917818 |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY** | $73218289 | $75785117 |

---

------

See notes to the consolidated financial statements.

**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES**

**CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS**

**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| **CONTRACT REVENUES** | $164452065 | &nbsp;&nbsp;&nbsp;$152090361 |
| **COSTS OF CONTRACT REVENUES** | &nbsp;&nbsp;&nbsp;&nbsp;121096669  | &nbsp;&nbsp;&nbsp;&nbsp;117801361  |
| **GROSS PROFIT** | 43355396 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34289000 |
| **GENERAL AND ADMINISTRATIVE EXPENSES** | 8837828  | 7212464  |
| **INCOME FROM OPERATIONS** | 34517568  | 27076536  |
| &nbsp;&nbsp;&nbsp;**OTHER INCOME (EXPENSE)**<br>Other income | <br>421861 | <br>106953 |
| &nbsp;&nbsp;&nbsp;Interest income | 216341 | 219863 |
| &nbsp;&nbsp;&nbsp;Interest expense | (245080) | (339671) |
| &nbsp;&nbsp;&nbsp;Income tax expense | (1384000) | (1201275) |
| Net other income (expense) | (990878) | (1214130) |
| **NET INCOME** | 33526690 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25862406 |
| **STOCKHOLDER DISTRIBUTIONS** | (26533502) | (18923318) |
| **RETAINED EARNINGS AT BEGINNING OF YEAR** | 39586603  | 32647515  |
| **RETAINED EARNINGS AT END OF YEAR** | $46579791  | $39586603  |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES CONSOLIDATED STATEMENTS OF CASH FLOWS**

**FOR THE YEARS ENDED DECEMBER 31, 2025 AND 2024**

See notes to the consolidated financial statements.

---

| | | |
|:---|:---|:---|
|  | **2025** | **2024** |
| &nbsp;&nbsp;&nbsp;**CASH FLOWS FROM OPERATING ACTIVITIES**<br>Net income | &nbsp;&nbsp; <br>$33526690 | &nbsp;&nbsp; <br>$25862406 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash provided by operating activities: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash provided by operating activities: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cash provided by operating activities: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7267864 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6360126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on sale of property and equipment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;361771 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(43131) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decrease (increase): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract receivables | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6158391 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6203611) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(611627) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5016303) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(658470) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;162897 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase (decrease): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2002909 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1590542 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued expenses | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(141131) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;207610 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6307063) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1080391 |
| Net cash provided by operating activities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;41599334 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24000927 |
| &nbsp;&nbsp;&nbsp;**CASH FLOWS FROM INVESTING ACTIVITIES**<br>Proceeds from disposals of property and equipment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>347750 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>374348 |
| &nbsp;&nbsp;&nbsp;Purchase of property and equipment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3502403) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2576769) |
| Net cash used in investing activities | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3154653) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2202421) |
| &nbsp;&nbsp;&nbsp;**CASH FLOWS FROM FINANCING ACTIVITIES**<br>Principal payments on notes payable | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>(8637759) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>(8461687) |
| &nbsp;&nbsp;&nbsp;Stockholder distributions | &nbsp;&nbsp;&nbsp;&nbsp;(26533502) | &nbsp;&nbsp;&nbsp;&nbsp;(18923318) |
| Net cash used in financing activities | &nbsp;&nbsp;&nbsp;&nbsp;(35171261) | &nbsp;&nbsp;&nbsp;&nbsp;(27385005) |
| **NET INCREASE (DECREASE) IN CASH** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3273420 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5586499) |
| **CASH AT THE BEGINNING OF YEAR** | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3277643 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8864142 |
| **CASH AT THE END OF YEAR** | &nbsp;&nbsp;$6551063 | &nbsp;&nbsp;$3277643 |
| <br>**SUPPLEMENTAL CASH FLOW DISCLOSURES** |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | &nbsp;&nbsp;$245080 | &nbsp;&nbsp;$339671 |
| &nbsp;&nbsp;&nbsp;Noncash activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of equipment with proceeds from notes payable | $&nbsp;&nbsp; <br>3823028 | $&nbsp;&nbsp; <br>9006020 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **DESCRIPTION OF BUSINESS**

## Nature of Operations
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. L. Grading Contractors, Inc. (the Company) was incorporated in the state of Georgia on April 1, 1993. The Company is engaged in the business of construction grading and installation of underground utilities throughout Georgia. The work is generally performed under fixed-price contracts which vary in length but are typically less than one year.

The Company has concluded that the consolidated Affiliates meet the definition of Variable Interest Entities (VIEs) and that the Company is the primary beneficiary in these VIEs. Accordingly, the net assets and results of operations of the VIEs are included in the consolidated financial statements of the Company.

## Principles of Consolidation
The accompanying consolidated financial statements include the accounts of A. L. Grading Contractors, Inc. and related VIEs: ALW Equipment, LLC, Wood Equipment, LLC, and 105 PIB Group, LLC. All significant intercompany transactions and balances have been eliminated in consolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**

## Basis of Presentation
These consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).

## Allowance for Credit Losses
In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (ASC) Topic 326, *Financial Instruments – Credit Losses*, which significantly changed how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. The most significant change in this standard is a shift from the incurred loss model to the expected loss model. Under the standard, disclosures are required to provide users of the financial statements with useful information in analyzing an entity's exposure to credit risk and the measurement of credit losses. Financial assets held by the Company that are subject to the guidance in FASB ASC 326 were contract receivables.

The Company adopted the standard effective January 1, 2024. The impact of the adoption was not considered material to the consolidated financial statements and primarily resulted in new/enhanced disclosures only.

## Revenue and Cost Recognition
*Contract Revenues and Cost Recognition*

In the process of performing its construction contracts with its customers, the Company considers each contract to be one performance obligation, unless the circumstances dictate otherwise. Revenue is recognized as the work is performed over time and it is arrived at by determining the amount of cost incurred as it relates to total estimated cost after giving effect to the most recent estimates of cost to complete.

------

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![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

Contract costs include all direct material, labor, subcontractor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and depreciation. Provisions for estimated losses, if any, on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions and estimated profitability, including those arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income and are recognized in the period in which the revisions are determined. Profit incentives are included in revenues when their realization is reasonably assured. An amount equal to contract costs attributable to unapproved change orders is included in revenues when realization is probable and the amount can be reliably estimated. Selling, general and administrative costs are charged to expense as incurred.

*Consolidated Contracts*

The Company evaluates whether two or more contracts should be consolidated and accounted for as one single contract and whether the consolidated or single contract should be accounted for as more than one performance obligation. This evaluation requires significant judgment and the decision to combine a group of contracts or separate the consolidated or single contract into multiple performance obligations which could change the amount of revenue and profit recorded in a given period.

*Multiple Performance Obligations*

From time to time, the Company may have contracts with multiple performance obligations, most commonly due to the contract covering multiple phases of a project. For contracts with multiple performance obligations, the Company allocates the contract's transaction price to each performance obligation using the Company's best estimate of the standalone selling price of each distinct good or service in the contract.

*Transaction Price*

The nature of the Company's contracts gives rise to several types of variable considerations, including claims and award and incentive fees. The Company includes in the contract estimates additional revenue for submitted contract modifications or claims against the customer when the Company believes it has an enforceable right to the modification or claim, the amount can be estimated reliably and its realization is probable. In evaluating these criteria, the Company considers the contractual/legal basis for the claim, the cause of any additional costs incurred, the reasonableness of those costs and the objective evidence available to support the claim. The Company includes award or incentive fees in the estimated transaction price, when there is a basis to reasonably estimate the amount of the fee. These estimates are based on historical award experience, anticipated performance and the Company's best judgment at the time. Because of certainty in estimating these amounts, they are included in the transaction price of the contracts and the associated remaining performance obligations.

*Contract Modifications*

Contract modifications are routine in the performance of the Company's contracts. Contracts are often modified to account for changes in the contract specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct and, therefore, are accounted for as part of the existing contract.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

*Contract Estimates*

It is reasonably possible that changes in estimates may occur in the near term and those revisions and cost and revenue estimates are reflected in the period in which the facts that require the revisions become known. The contract assets represent revenue recognized in excess of amounts billed. The contract liabilities represent billings in excess of revenue recognized.

*Disaggregation of Revenue*

The Company operates as a grading and underground utility contractor throughout the southeastern United States. The Company is involved in grading, pipe installation and other related sitework services for its real estate development customers. Therefore, the Company's viability is dependent on the strength of the real estate development marketplace and the Company's ability to collect on its contracts.

## Contract Receivables
Management routinely assesses the financial strength of its customers and, as a consequence, believes contract receivables at December 31, 2025 and 2024, are stated at the estimated net realizable value. Contract receivables are recorded net of any allowance for doubtful accounts considered necessary by management.

Contract receivables are recorded when invoices are issued and are presented in the consolidated balance sheets net of the allowance for credit losses. Contract receivables are written off against the allowance account when they are determined to be uncollectible. The allowance for credit losses is estimated based on the expected credit losses considering the Company's historical losses, the existing economic conditions in the construction industry and the financial stability of its customers. Bad debt recoveries are charged against the allowance for credit losses as realized.

