DY

Dycom Industries, Inc. DY used its second-quarter fiscal 2027 earnings call to emphasize fiber and data-center demand while acknowledging timing and margin pressure in Communications. Management raised the full-year revenue outlook despite a $150 million wireless revenue deferral into fiscal 2028. Management pointed to fiber, data centers and Building Systems as growth drivers. Adjusted earnings of $5.29 per share topped the Zacks Consensus Estimate of $4.62, while revenues of $2.01 billion exceeded the $1.97 billion consensus estimate. Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote Chief executive officer (CEO) Dan Peyovich said Dycom now expects fiscal 2027 revenues of $7.48 billion to $7.66 billion. The midpoint is about $55 million above the prior outlook, supported by execution and National Technology Integrators. Chief financial officer (CFO) Drew DeFerrari said Communications revenues are expected at $5.9 billion to $6.01 billion, while Building Systems revenues are projected at $1.58 billion to $1.65 billion. DeFerrari also guided third-quarter fiscal 2027 revenues to $1.90-$1.98 billion, adjusted EBITDA to $281-$302 million and adjusted earnings to $4.33-$4.79 per share. A JPMorgan analyst pressed management on the $150 million wireless deferral. The CEO said the work remains tied to the same multiyear equipment-replacement program, with project-level visibility and no reduction in overall scope. A Cantor Fitzgerald analyst asked what drove the timing change. Peyovich declined to detail individual program mechanics but stressed that spending has not been reduced and that Dycom remains confident in the work moving into fiscal 2028. DeFerrari said deferred wireless work, workforce investments and a roughly 35-basis-point fuel headwind contributed to lower Communications margins, showing the near-term operating leverage effect. Peyovich said first-half fiber-to-the-home revenue grew nearly 60% year over year, reflecting acceleration across programs nationwide. He told a Wells Fargo analyst that the pace is not perfectly linear because large builds require permitting, planning and workforce ramp-up. The CEO also highlighted more than $1 billion of contracted backlog across long-haul, middle-mile and inside-the-fence fiber. He said the work is diversified across customers, programs and geographies. On BEAD, Peyovich said engineering revenues have started, but construction is expected to begin in earnest in fiscal 2028. He described the program as an incremental opportunity alongside fiber-to-the-home and long-haul activity. Peyovich said Building Systems is benefiting from strong data-center demand and a growing mix of electrical and structured-cabling work. Power Solutions helped the segment post a 24.5% adjusted EBITDA margin. The CFO said the margin benefited from operating leverage and favorable changes in project cost estimates and service scope. Management expects Building Systems margins in the high teens to low 20s for the remainder of fiscal 2027. Peyovich said National Technology Integrators is integrating smoothly and already generating cross-selling opportunities with Power Solutions. The acquired business contributed about $22.9 million of revenues during the quarter. Communications adjusted EBITDA margin fell to 13.6% from 14.9% a year earlier. According to Peyovich, Dycom is spending on training, benefits and workforce capacity to stay ahead of customer demand. A UBS analyst asked when those investments might translate back into stronger operating leverage. Peyovich emphasized that the spending is ongoing and not linear, while maintaining that current Communications margins remain strong. DeFerrari said capital allocation priorities are unchanged: organic growth first, followed by M&A, with repurchases evaluated opportunistically. The board approved a new $150 million share-repurchase authorization through February 2028. Peyovich closed with a focus on execution, backlog quality and workforce readiness as Dycom prepares for more fiber, data-center and infrastructure work. Record backlog of $12.2 billion provides visibility as the business diversifies. Management also identified constraints. Communications margins face investment pressure, Building Systems remains labor-constrained, and fourth-quarter seasonality remains a consideration in the outlook. DY carries a Zacks Rank #4 (Sell). Its Growth Score, Momentum Score and VGM Score are all A, while its Value Score is C, indicating stronger growth and momentum characteristics than value characteristics within the Style Scores framework. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Zacks' methodology places the Rank ahead of Style Scores, so the unfavorable Rank tempers the positive A scores. The Zacks Rank can change as analysts revise earnings estimates following the just-reported results. 