Dycom Industries (DY) Q2 2027 earnings summary

Executive summary

• Achieved record quarterly revenue of $2.01 billion, up 45.6% year-over-year, with 16.7% organic growth, driven by robust demand for digital infrastructure and strategic acquisitions.

• Adjusted EBITDA grew 54% year-over-year to $315.5 million (15.7% margin), and adjusted EPS reached $5.29, up 45% year-over-year, exceeding guidance.

• Net income rose to $115.6 million for the quarter, reflecting improved operating leverage and contributions from acquired businesses.

• Completed the acquisition of National Technology Integrators, expanding service offerings and segment growth.

• Raised full-year fiscal 2027 outlook based on strong demand and record backlog.

Financial highlights

• Q2 contract revenues: $2.01 billion, up 45.6% year-over-year; six-month revenues $3.97 billion, up 50.6%.

• Adjusted EBITDA: $315.5 million (15.7% margin), up 53.5% year-over-year; six-month adjusted EBITDA $578.0 million (14.6% margin).

• Adjusted net income: $160.7 million; adjusted diluted EPS: $5.29, up 45.3% year-over-year.

• Operating cash flow: $103.7 million for the quarter; cash and equivalents: $340.1 million; total liquidity over $1.086 billion.

• Book-to-bill ratio: 1.2x total, 1.1x organic; backlog reached $12.24 billion, with $6.47 billion expected to be completed in next 12 months.

Outlook and guidance

• Raised full-year revenue outlook to $7.48–$7.66 billion, representing 36.5% total and 11.3% organic growth at midpoint.

• Communications segment revenue outlook reflects $150 million wireless program deferral to FY 2028.

• Building Systems segment revenue outlook increased due to Power Solutions and acquisition contributions.

• Q3 guidance: revenue $1.90–$1.98 billion, adjusted EBITDA $281–$302 million, adjusted EPS $4.33–$4.79.

• Consolidated adjusted EBITDA margin expected to increase for FY 2027; Building Systems margin projected in high teens to low 20s.