Dycom Industries Inc

Dycom Industries reported record fiscal second-quarter revenue of $2.01 billion, up 45.6% year over year, but nearly $400 million of that came from acquisitions. Excluding acquired businesses, organic contract revenue grew 16.7% to $1.61 billion, showing the core fiber-infrastructure business remains healthy. Communications backlog rose 37.5% to $10.98 billion, while the portion expected over the next 12 months increased 16.5% to $5.36 billion. However, Communications adjusted EBITDA margin fell to 13.6% from 14.9%, and the company deferred about $150 million of wireless revenue into fiscal 2028, trimming its Communications outlook to between $5.90 billion and $6.01 billion. Dycom raised its consolidated fiscal 2027 revenue forecast to between $7.48 billion and $7.66 billion, but net debt increased to $2.50 billion and quarterly net interest expense rose to $38 million from $15.6 million a year earlier.

Dycom Industries reported record fiscal 2027 second-quarter revenue of $2.01 billion, up 45.6% year over year, and raised its full-year outlook. Adjusted EBITDA rose 54% to $315.5 million, and adjusted EPS climbed 45% to $5.29, both exceeding the company's guidance. Growth was driven by fiber-to-the-home, long-haul, and data-center connectivity, with total backlog reaching $12.2 billion. The company increased its fiscal 2027 revenue forecast to $7.48 billion-$7.66 billion, despite about $150 million in wireless replacement revenue shifting into fiscal 2028. The board also authorized a new $150 million share-repurchase program through February 2028.

Dycom Industries announced on Wednesday that its Board of Directors has authorized a new $150 million stock repurchase program, replacing the previous $150 million buyback which had approximately $83.9 million remaining. The new program allows the company to repurchase shares over the next 18 months through open-market purchases or privately negotiated transactions.

Dycom will announce earnings results this Wednesday morning. The market expects revenue to grow 43.6% year over year, improving from the 14.5% increase recorded in the same quarter last year. Analysts have generally reconfirmed their estimates over the last 30 days. Dycom rarely misses Wall Street's revenue estimates. The company beat analysts' revenue expectations last quarter, reporting revenues of $1.96 billion, up 56.1% year on year.

Dycom Industries reported a 74.6% year-over-year surge in adjusted EBITDA to $262.5 million for its fiscal 2027 first quarter, lifting its adjusted EBITDA margin by 141 basis points to 13.4%. The Communications segment generated $1.57 billion in revenues, up 24.7% organically, with adjusted EBITDA up 28% to $192.4 million and a margin of 12.3%. The Building Systems segment posted $395.4 million in revenues and a 17.7% adjusted EBITDA margin, with management expecting high-teen margins throughout fiscal 2027. Dycom also announced a pending $275 million acquisition of National Technology Integrators, expected to add about $175 million in annual revenues at mid-to-high-teen historical EBITDA margins. The company's backlog reached $11.9 billion, up 46.5% year over year, while its stock carries a Zacks Rank #4 (Sell) with fiscal 2027 earnings estimates of $16.39 per share.

Dycom Industries shares have gained 21.2% year to date, outperforming the S&P 500 but trailing several infrastructure rivals. The company reported fiscal first-quarter 2027 contract revenues of $1.96 billion, up 56.1% year over year, with adjusted EBITDA surging 74.6% to $262.5 million and adjusted EPS rising 84.9% to $4.42. Total backlog reached a record $11.9 billion, up 25% sequentially, and management raised its fiscal 2027 revenue outlook to $7.38-$7.65 billion. Dycom also agreed to acquire National Technology Integrators for $275 million to expand data center capabilities. The stock trades at 22.39 times forward earnings, above its industry average but below peers Quanta Services, MYR Group, and MasTec.