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 Dycom Industries, Inc. (DY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dycom Industries (NYSE: DY) reported quarterly earnings that came in above EBITDA expectations, pointing to continued strength in its core operations tied to AI infrastructure demand. The company’s latest results, released in the most recent quarter of 2026, highlighted performance that exceeded prior EBITDA forecasts referenced in earlier valuation focused discussions. The earnings surprise added fresh evidence of business momentum linked to AI related network and data infrastructure projects that remain a key focus for many investors. Consider reviewing other stocks that are helping build out AI infrastructure alongside Dycom Industries through 55 AI infrastructure stocks. Dycom Industries is a US based specialty contractor that builds and maintains digital and telecommunications infrastructure for network and utility customers, so its results are closely tied to how much these clients spend on data and connectivity projects linked to AI demand. See which insiders are buying and selling Dycom Industries following this latest news. Dycom Industries now expects fiscal 2027 contract revenues between US$7.48b and US$7.66b and guided Q3 contract revenues to US$1.90b to US$1.98b. Set alongside an EBITDA beat in the latest quarter, that guidance reinforces the picture of solid AI related and connectivity work already contracted rather than just talked about. The raised full year outlook and record backlog referenced in recent commentary line up with the Narrative that fiber and data center projects linked to AI can support multi year contract visibility and cash generation. At the same time, the deferral of about US$150m of wireless revenues into fiscal 2028 is a reminder that long cycle projects and customer timing remain key execution risks in that story. If we take a look at the community Narrative for Dycom Industries, we can see how this news fits into the bigger investment story. The next key check point is whether upcoming quarters track within or above the US$1.90b to US$1.98b Q3 revenue range while keeping margins consistent with recent EBITDA performance. Any updates on the US$150m repurchase program and progress integrating National Technology Integrators into the Building Systems segment will also be important markers. For the full picture including more risks and rewards, check out the complete Dycom Industries analysis. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Revenue: Record quarterly revenue of $2.01 billion, up 45.6% year over year and 16.7% organically. Adjusted EBITDA: $315.5 million, up 54% year over year, representing 15.7% of revenues. Adjusted EPS: $5.29 per share, up 45% year over year. Communications Segment Revenue: $1.608 billion, up 16.7% organically. Communications Adjusted EBITDA: $218.3 million, with margin of 13.6% of segment revenue, down 134 basis points. Building Systems Revenue: $397.5 million, exceeding expectations. Building Systems Adjusted EBITDA: $97.2 million, or 24.5% of segment revenue. Backlog: Record total backlog of $12.2 billion, with a book-to-bill of 1.2 times (1.1 times organic). Operating Cash Flow: $103.7 million generated during the quarter. DSOs: 101 days, a seven-day improvement year over year. Full-Year Revenue Outlook: Raised to $7.48 billion to $7.66 billion, representing 36.5% total revenue growth and 11.3% organic growth at the midpoint. Warning! GuruFocus has detected 3 Warning Sign with DY. Is DY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Record quarterly revenue of $2.01 billion, up 45.6% year-over-year and 16.7% organically. Adjusted EBITDA of $315.5 million grew 54% year-over-year, exceeding the high end of outlook. Adjusted EPS of $5.29 grew 45% year-over-year, also exceeding the high end of outlook. Record total backlog of $12.2 billion, with a book-to-bill of 1.2 times total and 1.1 times organic. Building Systems segment delivered exceptional 24.5% adjusted EBITDA margin, driven by strong demand and operating leverage. Communications segment adjusted EBITDA margin decreased 134 basis points year-over-year due to investments, wireless deferral, and higher fuel costs. Approximately $150 million of wireless revenues deferred from fiscal 2027 into fiscal 2028, impacting near-term growth. Fuel price increases caused approximately 35 basis points of cost pressure in the Communications segment. Communications segment margins expected to decline slightly year-over-year due to scaling investments and wireless deferral. Data center construction faces potential headwinds from moratoriums and NIMBYism, though demand remains strong. Q: Can you clarify the $150 million wireless revenue deferral into fiscal 2028 and how confident you are in that revenue being realized next year? Also, how much of the first-half contribution was wireless to gauge non-wireless growth?A: Dan Peyovich (President and CEO) clarified that the wireless program is a four-year equipment replacement program that has performed above expectations. The $150 million deferral is simply a timing shift from this fiscal year to next, with line of sight to the projects and even some scope being added. He expressed high confidence in the program's continuation, noting that the company already has significant organic growth this year, making the deferral a positive for future backlog. Q: Can you reconcile the year-over-year margin shortfall in the Communications segment, specifically the impact of investments, revenue deferrals, and other factors?A: Drew DeFerrari (CFO) explained that fuel prices had approximately a 35 basis point negative impact year-over-year. Additionally, the company is investing in workforce benefits and scaling operations to support growth, which carries costs. The wireless revenue deferral also