Earnings Recap — Q2 FY2027
CY Q3 2026 · Reported August 26, 2026 · Beat 7 of last 7 quarters
Dycom Industries, Inc. reported Q2 FY2027 revenue of $2.01B, a beat of 1.3% against consensus, and EPS of $5.29, a beat of 12.1%.
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Dycom's record revenue and backlog underscore the accelerating buildout of AI-driven data center infrastructure, particularly in fiber interconnects and inside-plant electrical/cabling. The company's raised Building Systems guidance and strong margins reflect robust demand for data center construction, while the long-haul fiber backlog positions Dycom to benefit from the multi-year AI infrastructure investment cycle.
Dycom delivered record Q2 revenue of $2.01B, up 45.6% YoY, with organic growth of 16.7%. Adjusted EBITDA rose 53.5% to $315.5M, and adjusted EPS grew 45.3% to $5.29, both exceeding the high end of guidance. The Communications segment grew 16.7% organically, while Building Systems revenue reached $397.5M, including $22.9M from the recently acquired National Technology Integrators. Total backlog reached a record $12.2B, with over $1B in long-haul, middle-mile, and inside-the-fence fiber backlog. The company also announced a $150M share repurchase authorization.
Management raised full-year revenue guidance to $7.48B–$7.66B (midpoint up ~$55M), reflecting strong execution and the NTI acquisition, partially offset by a $150M deferral of wireless revenues into FY2028. Communications revenue guidance was lowered to $5.90B–$6.01B due to the wireless deferral, while Building Systems guidance was raised to $1.58B–$1.65B including ~$90M from NTI. Consolidated adjusted EBITDA margin is expected to increase YoY, but Communications margins are expected to decline slightly due to investments, wireless deferral, and fuel costs. Building Systems margins are expected to remain in the high-teens to low-20s. Management expressed confidence in multi-year demand across fiber-to-the-home, long-haul, and data center interconnects, with BEAD construction expected to ramp in earnest next year.
“Our strong results reinforce the power of our strategy as a leader in digital and critical infrastructure. We delivered record organic first half revenue, increased profitability and continued above-market growth.”
on Quarterly performance
“This generational deployment of infrastructure is projected to go well into the next decade, and we have line of sight to and are in discussions on builds many years out.”
on Demand outlook
“We are executing with massive growth in fiber-to-the-home revenues, strong delivery and growing backlog of long-haul, middle-mile and inside-the-fence fiber, increasing consolidated adjusted EBITDA margins and disciplined investments to ensure Dycom remains a leader in digital and critical infrastructure.”
on Strategy and execution
I just wanted to get a little clarification on the wireless revenue pushout, kind of what led to that? And how confident do you feel on that revenue coming through next year?
Dan Peyovich explained that the wireless program is a 4-year program that has performed above expectations, and the $150M deferral is simply a shift in timing with line of sight to projects. He expressed high confidence in the program's continuation and noted that the deferral is a positive as it adds to next year's growth.
Reading into the deferral in the wireless business, is that customer doing anything else in the year? Will they increase some spending in some other areas? And then on the long-haul fiber, we've seen recent announcements from NVIDIA with Zayo and Verizon and so forth. Can you talk about how -- the nature of those projects?
Dan Peyovich clarified that the deferral is the same equipment replacement program, just shifted to next year. He noted that all customers reaffirmed their fiber-to-the-home and build programs. On long-haul, he emphasized that the backlog is highly diversified across customers and geographies, not dependent on a single program.
I wanted to dig into the 60% fiber-to-the-home revenue growth you talked about first half of the year. Obviously, really impressive, but I think the guide implies at least organic growth does decel a little bit in the second half of the year. So maybe you could touch on whether the outperformance first half of the year. Is there any type of timing benefit or pull forward of activity that you might have expected in the second half of the year?
Dan Peyovich attributed the strong growth to Dycom's ability to execute complex programs, noting 'Complexity favors Dycom.' He explained that the deceleration is due to the non-linear nature of ramping projects and that the company still sees significant growth opportunities ahead.