Fiscal 2027 second quarter
Filed Aug 26, 2026DYCOM INDUSTRIES, INC. REPORTS RECORD FISCAL 2027 SECOND QUARTER RESULTS
Contract revenues increased 45.6% to a quarterly record $2.006 billion, organic contract revenue growth was 16.7%, non-GAAP Adjusted EBITDA increased 53.5% to $315.5 million, and total backlog increased 53.2% to $12.242 billion. The Company also raised its full-year fiscal 2027 outlook.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Contract revenuesGAAP | $2,005.9 million | – | 45.6% |
| Organic Contract Revenues Growthnon-GAAP | 16.7% | – | 16.7% |
| Net incomeGAAP | $115.6 million | – | 18.6% |
| Adjusted Net Incomenon-GAAP | $160.7 million | – | 51.1% |
| Basic earnings per common shareGAAP | $3.84 | – | – |
| Diluted EPSGAAP | $3.81 | – | 14.4% |
| Adjusted Diluted EPSnon-GAAP | $5.29 | – | 45.3% |
| Adjusted EBITDAnon-GAAP | $315.5 million | – | 53.5% |
| Adjusted EBITDA % of contract revenuesnon-GAAP | 15.7% | – | 81 bps |
| Costs of earned revenues, excluding depreciation and amortizationGAAP | $1,565.4 million | – | – |
| General and administrativeGAAP | $132.9 million | – | – |
| Depreciation and amortizationGAAP | $115.6 million | – | – |
| Interest expense, netGAAP | $38.0 million | – | – |
| Income before income taxesGAAP | $154.0 million | – | – |
| Provision for income taxesGAAP | $38.3 million | – | – |
| Total backlogother | $12,242.4 million | – | 53.2% |
| Backlog expected in next 12 monthsother | $6,472 million | – | – |
| Six-month contract revenuesGAAP | $3,970.7 million | – | 50.6% |
| Six-month Organic Contract Revenues Growthnon-GAAP | 20.5% | – | 20.5% |
| Six-month net incomeGAAP | $206.9 million | – | 30.5% |
| Six-month Adjusted Net Incomenon-GAAP | $295.1 million | – | 67.4% |
| Six-month diluted EPSGAAP | $6.81 | – | 25.6% |
| Six-month Adjusted Diluted EPSnon-GAAP | $9.71 | – | 61.0% |
| Six-month Adjusted EBITDAnon-GAAP | $578.0 million | – | 62.4% |
| Six-month Adjusted EBITDA % of contract revenuesnon-GAAP | 14.6% | – | 106 bps |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| CommunicationsGrowth was primarily driven by robust fiber-to-the-home programs, increased long-haul and middle-mile fiber infrastructure builds, and growing maintenance and operations services. Non-GAAP Adjusted EBITDA was $218.3 million and margin was 13.6%, down 134 bps from 14.9%. | $1.608 billion | – | increased 16.7% organically compared to the prior year quarter |
| Building SystemsRevenue exceeded expectations as the segment continued to experience rapid growth. Non-GAAP Adjusted EBITDA was $97.2 million and margin was 24.5%, driven by strong operational execution, increased operating leverage, and favorable changes in cost estimates on projects and scope of services. | $397.5 million | – | – |
Fiscal year ending January 30, 2027 and third quarter ending October 31, 2026 outlook
- RevenueFiscal 2027 contract revenues: $7.48 billion to $7.66 billion; Communications: $5.90 billion to $6.01 billion; Building Systems: $1.58 billion to $1.65 billion. Third quarter fiscal 2027 contract revenues: $1.90 billion to $1.98 billion.
- NoteFiscal 2027: The Company continues to expect an increase in consolidated Non-GAAP Adjusted EBITDA margin for the year.
- NoteCommunications fiscal 2027: approximately $150 million of wireless program revenues are deferred into fiscal 2028; overall program scope is unchanged. The Company expects a slight decline in Non-GAAP Adjusted EBITDA margin compared to the prior year.
- NoteBuilding Systems fiscal 2027: Non-GAAP Adjusted EBITDA margin is expected to be in the high-teens to low-twenties as a percentage of segment revenue for the remainder of fiscal 2027.
- NoteThird quarter fiscal 2027 Non-GAAP Adjusted EBITDA: $281 million to $302 million.
- NoteThird quarter fiscal 2027 Non-GAAP Adjusted Diluted EPS (excluding amortization expense): $4.33 to $4.79.
What drove it
- Communications demand was supported by fiber-to-the-home programs, long-haul and middle-mile fiber infrastructure builds, and maintenance and operations services.
- Building Systems benefited from strong operational execution, increased operating leverage, and favorable changes in cost estimates on projects and scope of services.
- The Company completed the acquisition of National Technology Integrators during the second quarter of fiscal 2027. The acquired business contributed approximately $22.9 million of revenue during the quarter.
- National Technology Integrators specializes in inside-plant structured cabling, including within data centers, and advanced audio-visual and security systems.
- Communications backlog was $10,983 million and Building Systems backlog was $1,259 million at August 1, 2026.
Concerns
- Communications non-GAAP Adjusted EBITDA margin declined 134 bps year over year to 13.6%.
- The Communications margin decline reflected higher investments to scale operations, operating leverage impacts from wireless projects deferred into next year, and higher fuel prices year over year.
