Dycom Industries Inc. reported second-quarter results that exceeded analyst expectations, driven by strong demand for digital infrastructure deployment. The West Palm Beach-based company posted adjusted earnings per share of $5.29, surpassing the consensus estimate of $4.70. Revenue totaled $2.01 billion, up 45.6% from the same period last year, with organic growth of 16.7%.
The communications segment generated $1.61 billion in revenue, an increase of 16.7% on an organic basis. Adjusted EBITDA margin for the segment declined to 13.6% from 14.9% a year earlier, reflecting scaling investments and the deferral of certain wireless projects into fiscal 2028. The building systems segment reported revenue of $397.5 million with an adjusted EBITDA margin of 24.5%.
The acquisition of National Technology Integrators contributed $22.9 million in revenue during the quarter. Shares edged up 1.76% in pre-market trading following the results.
For the third quarter, Dycom expects revenue between $1.90 billion and $1.98 billion, with adjusted EPS projected at $4.33 to $4.79. The company raised its full-year fiscal 2027 revenue guidance to a range of $7.48 billion to $7.66 billion. Total backlog reached a record $12.24 billion, a 53.2% increase from the prior year.
President and CEO Dan Peyovich highlighted the company's record organic first-half revenue and above-market growth, attributing demand to a generational deployment of digital infrastructure expected to extend into the next decade.
