DY · Dycom Industries, Inc.

Dycom Industries reported a record first quarter for fiscal 2027, with contract revenues of $1.965 billion, a 56.1% increase versus the prior year, including 24.7% organic growth. The results exceeded the high end of the company's outlook, driven by robust demand for fiber infrastructure and data center builds, as well as a full quarter contribution from the Power Solutions acquisition within the Building Systems segment. Adjusted EBITDA margin expanded 141 basis points to 13.4%, reflecting operating leverage and disciplined project execution. The Communications segment generated $1.569 billion in revenue, up 24.7% organically, with Adjusted EBITDA margin improving to 12.3% from 11.9%. Building Systems delivered $395.4 million in revenue with a 17.7% Adjusted EBITDA margin, demonstrating strong early performance. Total backlog reached a record $11.906 billion, up 46.5% year-over-year, positioning Dycom for sustained growth. The company also announced the acquisition of National Technology Integrators for $275 million, which will enhance its data center capabilities and is expected to close in the second quarter. Management raised full-year fiscal 2027 revenue guidance to $7.38-$7.65 billion, with Communications at $6.03-$6.20 billion and Building Systems at $1.35-$1.45 billion. Second quarter guidance calls for revenues of $1.94-$2.01 billion, Adjusted EBITDA of $284-$303 million, and Adjusted Diluted EPS of $4.40-$4.82, excluding the pending acquisition. The strong start and raised outlook underscore Dycom's execution in a favorable demand environment, though investors should monitor integration risks and customer concentration. The company also repurchased 100,000 shares for $36 million during the quarter, signaling confidence in its financial position.