Dycom Q4 Earnings & Revenues Top, Adjusted EBITDA Up Y/Y, Stock Down

Dycom Industries Inc. DY reported stellar results for the fourth quarter of fiscal 2026 (ended Jan. 31). Adjusted earnings and contract revenues surpassed the Zacks Consensus Estimate and grew year over year.

The quarter’s performance reflects strong demand momentum across public infrastructure and increased contributions from the accretive acquisitions. The company witnessed robust demand trends from fiber-to-the-home programs, long-haul and middle-mile fiber infrastructure deployments. The acquisition of Power Solutions bodes well for DY, given the expanded exposure in digital infrastructure and the fast-growing data center market.

Moreover, DY aims to maintain a disciplined capital allocation strategy, balancing acquisitions, share repurchases and organic expansion. Long-term demand visibility remains strong, with potential upside from federal broadband programs expected in the coming years.

DY stock tumbled 4.1% during yesterday’s trading session.

Dycom’s Q4 Earnings & Revenue Discussion

Dycom reported adjusted earnings per share (EPS) of $2.03, which topped the Zacks Consensus Estimate of $1.91 by 6.3%. In the year-ago quarter, it reported an adjusted EPS of $1.43.

Contract revenues of $1.46 billion surpassed the consensus mark of $1.34 billion by 5.1% and grew 34.4% year over year. Contract revenues rose 16.6% on an organic basis. Acquired businesses contributed $95.8 million.

Dycom Industries, Inc. Price, Consensus and EPS Surprise

Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote

Dycom’s largest customers, including AT&T, Verizon and Lumen, each exceeded 10% of total revenues in the fiscal fourth quarter. Other customers, including Brightspeed, Charter, Comcast and Uniti, exceeded 5% of total revenues.

DY’s Operations & Backlog Details

Adjusted EBITDA increased 39.6% to $162.4 million from a year ago. Adjusted EBITDA margin of 11.1% expanded 40 basis points (bps) from the year-ago level.

Dycom’s backlog as of the fiscal fourth quarter totaled $9.54 billion, up year over year by 23% from $7.76 billion. Of the current backlog position, $6.36 billion is projected to be completed in the next 12 months.

Dycom’s Segmental Details

Beginning in the fourth quarter of fiscal 2026, Dycom revised its segments to two reportable segments: Communications and Building Systems. The Building Systems segment reflects the results of Power Solutions, LLC, which was acquired on Dec. 23, 2025.

Communications: This segment’s contract revenues increased year over year by 25.6% to $1.36 billion. The results were driven by continued strong demand from FTTH programs, wireless activity and long-haul and middle-mile fiber infrastructure deployments.

Adjusted EBITDA increased to $151.3 million from $116.4 million a year ago. Adjusted EBITDA margin of 11.1% expanded 40 basis points (bps) from the year-ago level. This segment’s total backlog grew year over year by 7.4% to $8.33 billion, with a 12-month backlog of $5.25 billion.

Building Systems: The segmental contract revenues were $95.8 million. Adjusted EBITDA was $11.1 million and adjusted EBITDA margin was 11.6%. This segment’s total backlog stood at $1.21 billion, with a 12-month backlog of $1.11 billion.

Inside Dycom’s Fiscal 2026

During the full fiscal year, contract revenues of $5.55 billion grew 17.9% year over year, with organic revenues increasing 6.5%.

Adjusted EBITDA was up 28% to $737.7 million from $576.3 million reported in fiscal 2025. Adjusted EBITDA margin expanded 105 bps year over year to 13.3%.

Adjusted EPS was $11.97, up year over year by 29.7% from $9.23.

DY’s Balance Sheet & Cash Flow

As of Jan. 31, 2026, Dycom had liquidity of $1.46 billion, including cash and cash equivalents worth $709.2 million, compared with $92.7 million as of fiscal 2025-end. Long-term debt was $2.81 billion as of the fiscal fourth quarter, up from $933.2 million at the fiscal 2025-end.

In fiscal 2026, DY repurchased shares of its common stock for $30.2 million. Free cash flow as of the fiscal fourth quarter was $435.3 million, up from $137.8 million a year ago.

Dycom Lays Out Q1 Guidance

Dycom expects contract revenues between $1.64 billion and $1.71 billion for the first quarter of fiscal 2027. This compares with $1.26 billion reported in the year-ago quarter.

Adjusted EBITDA is expected to be between $202 million and $218 million, indicating growth from $150.4 million reported last year.

Dycom anticipates adjusted EPS in the range of $2.57-$2.90.

Stock-based compensation is expected to be about $10 million. Net interest expense is expected to be approximately $36 million, with the effective adjusted tax rate projected to be 26%.

Dycom Unveils Fiscal 2027 View

Dycom expects full-year contract revenues to be between $6.85 billion and $7.15 billion, reflecting 23.6-29% year-over-year growth, and 6.6-10.3% organic growth.

Adjusted EBITDA margin is expected to expand in fiscal 2027. In the Communications segment, Dycom expects modest adjusted EBITDA margin improvement as operating leverage offsets continued investment to support its growth. In the Building Systems segment, the company expects to deliver a mid-teen adjusted EBITDA margin as it scales the business to capitalize on favorable sector tailwinds.

Dycom’s Zacks Rank & Recent Construction Releases

Dycom currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EMCOR Group, Inc. EME reported impressive fourth-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.

EMCOR’s quarterly results reflect the benefits of strong demand in core end markets and customers’ confidence in its ability to deliver on complex projects. Strong field leadership, disciplined planning and continued investment in construction technology further supported the overall performance. EMCOR expects 2026 annual revenues to be in the band of $17.75-$18.5 billion and EPS within $27.25-$29.25.

Comfort Systems USA, Inc. FIX delivered stellar fourth-quarter 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year.

Comfort Systems’ quarterly performance reflects robust demand trends in the public infrastructure market, with strong growth in the technology sector, particularly in data centers. Besides, the company’s results benefited from the Feyen Zylstra, Meisner, Right Way, Century, Summit and J&S acquisitions, alongside increased same-store activity. In 2025, Comfort Systems paid its shareholders $217.9 million through share repurchases and $68.8 million through dividends.

Quanta Services, Inc. PWR reported record fourth-quarter 2025 results, driven by robust demand in its Electric Infrastructure Solutions segment and contributions from recent acquisitions.

Quanta’s growth was primarily fueled by accelerating utility investments, power generation and load-center related projects, along with incremental contributions from acquired businesses, including Tri-City, Wilson and Billings. For 2026, Quanta expects revenues between $33.25 billion and $33.75 billion, reflecting double-digit growth. GAAP EPS is projected to be in the range of $8.36-$9.06, while adjusted EPS is expected to be in the range of $12.65-$13.35. It is supported by record backlog, continued utility spending and anticipated contributions from recent acquisitions.

Quantum Computing Stocks Set To Soar

Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.

Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.

Access the Report Free Now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Quanta Services, Inc. (PWR): Free Stock Analysis Report

EMCOR Group, Inc. (EME): Free Stock Analysis Report

Dycom Industries, Inc. (DY): Free Stock Analysis Report

Comfort Systems USA, Inc. (FIX): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research