Dycom Industries Inc. DY reported strong results for the second quarter of fiscal 2027 (ended Aug. 1, 2026). Adjusted earnings and contract revenues surpassed the Zacks Consensus Estimate and grew year over year.
The quarter benefited from robust fiber-to-the-home programs, long-haul and middle-mile infrastructure builds and growing maintenance and operations services. Backlog reached a record level, supporting strong multi-year visibility. However, Communications profitability faced pressure from investments to scale operations, deferred wireless projects and higher year-over-year fuel costs.
DY stock tumbled 7.1% during the pre-market trading session today.
Dycom’s Q2 Earnings & Revenue Discussion
Dycom reported adjusted earnings per share of $5.29, beating the Zacks Consensus Estimate of $4.62 by 14.5%. In the year-ago quarter, the company recorded adjusted earnings of $3.64 per share.
Contract revenues of $2.01 billion surpassed the consensus estimate of $1.97 billion by 1.7% and increased 45.6% year over year. AT&T and Verizon each accounted for more than 10% of total revenues during the quarter.
Dycom’s Q2 Segmental Details
Communications revenues increased 16.7% year over year to $1.61 billion, driven by robust fiber-to-the-home programs, increased long-haul and middle-mile fiber builds, and growing maintenance and operations services. Adjusted EBITDA rose 6.2% to $218.3 million. However, the margin contracted 134 basis points to 13.6% due to investments to scale operations, deferred wireless activity and higher fuel costs.
Building Systems generated contract revenues of $397.5 million. Adjusted EBITDA was $97.2 million, with a margin of 24.5%, supported by strong execution, operating leverage and favorable changes in project cost estimates and scope. National Technology Integrators, acquired during the quarter, contributed about $22.9 million in revenues.
DY's Backlog Supports Extended Revenue Visibility
Of the total backlog, $6.472 billion is expected to be completed during the next 12 months. Communications backlog totaled $10.983 billion, including $5.362 billion for the next 12 months, while Building Systems backlog stood at $1.259 billion, with $1.11 billion scheduled within a year.
DY reported a 1.4-times organic book-to-bill ratio for the first half of fiscal 2027. Recent project awards continued to diversify backlog across customers, demand drivers and geographies, while contracted backlog for long-haul, middle-mile and inside-the-fence fiber infrastructure builds exceeded $1 billion.
Dycom's Profitability Improves as Adjusted Margin Expands
Consolidated adjusted EBITDA increased 53.5% year over year to $315.5 million. The adjusted EBITDA margin expanded 81 basis points to 15.7%. Adjusted net income rose 51.1% to $160.7 million, while GAAP net income increased 18.6% to $115.6 million.
Costs of earned revenues, excluding depreciation and amortization, increased to $1.565 billion from $1.07 billion. General and administrative expenses rose to $132.9 million from $106.8 million, while depreciation and amortization increased to $115.6 million from $60.9 million.
Dycom's Cash Flow and Liquidity Remain Healthy
Operating cash flow increased to $103.7 million from $57.4 million a year ago, while free cash flow rose to $37.9 million from $18.4 million. Days sales outstanding improved to 101 from 108, indicating a shorter collection cycle than in the prior-year quarter.
As of Aug. 1, 2026, Dycom had cash and equivalents of $340.1 million compared with $709.2 million at the end of fiscal 2026. Long-term debt was $2.79 billion compared with $2.81 billion at the end of fiscal 2026. Liquidity stood at $1.09 billion, after the company used $225.5 million of cash for acquisitions during the quarter.
DY’s Q3 Guidance
DY expects contract revenues between $1.90 billion and $1.98 billion for the third quarter of fiscal 2027. The company projects adjusted EBITDA in the range of $281 million to $302 million.
Adjusted earnings, excluding amortization expense, are expected between $4.33 and $4.79 per share. The guidance covers the quarter ending Oct. 31, 2026.
DY Raises FY27 Revenue Outlook
Dycom raised its fiscal 2027 contract revenue outlook to $7.48-$7.66 billion from the previous guidance of $7.38-$7.65 billion. Building Systems revenues are now projected at $1.58-$1.65 billion, up from the prior range of $1.35-$1.45 billion, reflecting higher expected revenues from Power Solutions and contributions from National Technology Integrators.
Conversely, the Communications revenue outlook was lowered to $5.90-$6.01 billion from $6.03-$6.20 billion. The Communications outlook incorporates the deferral of approximately $150 million of wireless program revenues into fiscal 2028, with overall program scope unchanged. Dycom expects consolidated adjusted EBITDA margin to increase for the year. Building Systems adjusted EBITDA margin is projected in the high-teens to low-twenties range for the remainder of fiscal 2027.
Dycom’s Zacks Rank & Recent Construction Releases
Dycom currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Martin Marietta Materials, Inc. MLM reported outstanding second-quarter 2026 results, wherein adjusted earnings (from continuing operations) and revenues topped the Zacks Consensus Estimate and increased year over year.
Martin Marietta’s results benefited from strong organic performance and contributions from acquisitions. Aggregate shipments increased 17% to a record 61.6 million tons, supported by infrastructure and heavy nonresidential demand. Heavy nonresidential demand also benefits from data center, power-generation and warehouse construction. Martin Marietta raised its 2026 revenue guidance to a range of $7.2-$7.4 billion, with a midpoint of $7.3 billion.
CRH plc CRH reported exceptional second-quarter 2026 financial results with adjusted earnings and total revenues topping the Zacks Consensus Estimate and growing year over year. Positive pricing, favorable demand and acquisition contributions supported the quarterly growth. CRH completed 11 acquisitions during the quarter for $1.1 billion.
The company reaffirmed 2026 net income guidance of $3.9-$4.1 billion, adjusted EBITDA guidance of $8.1-$8.5 billion and earnings guidance of $5.60-$6.05 per share. CRH expects public infrastructure spending and reindustrialization activity to support demand, while new-build residential conditions remain subdued.
Quanta Services, Inc. PWR reported better-than-expected second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The company’s performance benefited from strong demand for grid, generation and data-center infrastructure, broader self-perform capabilities, efficient resource utilization and solid execution across both segments.
Quanta increased its 2026 revenue forecast to $39.3-$39.7 billion, representing a $4.55 billion increase at the midpoint from its prior outlook. Adjusted earnings are now projected to be in the range of $16.45-$16.95 per share, while adjusted EBITDA is expected to be between $4.09 billion and $4.21 billion. Free cash flow is forecast to be in the $2-$2.5 billion range.
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