Dycom Industries, Inc. — Fiscal 2027 Second Quarter Earnings Summary

Financial Performance

• Contract revenues for the quarter ended August 1, 2026, reached $2.006 billion, a 45.6% increase year-over-year, with organic growth of 16.7%.
• Net income was $115.6 million, up 18.6% from $97.5 million in the prior year quarter; diluted EPS was $3.81, up 14.4%.
• Non-GAAP Adjusted Net Income was $160.7 million, a 51.1% increase from $106.4 million; Non-GAAP Adjusted Diluted EPS was $5.29, up 45.3%.
• Non-GAAP Adjusted EBITDA was $315.5 million, a 53.5% increase from $205.5 million; margin was 15.7% of contract revenues, up 81 basis points.
• Total backlog was $12.242 billion, a 53.2% increase from $7.989 billion in the prior year quarter.
• For the six months ended August 1, 2026, contract revenues were $3.971 billion (up 50.6%), with organic growth of 20.5%.
• Six-month Net income was $206.9 million (up 30.5%); Non-GAAP Adjusted Net Income was $295.1 million (up 67.4%).
• Six-month Non-GAAP Adjusted EBITDA was $578.0 million (up 62.4%); margin was 14.6% of contract revenues, up 106 basis points.
• Balance sheet as of August 1, 2026, showed Total Assets of $6.540 billion, Total Liabilities of $4.476 billion, and Total Stockholders' Equity of $2.064 billion.
• Cash and equivalents were $340.1 million as of August 1, 2026, compared to $709.2 million at January 31, 2026.
• Total debt was $2.820 billion ($2.791 billion long-term and $28.4 million current portion) as of August 1, 2026.

Guidance and Future Outlook

• Full-year Fiscal 2027 Contract Revenue outlook raised to $7.48 billion to $7.66 billion (previously implied lower).
• Communications segment full-year revenue outlook: $5.90 billion to $6.01 billion.
• Building Systems segment full-year revenue outlook: $1.58 billion to $1.65 billion.
• Third Quarter Fiscal 2027 Contract Revenue outlook: $1.90 billion to $1.98 billion.
• Third Quarter Fiscal 2027 Non-GAAP Adjusted EBITDA outlook: $281 million to $302 million.
• Third Quarter Fiscal 2027 Non-GAAP Adjusted Diluted EPS (excluding amortization) outlook: $4.33 to $4.79.
• Full-year outlook reflects a deferral of approximately $150 million of wireless program revenues into Fiscal 2028; overall program scope remains unchanged.
• Full-year outlook expects an increase in consolidated Non-GAAP Adjusted EBITDA margin.
• Communications segment full-year outlook expects a slight decline in Non-GAAP Adjusted EBITDA margin compared to the prior year due to scaling investments and deferred wireless revenues.
• Building Systems segment full-year outlook expects Adjusted EBITDA margin in the high-teens to low-twenties percentage of segment revenue.

Business Segments and Product Lines

• Communications segment revenue was $1.608 billion, up 16.7% organically, driven by fiber-to-the-home programs, long-haul/middle-mile fiber builds, and maintenance/operations services.
• Communications segment Non-GAAP Adjusted EBITDA margin was 13.6%, down 134 basis points year-over-year due to higher fuel prices, deferred wireless projects, and scaling investments.
• Building Systems segment revenue was $397.5 million, exceeding expectations with rapid growth.
• Building Systems segment Non-GAAP Adjusted EBITDA margin was 24.5%, driven by strong execution, operating leverage, and favorable cost estimate changes.
• Completed acquisition of National Technology Integrators (NTI) during the quarter; NTI contributed approximately $22.9 million in revenue.
• NTI specializes in inside-plant structured cabling (including data centers), advanced audio-visual, and security systems, with operations in Washington D.C., Maryland, Virginia, Texas, and the Midwest.
• Communications backlog was $10.983 billion ($5.362 billion expected in the next 12 months).
• Building Systems backlog was $1.259 billion ($1.110 billion expected in the next 12 months).

Market and Competitive Landscape

• Demand is described as stronger than ever, fueled by a generational deployment of digital infrastructure projected to continue into the next decade.
• The company secured significant new awards, resulting in a record backlog level.
• The acquisition of NTI enhances leadership in digital and critical infrastructure and diversifies the business.

Risks and Challenges

• Communications segment margins faced pressure from higher fuel prices year-over-year.
• Operating leverage impacts in the Communications segment resulted from wireless projects deferred into the next year.
• Forward-looking statements are subject to risks including changes in government policies, trade restrictions, tax laws, customer capital budget changes, competitive environment, and availability of qualified employees.
• Risks also include potential liabilities from occupational health, safety, environmental matters, litigation, cybersecurity breaches, and adverse climate/weather conditions.

Management Commentary and Tone

• Dan Peyovich, President and CEO, stated the company delivered record organic first-half revenue, increased profitability, and continued above-market growth.
• Management expressed confidence in the growth trajectory, citing strategic investments in the skilled workforce and Building Systems segment expansion.
• Management thanked teammates for dedication to safety and execution.
• The tone is confident and positive, emphasizing record results and the strategic value of the NTI acquisition.

Other Key Points

• The company completed the acquisition of National Technology Integrators during the second quarter of fiscal 2027.
• Non-GAAP financial measures are used for internal assessment and investor comparison but are not reconciled to GAAP for forward-looking projections due to variability and information ascertainability constraints.
• A conference call was scheduled for August 26, 2026, at 9:00 a.m. ET to discuss results.
• The company reported income tax benefits from share-based awards of $3.6 million ($0.12 per share) for the quarter ended August 1, 2026.
• Amortization of intangible assets is excluded from Non-GAAP Adjusted Net Income calculations starting in the fourth quarter of fiscal 2026.