Key Takeaways
- Second-quarter EBITDA reached $315.5 million, surpassing analyst consensus of $297 million
- Quarterly revenues climbed to $2 billion, marking a 46% year-over-year increase
- Company backlog expanded 53% to an all-time high of $12.2 billion
- Annual revenue outlook increased to $7.48B-$7.66B range from previous ~$7.5B projection
- Shares had gained approximately 37% in the 12 months preceding the earnings release
Dycom Industries (DY) delivered impressive fiscal Q2 2027 financial results before Wednesday’s market opening, yet shares retreated 7.65% despite the company exceeding analyst projections on multiple fronts.
Early premarket activity saw the stock hovering near $361.20, reflecting a 2.7% uptick immediately following the earnings announcement, before momentum shifted and the stock declined throughout regular trading.
Quarterly revenues totaled $2.006 billion, representing a 45.6% year-over-year surge. Non-GAAP Adjusted EBITDA registered at $315.5 million, comfortably exceeding Wall Street’s consensus forecast of approximately $297 million.
The company reported GAAP net income of $115.6 million, translating to $3.81 per diluted share. Adjusted non-GAAP earnings per share came in at $5.29.
Historic Backlog Signals Strong Forward Demand
Dycom’s total backlog soared to $12.24 billion, reflecting a 53% year-over-year jump. Approximately $6.47 billion of this backlog is anticipated to convert to revenue within the coming 12-month period.
Organic contract revenues showed robust expansion of 16.7% during the quarter and 20.5% for the year-to-date period, primarily driven by core Communications segment work.
The Communications division generated $1.608 billion in quarterly revenue, bolstered by fiber-to-the-home deployments, long-haul and middle-mile infrastructure projects, along with ongoing maintenance service contracts.
Building Systems recorded $397.5 million in revenue for the quarter, achieving an adjusted EBITDA margin of 24.5%, benefiting from Power Solutions initiatives and modifications to project scopes.
Chief Executive Officer Dan Peyovich commented: “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.”
Strategic Acquisition and Updated Projections
During the quarter, Dycom finalized its purchase of National Technology Integrators. The transaction, initially announced in May with a $275 million price tag, expands the company’s capabilities into inside-plant structured cabling, audio-visual systems, and security installations across multiple U.S. markets.
National Technology Integrators generated roughly $22.9 million in revenue during its partial quarter contribution.
For the complete fiscal 2027 year, Dycom revised its revenue guidance upward to a band of $7.48 billion to $7.66 billion, modestly higher than the previous midpoint target of $7.5 billion.
Worth noting: management disclosed a postponement of approximately $150 million in wireless program revenues into fiscal 2028, while emphasizing that the total program scope remains unchanged.
Prior to the earnings announcement, DY shares were trading up roughly 4% year-to-date and had appreciated 37% over the trailing 12-month period.
Following its first-quarter report, the stock had surged 26%, momentarily breaking above $535, before moderating to slightly above $350 in the sessions leading up to Wednesday’s quarterly disclosure.
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