At times, the Company's customers request change orders due to changes in scope or conditions on a project. The Company and its customers agree in principle to the scope of the change orders, with the understanding that the change orders will be approved. As of December 31, 2025 and 2024, the Company has no material pending change orders.

## Operating Cycle
Assets and liabilities arising from long-term construction activities, in which the operating cycle extends beyond one year, are classified as current in the financial statements. A one-year time period is used as a basis for classification of all other assets and liabilities.

## Use of Estimates
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and the reported revenues and expenses. Actual results could differ from those estimates. Under the percentage of completion method of accounting, revenue recognized is based on cost incurred to date and management's estimates of costs to complete. These estimates are reviewed by management monthly and adjusted accordingly. However, due to uncertainties inherent in the estimation process, actual results could differ from those estimates.

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![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

## Cash and Cash Equivalents
The Company considers deposits that can be redeemed on demand and investments that have original maturities of less than three months, when purchased, to be cash equivalents. As of December 31, 2025 and 2024, the Company had no cash equivalents.

## Property and Equipment
Property and equipment is recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for consolidated financial statement purposes. The estimated useful lives for property and equipment range from 3-15 years. Depreciation expense amounted to $7,267,864 and $6,360,126 in 2025 and 2024, respectively.

On December 31, 2025, ALW Equipment, LLC and Wood Equipment, LLC sold their property and equipment to A. L. Grading Contractors for $20.

## Income Taxes
Effective January 1, 2008, the Company elected to be treated as a subchapter S corporation for federal income tax purposes. As a result, taxable income of the Company is reported and taxed on the personal income tax returns of the stockholders. Accordingly, no provision for federal income taxes has been recorded in these statements.

The Company elected to pay state income taxes on behalf of the owners as determined to be allowable under IRS Notice 2020-75. The Company recognized $1,384,000 and $1,201,275 in income tax expenses under this election in 2025 and 2024, respectively. In accordance with the FASB ASC 740, *Income Taxes*, management is required to determine whether a tax position of the Company is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Management believes there are no uncertain tax positions at December 31, 2025 or 2024.

The Company could be subject to income tax examinations for its U.S. federal and state income taxes for the current tax year and previous filings for tax years 2024, 2023 and 2022, which are still open under the statute of limitations.

## Fair Value of Financial Instruments
At December 31, 2025 and 2024, the carrying value of financial instruments such as cash, contract receivables, payables and notes payable approximate their fair values.

## Advertising
The Company expenses advertising costs as incurred. Advertising expense totaled $280,259 and $169,429 in 2025 and 2024, respectively.

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![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

## Concentrations and Credit Risks
The Company maintains cash balances in various financial institutions. Deposit accounts at each of the institutions are insured up to $250,000, by the Federal Deposit Insurance Corporation (FDIC). As of December 31, 2025 and 2024, the Company exceeded the FDIC insured limits at a financial institution by approximately $12,912,000 and $4,763,000, respectively, which is the amount of the Company's exposure to credit loss. The Company has not experienced any losses in such accounts and believes there is little or no exposure to any significant credit risk.

At December 31, 2025, approximately 50% of the Company's billed contract receivables were related to contracts with three customers and approximately 37% of total revenue were related to contracts with two customers.

At December 31, 2024, approximately 45% of the Company's billed contract receivables were related to contracts with three customers and approximately 50% of total revenue were related to contracts with four customers.

## Stockholders' Equity
On December 31, 2025, the stockholder's of Wood Equipment, LLC and ALW Equipment, LLC distributed the remaining assets and capital to the stockholders through distributions.

## Subsequent Events
The Company has evaluated events and transactions that occurred between December 31, 2025 and April 9, 2026 which is the date the consolidated financial statements were available to be issued, for possible recognition or disclosure in the consolidated financial statements. Refer to Note 9.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **CONTRACT RECEIVABLES AND RETAINAGE**

Contract receivables and retainage consist of the following at:

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;**December 31,** | &nbsp;&nbsp;&nbsp;**December 31,** | **January 1,** |
|  |  **<u>2025</u>** |  **<u>2024</u>** |  **<u>2024</u>** |
| Completed contracts, including retainage | &nbsp;&nbsp;&nbsp;&nbsp;$- | &nbsp;&nbsp;&nbsp;$45046 | $8865 |
| Contracts in progress<br>Trade receivables | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>12730909 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br>21568492 | &nbsp;&nbsp;&nbsp; <br>15165354 |
| &nbsp;&nbsp;&nbsp;Billed retainage receivable | <u>3737341</u>  | <u>1013103</u>  | <u>1248811</u>  |
| Total contract receivables | <u>$16468250</u>  | <u>$22626641</u>  | <u>$16423030</u>  |

---

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![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **CONTRACTS IN PROGRESS**

Costs, estimated earnings and billings on contracts in progress are summarized as follows:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp; **<u>2025</u> <u>2024</u>** |
| Costs incurred on uncompleted contracts | &nbsp;&nbsp;&nbsp;&nbsp;$134743661 $177052912 |
| Estimated earnings | &nbsp;&nbsp;&nbsp;&nbsp; <u>40953738</u> <u>49218416</u>  |

---

Total costs incurred and estimated earnings 175,697,399 226,271,328 Less billings-to-date on uncompleted contracts <u>(172,095,887)</u> <u>(231,723,876)</u>

 <u>$3,601,512</u> <u>$(5,452,548)</u>

Contracts in progress and unbilled retainage receivable are included in the consolidated balance sheets under the following captions:

---

| | | | |
|:---|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;**December 31,** | &nbsp;&nbsp;&nbsp;**December 31,** | &nbsp;&nbsp;&nbsp;&nbsp;**January 1,** |
| <br>Contract assets |  **<u>2025</u>** |  **<u>2024</u>** |  **<u>2024</u>** |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs and estimated earnings in excess of | &nbsp;&nbsp;&nbsp;&nbsp;$5655764 | &nbsp;&nbsp;&nbsp;$2908767 | &nbsp;&nbsp;&nbsp;$754035 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;billings on uncompleted contracts<br>Unbilled retainage receivable | <br>8423383 | <br>10558753 | <br>7697182 |
| &nbsp;&nbsp;&nbsp;&nbsp;Contract liabilities<br>Billings in excess of costs and estimated earnings on uncompleted contracts | <br><u>(2054252)</u> | <br><u>(8361315)</u> | <br><u>(7280924)</u> |
|  | <u>$12024895</u>  | <u>$5106205</u>  | <u>$1170293</u>  |

---

Unbilled retainage receivables represent amounts invoiced to customers where payments have been withheld pending the completion of certain milestones, other contractual conditions or upon the completion of the project. Retainage agreements vary from project to project and balances could be outstanding for several months or years depending on a number of circumstances such as contract-specific terms, project performance and other variables that may arise as the Company makes progress towards completion.

Unbilled retainage receivable is classified as a contract asset and represents amounts billed but not yet due, as final payment is contingent upon completion of the remaining project close-out requirements and customer acceptance. Unbilled retainage receivable classified as contract asset totaled $8,423,383, $10,558,753 and $7,697,182 for each of the periods presented above, respectively.

Costs and estimated earnings in excess of billings represent the excess of contract costs and profits (or contract revenue) over the amount of contract billings to date and are classified as a current asset. Costs and estimated earnings in excess of billings result when either 1) the appropriate contract revenue amount has been recognized over time in accordance with FASB ASC 606, *Revenue Recognition*, but a portion of the revenue recorded cannot be billed currently

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![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

due to the billing terms defined in the contract, or 2) costs are incurred related to certain claims and unapproved change orders. Unapproved change orders occur when a change in the scope of work results in additional work being performed before the parties have agreed on the corresponding change in the contract price. The Company routinely estimates recovery related to unapproved change orders as a form of variable consideration at the most likely amount it expects to receive and to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Unapproved change orders are billable upon the agreement and resolution between the contractual parties and after the execution of contractual amendments. Increases in unapproved change orders typically result from costs being incurred against existing or new positions; decreases normally result from resolutions and subsequent billings.

Billings in excess of costs and estimated earnings represent the excess of contract billings to date over the amount of contract costs and profits (or contract revenue) recognized to date. The balance may fluctuate depending on the timing of contract billings and the recognition of contract revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **CONTRACT BACKLOG (REMAINING UNSATISFIED PERFORMANCE OBLIGATION)**

The following schedule summarizes changes in backlog (remaining unsatisfied performance obligation) on contracts obtained during the year ended December 31, 2025. Backlog represents the amount of revenue the Company expects to realize from work to be performed on uncompleted contracts in progress at year-end and from contractual agreements on which work has not begun.

---

| | |
|:---|:---|
| Backlog, December 31, 2024 | $70262831 |
| New contracts executed | &nbsp;&nbsp;&nbsp;&nbsp;<u>168004020</u>  |
| Total | 238266851 |
| Less contract revenues earned | &nbsp;&nbsp;&nbsp;&nbsp;<u>(164452065)</u> |
| Backlog, December 31, 2025 | <u>$73814786</u>  |

---

The Company estimates that its backlog as of December 31, 2025, will be satisfied over the next 12 months.

