Dycom Revenue Jumps 46% to Record $2 Billion as Backlog Surges and Fiscal 2027 Outlook Rises

Dycom Industries reported record fiscal 2027 second-quarter contract revenue of $2.006 billion, up 45.6% from a year earlier, as demand for telecommunications infrastructure and data-center related work continued to expand. Organic contract revenue, which excludes the effect of acquired businesses, rose 16.7%, according to the company’s August 26 earnings release.

The specialty contractor also reported a record $12.242 billion backlog, up 53.2% from $7.989 billion a year earlier. Net income increased 18.6% to $115.6 million, or $3.81 per diluted share, while adjusted net income rose 51.1% to $160.7 million. Adjusted diluted EPS increased 45.3% to $5.29.

Dycom raised its full-year fiscal 2027 revenue outlook after the quarter. It now expects contract revenue of $7.48 billion to $7.66 billion for the year ending January 30, 2027, compared with the $7.38 billion to $7.65 billion range issued after first-quarter results. The revised forecast incorporates stronger expectations for Building Systems as well as revenue from the completed acquisition of National Technology Integrators.

Communications Growth Remains Strong as Fiber Work Expands

Communications remained Dycom’s largest segment, generating $1.608 billion of second-quarter contract revenue. Organic revenue in the segment rose 16.7% from the prior-year quarter. The company attributed the increase mainly to robust fiber-to-the-home programs, higher long-haul and middle-mile fiber infrastructure activity, and growth in maintenance and operations services.

The segment’s adjusted EBITDA margin moved the other way, falling 134 basis points to 13.6%. Dycom said the decline reflected investments needed to scale operations, lower operating leverage related to wireless projects that were deferred into the next fiscal year, and higher fuel costs compared with a year earlier. The margin result shows that strong demand is requiring additional spending on labor and operating capacity as Dycom prepares for multiyear network programs.

The wireless timing shift also changed the composition of the full-year outlook. Dycom now expects about $150 million of wireless program revenue to move from fiscal 2027 into fiscal 2028, although it said the overall scope of the programs is unchanged. As a result, the company lowered its Communications revenue forecast to $5.90 billion to $6.01 billion from the $6.03 billion to $6.20 billion range it gave in May.

That reduction is notable because it came during a quarter in which the consolidated outlook still moved higher. The change means stronger expectations elsewhere in the business, particularly Building Systems, are more than offsetting the delayed wireless work at the company level.

Backlog in Communications reached $10.983 billion at the end of the quarter, with $5.362 billion expected within the next 12 months. The size of that book of work provides substantial visibility, though Dycom cautions in its filings that the timing of customer projects can change and that backlog is not the same as guaranteed revenue in a specific period.

Building Systems and NTI Add a Faster-Growing Revenue Stream

Building Systems generated $397.5 million of second-quarter contract revenue and posted an adjusted EBITDA margin of 24.5%. Dycom said the segment exceeded expectations, helped by strong execution, operating leverage, and favorable changes in project cost estimates and scope of services.

The company completed its acquisition of National Technology Integrators during the quarter. NTI specializes in inside-plant structured cabling, including work inside data centers, along with audio-visual and security systems. Dycom said the acquired business contributed approximately $22.9 million of revenue during the portion of the quarter in which it was included in the company’s results.

NTI broadens Dycom’s exposure to digital infrastructure inside facilities, complementing the company’s established work on fiber networks, utility construction, engineering and maintenance. The acquisition also adds operations across Washington, D.C., Maryland, Virginia, Texas and parts of the Midwest.

Dycom sharply increased its full-year Building Systems revenue forecast to $1.58 billion to $1.65 billion. After the first quarter, management had expected $1.35 billion to $1.45 billion. The new range reflects higher expected revenue from Power Solutions as well as the addition of NTI.

For the rest of fiscal 2027, the company expects Building Systems adjusted EBITDA margin to be in the high teens to low twenties. That is below the unusually strong 24.5% margin recorded in the second quarter, but it still points to a segment that is becoming a larger contributor to both revenue and profitability as Dycom expands beyond its traditional communications construction base.

Record Backlog Supports a Higher Fiscal 2027 Outlook

Total backlog reached $12.242 billion at August 1, compared with $11.906 billion at the end of the first quarter and $7.989 billion a year earlier. The year-over-year increase of 53.2% was one of the strongest indicators of the volume of work Dycom has secured as telecommunications providers and data-center developers continue investing in digital infrastructure.

For the first six months of fiscal 2027, contract revenue totaled $3.971 billion, up 50.6% from $2.637 billion a year earlier. Organic growth for the first half was 20.5%. Adjusted EBITDA increased 62.4% to $578.0 million, while adjusted diluted EPS rose 61.0% to $9.71.

The revised full-year revenue range of $7.48 billion to $7.66 billion compares with Dycom’s May outlook of $7.38 billion to $7.65 billion. The increase is concentrated at the lower end of the range and comes despite the wireless revenue deferral. Dycom continues to expect its consolidated adjusted EBITDA margin to increase for the year, although it now anticipates a slight decline in Communications margin because of scaling investments and the deferred wireless work.

For the fiscal third quarter ending October 31, Dycom expects contract revenue of $1.90 billion to $1.98 billion. Adjusted EBITDA is forecast at $281 million to $302 million, and adjusted diluted EPS excluding amortization expense is expected to range from $4.33 to $4.79.

The company’s August 26 Form 8-K confirms that the earnings release and forward guidance were issued as part of its fiscal 2027 second-quarter results. Dycom enters the second half of the year with record backlog and a larger Building Systems operation, but execution remains important as the company adds workers, absorbs acquired businesses and manages the timing of customer construction programs.