impacted operating leverage in the segment. Q: What drove the $150 million wireless deferral into fiscal 2028? Is it equipment availability or work allocation?A: Drew DeFerrari (CFO) declined to provide detailed specifics on individual programs but reiterated that the wireless acquisition and program have performed exceptionally well, with returns exceeding initial expectations. He emphasized that the overall program scope and backlog are unchanged, and the company has line of sight to individual projects, providing high confidence in the timing and execution. He noted that it is not uncommon for large-scale deployment schedules to adapt over time. Q: Given the exceptional 24.5% margin in Building Systems, how should we think about the normalized margin bridge for fiscal 2028 and 2029?A: Dan Peyovich (President and CEO) stated that Dycom's commitment is to long-term returns. The company seeks quality businesses and invests in them to strengthen their performance, as seen with Power Solutions and National Technology Integrators. The 24.5% margin reflects the success of these investments and the strong demand environment. He indicated that the company expects Building Systems margins to remain in the high teens to low 20s, reflecting continued operating leverage and successful integration. Q: Can you elaborate on the 60% fiber-to-the-home revenue growth in the first half and whether the second-half deceleration is due to timing or market share gains?A: Dan Peyovich (President and CEO) attributed the strong growth to Dycom's ability to execute on highly complex programs, stating "complexity favors Dycom." The deceleration is not a demand issue but rather the nature of ramping up projects from the ground up, which is not perfectly linear. He emphasized that the company continues to see significant opportunities for growth, supported by a strong backlog and customer reaffirmations of their build programs. Q: Have you seen any signs of data center moratoriums or backlash affecting your Building Systems segment, and how does that inform your expansion strategy?A: Dan Peyovich (President and CEO) acknowledged that there are issues being worked through in the industry, but from his perspective on the ground, demand remains significant and continues to grow. He highlighted Dycom's strong position with Power Solutions and National Technology Integrators, and the company's long-term partnerships with customers. He noted that the company is keeping these factors in mind as it evaluates new market expansions and acquisitions. Q: How would you characterize the core wireline business and the trends in various fiber programs?A: Dan Peyovich (President and CEO) stated that Dycom is executing incredibly well in the wireline business, as evidenced by growth across programs and a strong backlog. He highlighted the company's leadership in fiber-to-the-home and its early positioning in the long-haul and middle-mile fiber market, which he described as a $20 billion opportunity that is taking shape. He emphasized that Dycom's experience and ability to handle complex work will continue to differentiate it. Q: Can you help size the long-haul and middle-mile fiber opportunities and when they might come into backlog?A: Dan Peyovich (President and CEO) declined to provide a specific outlook on timing but reiterated that the $20 billion opportunity is back-half loaded. He noted that the company is tracking this closely and is already well-positioned with over $1 billion in contracted backlog and hundreds of millions of dollars of work performed. He emphasized that this work is diversified across customers and programs, not a singular bet, and that Dycom's experience in this complex space will be a key differentiator. Q: Is the wireless deferral related to a customer's headcount reduction, and can you provide more color on BEAD funding and long-haul pricing dynamics?A: Dan Peyovich (President and CEO) did not confirm a correlation with tower company commentary but reiterated confidence in the wireless program. On BEAD, he noted that engineering work has begun and construction is expected to start in earnest in fiscal 2028 (calendar 2027), with a total addressable market of approximately $17 billion. Regarding long-haul pricing, he stated that the work is highly complex and Dycom has a competitive advantage, giving it confidence in the quality of its backlog. Q: Given the second-half growth rate, what is the potential for double-digit growth in Communications next year, and can long-haul, BEAD, and fiber-to-the-home contribute enough?A: Dan Peyovich (President and CEO) said it is too early to provide an outlook for next year but highlighted several growth drivers. Fiber-to-the-home programs have significant growth left for years, BEAD provides upside for next year, and long-haul work will ramp up over time. He emphasized that the combination of these factors will create massive demand for skilled labor, where Dycom's workforce of approximately 17,000 people and its training investments provide a significant competitive advantage. Q: Were the scaling costs in Communications more than expected, and how are you factoring fuel recovery into the margin outlook?A: Dan Peyovich (President and CEO) reaffirmed that Dycom has industry-leading margins in Communications and is pleased with the returns. The investments are