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![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

---

| | | |
|:---|:---|:---|
| **6. NOTES PAYABLE** |  |  |
| Notes payable consists of the following as of December 31: |  |  |
|  |  **<u>2025</u>** |  **<u>2024</u>** |
| &nbsp;&nbsp;Installment note, 6.34%, maturing in April 2028 | &nbsp;&nbsp;&nbsp;$1108205 | &nbsp;&nbsp;&nbsp;$1535513 |
| &nbsp;&nbsp;Installment note, 0%, maturing in March 2028 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;948412 | - |
| &nbsp;&nbsp;Installment note, 0%, maturing in October 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;831145 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1284496 |
| &nbsp;&nbsp;Installment note, 0%, maturing in April 2028 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;824538 | - |
| &nbsp;&nbsp;Installment note, 0%, maturing in April 2028 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;573487 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;819267 |
| &nbsp;&nbsp;Installment note, 0%, maturing in June 2028 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;562702 | - |
| &nbsp;&nbsp;Installment note, 0%, maturing in September 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;486954 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;765213 |
| &nbsp;&nbsp;Installment note, 5.59%, maturing in May 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;479118 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;795207 |
| &nbsp;&nbsp;Installment note, 2.99%, maturing in July 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;388700 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;971834 |
| &nbsp;&nbsp;Installment note, 4.00%, maturing in September 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;369955 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;846337 |
| &nbsp;&nbsp;Installment note, 0%, maturing in December 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;368350 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;736700 |
| &nbsp;&nbsp;Installment note, 0%, maturing in May 2028 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;363495 | - |
| &nbsp;&nbsp;Installment note, 0%, maturing in June 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;314112 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;512499 |
| &nbsp;&nbsp;Installment note, 0%, maturing in September 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;312137 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;490501 |
| &nbsp;&nbsp;Installment note, 0%, maturing in June 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;298448 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;486941 |
| &nbsp;&nbsp;Installment note, 0%, maturing in April 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;293253 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;513193 |
| &nbsp;&nbsp;Installment note, 0%, maturing in June 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;290615 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;474162 |
| &nbsp;&nbsp;Installment note, 0%, maturing in June 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;282783 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;461383 |
| &nbsp;&nbsp;Installment note, 0%, maturing in December 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;263753 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;527507 |
| &nbsp;&nbsp;Installment note, 0%, maturing in December 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;249443 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;498887 |
| &nbsp;&nbsp;Installment note, 0%, maturing in December 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;220293 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;440587 |
| &nbsp;&nbsp;Installment note, 0%, maturing in September 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;182461 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;281985 |
| &nbsp;&nbsp;Installment note, 0%, maturing August 2028 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;153665 | - |
| &nbsp;&nbsp;Installment note, 0%, maturing in December 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;116413 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;232827 |
| &nbsp;&nbsp;Installment note, 1.99%, maturing in September 2027 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;111593 | - |
| &nbsp;&nbsp;Installment note, 0%, maturing in December 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;110760 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;221520 |
| &nbsp;&nbsp;Installment note, 1.85%, maturing in April 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;100879 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;399806 |
| &nbsp;&nbsp;Installment note, 1.75%, maturing in October 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99803 | - |
| &nbsp;&nbsp;Installment note, 5.84%, maturing in April 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;68723 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;231235 |
| &nbsp;&nbsp;Installment note, 0%, maturing in September 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;67700 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;157967 |
| &nbsp;&nbsp;Installment note, 1.99%, maturing in August 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64982 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;135095 |
| &nbsp;&nbsp;Installment note, 4.08%, maturing in April 2026 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;64147 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;251541 |

---

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![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

---

| | | |
|:---|:---|:---|
|  **<u>2025</u>** |  **<u>2025</u>** | &nbsp;&nbsp;&nbsp; **<u>2024</u>** |
| <br>Installment note, 1.99%, maturing in September 2026 | &nbsp;&nbsp; <br>$47520 | &nbsp;&nbsp; <br>$111952 |
| Installment note, 2.89%, maturing in January 2026 | 24257 | 163981 |
| Installment note, 3.74%, maturing in January 2026 | 12306 | 135827 |
| Installment note, 3.74%, maturing in January 2026 | 11063 | 122116 |
| Installment note, 3.74%, maturing in January 2026 | 9089 | 124556 |
| Installment note, 3.74%, maturing in January 2026 | 4061 | 45107 |
| Installment note, 0%, matured in June 2025 | - | 243636 |
| Installment note, 1.90%, matured in September 2025 | - | 151680 |
| Installment note, SOFR+1.25%, paid off during 2025 | - | 145139 |
| Installment note, 1.99%, matured in March 2025 | - | 96988 |
| Installment note, 1.99%, matured in March 2025 | - | 96988 |
| Installment note, 0%, matured in March 2025 | - | 80836 |
| Installment note, 4.15%, matured in May 2025 | - | 70646 |
| Installment note, 1.99%, matured in March 2025 | - | 69149 |
| Installment note, 4.58%, matured in August 2025 | - | 64381 |
| Installment note, 1.99%, matured in March 2025 | - | 43106 |
| Installment note, 1.99%, matured in April 2025 | - | 40586 |
| Installment note, 3.21%, matured in March 2025 | - | 15174 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11079320 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15894051 |
| Less current portion | (6936685) | (7961000) |
| Long-term portion | <u>$4142635</u>  | <u>$7933051</u>  |

---

Future maturities of third-party notes payable at December 31, 2025, consist of the following:

---

| | |
|:---|:---|
|  **<u>Year Ending December 31,</u>** |  **<u>Amount</u>** |
| &nbsp;&nbsp;&nbsp;&nbsp;2026 | &nbsp;&nbsp;&nbsp;$6936685 |
| &nbsp;&nbsp;&nbsp;&nbsp;2027 | 3420437 |
| &nbsp;&nbsp;&nbsp;&nbsp;2028 | <u>722198</u>  |
| &nbsp;&nbsp;Total | <u>$11079320</u>  |
| The Company's notes are secured by vehicles or equipment. |  |

---

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![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **RELATED PARTY TRANSACTIONS**

During 2025 and 2024, the Company performed construction grading and installation of underground utilities for Heights Management & Development, LLC. During 2025 and 2024, the Company recognized revenue of $30,496 and $131,076 related to the contracts, respectively. As of December 31, 2025 and 2024, there were $0 and $46,942 related party receivables related to the contracts, respectively. As of December 31, 2025 and 2024, there were $0 and

$64,494 of revenues in excess of billings on uncompleted contracts related to the contract, respectively.

During 2025 and 2024, the Company performed construction grading and installation of underground utilities for Midland Commercial. During 2025 and 2024, the Company recognized revenue of $209,512 and $2,348,717 related to the contract, respectively. As of December 31, 2025 and 2024, there was $0 and $755,242 of related party receivables related to the contract, respectively. As of December 31, 2025 and 2024, there was $0 and $595,475 of revenue in excess of billings on uncompleted contracts related to the contract, respectively.

During 2025, the Company performed construction grading and installation of underground utilities for Green Lake Heirloom, LLC. During 2025, the Company recognized revenue of

$4,045,216 related to the contract. As of December 31, 2025, there was $901,294 related party receivables related to the contract. As of December 31, 2025, there was $763,044 of costs and earnings in excess of billings on uncompleted contracts related to the contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **INSURANCE CAPTIVE**

The Company holds less than 2% non-controlling equity interest in a privately held insurance captive (the "Captive") that provides insurance coverage to the Company. The Company does not have board representation, substantive participating rights, or other arrangements that would allow it to direct the Captive's significant activities, and therefore does not consolidate or account for the investment under the equity method. The investment does not have a readily determinable fair value and is accounted for under the measurement alternative in accordance with ASC 321 at cost, adjusted for observable price changes in orderly transactions for identical or similar securities of the same issuer and for impairment, if any. The Company evaluates the investment for impairment each reporting period based on qualitative factors. There are no side agreements, guarantees, or funding commitments beyond the initial investment. As of December 31, 2025 and 2024, the carrying value of the investment was $36,000, and no impairment or observable price adjustments were recorded during the years 2025 or 2024. The carrying value of the non- controlling interest in the insurance captive is presented in other assets on the consolidated balance sheets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **SUBSEQUENT EVENTS**

Subsequent to year end, the Company entered into a Membership Interest Purchase and Contribution Agreement (MIPA) under which it was acquired by another entity for cash consideration, stock in the acquiring entity of approximately $242,000,000, subject to holdbacks and purchase price adjustments. The transaction closed on February 18, 2026, and resulted in

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

![gfx4722214_0.jpg](gfx4722214_0.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;**A. L. GRADING CONTRACTORS, INC. AND AFFILIATES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**DECEMBER 31, 2025 AND 2024**

a change in control of the Company. As part of the transaction, the outstanding notes payable on the balance sheet were paid in full to the respective lender.

The acquisition represents a nonrecognized subsequent event, and accordingly, no amounts related to this transaction have been recorded in the accompanying consolidated financial statements as of December 31, 2025.

In conjunction with the MIPA, the Company entered into lease agreements for the office space and an equipment maintenance facility. Under the terms of the agreements, the Company is committed to combined annual payments of $600,000, escalating annually, with a maturity date of December 2041.