Dycom Industries expanded its board from nine to eleven members by appointing former Fortune 50 CFOs David J. Fallon and Michael C. Lenz on August 4, 2026. The move brings deeper expertise in capital allocation, M&A, and large-scale infrastructure operations. It follows Dycom's raised full-year contract revenue guidance to US$7.38 billion to US$7.65 billion announced in May 2026. The board refresh modestly strengthens financial oversight but does not alter near-term reliance on a few major telecom customers or execution risks around large fiber and data center programs.

Zacks.com featured Dycom Industries, Cimpress, The Marcus Corp., and Flexsteel Industries as stocks with rising cash flows worth buying. The screen identifies companies with increasing net cash flow, which signals management efficiency and reduced reliance on outside financing. Dycom Industries saw its fiscal 2027 earnings estimate rise 2.6% over 30 days to $16.35 per share. Cimpress had its fiscal 2026 estimate improve 5.2% over 60 days to $3.81 per share. The Marcus Corp.'s 2026 earnings estimate moved up 8.2% over seven days to 53 cents per share, while Flexsteel Industries' fiscal 2026 estimate was revised upward 2.8% over 60 days to $4.78 per share.

Zacks Equity Research identifies EMCOR Group, MasTec, Dycom Industries and Tutor Perini as well-positioned stocks within the Building Products – Heavy Construction industry, driven by AI infrastructure and data center investments. The industry, which ranks in the top 15% of over 250 Zacks industries, has collectively gained 79% over the past year, outperforming the broader construction sector and the S&P 500. MasTec, carrying a Zacks Rank #1, has seen its 2026 earnings estimate rise to $8.90 per share and is expected to grow earnings 35.9% year-over-year. Dycom, also a Zacks Rank #1, has a fiscal 2027 earnings estimate of $16.35 per share and projected growth of 36.6%. EMCOR, another Zacks Rank #1, has a 2026 earnings estimate of $29.37 per share and expected growth of 13.5%. Tutor Perini, with a Zacks Rank #2, has a 2026 earnings estimate of $5.18 per share and expected growth of 20.8%, supported by a record $19.8 billion backlog.

KeyBanc raised its price target on Dycom Industries to $610 from $482 while maintaining an Overweight rating, citing blowout fiscal first-quarter 2027 results and an upbeat outlook. Dycom posted adjusted earnings per share of $4.42, up 84.9% year-over-year and well above the $2.72 forecast, while revenue rose 56.1% to $1.96 billion, exceeding the expected $1.67 billion. For the second quarter, the company expects revenue between $1.94 billion and $2.01 billion and adjusted earnings per share of $4.40 to $4.82, with full-year revenue projected at $7.38 billion to $7.65 billion. KeyBanc's optimism is driven by strength in Dycom's fiber-to-the-home market and expanding margins, and the firm plans to adjust estimates once Dycom closes its acquisition of NTI to enhance data center cabling capabilities.

Dycom Industries reported a record total backlog of $11.9 billion in the first quarter of fiscal 2027, up 46.5% year over year and 25% sequentially, with a book-to-bill ratio of 2.2x. The company raised its fiscal 2027 revenue guidance to a range of $7.38 billion to $7.65 billion, up from the prior $6.85 billion to $7.15 billion. Backlog growth was broad-based across communications and digital infrastructure markets, driven by fiber-to-the-home deployments, geographic expansion, and long-haul fiber activity. The Building Systems business gained momentum after integrating Power Solutions, and the pending acquisition of National Technology Integrators is expected to expand data center capabilities. Dycom shares have gained 39.2% year to date, and earnings estimates for fiscal 2027 and 2028 have been revised upward to $16.35 and $19.95 per share, respectively.

Dycom Industries has been added to several larger-cap Russell indexes, including the Russell 1000 and Russell Midcap, while being removed from certain Russell 2000 indexes as part of the latest periodic index review. The stock recently closed at $506.8, up 8.3% over the past week and 45.8% year to date, with a 107.4% gain over the past year. The shift into mid- and large-cap benchmarks places Dycom more squarely among peers tracked by many institutional investors, potentially affecting liquidity, trading volume, and factor fund activity. The reclassification may also increase sensitivity to broad factor rotations and competition for capital with larger contractors such as Quanta Services and MasTec.