intentional to support customer growth aspirations and maintain status as an employer of choice. He noted that the company takes a prudent approach to Q4 seasonality and that favorable results in Q4 and Q1 of last year For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved quarterly revenue of approximately $2.01 billion, with fiber-to-the-home programs increasing nearly 60% in the first half of the year compared to the prior year. and significant contributions from the Building Systems segment. Secured over $1 billion in contracted backlog for long-haul and data center interconnects, validating the company's early entry into the $20 billion addressable fiber corridor market. Building Systems segment delivered exceptional margins of 24.5%, benefiting from favorable cost estimate changes and strong demand for data center electrical and structured cabling. Communications segment margins faced pressure from intentional investments in workforce benefits and training to secure the skilled labor required for complex multi-year builds. Operational leverage in the Communications segment was impacted by the strategic deferral of $150 million in wireless revenue into the next fiscal year. Management emphasized that 'complexity favors Dycom,' positioning the company's national reach and local expertise as a differentiator for hyperscale and cloud provider infrastructure projects. Integration of National Technology Integrators is progressing smoothly, with initial contributions exceeding expectations and providing immediate cross-selling opportunities with Power Solutions. Raised full-year revenue outlook to $7.48 billion–$7.66 billion, reflecting strong execution despite the shift of wireless project timing. Anticipate nominal BEAD-related engineering work through the second half of the year, with construction activity expected to start in earnest during fiscal 2028. Expect Building Systems margins to normalize in the high teens to low 20s as the segment scales to meet persistent data center demand. Construction is underway on a new flagship training facility in Georgia, scheduled to open in the first half of calendar 2027 to address industry-wide craft labor shortages. Management maintains a disciplined M&A strategy, actively pursuing additional acquisitions to expand the Building Systems footprint into new geographies and markets. A $150 million shift in wireless revenue from the second half of fiscal 2027 to fiscal 2028 was attributed to typical large-scale deployment schedule adaptations; total program scope remains unchanged. Fuel price volatility contributed approximately 35 basis points of cost pressure to the Communications segment margin during the quarter. DSOs improved by 7 days year-over-year to 101 days, reflecting fundamental enhancements in working capital discipline and cash flow profile. The Board of Directors approved a new $150 million share repurchase authorization through February 2028, replacing the prior remaining balance. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified the shift is a timing adjustment for a specific equipment replacement program and does not reflect a reduction in overall scope. Expressed high confidence in the revenue eventually being realized, noting that the program has already outperformed initial expectations since the acquisition of the wireless business. Attributed the 24.5% margin to favorable project cost estimates and high demand, while guiding to a sustainable long-term range of high teens to low 20s. Confirmed that investments in the segment are 'shifting into another gear,' allowing the company to turn away lower-margin work in favor of high-quality backlog. Management stated that despite headlines regarding local backlash or moratoriums, they have not seen a slowdown in their specific project pipeline. Emphasized that their long-term partnerships and visibility into builds 'many years out' provide a buffer against localized regulatory headwinds. Noted that the high complexity of long-haul fiber splicing and deployment limits the competitive field to firms with significant scale and specialized training. Indicated that current backlog reflects 'quality' pricing that accounts for the high level of service and technical expertise required for hyperscale interconnects.

Interested in Dycom Industries, Inc.? Here are five stocks we like better. Record results: Fiscal Q2 revenue rose 45.6% year over year to $2.01 billion, while adjusted EBITDA increased 54% to $315.5 million and adjusted EPS climbed 45% to $5.29, exceeding the company’s outlook. Strong infrastructure demand: Growth was led by fiber-to-the-home, long-haul and data-center connectivity, with total backlog reaching $12.2 billion. Dycom also cited robust building-systems performance and contributions from its National Technology Integrators acquisition. Raised outlook despite wireless deferral: Dycom increased its fiscal 2027 revenue forecast to $7.48 billion-$7.66 billion, although about $150 million of wireless replacement revenue shifted into fiscal 2028. The board also authorized a new $150 million share-repurchase program. Smaller Industrials Names Seeing Surging Growth: Here's Why Dycom Industries (NYSE:DY) reported record fiscal 2027 second-quarter revenue and raised its full-year outlook, citing continued demand for fiber-to-the-home, long-haul fiber, data-center