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## Exhibit 99.2

**Exhibit 99.2**

**Unaudited pro forma CONDENSED CONSOLIDATED financial information**

The following unaudited pro forma condensed consolidated financial statements of Cardinal Infrastructure Group Inc. (the "Company," "Cardinal Group," "we," "us" or "our") have been prepared in accordance with Article 11 ("Article 11") of Regulation S-X of the Securities and Exchange Commission to give effect to (i) the acquisition by Cardinal Civil Contracting Holdings LLC, a controlled subsidiary of the Company ("Cardinal" or the "Purchaser"), of all of the equity interests of A.L. Grading Contractors, LLC ("ALGC"), which closed on February 18, 2026 (the "ALGC Acquisition"), (ii) the related financing transactions, including the first amendment to the Purchaser's credit agreement with Truist Bank that increased the term loan facility from $120.0 million to $200.0 million in aggregate principal amount (the "First Amendment" and the additional borrowings thereunder, the "Acquisition Financing "), and (iii) the reorganization transactions and the Company's initial public offering (the <br>IPO") of Class A Common Stock that closed on December 11, 2025 (the "Reorganization and Offering Transactions").

The unaudited pro forma condensed consolidated balance sheet as of December 31, 2025 has been prepared as if the ALGC Acquisition and the Acquisition Financing occurred on December 31, 2025. The unaudited pro forma condensed consolidated statement of comprehensive income for the year ended December 31, 2025 has been prepared as if the ALGC Acquisition, the Acquisition Financing, and the Reorganization and Offering Transactions had each occurred on January 1, 2025.

The Company's historical condensed consolidated balance sheet as of December 31, 2025 already reflects the Reorganization and Offering Transactions, each of which was consummated prior to December 31, 2025. As a result, no separate columns are presented for the Reorganization and Offering Transactions in the unaudited pro forma condensed consolidated balance sheet.

The unaudited pro forma condensed consolidated financial information has been derived from, and should be read in conjunction with: (i) the audited consolidated financial statements and accompanying notes of the Company as of and for the year ended December 31, 2025, included in the Company's Annual Report on Form 10-K, and (ii) the historical financial statements of A.L. Grading Contractors, Inc. (the predecessor corporation to ALGC) as of and for the year ended December 31, 2025, included as Exhibit 99.1 to the Current Report on Form 8-K/A to which this unaudited condensed consolidated pro forma financial information is an exhibit.

The Company has prepared the unaudited pro forma condensed consolidated financial information to reflect the accounting for the transactions described below in accordance with accounting policies generally accepted in the United States ("GAAP"). The unaudited pro forma condensed consolidated financial information reflects adjustments described in the accompanying notes that are based on available information and certain assumptions the Company believes are reasonable but are subject to change. The pro forma adjustments are preliminary and have been made solely for the purpose of providing the unaudited pro forma condensed consolidated financial information presented herein. Differences between these preliminary estimates and the final acquisition accounting may occur, and those differences could have a material impact on the unaudited pro forma condensed consolidated financial information and on the Company's future results of operations and financial position.

The pro forma financial information is presented for informational purposes only and does not purport to represent the actual results of operations or financial position that would have occurred had the ALGC Acquisition, the Acquisition Financing and the Reorganization and Offering Transactions been consummated on the dates assumed, nor is it necessarily indicative of the Company's future consolidated results of operations or financial position. The unaudited pro forma condensed consolidated financial information does not reflect any expected cost savings, operating synergies or revenue enhancements that may be realized following the ALGC Acquisition, or any costs to integrate the operations of ALGC or to achieve such cost savings, operating synergies or revenue enhancements.

As a public company, the Company expects to continue to incur additional annual expenses for, among other things, directors' and officers' liability insurance, director fees, costs for SEC reporting requirements, transfer agent fees, additional accounting, legal and administrative personnel, increased auditing and legal expenses, and other related costs. Due to the scope and complexity of these activities, the amount of such costs would be based on subjective estimates and assumptions that cannot be factually supported. Accordingly, the unaudited pro forma condensed consolidated financial information does not include any pro forma adjustments related to such costs.

**Summary of the Transactions**

*ALGC Acquisition*

On February 18, 2026, the Company, through the Purchaser, completed the ALGC Acquisition pursuant to a Membership Interests Purchase and Contribution Agreement, dated February 18, 2026 (the "Purchase Agreement"), with Diamond Interests Group, LLC (the "Seller"), ALGC, Anthony L. Wood, Jr. and Benjamin A. Wood (collectively, the "Seller Owners"). Pursuant to the Purchase Agreement, the Purchaser paid aggregate consideration consisting of (i) approximately $128.6 million in cash (subject to customary adjustments under the Purchase Agreement), (ii) 4,186,062 limited liability company units of the Purchaser (the "Common Units") (together with an equal number of shares of the Company's Class B Common Stock, $0.0001 par value per share, the "Class B Common Stock"), and (iii) 345,666 shares of the Company's Class A Common Stock, par value $0.0001 per share (the "Class A Common Stock") issued to employees of, and service providers to, ALGC at the direction of the Seller. The cash portion of the purchase price was funded

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with a combination of cash on hand and incremental borrowings under the Purchaser's amended credit facility.

ALGC is engaged in the business of providing infrastructure services to residential, industrial and commercial projects in the greater Atlanta, Georgia area. The ALGC Acquisition will be accounted for as a business combination under the acquisition method of accounting in accordance with FASB Accounting Standards Codification ("ASC") Topic 805, Business Combinations ("ASC 805"), with the Company as the accounting acquirer.

The historical financial information of A.L. Grading Contractors, Inc. reflected in the unaudited pro forma condensed consolidated financial information are those of the predecessor corporation, which was converted into a limited liability company organized in the State of Georgia on February 17, 2026 (immediately prior to the consummation of the ALGC Acquisition on February 18, 2026).

 *Acquisition Financing*

On February 18, 2026, Cardinal Civil Contracting, LLC ("Cardinal NC"), the Purchaser, the other guarantors party thereto, the lenders party thereto and Truist Bank, as administrative agent, issuing bank and swingline lender, entered into the First Amendment to the Credit Agreement, dated October 1, 2025 (the "Credit Agreement" and, as amended, the "Amended Credit Agreement"). The First Amendment, among other things, increased the term loan facility under the Credit Agreement from $120.0 million in aggregate principal amount to $200.0 million in aggregate principal amount. A portion of the proceeds of the incremental term loans made pursuant to the First Amendment was used to pay the cash portion of the ALGC Acquisition purchase price. The Company is not a party to the Amended Credit Agreement.

*Reorganization and Offering Transactions*

Prior to the IPO, all of the Company's business was conducted through Cardinal NC. In connection with the IPO, the Company completed a series of organizational transactions (the "Reorganization Transactions") to reorganize its corporate structure. The IPO and the Reorganization Transactions are collectively referred to herein as the "Reorganization and Offering Transactions." The Reorganization and Offering Transactions consisted of two discrete transactions, the "September 2025 Reorganization" and the "IPO Reorganization," each described below.

Cardinal Infrastructure Group Inc. (the "Cardinal Group") was formed on June 12, 2025 and, prior to the IPO, did not conduct any business. The Reorganization Transactions were completed in two steps. Effective September 30, 2025, the September 2025 Reorganization combined Cardinal NC's non-wholly owned subsidiaries into Cardinal NC and recapitalized all existing interests into a single class of LLC Units of Cardinal. On December 10, 2025, the IPO Reorganization amended and restated the Cardinal operating agreement and Cardinal Group's certificate of incorporation (including a ~86-to-one forward stock split and authorization of Class A, Class B and preferred stock) and appointed Cardinal Group as Cardinal's sole managing member.

On December 11-12, 2025, Cardinal Group completed the IPO of 11,500,000 shares of Class A Common Stock at $21.00 per share, plus 1,725,000 shares pursuant to the underwriters' option, for gross proceeds of approximately $277.7 million. Cardinal Group used the net proceeds to purchase 14,943,750 newly issued LLC Units from Cardinal for approximately $258.3 million and issued 23,387,813 shares of Class B Common Stock to the existing Cardinal equity holders (the "Continuing Equity Holders") on a one-for-one basis with their retained LLC Units, for nominal consideration. As of December 31, 2025, Cardinal Group owned 14,947,318 LLC Units (39.0% of Cardinal) and the Continuing Equity Holders owned the remaining 23,387,813 LLC Units (61.0%).

The resulting umbrella partnership-C corporation ("Up-C") structure allows the Continuing Equity Holders to retain flow-through tax treatment on their LLC Units, which are redeemable for Class A Common Stock (or, at the Company's option, cash) on a one-for-one basis with automatic cancellation of the corresponding Class B shares. Under the Tax Receivable Agreement, the Continuing Equity Holders are entitled to 85.0% of certain cash tax benefits realized by Cardinal Group, with Cardinal Group retaining the remaining 15.0%.

Both steps of the Reorganization and Offering Transactions are accounted for as transactions among entities under common control. The September 2025 Reorganization is treated as an acquisition of noncontrolling interests under ASC 810-10-45-23, with carrying amounts reclassified to members' equity and no gain or loss recognized. The IPO Reorganization is treated as a recapitalization of the predecessor operating entity, and the historical financial statements of Cardinal are carried forward as those of Cardinal Group, adjusted for the recapitalized equity structure.

As the sole managing member of Cardinal, the Company operates and controls all of the business and affairs of Cardinal and, through Cardinal, conducts the Company's business. As a result, the below pro formas adjustments below reflect the Company consolidating Cardinal and recording a significant noncontrolling interest in a consolidated entity in the Company's consolidated financial statements for the economic interest in Cardinal held by the Continuing Equity Holders.

