US ▾
DY
Earnings call · Jul 2026 (Q2 FY27)

DYCOM INDUSTRIES Q2 FY27 earnings call DY

Aug 26, 2026 Source

Executive summary

Dycom Industries Q2 FY27 — Record Revenue and Strong Backlog Drive Growth

Dycom delivered record Q2 FY27 results, driven by strong organic growth in fiber-to-the-home and expanding long-haul fiber opportunities. The company is strategically investing in its workforce and infrastructure to capitalize on robust demand in digital and critical infrastructure, while navigating a wireless revenue deferral and margin pressures in its Communications segment.

Highlights

5

  • Record quarterly revenue of $2.01 billion, growing 45.6% year-over-year and 16.7% organically.

  • Total adjusted EBITDA of $315.5 million, grew 54% year-over-year, representing 15.7% of revenues.

  • Adjusted EPS of $5.29, grew 45% year-over-year.

  • Record total backlog of $12.2 billion, representing a total book-to-bill of 1.2x (1.1x organic).

  • Fiber-to-the-home revenue increased nearly 60% in the first half of this fiscal year.

Concerns

2

  • Approximately $150 million of wireless revenues are expected to shift from the second half of this fiscal year into FY28.

  • Communications segment adjusted EBITDA margin decreased approximately 134 basis points year-over-year to 13.6%, impacted by investments to scale operations, wireless deferral, and 35 basis points from higher fuel prices.

Guidance & targets

CategoryTargetConfidence
Full-year FY27 Total Contract Revenues
$7.48 billion to $7.66 billion
high materiality
High
Full-year FY27 Communications Segment Contract Revenues
$5.90 billion to $6.01 billion
medium materiality
High
Full-year FY27 Building Systems Segment Contract Revenues
$1.58 billion to $1.65 billion
medium materiality
High
Full-year FY27 Consolidated Adjusted EBITDA Margin
increase
high materiality
High
Full-year FY27 Communications Segment Adjusted EBITDA Margin
decline slightly
medium materiality
High
Full-year FY27 Building Systems Segment Adjusted EBITDA Margin
high teens to low 20s
medium materiality
High
Q3 FY27 Total Contract Revenues
$1.90 billion to $1.98 billion
high materiality
High
Q3 FY27 Adjusted EBITDA
$281 million to $302 million
high materiality
High
Q3 FY27 Adjusted Diluted EPS
$4.33 to $4.79 per share
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Communications
Driven by robust fiber-to-the-home programs, increased long-haul and middle-mile fiber infrastructure builds, and growing maintenance and operations services. Adjusted EBITDA margin decreased approximately 134 basis points year-over-year, reflecting higher investments to scale operations, impacts on operating leverage from wireless project deferrals, and approximately 35 basis points of cost pressure from higher fuel prices.
Fiber-to-the-home revenue growth: nearly 60% in H1 FY27Long-haul, middle-mile, and inside defense fiber contracted backlog: over $1 billion
$1.608 billion16.7% organically—13.6% of segment revenue
Building Systems
Exceeded expectations due to rapid growth. Adjusted EBITDA margin was exceptional, well above its historical average, driven by favorable changes in cost estimates on projects, scope of services, and operating leverage benefits. Includes approximately $22.9 million revenue contribution from National Technology Integrators during the quarter.
Contribution to total revenue: approximately 20%
$397.5 millionsignificantly—24.5% of segment revenue

DY operating KPIs by quarter

DY operating KPIs stated on its earnings calls, by fiscal quarter
KPI Jan 2026 Q4 FY26 Apr 2026 Q1 FY27This call Jul 2026 Q2 FY27Change vs prior quarter
Backlog
$9.542B Backlog at the end of Q4 was $9.542 billion, including $8.333 billion of Communications backlog and $1.209 billion of Building Systems backlog. Source transcript
$11.9B We ended the quarter with record total backlog of $11.9 billion, growing 25% sequentially and representing a book-to-bill of 2.2x for the quarter. Source transcript
$12.2B We finished the quarter with record total backlog of $12.2 billion, representing a total book-to-bill of 1.2x and 1.1x on an organic basis. Source transcript
+2.5%
Backlog Communications
$8.333B Backlog at the end of Q4 was $9.542 billion, including $8.333 billion of Communications backlog and $1.209 billion of Building Systems backlog. Source transcript
$10.8B Total backlog at the end of Q1 was $11.9 billion, including $10.8 billion of communications backlog and $1.1 billion of Building Systems backlog. Source transcript
$10.98B Total backlog at the end of Q2 was $12.2 billion, including $10.98 billion of Communications backlog and $1.26 billion of Building Systems backlog. Source transcript
+1.7%
Backlog Building Systems
$1.209B Backlog at the end of Q4 was $9.542 billion, including $8.333 billion of Communications backlog and $1.209 billion of Building Systems backlog. Source transcript
$1.1B Total backlog at the end of Q1 was $11.9 billion, including $10.8 billion of communications backlog and $1.1 billion of Building Systems backlog. Source transcript
$1.26B Total backlog at the end of Q2 was $12.2 billion, including $10.98 billion of Communications backlog and $1.26 billion of Building Systems backlog. Source transcript
+14.5%
Employees
19.5K+ We are investing heavily in our workforce, now over 19,500 strong to meet intensifying customer demand. Source transcript
—
<21K Our success is made possible by our skilled workers, nearly 21,000 strong who bring excellence every day to the customers and communities we serve nationwide. Source transcript
—
Book-to-bill ratio —
2.2 ratio We ended the quarter with record total backlog of $11.9 billion, growing 25% sequentially and representing a book-to-bill of 2.2x for the quarter. Source transcript
1.2 ratio We finished the quarter with record total backlog of $12.2 billion, representing a total book-to-bill of 1.2x and 1.1x on an organic basis. Source transcript
-45.5%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Orderbook & backlog

Total Backlog $12.2 billion Q2 FY27

Record total backlog, representing a total book-to-bill of 1.2x (1.1x on an organic basis).

