0000067215-26-000025
SEC filingAcquisition of Power Solutions drove total revenue up 56% while organic Communications revenue grew 25%, with stable gross margins.
For the three months ended May 2, 2026, contract revenues increased 56.1% to $1,964.8 million from $1,258.6 million in the prior year period. Excluding $395.4 million from the Power Solutions acquisition, organic revenue rose 24.7%, primarily due to net increases in fiber-to-the-home deployments, including rural fiber deployment programs.
Costs of earned revenues (excluding depreciation and amortization) were 80.3% of contract revenues, flat year-over-year, indicating stable gross margins. Gross profit was $386.7 million (19.7% margin) versus $247.5 million (19.7% margin) last year. General and administrative expenses increased to $131.3 million (6.7% of revenue) from $103.7 million (8.2% of revenue), reflecting higher administrative costs and expenses from acquired businesses. Depreciation and amortization rose to $111.6 million (5.7% of revenue) from $58.4 million (4.6% of revenue), driven by capital expenditures and amortization of acquired intangibles.
Operating income (revenue minus cost of earned revenues, G&A, and D&A) was $143.8 million (7.3% margin) compared to $85.4 million (6.8% margin) last year. Net income increased to $91.3 million from $61.0 million, a 49.7% increase. Non-GAAP Adjusted EBITDA grew 74.5% to $262.5 million (13.4% of revenue vs. 11.9% prior year).
The company now operates two reportable segments: Communications and Building Systems (new from the Power Solutions acquisition). Communications segment revenue grew 24.7% to $1,569.4 million, with income before income taxes of $118.8 million (6.0% of revenue) up from $92.6 million (7.4% of revenue last year). The margin decline was due to mix and higher costs. Building Systems contributed $395.4 million in revenue and $23.8 million in income before taxes (6.0% of revenue), but this includes $45.9 million in amortization from acquired intangible assets. Segment Adjusted EBITDA margin was 17.7% for Building Systems and 12.3% for Communications (up from 11.9% prior year). Corporate and non-allocated costs (primarily interest) increased to $35.9 million from $14.0 million due to higher debt from the acquisition.
The company did not provide explicit forward guidance in the MD&A. Management highlighted a strong backlog of $11.9 billion at May 2, 2026, up from $9.5 billion at January 31, 2026, with 53.7% expected to be realized within 12 months. The Communications segment backlog grew to $10.8 billion, driven by fiber deployments and rural programs. Building Systems backlog stood at $1.1 billion. The company believes it has sufficient liquidity to meet obligations, with $538.8 million cash and $746.4 million available under its revolving credit facility. Strategic priorities include capitalizing on digital infrastructure demand, fiber-to-the-home, data center builds, and wireless modernization. Acquisition integration remains a focus, with Power Solutions expected to contribute ongoing non-cash amortization charges.
As of May 2, 2026, Dycom held $538.8M in cash and equivalents, with total debt of $2.82B. Total stockholders' equity stood at $1.90B. Debt levels were essentially unchanged from January 31, 2026, reflecting no new borrowings or repayments during the quarter. The company had $746.4M of undrawn revolver availability under its credit agreement.
Dycom had $1,054.5M in performance bonds, $43.6M in surety bonds for insurance, and $53.6M in standby letters of credit outstanding. The company also had $349.4M in confirmed supplier finance obligations, but these are short-term payables, not long-term purchase commitments. No material non-cancelable purchase commitments were disclosed.
During Q1, Dycom repurchased 100,000 shares for $36.0M at an average price of $359.63 per share, leaving $83.9M under the $150M authorization announced in February 2025. Capital expenditures totaled $70.3M, representing 3.6% of revenue, with $62.5M in the Communications segment. No dividends were paid or declared. Debt was essentially unchanged.
The Communications segment generated $1,569.4M in revenue (79.9% of total), up 24.7% year-over-year, with segment income of $118.8M (7.6% margin). The newly acquired Building Systems segment contributed $395.4M in revenue (20.1%) and $23.8M in segment income (6.0% margin) in its first full quarter. Services are provided throughout the United States; no further geographic breakdown was provided.