**Expected Accounting Treatment of the Acquisition**

The unaudited pro forma condensed consolidated financial information has been prepared assuming the acquisition method of

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accounting in accordance with GAAP. Under this method, ALGC's assets and liabilities will be recorded at their respective preliminary fair values. Any difference between the purchase price for ALGC and the fair value of the identifiable net assets acquired (including intangible assets) will be recorded as goodwill. The goodwill resulting from the Acquisition will not be amortized to expense, but instead will be reviewed for impairment at least annually. One-time direct and incremental transaction costs will be expensed as incurred under ASC 805 and are assumed to be cash settled. The Company has preliminarily estimated the fair value of ALGC's assets acquired and liabilities assumed and is in the process of conforming the accounting policies of ALGC to its accounting policies. The unaudited pro forma condensed consolidated financial information are based on preliminary accounting conclusions and are subject to potential revisions upon further analysis. The pro forma adjustments represent management's estimates based on information available as of the date of this Form 8-K/A and are subject to change as additional information becomes available and additional analyses are performed.

The Pro Forma Financial Information does not reflect the realization of any expected cost savings or other synergies from the ALGC Acquisition or any restructuring activities and other planned cost savings initiatives following the completion of the business combination. The transaction will also result in an increase in non-controlling interest due to the issuance of additional LLC units as consideration.

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**UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET<br>As of December 31, 2025** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Cardinal Group** | **ALGC historical** | **ALGC Transaction Accounting Adjustments** | **Notes** | **Pro Forma** |
| **Assets** |  |  |  |  |  |
| Current assets: |  |  |  |  |  |
| Cash | $97149425 | $6551063 | $80000000 | 4 | $50011565 |
|  |  |  | (676499) | 4 |  |
|  |  |  | (128120439) | 2(a) |  |
|  |  |  | (3963481) | 2(b) |  |
|  |  |  | (928504) | 5(b) |  |
| Accounts receivable, net | 61282268 | 16468250 |  |  | 77750518 |
| Contract assets | 54894260 | 14079147 |  |  | 68973407 |
| Prepaid expenses | 1892615 |  |  |  | 1892615 |
| Other assets | 432584 | 802333 |  |  | 1234917 |
| Total current assets | 215651152 | 37900793 | (53688923) |  | 199863022 |
| Property and equipment, net | 84901602 | 35281496 | 1101243 | 2(b) | 121284341 |
| Operating lease right-of-use assets | 8929742 |  | 4798645 | 2(b) | 13728387 |
| Goodwill | 23510649 |  | 104097314 | 2(b) | 127607963 |
| Other intangible assets | 15513692 |  | 97100000 | 2(d) | 112613692 |
| Deferred tax asset | 46080518 |  |  |  | 46080518 |
| Other assets |  | 36000 |  |  | 36000 |
| Total assets | $394587355 | $73218289 | $153408279 |  | $621213923 |
| **LIABILITIES AND MEMBERS' EQUITY** |  |  |  |  |  |
| Current liabilities: |  |  |  |  |  |
| Current portion of notes payable | 6128674 | 6936685 | (6936685) | 4(a) | 10128674 |
|  |  |  | 4000000 | 4(a) |  |
| Current portion of finance lease liabilities | 3349359 |  |  |  | 3349359 |
| Current portion of operating lease liabilities | 3814686 |  | 85148 | 2(b) | 3899834 |
| Accounts payable | 60600099 | 12701534 |  |  | 73301633 |
| Accrued expenses | 2956314 | 772177 | (30277) | 2(b) | 4002949 |
|  |  |  | 304735 | 5(a) |  |
| Deferred consideration payable | 3966618 |  | - | 2(a) | 3966618 |
| Contract liabilities | 10831564 | 2054252 |  |  | 12885816 |
| Total current liabilities | 91647314 | 22464648 | (2577079) |  | 111534883 |
| Notes payable, less current portion, net of unamortized debt issuance costs | 113152864 | 4142635 | (4142635) | 4(a) | 188314363 |
|  |  |  | (838501) | 4(a) |  |
|  |  |  | 76000000 | 4(a) |  |
| Finance lease liabilities, less current portion | 4974309 |  |  |  | 4974309 |
| Operating lease liabilities, less current portion | 5851516 |  | 6095498 | 2(b) | 11947014 |
| Tax receivable agreement liability | 39423529 |  |  |  | 39423529 |
| Contingent consideration |  |  | 15254000 | 2(a), 6 | 15254000 |
| Total liabilities | 255049532 | 26607283 | 89791282 |  | 371448097 |
| **Stockholders' equity** |  |  |  |  |  |
| Preferred stock $0.0001 par value per share, 10,000,000 shares authorized, no shares issued and outstanding, actual; 10,000,000 authorized, no shares issued and outstanding, pro forma | - |  |  |  | - |

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**UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET<br>As of December 31, 2025** 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Cardinal Group** | **ALGC historical** | **ALGC Transaction Accounting Adjustments** | **Notes** | **Pro Forma** |
| Class A Common stock, par value $0.0001 per share; 500,000,000 shares authorized, 14,947,318 shares issued and outstanding, actual; 500,000,000 shares authorized, 15,292,984 shares issued and outstanding, pro forma | 1495 |  | 35 | 2(a) | 1530 |
| Class B Common stock, par value $0.0001 per share; 500,000,000 shares authorized, 23,387,813 shares issued and outstanding, actual; 500,000,000 shares authorized, 27,573,875 shares issued and outstanding, pro forma | 2339 |  | 419 | 2(a) | 2758 |
| Common stock of ALGC $1 par value; 100,000 shares authorized 424 shares issued and outstanding. 0 shares issued and outstanding, pro forma |  | 424 | (424) | 2(c) |  |
| Additional paid-in-capital | 57593814 | 30791 | (30791) | 2(c) | 66083336 |
|  |  |  | 8489522 | 2(a) |  |
| Retained earnings | 863593 | 46579791 | (46579791) | 2(c) | (207644) |
|  |  |  | (1071237) | 5(b) |  |
| Noncontrolling interests attributable to Cardinal Infrastructure Group Inc. | 81076582 |  | 102809264 | 2(a) | 183885846 |
| Total members'/ stockholders equity | 139537823 | 46611006 | 63616997 |  | 249765826 |
| Total liabilities and equity | $394587355 | $73218289 | $153408279 |  | $621213923 |

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*See accompanying notes to unaudited pro forma condensed consolidated financial information.*

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**UNAUDITED PRO FORMA CONDENSED CONSOLIDATED<br>STATEMENT OF COMPREHENSIVE INCOME<br>For the Year Ended December 31, 2025**

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| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Cardinal Group** | **Reorg. & Offering Adjustments** | **Notes** | **ALGC historical** | **ALGC Reclassification Adjustments** | **Notes** | **ALGC Transaction Accounting Adjustments** | **Notes** | **Financing Adjustments** | **Notes** | **Pro Forma** |
| **Revenues** | $456045369 |  |  | $164452065 |  |  |  |  |  |  | $620497434 |
| &nbsp;&nbsp;Cost of revenues, excluding depreciation and amortization | 359897579 |  |  | 121096669 | (7055425) | 3(a) |  |  |  |  | 473938823 |
| &nbsp;&nbsp;&nbsp;&nbsp;General and administrative | 23526023 | 96670 | 6(a) | 8837828 | (24000) | 3(a) | 1071238 | 5(e) |  |  | 34219144 |
|  |  |  |  |  | 61248 | 3(b) | 650137 | 5(c) |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense | 25246451 | (19263) | 6(a) |  | 7079425 | 3(a) | 2379643 | 2(e) |  |  | 34686256 |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization expense | 7128310 |  |  |  |  |  | 19729278 | 2(d) |  |  | 26857588 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Gain) loss on disposal of property and equipment | (157401) |  |  |  | (61248) | 3(b) |  |  |  |  | (218649) |
| &nbsp;&nbsp;&nbsp;&nbsp;**Income from operations** | 40404407 | (77407) |  | 34517568 | - |  | (23830297) |  | - |  | 51014271 |
| Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Interest income |  |  |  | 216341 | (216341) | 3(c) |  |  |  |  |  |
| &nbsp;&nbsp;Interest expense, net | (6825542) | 126564 | 6(a) | (245080) | 216341 | 3(c) | 28739 | 4(b) | (4984983) | 6(a) | (12649960) |
|  |  | (965998) | 4(b) |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Other expense, net | (518704) | (159079) | 6(a) | 421861 |  |  | - |  | - |  | (255922) |
| &nbsp;&nbsp;&nbsp;&nbsp;Total other expense, net | (7344246) | (998513) |  | 393122 | - |  | 28739 |  | (4984983) |  | (12905882) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income before taxes | 33060161 | (1075920) |  | 34910690 | - |  | (23801558) |  | (4984983) |  | 38108390 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income tax expense | (1966678) | (799397) | 6(b) | (1384000) |  |  | 644850 | 5(c) | 405480 | 5(c) | (3099745) |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income, including noncontrolling interests | $31093483 | $(1875317) |  | $33526690 | $- |  | $(23156708) |  | $(4579503) |  | $35008645 |
| Less: Net income attributable to noncontrolling interests | $8407426 | 9418234 | 6(c) | $- |  |  | 7639202 | 5(f) | (2945741) | 5(f) | 22519121 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to Company | $22686057 | $(11293551) |  | $33526690 | $- |  | $(30795910) |  | $(1633763) |  | $12489524 |
|  | **For the period from December 10, 2025 to December 31, 2025** <sup>(1)</sup> |  |  |  |  |  |  |  |  |  | **Pro Forma** |
| Pro forma per share data: |  |  |  |  |  |  |  |  |  |  |  |
| Pro forma net income per share |  |  |  |  |  |  |  |  |  |  |  |
| Basic | $0.06 |  |  |  |  |  |  |  |  | 8 | $0.82 |
| Diluted | $0.06 |  |  |  |  |  |  |  |  | 8 | $0.82 |
| Pro forma weighted average shares used to compute pro forma net income per share |  |  |  |  |  |  |  |  |  |  |  |
| Basic | 14787094 |  |  |  |  |  |  |  |  | 8 | 15289426 |
| Diluted | 14809208 |  |  |  |  |  |  |  |  | 8 | 15311540 |