12-Month Backlog $6.47 billion Q2 FY27

Expected to be completed in the next 12 months. Includes $5.36 billion from Communications and $1.11 billion from Building Systems.

Communications Backlog $10.98 billion Q2 FY27
Building Systems Backlog $1.26 billion Q2 FY27
Long-haul, middle-mile, and inside defense fiber contracted backlog over $1 billion Q2 FY27

Secured additional awards for long-haul and data center interconnect. Hundreds of millions of dollars of work already performed.

Deals & partnerships

National Technology Integrators Expanded reach and customer diversification, particularly in inside plant structured cabling.

Officially welcomed into the Dycom Family during the quarter. Integration is progressing smoothly, with active cross-selling opportunities with Power Solutions and communications operating companies.

Capital programs

Flagship Training Facility construction is well underway

Benefit:investing in the skills and safety of our people

New flagship training facility in Georgia, on track for opening.

Risks & headwinds

Wireless revenue deferral H2 FY27 to FY28

$150 million

Mitigation:Overall programs and backlog are unchanged; management has line of sight to projects and expects scope to potentially increase.

Communications segment adjusted EBITDA margin pressure Q2 FY27

134 basis points decrease YoY (35 bps from higher fuel prices)

Mitigation:Investing to scale operations and enhancing benefits for the workforce to deliver on customer demand and long-term returns.

Skilled labor shortage (electricians) ongoing

still in short demand

Mitigation:Turning away projects due to labor constraints, but comfortable scaling the Building Systems business and investing in training/recruitment.

What to watch in Q3 FY27

Wireless Revenue Realization

FY28
Current $150 million deferred from H2 FY27
Target Evidence of deferred wireless revenue materializing in FY28

Why it matters

Verifies management's confidence that the deferral is a timing shift, not a loss of revenue, impacting future growth.

It is not uncommon for large-scale deployment schedules to adapt over time, and we now anticipate approximately $150 million of wireless revenues to shift from the second half of this fiscal year into FY 2028. Importantly, overall programs and backlog are unchanged.

Q&A highlights

What caused the $150 million wireless revenue push out, how confident is management in its realization, and what are the project cadences and new vs. maintenance splits in the core wireline business?

Management clarified the wireless deferral is a normal shift in a multi-year equipment replacement program, not a reduction, and they have high confidence in its realization. For wireline, they highlighted 60% fiber-to-the-home growth, significant presence, and the $20 billion long-haul market for fiber connecting data centers, noting they have over $1 billion in backlog for this complex work.

“It's not abnormal for these programs to move and shift a little bit over time. But what we're talking about here with the $150 million is a deferral next year. We have line of sight to the projects. In fact, there's a little bit of scope being added. We can see all that out in front of us. So a ton of confidence that, that's going to continue.”

asked by Unknown Analyst · answered by Daniel Peyovich

2 min read 6 chapters

Detailed narrative

Record Q2 Performance and Strong Demand

Dycom achieved record quarterly revenue of $2.01 billion, a 45.6% year-over-year increase (16.7% organic), and adjusted EBITDA of $315.5 million, up 54% year-over-year, representing 15.7% of revenues. Adjusted EPS grew 45% to $5.29, exceeding outlooks. Demand remains robust across fiber-to-the-home, long-haul, data center connects, and data center electrical systems, with management noting demand is as strong or stronger than a quarter ago.

Communications Segment Growth and Strategic Focus

Fiber-to-the-home revenue increased nearly 60% in the first half of the fiscal year, demonstrating strong execution. The company has secured over $1 billion in contracted backlog for long-haul, middle-mile, and inside defense fiber, with hundreds of millions already performed, targeting a $20 billion addressable market for fiber connecting data centers. This market is back-half loaded towards the end of the decade, positioning Dycom well at the outset.

Building Systems Expansion and Margin Strength

The Building Systems segment, including Power Solutions, delivered substantial growth and exceptional segment margins of 24.5%, well above historical averages. This performance was driven by favorable changes in cost estimates and operating leverage. The acquisition of National Technology Integrators (NTI) is progressing smoothly, contributing approximately $22.9 million in revenue during the quarter and expanding reach and customer diversification, with initial contributions exceeding expectations.

Workforce Investment and Capacity Building

Dycom is prioritizing talent and workforce development, introducing key benefit enhancements and investing in a new flagship training facility in Georgia, expected to open in H1 CY27. This investment is critical for scaling operations, addressing skilled labor constraints, and maintaining leadership in complex infrastructure projects, particularly in the Communications segment where 17,000 personnel are deployed.

Wireless Program Deferral and Outlook

Approximately $150 million of wireless revenues are shifting from the second half of FY27 into FY28. Management clarified this is a deferral of the equipment replacement program, not a reduction in overall scope, and expressed high confidence in its realization. The overall program and backlog remain unchanged, and the deferral is considered a normal adaptation for large-scale deployments.

Margin Trajectory and Capital Allocation

Consolidated adjusted EBITDA margin is expected to increase for FY27, while Communications segment margins are projected to decline slightly due to scaling investments, wireless deferral impacts, and fuel costs. Building Systems margins are expected to be in the high teens to low 20s. The company generated $103.7 million in operating cash flow, reduced DSOs by 7 days YoY to 101 days, and authorized a new $150 million share repurchase program.

AI-generated summary of the company's earnings call. Not investment advice.