Dycom Industries has returned 44.5% so far this year, outperforming the broader Construction sector's average gain of 17.9%. The company is part of the Building Products - Heavy Construction industry, which has gained an average of 39.7% year-to-date, meaning Dycom is also beating its specific industry group. Dycom currently holds a Zacks Rank of 1, or Strong Buy, with the consensus estimate for its full-year earnings rising 20.6% over the past quarter. Another stock in the same industry, Orion Marine Group, has returned 65.1% year-to-date and also carries a Zacks Rank of 1, with its current-year EPS estimate up 12.9% in the past three months.

StockStory highlights Dycom as a mid-cap stock with massive growth potential, while recommending investors avoid Restaurant Brands and Packaging Corporation of America. Dycom, a telecommunications infrastructure builder with a $13.95 billion market cap, posted 21% annual revenue growth over the last two years and a 31.5% annual increase in earnings per share, with free cash flow margin expanding by 5.7 percentage points over five years. Restaurant Brands, the $25.64 billion owner of Burger King, Tim Hortons, and Popeyes, faces slowing demand with estimated sales growth of 3.4% and a 1.6 percentage point drop in operating margin. Packaging Corporation of America, a $19.87 billion containerboard producer, has struggled with weak unit sales and a 5.2 percentage point decline in operating margin over five years.

Dycom Industries reported first-quarter fiscal 2027 adjusted earnings per share of $4.42, surpassing the Zacks Consensus Estimate of $2.73 by 61.9%, while contract revenues of $1.96 billion beat the consensus of $1.67 billion by 18.0% and grew 56.1% year over year. The company raised its full-year fiscal 2027 contract revenue guidance to between $7.38 billion and $7.65 billion, up from the prior range of $6.85 billion to $7.15 billion, implying 33.1% to 37.9% year-over-year growth. Total backlog reached $11.91 billion, a 46.5% increase from a year ago, with $6.40 billion expected to be completed in the next 12 months. For the second quarter, Dycom expects contract revenues between $1.94 billion and $2.01 billion and adjusted EPS of $4.40 to $4.82. Shares have declined 7.8% since the last earnings report, underperforming the S&P 500.

The five engineering and design services stocks tracked by StockStory reported an exceptional first quarter, with aggregate revenues surpassing analysts' consensus estimates by 14.4% and next-quarter revenue guidance coming in 6.6% above expectations. EMCOR, one of the group, posted revenues of $4.63 billion, up 19.7% year on year and beating estimates by 10.3%, while also raising full-year revenue guidance above analyst projections. Sterling Infrastructure delivered the strongest performance, with revenues of $825.7 million soaring 91.6% year on year and exceeding estimates by 39.5%, alongside the highest full-year guidance raise among peers. AECOM was the weakest, reporting flat revenues of $3.80 billion that missed estimates by 5.3%. Dycom and MasTec also beat revenue estimates, with Dycom achieving the highest guidance raise among its peers and MasTec recording the weakest guidance update. Share prices across the group have risen 12.6% on average since the latest earnings results.

Dycom Industries appears better positioned than Quanta Services for risk-adjusted returns, according to a Zacks Investment Research analysis, despite both infrastructure stocks holding a Zacks Rank #1. Dycom reported a 56.1% year-over-year revenue jump in its fiscal 2027 first quarter and a record backlog of $11.9 billion, while Quanta posted a 26.3% revenue increase and a record backlog of $48.5 billion in its 2026 first quarter. Dycom trades at 26.97 times forward earnings, well below Quanta's 49.02 times multiple, even as Dycom's fiscal 2027 earnings estimate rose to $16.01 per share and Quanta's 2026 estimate dipped to $13.96. Both companies have outperformed the market in 2026, with Quanta up 75.4% and Dycom up 38.5% year to date.