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<sup>(1)</sup> The Cardinal Group historical computation of basic and diluted earnings per share of Class A Common Stock represents the period from December 10, 2025 to December 31, 2025, the period subsequent to the IPO. Prior to the IPO, the company was a limited liability company and did not present earnings per share.

*See accompanying notes to unaudited pro forma condensed consolidated financial information.*

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**NOTES TO THE UNAUDITED PROFORMA CONDENSED FINANCIAL STATEMENTS** 

**Note 1: Basis of Presentation Description of the Business Combination**

On February 18, 2026, the Company, through its controlled subsidiary Cardinal Civil Contracting Holdings LLC, acquired of all of the equity interests in ALGC pursuant to the Purchase Agreement dated February 18, 2026 for a total estimated consideration of $254.7 million consisting of (i) $117.7 million in cash, (ii) 4,186,062 limited liability company units (the "Common Units") of the Purchaser (including an equal number of shares of the Company's Class B common stock, $0.0001 par value per share (the "Class B Common Stock")), valued at $102.8 million based on the closing price of the Company's Class A common stock, par value $0.0001 per share (the "Class A Common Stock") (iii) 345,666 shares of Class A common stock valued at $8.5 million, $0.0001 par value per share (the "Class A Common Stock") which were issued to employees of, and service providers to, ALGC at the direction of the Seller. (iv) the assumption of approximately $10.4 million of liabilities paid on closing, and (v) an estimated net working capital payment. ALGC is a provider of comprehensive site development solutions, including grading, underground utilities, erosion control, and clearing, supporting large-scale commercial, industrial, and residential construction in Georgia and South Carolina.

The unaudited pro forma condensed consolidated financial information has been prepared in accordance with Article 11 to give effect to the ALGC Acquisition, the Acquisition Financing, and the Reorganization and Offering Transactions. The unaudited pro forma condensed consolidated balance sheet as of December 31, 2025 has been prepared as if the ALGC Acquisition and the Acquisition Financing had occurred on December 31, 2025. The unaudited pro forma condensed consolidated statement of comprehensive income for the year ended December 31, 2025 has been prepared as if the ALGC Acquisition, the Acquisition Financing, and the Reorganization and Offering Transactions had each occurred on January 1, 2025.

The Company's historical condensed consolidated balance sheet as of December 31, 2025 already reflects the consummation of the Reorganization Transactions, and the Offering. Accordingly, no separate columns are presented for those transactions on the pro forma balance sheet.

The unaudited pro forma condensed consolidated financial information was prepared using the following historical financial information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Audited consolidated balance sheet of Cardinal Infrastructure Group Inc. as of December 31, 2025 and the audited consolidated statement of comprehensive income for the year ended December 31, 2025, in each case included in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025 filed March 23, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Audited financial statements of A.L. Grading Contractors, Inc. (the predecessor corporation to ALGC) as of and for the year ended December 31, 2025, included elsewhere in this filing pursuant to Rule 3-05 of Regulation S-X; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•The pro forma adjustments are preliminary and are subject to change as additional information becomes available and as additional analysis is performed. The accounting policies of ALGC are in the process of being conformed to those of the Company and additional differences may be identified upon completion of a comprehensive review.

The ALGC business combination has been accounted for under the acquisition method of accounting in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 805, Business Combinations. As the acquirer for accounting purposes, the Company has preliminarily estimated the fair value of ALGC 's assets acquired and liabilities assumed and conformed the accounting policies of ALGC to its accounting policies.

The unaudited pro forma condensed consolidated financial statements do not reflect the realization of any expected cost savings or other synergies from the ALGC acquisition as the result of restructuring activities and other planned cost savings initiatives following the completion of the business combination. These adjustments are excluded because they reflect actions the Company intends to undertake after the business combination.

**Note 2: Preliminary Purchase Price and Allocation for the ALGC Acquisition**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The unaudited pro forma condensed consolidated balance sheet as of December 31, 2025 reflects the estimated purchase price as follows as if the ALGC acquisition occurred on December 31, 2025:

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| | |
|:---|:---|
| &nbsp;&nbsp;Cash | $117761839 |
| &nbsp;&nbsp;Liabilities assumed and paid at closing | 10358600 |
| &nbsp;&nbsp;Issuance of LLC Class B Units and Class B Common stock | 102809683 |
| &nbsp;&nbsp;Fair value of vested Class A equity awards issued to employees of, and service providers to, ALGC pertaining to pre-merger service at the direction of the Seller | 8489557 |
| &nbsp;&nbsp;Contingent Consideration | 15254000 |
| &nbsp;&nbsp;Total consideration | $254673679 |

---

Class A common stock was valued based on the closing price of the Company's Class A Common Stock on February 18, 2026.

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**NOTES TO THE UNAUDITED PROFORMA CONDENSED FINANCIAL STATEMENTS** 

For purposes of the unaudited pro forma condensed consolidated balance sheet, the Common Units issued in the ALGC Acquisition (along with the corresponding shares of Class B Common Stock) were valued on a combined basis, based on the closing price of the Company's Class A Common Stock on February 18, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The unaudited pro forma condensed consolidated financial information reflects the estimated fair value of assets acquired and liabilities assumed as follows as if the ALGC acquisition occurred on December 31, 2025:

---

| | |
|:---|:---|
| &nbsp;&nbsp;Cash | $2587582 |
| &nbsp;&nbsp;Accounts receivable | 16468250 |
| &nbsp;&nbsp;Contract assets | 14079147 |
| &nbsp;&nbsp;Other assets | 802333 |
| &nbsp;&nbsp;Property, plant and equipment | 36382739 |
| &nbsp;&nbsp;Operating lease right of use assets | 4798645 |
| &nbsp;&nbsp;Intangible assets | 97100000 |
| &nbsp;&nbsp;Goodwill | 104097314 |
| &nbsp;&nbsp;Other long term assets | 36000 |
| &nbsp;&nbsp;Accounts payable | (12701534) |
| &nbsp;&nbsp;Accrued expenses | (741900) |
| &nbsp;&nbsp;Contract liabilities | (2054252) |
| &nbsp;&nbsp;Current portion of operating lease liabilities | (85148) |
| &nbsp;&nbsp;Operating lease liabilities, less current portion | (6095498) |
| &nbsp;&nbsp;**Total net assets acquired** | $**254673679** |

---

Assets that were not acquired and liabilities that were not assumed under the Purchase Agreement (including ALGC's historical cash, certain notes payable (see Note 4), and certain investments and accrued items) have been excluded from the preliminary allocation and adjusted out from the ALGC historical condensed consolidated balance sheet as of December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Reflects the elimination of historical equity of ALGC as if the ALGC Acquisition occurred on December 31, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Reflects the estimated fair value and weighted-average estimated useful lives of the identifiable intangible assets to be acquired in the ALGC Acquisition and the related impact on amortization expense in the unaudited pro forma condensed consolidated statement of comprehensive income for the year ended December 31, 2025, computed as if the ALGC Acquisition had occurred on January 1, 2025. Identifiable intangible assets are expected to consist of customer relationships, backlog, trade name and noncompete agreements.

---

| | | | |
|:---|:---|:---|:---|
|  |  |  | **Annual Amortization ($)** |
| &nbsp;&nbsp;**Intangible assets:** | **Fair Value ($)** | **Weighted average useful life (years)** | **For the Year Ended December 31, 2025** |
| &nbsp;&nbsp;Customer relationships | 67900000 | 11.6 | 6032611 |
| &nbsp;&nbsp;Backlog | 18700000 | 1.5 | 12466667 |
| &nbsp;&nbsp;Trade name | 9300000 | 10.0 | 930000 |
| &nbsp;&nbsp;Noncompete agreements | 1200000 | 4.0 | 300000 |
| &nbsp;&nbsp;Total | 97100000 |  | 19729278 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)Reflects the estimated impact on depreciation expense for property and equipment to be acquired in the ALGC Acquisition based on the estimated fair values of the acquired assets and their estimated useful lives, computed as if the ALGC Acquisition had occurred on January 1, 2025. Consistent with the Company's historical policy for similar assets, Property and equipment is depreciated using the double-declining balance method, over the weighted average estimated remaining useful lives of 6.8 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f)The excess of preliminary purchase consideration over the fair value of net assets acquired is preliminarily recorded as goodwill. The goodwill is attributable to qualitative factors such as anticipated cost synergies and future growth in the combined business, as well as the value of the assembled workforce. A portion of the goodwill recognized in the ALGC Acquisition is expected to be deductible for U.S. federal income tax purposes and amortized over 15 years.

