Dycom Industries (DY) outlined broadening growth across its communications and building systems segments at D.A. Davidson’s 25th Annual Diversified Industrials & Services Conference on Thursday, pointing to a fiber backlog exceeding $1 billion and a full-year book-to-bill ratio of 1.4x.
Chief Executive Dan Peyovich said the company’s last-twelve-months revenue reached $6.88 billion, representing roughly 38% growth. The communications segment accounted for approximately $5.4 billion of that total, with service and maintenance making up about half. Building systems revenue is expected to surpass 20% of Dycom’s total in fiscal 2027, up from a smaller base.
"The best way to think about us is really end-to-end solutions to solve the growing data needs," Peyovich said. "Whether it’s data being computed, stored, processed, and then the entirety of the transmission from that data center out ultimately to the end user, that’s where Dycom comes into play."
Fiber-to-the-home program work grew 60% year-over-year in the first half of fiscal 2027, well ahead of industry passing growth of 10% to 15%. Pure fiber-connecting data-center backlog after current burn exceeds $1 billion. The long-haul and middle-mile addressable market is estimated at $20 billion over the next five years.
Peyovich identified 2028 as a potential inflection point, when mature fiber-to-the-home programs, faster long-haul deployments and broadband equity actuator distribution funds could converge and strain industry labor capacity.
For fiscal 2027, Dycom guided communications organic growth of 10% to 12%, with adjusted EBITDA margins in the segment expected to hold near 13%, compared with 13.3% last year. Building systems margins are targeted to rise over time into the high teens to low 20s. Permitting remains the primary constraint in communications, while electrician availability constrains building systems.
Long-haul fiber work involves bundles of 864 to 1,728 fibers requiring extensive splicing and testing, and workers need at least six months of specialized training to transition into that work. "Complexity favors Dycom," Peyovich said.
Dycom closed its acquisition of Power Solutions approximately a year ago for about $2 billion, a move that expanded its building systems capabilities. The company employs 21,000 workers across all 50 states.
Dycom’s shares traded at $274.76 on Wednesday, with a $280.94 close on Sept. 23 and pre-market trading near $280. The stock has a 52-week range of $266.84 to $566.47. Market capitalization stands at approximately $8.26 billion, with a P/E ratio of 25.78.
"Dycom has never been a quarterly business," Peyovich said. "Tens of thousands of work orders are stacking at any given point in time. Those projects move around all the time. They ebb, they flow."
