Dycom Industries reported fiscal second-quarter adjusted earnings per share of $5.29, a 45.3% increase from the prior year and 12.55% above the $4.70 Wall Street consensus. Total revenue reached $2.01 billion, up 45.6% year-over-year and 16.7% organically, exceeding the $1.98 billion estimate by 1.01%. Adjusted EBITDA rose 53.5% to $315.5 million, with margins expanding by 81 basis points to 15.7%.
The communications segment generated $1.608 billion in revenue, a 16.7% organic increase, while the building systems segment contributed $397.5 million. Consolidated adjusted net income totaled $160.7 million, and the company maintained a record $12.2 billion backlog, representing a book-to-bill ratio of 1.2x.
Cash flow remained robust, with operating cash flow of $103.7 million and trailing 12-month free cash flow nearly doubling year-over-year. Pro forma net leverage stood at approximately 2.3 times adjusted EBITDA, supported by $340.1 million in cash and equivalents and total liquidity exceeding $1.086 billion.
Despite the strong financial performance, Dycom’s shares fell 10.21% in premarket trading to $315.88, extending a 12.65% decline over the prior week. The company’s market capitalization remains near $9.46 billion, with a P/E ratio of 33.26 and a 20% return on equity over the last 12 months.
Management raised full-year fiscal 2027 revenue guidance to a range of $7.48 billion to $7.66 billion, implying 36.5% total growth and 11.3% organic expansion. However, the midpoint of $7.57 billion fell short of some analyst expectations. Next-quarter guidance calls for revenue of $1.90 billion to $1.98 billion, adjusted EBITDA of $281 million to $302 million, and adjusted diluted EPS of $4.33 to $4.79.
The company noted a $150 million shift in wireless revenues from the second half of fiscal 2027 into fiscal 2028 due to adjusted deployment schedules, though overall program scope and backlog remained unchanged. Dycom also announced a new $150 million share repurchase authorization through February 2028.
CEO Dan Peyovich emphasized the company’s strategy as a leader in digital and critical infrastructure, highlighting record organic first-half revenue and above-market growth. CFO Drew DeFerrari expressed confidence in ongoing wireless projects and noted that building systems revenue exceeded expectations.
