Dycom Industries (DY) Q1 2027 earnings summary

Executive summary

• Delivered record Q1 revenues of $1.965 billion, up 56% year-over-year, driven by organic growth, Power Solutions acquisition, and robust demand for fiber and data center builds.

• Adjusted EBITDA reached $262.5 million, up 75%, with margin expansion to 13.4%.

• Adjusted diluted EPS was $4.42, up 85% year-over-year; net income was $91.3 million.

• Record backlog of $11.91 billion, up 46.5%, with a book-to-bill of 2.2x and over half expected to be completed in the next 12 months.

• Announced definitive agreement to acquire National Technology Integrators for $275 million, expected to close in Q2, expanding Building Systems and digital infrastructure capabilities.

Financial highlights

• Q1 contract revenues grew 56.1% year-over-year to $1.965 billion.

• Adjusted EBITDA was $262.5 million (13.4% margin), up 74.6% year-over-year.

• Adjusted net income was $134.3 million; adjusted diluted EPS $4.42, up 85%.

• Cash and equivalents at quarter-end were $538.8 million; total liquidity over $1.28 billion.

• Days Sales Outstanding improved to 96 days from 111 year-over-year.

Outlook and guidance

• Raised FY27 revenue outlook to $7.38–$7.65 billion, with Communications segment at $6.03–$6.2 billion and Building Systems at $1.35–$1.45 billion.

• Q2 guidance: revenues of $1.94–$2.01 billion, adjusted EBITDA of $284–$303 million, adjusted EPS of $4.40–$4.82.

• Adjusted EBITDA margin expansion anticipated for both segments, with Building Systems expected in the high teens.

• Outlook excludes NTI acquisition impact; NTI expected to add $175 million annual revenue run rate.

• Management confident in capitalizing on fiber, data center, and infrastructure spending opportunities.