As part of the acquisition transaction, the Company entered into two separate 15-year lease agreements with an entity under common control with the seller to lease the existing operating and office facilities of ALGC. The contractual lease payments under these agreements exceeded market rates at the acquisition date. As a result, the Company recorded an unfavorable lease fair value adjustment

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**NOTES TO THE UNAUDITED PROFORMA CONDENSED FINANCIAL STATEMENTS** 

of $1,380,000, which was recognized as a reduction to the operating lease right-of-use asset as of the acquisition date and is reflected within Note 2(b) above.

The amounts presented above reflect preliminary estimates of purchase accounting under ASC 805 and related fair value measurements. These amounts are unaudited and subject to change pending completion of ongoing valuation procedures, finalization of deferred income taxes, and the final determination of the working capital and other customary post-closing adjustments under the Purchase Agreement.

**Note 3: Reclassification Adjustments for the ALGC Acquisition**

The pro forma reclassification adjustments included in the unaudited pro forma condensed consolidated statement of income for the year ended December 31, 2025 are as follows:

a) The Company separately presents Depreciation and Amortization, while ALGC recognizes these costs within Cost of Revenues and General and administrative. Therefore, this adjustment conforms the presentation of Depreciation and Amortization expenses to the Company's presentation.

b) The Company recognizes Loss (gain) on disposal of property and equipment as a component of Income from operations, while ALGC recognizes this income in within General and administrative expenses. Therefore, this adjustment conforms the presentation of the gain on disposal of property and equipment to the Company's presentation.

c) The Company recognizes Interest Expense, net, while ALGC recognizes Interest income and expense discretely. Therefore, this adjustment conforms the presentation of Interest income the Company's presentation. Refer to Note 4(b) for related Financing adjustments.

**Note 4: Financing Adjustments**

The unaudited pro forma condensed consolidated balance sheet as of December 31, 2025 reflects the financing-related transaction accounting adjustments associated with the ALGC Acquisition. Pursuant to the First Amendment, the term loan facility under the Credit Agreement was increased from $120.0 million to $200.0 million in aggregate principal amount, and a portion of the proceeds of the incremental term loans was used to fund the cash portion of the ALGC Acquisition purchase price.

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| | |
|:---|:---|
| ***Pro forma transaction accounting adjustments:*** |  |
| &nbsp;&nbsp;Decrease for removal of ALGC's existing debt (current portion) | $(6936685) |
| &nbsp;&nbsp;Decrease for removal of ALGC's existing debt (less current portion) | (4142635) |
| &nbsp;&nbsp;Increase for the First Amendment to the October 2025 Credit Facility Debt utilized to finance the ALGC Acquisition | 80000000 |
| &nbsp;&nbsp;Increase in debt issuance costs related to the First Amendment to the October 2025 Credit Facility | (838501) |
| &nbsp;&nbsp;**Net pro forma transaction accounting adjustments to Debt in connection with ALGC and Acquisition Financing Transaction** | 68082179 |
| &nbsp;&nbsp;**Adjustments comprise of:** |  |
| &nbsp;&nbsp;Current portion of notes payable | $(2936685) |
| &nbsp;&nbsp;Notes payable, less current portion, net of unamortized debt issuance costs | $71018864 |

---

On February 18, 2026, Cardinal Civil Contracting, LLC, and the other guarantors party thereto, the lenders party thereto and Truist Bank ("Truist Bank"), as administrative agent, issuing bank and swingline lender, entered into the First Amendment, which amends the October 2025 Credit Facility, by and among Cardinal Civil Contracting, LLC, Purchaser, the other guarantors from time to time party thereto, the lenders from time to time party thereto and Truist Bank. Cardinal Infrastructure Group Inc. is not a party to the First Amendment or the October 2025 Credit Agreement.

The First Amendment, among other things, increased the term loan facility under the October 2025 Credit Agreement from $120.0 million in aggregate principal amount to $200.0 million in aggregate principal amount. A portion of the proceeds of the incremental term loans made pursuant to the First Amendment was used to pay the cash portion of the Acquisition purchase price. Except as modified by the First Amendment, the terms and conditions in the October 2025 Credit Agreement remain the same. Debt issuance costs related to the financing transaction were estimated to be $838,501, of which $676,499 was paid out of net proceeds of financing.

The pro forma adjustments included in the unaudited pro forma condensed consolidated statement of income for the year ended December 31, 2025 are as follows:

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**NOTES TO THE UNAUDITED PROFORMA CONDENSED FINANCIAL STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Represents the net adjustments to "Notes payable, less current portion, net of unamortized debt issuance costs" and "Current portion of notes payable" described above to give effect to the Acquisition Financing as if it had occurred on December 31, 2025. Of the aggregate adjustment, $(2,936,685) is reflected in current portion of notes payable and $71,018,864 is reflected in notes payable, less current portion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Represents the net increase to interest expense and amortization of debt issuance costs in the unaudited pro forma condensed consolidated statement of comprehensive income for the year ended December 31, 2025 resulting from the Reorganization and Offering, and Acquisition Financing as if the incremental term loans had been drawn on January 1, 2025, partially offset by the elimination of historical interest expense related to ALGC notes payable that were not assumed. The components are summarized below:

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| | |
|:---|:---|
|  | **For the Year Ended December 31, 2025** |
| ***Pro forma reorganization and offering adjustments:*** |  |
| &nbsp;&nbsp;Elimination of historic net interest expense and amortization of debt issuance costs | $(6680543) |
| &nbsp;&nbsp;Amortization of debt issuance costs Cardinal | 398793 |
| &nbsp;&nbsp;Interest expense on $120 m of October 2025 Credit Facility at 6.04% (Based on Term SOFR of 3.66% on April 1, 2025 Plus an applicable margin of 2.38%) | 7247748 |
| &nbsp;&nbsp;**Net pro forma transaction accounting adjustments to Debt in connection with the Reorganization and Offering Transaction** | $965998 |
| ***Pro forma ALGC transaction accounting adjustments:*** |  |
| &nbsp;&nbsp;Elimination of net interest expense and amortization of debt issuance costs - outstanding ALGC's debt | $(28739) |
| &nbsp;&nbsp;Interest expense on first amendment to the October 2025 Credit facility at 6.04% (Based on Term SOFR of 3.66% on April 1, 2025 Plus an applicable margin of 2.38%) | 4831832 |
| &nbsp;&nbsp;Amortization of debt issuance costs for the first amendment to the October Credit facility | 181890 |
| &nbsp;&nbsp;**Net pro forma transaction accounting adjustments to Debt in connection with the ALGC Acquisition** | $4984983 |

---

A 1/8th of one percentage point increase or decrease in the assumed benchmark rate would result in a change in interest expense of approximately $0.1 million for the year ended December 31, 2025 in respect of borrowings under the Amended Credit Agreement attributable to the ALGC Acquisition Financing and $0.15 million for the year ended December 31, 2025 in respect of borrowings under the October 2025 Credit Facility.

**Note 5: Other Adjustments for the ALGC Acquisition**

The pro forma adjustments included in the unaudited pro forma condensed consolidated balance sheet as of December 31, 2025 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Reflects an accrual for the estimated debt issuance costs of $0.2 million and transaction fees of $0.1 million as if incurred on December 31, 2025, the date the Business Combination occurred for the unaudited pro forma condensed consolidated balance sheet. This is a non-recurring item.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Reflects paid transaction costs of $0.9 million, and the effect on retained earnings of $1.1 million transaction costs as if incurred on January 1, 2025, the date the Business Combination occurred for the purposes of the unaudited pro forma condensed consolidated statement of operations. This is a non-recurring item.

The pro forma adjustments included in the unaudited pro forma condensed consolidated statement of income for the year ended December 31, 2025 are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Provides for an assumed income tax expense on the Company's share of ALGC earnings which is calculated at 8.13% of income before income tax expense, computed as if the ALGC Acquisition had occurred on January 1, 2025. Following the Transactions, the Company will be subject to U.S. federal income taxes in addition to applicable state and local taxes with respect to the Company's allocable share of net taxable income of Cardinal. Accordingly, the Company has provided income taxes assuming a blended federal, state, and local rate of 22.80% on the Company's allocable share of taxable income, and assuming no adjustments for non-taxable or non-deductible amounts of income and expenses. The actual rate could vary from the rate used in the pro forma financial statements.

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**NOTES TO THE UNAUDITED PROFORMA CONDENSED FINANCIAL STATEMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Represents the pro forma amortization of the unfavorable lease adjustment recognized in connection with the Acquisition. The unfavorable lease amount is amortized on a straight-line basis over the remaining lease term, resulting in a reduction to operating income in the pro forma statement of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e)Reflects the estimated transaction costs of $1.1 million as if incurred on January 1, 2025, the date the Business Combination occurred for the purposes of the unaudited pro forma condensed consolidated statement of operations. This is a non-recurring item.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f)Reflects the incremental portion of the Company's net income allocable to the noncontrolling interest related to the issuance of LLC units to the selling shareholders of ALGC and the associated impact from the financing transaction. This assumes a 35.7% economic interest held by Cardinal as if the ALGC Acquisition occurred on January 1, 2025. As a result of the acquisition of ALGC, the selling shareholders of ALGC and the Continuing Equity Holders will own the remaining 64.3% economic interest in Cardinal, which will be accounted for as a noncontrolling interest in the Company's future consolidated financial statements.