- The full-year Communications outlook reflects the deferral of approximately $150 million of wireless program revenues into fiscal 2028.
- Interest expense, net was $38.0 million in the quarter, compared with $15.6 million in the prior-year quarter.
- Cash and equivalents declined to $340,080 thousand at August 1, 2026 from $709,165 thousand at January 31, 2026.
What to watch
- Execution against third-quarter contract revenue guidance of $1.90 billion to $1.98 billion and non-GAAP Adjusted EBITDA guidance of $281 million to $302 million.
- Whether Communications can manage the stated slight full-year non-GAAP Adjusted EBITDA margin decline amid scaling investments, higher fuel prices, and deferred wireless revenue.
- Building Systems revenue delivery against the $1.58 billion to $1.65 billion full-year outlook and its expected high-teens to low-twenties adjusted EBITDA margin for the remainder of fiscal 2027.
- Integration and revenue contribution from National Technology Integrators and the Building Systems opportunity set.
- Conversion of the $12,242 million total backlog, including $6,472 million expected in the next 12 months.
Balance sheet and cash flow
- Cash and equivalents were $340,080 thousand at August 1, 2026, compared with $709,165 thousand at January 31, 2026.
- Accounts receivable, net were $2,277,804 thousand at August 1, 2026, compared with $1,696,973 thousand at January 31, 2026. Contract assets were $221,211 thousand, compared with $162,327 thousand.
- Total current assets were $3,052,242 thousand at August 1, 2026, compared with $2,756,895 thousand at January 31, 2026. Total assets were $6,540,044 thousand, compared with $5,979,182 thousand.
- Current portion of debt was $28,397 thousand at August 1, 2026, compared with $4,000 thousand at January 31, 2026. Long-term debt was $2,791,336 thousand, compared with $2,810,497 thousand.
- Total current liabilities were $1,299,885 thousand at August 1, 2026, compared with $1,006,900 thousand at January 31, 2026. Total liabilities were $4,476,138 thousand, compared with $4,120,046 thousand.
- Total stockholders’ equity was $2,063,906 thousand at August 1, 2026, compared with $1,859,136 thousand at January 31, 2026.
- No operating cash flow, capital expenditure, free cash flow, share repurchase, or dividend figures were reported in the filing.
Analysis
Dycom reported record second-quarter contract revenues of $2.006 billion, up 45.6% from $1.378 billion, while non-GAAP organic contract revenue growth was 16.7%. GAAP net income increased 18.6% to $115.6 million and diluted EPS increased 14.4% to $3.81. On a non-GAAP basis, Adjusted Net Income rose 51.1% to $160.7 million, Adjusted Diluted EPS increased 45.3% to $5.29, and Adjusted EBITDA rose 53.5% to $315.5 million.
The revenue mix changed materially with Building Systems contributing $397.5 million of quarterly contract revenues and $97.2 million of Adjusted EBITDA. Its 24.5% Adjusted EBITDA margin was supported by operational execution, operating leverage, and favorable cost-estimate and scope changes. Communications generated $1.608 billion of revenue and $218.3 million of Adjusted EBITDA. Communications organic growth came from fiber-to-the-home, long-haul and middle-mile construction, and maintenance and operations work.
The principal margin pressure was in Communications, where Adjusted EBITDA margin declined 134 bps year over year to 13.6%. Management attributed the reduction to investments to scale operations, the effect on operating leverage from wireless work deferred into next year, and higher year-over-year fuel prices. Consolidated Adjusted EBITDA margin nevertheless increased 81 bps to 15.7%, reflecting the Building Systems contribution and margin profile.
The acquisition of National Technology Integrators closed in the quarter and contributed approximately $22.9 million of revenue. Total backlog reached $12.242 billion, up 53.2% year over year, with $6.472 billion expected in the next 12 months. Communications backlog was $10.983 billion and Building Systems backlog was $1.259 billion, providing disclosed visibility across both operating segments.
Management raised its fiscal 2027 outlook to contract revenues of $7.48 billion to $7.66 billion, including $5.90 billion to $6.01 billion in Communications and $1.58 billion to $1.65 billion in Building Systems. The guide incorporates approximately $150 million of Communications wireless-program revenue deferred into fiscal 2028, while management stated that overall program scope is unchanged. The Company expects consolidated Adjusted EBITDA margin to increase for the year, despite a slight expected Communications margin decline, and guided third-quarter Adjusted EBITDA to $281 million to $302 million and Adjusted Diluted EPS, excluding amortization expense, to $4.33 to $4.79.
Management, verbatim
Dycom delivered record organic first half revenue, increased profitability, and continued above-market growth.
Dan Peyovich, President and Chief Executive Officer
Demand across our portfolio is stronger than ever, fueled by a generational deployment of digital infrastructure that is projected to go well into the next decade.
Dan Peyovich, President and Chief Executive Officer
Our strong performance and confidence in our growth trajectory have enabled us to raise our full-year outlook.
Dan Peyovich, President and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-quarter outlook was not provided, so comparisons of reported results with prior guidance are unavailable.
- Gross margin was not reported.
- GAAP operating income was not reported as a labeled figure.
- Operating cash flow, capital expenditures, free cash flow, share repurchases, dividends, and capital-return figures were not reported.
- Forward-looking GAAP reconciliation, forward-looking GAAP EPS, forward-looking gross margin, operating expense, and tax-rate guidance were not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.