infrastructure and building systems work. President and Chief Executive Officer Dan Peyovich said quarterly revenue reached $2.01 billion, up 45.6% from a year earlier and 16.7% higher organically. Adjusted EBITDA rose 54% to $315.5 million, representing 15.7% of revenue, while adjusted diluted earnings per share increased 45% to $5.29. The company said both EBITDA and adjusted EPS exceeded the high end of its outlook. → What Rising Delivery Forecasts Say About Rivian's Stock Prospects Hidden Gems: 3 Quiet Stocks With Loud Potential “Demand across our portfolio remains robust,” Peyovich said, pointing to activity in fiber-to-the-home, long-haul and data-center interconnects, as well as data-center electrical and structured cabling systems. He said customer demand was as strong as, or stronger than, the prior quarter and that Dycom has discussions underway regarding projects extending years into the future. Communications segment revenue was $1.61 billion and grew 16.7% organically from the prior-year quarter. Chief Financial Officer Drew DeFerrari said the increase reflected fiber-to-the-home programs, long-haul and middle-mile fiber construction, and maintenance and operations services. → NVIDIA Reveals $21 Billion SpaceX Stake: Signal of Confidence or Circular Financing? The Top 5 Analysts Ranked by MarketBeat and Stocks They Cover Fiber-to-the-home revenue increased nearly 60% during the fiscal first half compared with the prior-year period, according to Peyovich. He said approximately half of Dycom’s communications business consists of service and maintenance work, which provides recurring revenue but is growing at a slower pace than fiber deployment programs. Dycom reported more than $1 billion of contracted backlog for long-haul, middle-mile and “inside the fence” fiber work intended to connect data centers. Peyovich said the company has already completed hundreds of millions of dollars of work in the category and views its opportunity as part of a previously identified $20 billion addressable market. He said the opportunity is weighted toward the latter half of the decade, though Dycom has already secured work across multiple customers and geographic markets. → Berkshire Boosts Its Bet: This AI Hyperscaler Is Now a Top-3 Holding The company also said it recognized revenue during the quarter from Broadband Equity, Access, and Deployment, or BEAD, field-engineering work in the Northeast. Dycom expects engineering work to remain nominal through the remainder of fiscal 2027, with construction beginning in earnest in fiscal 2028, which corresponds with calendar 2027. Communications adjusted EBITDA was $218.3 million, up about $12.8 million from the prior-year quarter. However, the segment’s adjusted EBITDA margin fell 134 basis points to 13.6%. DeFerrari attributed the decline to investments needed to scale operations, lower operating leverage from deferred wireless projects and roughly 35 basis points of pressure from higher fuel prices. Dycom said it now expects approximately $150 million in revenue from a wireless equipment-replacement program to shift from the second half of fiscal 2027 into fiscal 2028. Peyovich said the shift reflects normal changes in deployment schedules and does not change the overall scope or backlog of the multiyear program. “We have line of sight to the projects,” Peyovich said in response to an analyst question, adding that some scope has been added and that the company has “a ton of confidence” the deferred work will proceed next year. The company expects the wireless equipment-replacement program to conclude in fiscal 2028. Peyovich said the program has delivered returns above initial expectations for Dycom’s wireless acquisition, while the company continues to see service, maintenance, densification and upgrade opportunities in wireless infrastructure. Building systems revenue totaled $397.5 million, representing about 20% of consolidated revenue. The segment’s adjusted EBITDA was $97.2 million, or 24.5% of revenue. DeFerrari said the result benefited from favorable changes in project cost estimates and service scope, in addition to operating leverage. During the quarter, Dycom completed its acquisition of National Technology Integrators, which contributed approximately $22.9 million in revenue. Peyovich said the acquired business was performing above expectations and that Dycom has identified cross-selling opportunities with Power Solutions and its communications businesses. The company increased its outlook for building systems revenue to a range of $1.58 billion to $1.65 billion for the full fiscal year, including approximately $90 million of acquired National Technology Integrators revenue expected during the second half. Dycom expects building systems adjusted EBITDA margins in the high teens to low 20% range for the year. Peyovich said the company is seeking to expand the building systems business into additional geographies and markets through further acquisitions. He also noted that electricians remain in short supply and that the company has turned away some projects because of workforce constraints. Dycom ended the quarter with total backlog of $12.2 billion, including $10.98 billion in communications and $1.26 billion in building systems. Backlog expected to be completed over the next 12 months was $6.47 billion. The company