Dycom Q4 Results Beat Expectations, Revenue Increases, Adjusted EBITDA Rises Year Over Year, Shares Decline

Dycom Industries Delivers Strong Q4 Fiscal 2026 Results

Dycom Industries Inc. (DY) posted impressive financial results for the fourth quarter of fiscal 2026, ending January 31. Both adjusted earnings and contract revenues exceeded analyst expectations and showed significant growth compared to the previous year.

This robust performance was fueled by heightened demand in public infrastructure projects and meaningful contributions from recent acquisitions. The company experienced strong momentum in fiber-to-the-home initiatives, as well as in long-haul and middle-mile fiber deployments. The acquisition of Power Solutions has further strengthened Dycom’s position in the digital infrastructure and rapidly expanding data center sectors.

Dycom continues to focus on a balanced approach to capital allocation, combining strategic acquisitions, share buybacks, and organic growth. The company maintains a positive long-term outlook, with additional growth anticipated from federal broadband initiatives in the coming years.

Despite these strong results, Dycom’s stock price declined by 4.1% in the most recent trading session.

Q4 Financial Highlights

• Adjusted earnings per share reached $2.03, surpassing the consensus estimate of $1.91 and up from $1.43 a year earlier.
• Contract revenues totaled $1.46 billion, beating expectations of $1.34 billion and marking a 34.4% year-over-year increase. Organic revenue growth was 16.6%, with $95.8 million contributed by acquired businesses.

Major clients such as AT&T, Verizon, and Lumen each accounted for over 10% of total revenues in the quarter, while Brightspeed, Charter, Comcast, and Uniti each contributed more than 5%.

Operational Performance and Backlog

• Adjusted EBITDA rose 39.6% year over year to $162.4 million, with the margin improving by 40 basis points to 11.1%.
• The company’s backlog reached $9.54 billion at quarter-end, a 23% increase from $7.76 billion the previous year. Of this, $6.36 billion is expected to be realized within the next 12 months.

Segment Overview

Starting in Q4 fiscal 2026, Dycom reorganized into two main segments: Communications and Building Systems. The Building Systems segment includes results from Power Solutions, acquired in December 2025.

• Communications: Revenue climbed 25.6% year over year to $1.36 billion, driven by ongoing demand for fiber and wireless infrastructure. Adjusted EBITDA increased to $151.3 million, with a margin of 11.1%. The segment’s backlog grew 7.4% to $8.33 billion, with $5.25 billion expected in the next year.
• Building Systems: This segment reported $95.8 million in contract revenues, $11.1 million in adjusted EBITDA, and an 11.6% margin. The backlog stood at $1.21 billion, with $1.11 billion projected for completion within 12 months.

Full-Year Fiscal 2026 Results

• Total contract revenues for the year reached $5.55 billion, up 17.9% from the prior year, with organic growth of 6.5%.
• Adjusted EBITDA increased 28% to $737.7 million, with the margin expanding to 13.3%.
• Adjusted EPS rose 29.7% to $11.97.

Balance Sheet and Cash Flow

• As of January 31, 2026, Dycom held $1.46 billion in liquidity, including $709.2 million in cash and equivalents, compared to $92.7 million at the end of fiscal 2025.
• Long-term debt increased to $2.81 billion from $933.2 million a year earlier.
• The company repurchased $30.2 million in common stock during the year, and free cash flow rose to $435.3 million from $137.8 million the previous year.

Outlook for Fiscal 2027

First Quarter Guidance

• Expected contract revenues between $1.64 billion and $1.71 billion, compared to $1.26 billion in the prior year’s first quarter.
• Adjusted EBITDA projected between $202 million and $218 million, up from $150.4 million last year.
• Anticipated adjusted EPS in the range of $2.57 to $2.90.
• Stock-based compensation estimated at $10 million, net interest expense around $36 million, and an effective adjusted tax rate of 26%.

Full-Year Fiscal 2027 Outlook

• Contract revenues are forecasted to range from $6.85 billion to $7.15 billion, representing 23.6% to 29% year-over-year growth, with organic growth between 6.6% and 10.3%.
• Adjusted EBITDA margin is expected to improve. The Communications segment anticipates modest margin gains, while the Building Systems segment aims for a mid-teen adjusted EBITDA margin as it scales operations.

Industry Peers and Recent Results

• EMCOR Group, Inc. (EME): Reported strong Q4 2025 results, with both adjusted earnings and revenues exceeding expectations and rising year over year. The company benefited from robust demand in core markets and effective project execution. EMCOR projects 2026 revenues between $17.75 billion and $18.5 billion, and EPS between $27.25 and $29.25.
• Comfort Systems USA, Inc. (FIX): Delivered outstanding Q4 2025 results, with earnings and revenues beating estimates and increasing year over year. Growth was driven by strong demand in public infrastructure and technology sectors, as well as recent acquisitions. In 2025, the company returned $217.9 million to shareholders through buybacks and $68.8 million via dividends.
• Quanta Services, Inc. (PWR): Achieved record Q4 2025 results, fueled by high demand in its Electric Infrastructure Solutions segment and recent acquisitions. Quanta expects 2026 revenues between $33.25 billion and $33.75 billion, with GAAP EPS projected at $8.36–$9.06 and adjusted EPS at $12.65–$13.35, supported by a strong backlog and continued utility investments.

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