Dycom's 2026 Q1 Earnings Call: Unpacking Key Contradictions in Growth, Backlog, and Wireless Revenue

Backlog and organic growth, Black & Veatch and work pull forward, BEAD program timing and impact, organic growth rate expectations, and wireless revenue impact are the key contradictions discussed in Dycom Industries' latest 2026Q1 earnings call.



Strong Financial Performance:
- Dycom Industries reported revenue of $1.259 billion for Q1, a 10.2% increase over Q1 2025, with adjusted EBITDA at $150.4 million, up 14.9% over Q1 2025.
- The growth was driven by increased fiber-to-the-home deployments, wireless activity, and higher maintenance and operations services.

Record Backlog and Diversification:
- Dycom's record backlog reached $8.1 billion, including $4.7 billion of next 12-month backlog.
- This was supported by diversification across customers, programs, and drivers within the telecommunications and digital infrastructure space, reducing reliance on single customers or programs.

Wireless Activity and Acquisition Impact:
- Dycom's wireless equipment replacement work, both organic and from the acquisition last year, exceeded expectations, contributing significantly to Q1 performance.
- The positive impact was due to the business's rapid integration into Dycom's operations and its efficiency in executing projects.

Service and Maintenance Business Growth:
- Dycom's service and maintenance business has grown significantly, providing consistency and stability in revenue streams.
- The growth is attributed to maintaining newly installed fiber-to-the-home builds and securing additional markets from customers, with agreements typically lasting 2 to 4 years.