Dycom Industries Inc. posted record quarterly revenue and a $12.24 billion total backlog for the second fiscal quarter ended July 25, 2026, though margin pressure in its core communications segment weighed on profitability.
Total contract revenues rose 45.6% year-over-year to $2.01 billion, driven by 16.7% organic growth, while adjusted earnings per share climbed 45.3% to $5.29. Adjusted EBITDA increased 53.5% to $315.5 million, though the adjusted EBITDA margin expanded by just 81 basis points to 15.7%, reflecting competitive pricing dynamics in the communications infrastructure market.
The company’s total backlog reached a record $12.24 billion, up 28% from the prior-year period, with the next-12-month backlog at $6.47 billion. The communications segment, which accounts for the bulk of revenue, saw its backlog surge 37.5% to $10.98 billion, though its adjusted EBITDA margin contracted by 134 basis points to 13.6%. Approximately $150 million of wireless program revenues were deferred into fiscal 2028, according to management.
Dycom’s building systems segment reported revenue of $397.5 million with an adjusted EBITDA margin of 24.5%, maintaining its historically higher profitability relative to the communications unit. Operating cash flow totaled $103.7 million, up from $57.4 million in the prior-year quarter, while free cash flow reached $37.9 million, compared with $18.4 million.
Liquidity remained robust at $1.09 billion, including $340.1 million in cash and equivalents and availability under its senior credit facility. Total debt stood at $2.84 billion, with maturities extending through 2033. Capital expenditures for the quarter were $69.5 million, and the company deployed $225.5 million for acquisitions, primarily the purchase of National Technology Integrators.
For full-year fiscal 2027, Dycom guided total contract revenues to $7.48 billion–$7.66 billion, with communications segment revenue projected at $5.90 billion–$6.01 billion and building systems revenue at $1.58 billion–$1.65 billion. The company expects building systems margins in the high-teens to low-twenties range. For the third quarter, guidance calls for total contract revenues of $1.90 billion–$1.98 billion, non-GAAP adjusted EBITDA of $281 million–$302 million, and non-GAAP adjusted diluted EPS of $4.33–$4.79.
Shares of Dycom fell 8.67% to close at $321.31, extending declines from a 52-week high of $566.47.