**Note 6: Reorganization and Offering Adjustments**

The Company's historical condensed consolidated balance sheet as of December 31, 2025 already reflects the consummation of the Reorganization and Offering Transactions. Accordingly, no separate balance sheet adjustments are required to give pro forma effect to the Reorganization and Offering Transactions as of December 31, 2025. The pro forma adjustments shown in the "Reorg. & Offering Adjustments" column of the unaudited pro forma condensed consolidated statement of comprehensive income for the year ended December 31, 2025 are described below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Reflects the deconsolidation of CCCRE Holdings, LLC ("CCCRE") as if it had occurred on January 1, 2025. As described in the Company's historical financial statements, the deconsolidation of CCCRE was effected in connection with the Reorganization. The adjustment includes a decrease in depreciation, interest expense, and equity in income of unconsolidated affiliates and an increase in general and administrative expenses (or other line items, as applicable) to give effect to the deconsolidation of CCCRE on a pro forma basis for the portion of the year ended December 31, 2025 prior to its actual deconsolidation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Provides for an assumed income tax expense on the Company's allocable share of Cardinal's taxable income at an assumed blended federal, state and local effective tax rate of 8.65%, computed as if the Reorganization and Offering Transactions had occurred on January 1, 2025. Following the Transactions, the Company became subject to U.S. federal, state and local income taxes with respect to its allocable share of any taxable income of Cardinal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Reflects the portion of the Company's net income allocable to noncontrolling interests representing the Continuing Equity Holders' economic interest in Cardinal, as if the Reorganization and Offering Transactions had occurred on January 1, 2025. Immediately following the Offering, the Continuing Equity Holders held approximately 61.0% of the economic interest in Cardinal.

**Note 7: Contingent Consideration (Tax Receivable Agreement and Tax Benefit Agreement)** 

*Tax Receivable Agreement*

In connection with the IPO, Cardinal Group entered into a Tax Receivable Agreement (the "TRA") dated December 9, 2025, among Cardinal Group, Cardinal and the Continuing Equity Holders named therein. As part of the ALGC acquisition on February 18, 2026, Diamond Interests Group LLC and the Seller Owners became parties to the pre-existing TRA as Continuing Equity Holders upon the issuance to them of 4,186,062 Common Units (rollover equity). Under the TRA, Cardinal group obligated to pay the Continuing Equity Holders 85% of the net cash tax savings that Cardinal Group actually realizes from the tax basis step-up in Cardinal's assets attributable to future exchanges of Cardinal units for Cardinal Group Class A common stock or cash, determined on a "with and without" methodology. Payments under the TRA are contingent upon (i) future exchanges of Cardinal units actually occurring and (ii) Cardinal Group generating sufficient taxable income to utilize the resulting tax attributes. The TRA includes provisions for early termination at Cardinal Group's election (subject to independent director approval), change-of-control acceleration, and net operating loss carryforward mechanics capped at 80% of annual pretax income. Interest accrues on unpaid TRA payments at SOFR plus 100 basis points.

*Tax Benefit Agreement*

Concurrently with the ALGC Acquisition on February 18, 2026, Cardinal Group entered into a Tax Benefit Agreement (the

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**NOTES TO THE UNAUDITED PROFORMA CONDENSED FINANCIAL STATEMENTS** 

"TBA") dated February 18, 2026, among Cardinal Group, Cardinal, and Diamond Interests Group LLC. Under the TBA, Cardinal Group is obligated to pay 85% of the annual Cumulative Net Realized Tax Benefit (as defined in the TBA) arising from the basis step-up in ALGC's assets attributable to the portion of the acquisition treated as a taxable asset sale under IRC Section 1001. The Realized Tax Benefit is computed under a "with and without" method that assumes Cardinal Group is allocated 80% of Cardinal's amortization and depreciation deductions in respect of the Basis Adjustments. Unlike the TRA, TBA payments do not require future unit exchanges; rather, they depend on Cardinal Group generating sufficient taxable income to utilize the amortization deductions, which arise over the applicable depreciable and amortizable lives of the stepped-up assets (including immediate expensing of fixed asset step-up under bonus depreciation and 15-year amortization of intangible assets under federal tax rules). Interest on unpaid TBA payments accrues at SOFR plus 100 basis points.

*Fair Value Measurement and Recognition*

Both the TRA and TBA represent contingent consideration in connection with the Acquisition, as the Purchase Consideration in the purchase agreement is explicitly stated to be increased by payments made to Seller Owners under or in respect of both agreements. Accordingly, the Company recognized the TRA and TBA obligations as contingent consideration at acquisition-date fair value.

The aggregate acquisition-date fair value of the TRA and TBA was $15.3 million ($8.2 million attributable to the TRA and $7.1 million attributable to the TBA), determined using a Monte Carlo simulation model with 100,000 trials. The key inputs to the model included: (i) management's projected pretax book income for fiscal years 2026 through 2030, extended through 2053 at a normalized long-term growth rate of 3.0%; (ii) book-to-tax adjustments to convert pretax book income to a tax basis, including immediate bonus depreciation of the fixed asset step-up and 15-year amortization of intangible assets; (iii) annual net operating loss carryforward mechanics capped at 80% of pretax income in any year; (iv) an 85% payment percentage applied to cumulative net realized tax benefits; and (v) an equity volatility assumption of 58.0%, derived from the observed 20-year average equity volatility of a group of guideline public companies and re-levered to reflect the Company's capital structure, reflecting the equity-linked nature of the underlying cash flows. A metric risk premium was applied to adjust management's pretax income projections to a risk-neutral perspective, based on the Company's cost of equity capital of 24.0% relative to the guideline public company median. This measurement is classified within Level 3 of the ASC 820 fair value hierarchy due to the use of significant unobservable inputs, including projected taxable income, future tax rates, and the timing of future Cardinal unit exchanges.

A 200 basis point increase in the discount rate variable would decrease the combined value of the TRA and TBA by $790,000, while a 200 basis point decrease would increase the value by $780,000. A 500 basis point increase in the volatility variable would decrease the combined value of the TRA and TBA by $960,000, while a 500 basis point decrease would increase the value by $900,000.

The potential undiscounted payments under the TRA and TBA have no contractual maximum. The minimum potential payment under each agreement is $0, which would occur in scenarios where Cardinal Group does not generate taxable income sufficient to utilize the relevant tax attributes or where no future exchanges of Cardinal units occur under the TRA. The expected payment period runs through approximately 2041, reflecting the 15-year IRC Section 197 amortization period for intangible assets under the TBA and the assumed timing of future Cardinal unit exchanges under the TRA. Subsequent changes in the fair value of these contingent consideration liabilities are recognized in earnings in the period of change.

**Note 8: Earnings Per Share**

The pro forma net income per share calculations have been performed for the year ended December 31, 2025, assuming the Acquisition occurred on January 1, 2025. The below table includes class A stock-based awards that were issued in connection with the

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**NOTES TO THE UNAUDITED PROFORMA CONDENSED FINANCIAL STATEMENTS** 

ALGC Acquisition, which were not subject to service conditions.

---

| | |
|:---|:---|
|  | **Fiscal year ended December 31, 2025** |
| Basic and diluted supplemental pro forma net income per share: |  |
| **Numerator** |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income | $35008645 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Less: Net income attributable to non-controlling interests<sup>(1)</sup> | (22519121) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to Class A common stockholders—basic | $12489524 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income effect of dilutive securities: |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unvested restricted stock units (RSUs) | 19447 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net income attributable to Class A common stockholders—diluted | 12508970 |
| **Denominator** |  |
| Historical Weighted-average Class A Common Stock outstanding | 14943760 |
| Class A Common Stock of Cardinal Infrastructure Group Inc. as consideration transferred for the acquisition of ALGC | 345666 |
| Deferred consideration related to the Acquisition(1) |  |
| Total Weighted-average Class A Common Stock outstanding (basic) | 15289426 |
| Incremental common shares attributable to dilutive instruments: |  |
| Stock options |  |
| RSUs | 22114 |
| Assumed conversion of noncontrolling interests to shares of Class A Common Stock |  |
| &nbsp;&nbsp;Total Weighted-average Class A Common Stock outstanding (diluted) | 15311540 |
| Basic and diluted pro forma net income per share |  |
| &nbsp;&nbsp;Earnings per share: |  |
| &nbsp;&nbsp;Basic | $0.82 |
| &nbsp;&nbsp;Diluted | $0.82 |

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The following securities were not included in the computation of diluted earnings per share for the year ended December 31, 2025, as they would be neither dilutive nor anti-dilutive:

The dilutive impact of 23,387,813 LLC interests issued as a result of the reorganization and IPO and 4,186,062 LLC interests were issued in relation to the acquisition of ALGC that are each exchangeable for Class A common stock.

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