Dycom Industries reported fiscal second-quarter revenue of $2.01 billion, a 45.6% year-over-year increase. The company raised its fiscal 2027 total revenue outlook to a range of $7.48 billion to $7.66 billion.

Adjusted EBITDA was $315.5 million, representing a 54% increase from the prior year and accounting for 15.7% of revenue. Adjusted diluted earnings per share were $5.29, a 45% increase year over year, with both metrics exceeding the high end of the company's previous outlook.

The Communications segment generated $1.61 billion in revenue, reflecting 16.7% organic growth from the prior-year quarter. Communications adjusted EBITDA reached $218.3 million, an increase of approximately $12.8 million, though the segment's adjusted EBITDA margin fell 134 basis points to 13.6%.

Building systems revenue totaled $397.5 million, representing about 20% of consolidated revenue. This segment produced $97.2 million in adjusted EBITDA, resulting in a 24.5% margin.

Total backlog reached $12.2 billion, with $10.98 billion attributed to the Communications segment and $1.26 billion to Building systems. Of the total backlog, $6.47 billion is expected to be completed over the next 12 months.

"Demand across our portfolio remains robust," said Dan Peyovich, President and Chief Executive Officer of Dycom Industries. "We have line of sight to the projects."

Dycom completed its acquisition of National Technology Integrators during the quarter, with the entity contributing approximately $22.9 million in revenue. National Technology Integrators, acquired for $275 million, historically achieved mid-to-high teens Adjusted EBITDA margins, aligning with Dycom's Building Systems segment performance in Q1 2027 (17.7% margin).

Fiber-to-the-home revenue increased nearly 60% during the fiscal first half compared with the prior-year period. Dycom reported more than $1 billion of contracted backlog for long-haul, middle-mile and data center fiber work. Dycom's Communications segment backlog reached $10.98 billion as of Q1 2027, representing 92% of total backlog ($11.906 billion).

Dycom recognized revenue during the quarter from Broadband Equity, Access, and Deployment field-engineering work in the Northeast. The company expects BEAD engineering work to remain nominal through the remainder of fiscal 2027, with construction expected to begin in earnest in fiscal 2028.

For the third quarter, revenue is forecast to be between $1.90 billion and $1.98 billion. Third-quarter adjusted EBITDA is forecast to be between $281 million and $302 million, with adjusted diluted EPS expected between $4.33 and $4.79, excluding intangible amortization expense.

Operating cash flow was $103.7 million in the quarter. Combined days sales outstanding for accounts receivable and contract assets improved seven days year over year to 101 days.

Dycom ended the quarter with $340.1 million in cash and equivalents, bringing total liquidity to more than $1.086 billion. Pro forma net leverage was about 2.3 times adjusted EBITDA. The board authorized a new $150 million share-repurchase program.

Why It Matters

Dycom Industries reported fiscal second-quarter revenue of $2.01 billion, a figure that constitutes a portion of its raised annual outlook. Total backlog reached $12.2 billion, providing visibility into future work, with $6.47 billion expected to be completed over the next 12 months. The company's ability to exceed expectations on adjusted EBITDA and earnings per share indicates operational efficiency during revenue growth.

The strategic shift toward higher-margin communications projects underpins the fiscal 2027 guidance, even as the Communications segment margin saw a slight decline. The integration of National Technology Integrators adds to the Building Systems segment, which maintains strong margins. With substantial backlog in fiber infrastructure and emerging opportunities in BEAD construction scheduled for fiscal 2028, the company has positioned itself for sustained activity in key infrastructure sectors.

Timeline

On 2026-08-26, Dycom Industries reported fiscal second-quarter revenue of $2.01 billion. On the same date, fiscal second-quarter revenue increased 45.6% year over year. Also on 2026-08-26, fiscal 2027 communications revenue is expected to range from $5.90 billion to $6.01 billion.

On 2026-08-26, fiscal 2027 building systems revenue outlook is $1.58 billion to $1.65 billion. On 2026-08-26, the building systems revenue outlook includes approximately $90 million of acquired National Technology Integrators revenue expected during the second half. On 2026-08-26, communications segment revenue grew 16.7% organically from the prior-year quarter. On 2026-08-26, Dycom raised its fiscal 2027 total revenue outlook to a range of $7.48 billion to $7.66 billion. On 2026-08-26, approximately $150 million in wireless equipment-replacement revenue shifted from the second half of fiscal 2027 into fiscal 2028.

What's New

Additional reporting indicates that Dycom's adjusted EBITDA margin expansion guidance for fiscal 2027 reflects a shift toward higher-margin communications projects, with Communications segment margins expected to improve modestly despite continued investment. Additional context reveals that Dycom's Communications segment backlog reached $10.98 billion as of Q1 2027, representing 92% of total backlog ($11.906 billion).