Description
Dycom Industries: Initiation Of Coverage – Fiber Buildouts, Data Centers & M&A Could Define The Next Growth Phase!
Dycom Industries, Inc. reported a strong start to fiscal 2027 with first quarter results surpassing expectations across revenue, profitability, backlog, and operational metrics. Total revenues reached $1.965 billion, representing a 56% year-over-year increase including 25% organic growth. Both the Communications and Building Systems segments contributed to this growth, with the Communications segment seeing a 25% rise driven by fiber-to-the-home (FTTH) expansions and long-haul infrastructure projects, while Building Systems, boosted by the Power Solutions acquisition, demonstrated accelerated growth and margin improvement. Adjusted EBITDA rose 75% year-over-year to $262.5 million, with consolidated adjusted EBITDA margin improving by 141 basis points to 13.4%. Adjusted diluted earnings per share increased by 85% to $4.42, bolstered by income tax benefits linked to share-based awards. The company ended the quarter with a record total backlog of $11.9 billion, reflecting continued diversification and strong customer demand. Backlog growth of 25% sequentially and a book-to-bill ratio of 2.2x suggest robust near-term visibility.
