Dycom Industries reported second-quarter fiscal 2027 revenue of $2.01 billion, a 45.6% increase from the prior year, driven by organic growth of 16.7% and a record total backlog of $12.24 billion. Adjusted earnings per share rose 45.3% to $5.29, while adjusted EBITDA climbed 53.5% to $315.5 million. However, the adjusted EBITDA margin contracted 81 basis points to 15.7%, reflecting pressure in the communications segment.
The communications segment generated $1.61 billion in revenue, up 16.7% year-over-year, but its adjusted EBITDA margin declined 134 basis points to 13.6%. The building systems segment reported revenue of $397.5 million with an adjusted EBITDA margin of 24.5%. Total backlog surged 28% year-to-date, with the next 12 months’ backlog at $6.47 billion and an organic book-to-bill ratio of 1.4x.
Liquidity stood at $1.09 billion, including $340.1 million in cash and equivalents, while total notional debt reached $2.84 billion. Operating cash flow increased to $103.7 million from $57.4 million in the prior year, and free cash flow rose to $37.9 million. Capital expenditures totaled $69.5 million, with $225.5 million deployed for acquisitions, primarily National Technology Integrators.
For the full fiscal year 2027, Dycom raised its total contract revenue guidance to $7.48 billion to $7.66 billion, reflecting a deferral of approximately $150 million in wireless program revenues into fiscal 2028. Communications segment revenue is now projected at $5.90 billion to $6.01 billion, while building systems revenue is guided to $1.58 billion to $1.65 billion. Third-quarter 2027 guidance calls for revenue of $1.90 billion to $1.98 billion, non-GAAP adjusted EBITDA of $281 million to $302 million, and non-GAAP adjusted diluted EPS of $4.33 to $4.79.
Shares fell 8.67% to $321.31 in after-hours trading following the results, extending a 10.21% premarket decline from the prior close of $351.80. The stock has traded between $242.55 and $566.47 over the past 52 weeks.