raised its fiscal 2027 total revenue outlook to $7.48 billion to $7.66 billion, an increase of approximately $55 million at the midpoint from its prior forecast. Communications revenue is now expected to range from $5.90 billion to $6.01 billion, reflecting the wireless deferral, while Dycom continues to expect consolidated adjusted EBITDA margin expansion for the full year. For the third quarter, Dycom forecast revenue of $1.90 billion to $1.98 billion, adjusted EBITDA of $281 million to $302 million and adjusted diluted EPS of $4.33 to $4.79, excluding intangible amortization expense. Operating cash flow was $103.7 million in the quarter, while combined days sales outstanding for accounts receivable and contract assets improved seven days year over year to 101 days. Dycom ended the quarter with $340.1 million in cash and equivalents, more than $1.086 billion of total liquidity and pro forma net leverage of about 2.3 times adjusted EBITDA. The board authorized a new $150 million share-repurchase program through February 2028, replacing the remaining authorization under the prior program. DeFerrari said Dycom’s capital-allocation priorities remain investments in organic growth, acquisitions and opportunistic share repurchases. Dycom Industries, Inc (NYSE: DY) is a leading provider of specialty contracting services to the telecommunications industry in North America. The company delivers engineering, construction, installation and maintenance solutions for communications infrastructure, supporting a broad range of network technologies and system architectures. Dycom's services span outside plant construction, cable placement, fiber optic deployment, wireless and wireline network engineering, as well as testing and turn-up services for voice, data and video applications. Dycom's customer base includes major telecommunications carriers, cable operators, utility companies and competitive local exchange carriers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Dycom Industries Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Dycom Industries Inc. DY reported strong results for the second quarter of fiscal 2027 (ended Aug. 1, 2026). Adjusted earnings and contract revenues surpassed the Zacks Consensus Estimate and grew year over year.The quarter benefited from robust fiber-to-the-home programs, long-haul and middle-mile infrastructure builds and growing maintenance and operations services. Backlog reached a record level, supporting strong multi-year visibility. However, Communications profitability faced pressure from investments to scale operations, deferred wireless projects and higher year-over-year fuel costs.DY stock tumbled 7.1% during the pre-market trading session today. Dycom reported adjusted earnings per share of $5.29, beating the Zacks Consensus Estimate of $4.62 by 14.5%. In the year-ago quarter, the company recorded adjusted earnings of $3.64 per share. Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote Contract revenues of $2.01 billion surpassed the consensus estimate of $1.97 billion by 1.7% and increased 45.6% year over year. AT&T and Verizon each accounted for more than 10% of total revenues during the quarter. Communications revenues increased 16.7% year over year to $1.61 billion, driven by robust fiber-to-the-home programs, increased long-haul and middle-mile fiber builds, and growing maintenance and operations services. Adjusted EBITDA rose 6.2% to $218.3 million. However, the margin contracted 134 basis points to 13.6% due to investments to scale operations, deferred wireless activity and higher fuel costs. Building Systems generated contract revenues of $397.5 million. Adjusted EBITDA was $97.2 million, with a margin of 24.5%, supported by strong execution, operating leverage and favorable changes in project cost estimates and scope. National Technology Integrators, acquired during the quarter, contributed about $22.9 million in revenues. Of the total backlog, $6.472 billion is expected to be completed during the next 12 months. Communications backlog totaled $10.983 billion, including $5.362 billion for the next 12 months, while Building Systems backlog stood at $1.259 billion, with $1.11 billion scheduled within a year.DY reported a 1.4-times organic book-to-bill ratio for the first half of fiscal 2027. Recent project awards continued to diversify backlog across customers, demand drivers and geographies, while contracted backlog for long-haul, middle-mile and inside-the-fence fiber infrastructure builds exceeded $1 billion. Consolidated adjusted EBITDA increased 53.5% year over year to $315.5 million. The adjusted EBITDA margin expanded 81 basis points to 15.7%. Adjusted net income rose 51.1% to $160.7 million, while GAAP net income increased 18.6% to $115.6 million.Costs of earned revenues, excluding depreciation and amortization, increased to $1.565 billion from $1.07 billion. General and administrative expenses rose to $132.9 million from $106.8 million, while depreciation and amortization increased to $115.6 million from $60.9 million. Operating cash flow increased to $103.7 million from $57.4 million a year ago, while free cash flow rose to $37.9 million from $18.4 million. Days sales outstanding improved to 101 from 108, indicating a shorter collection cycle than in the prior-year quarter.As of Aug. 1, 2026, Dycom had cash and equivalents of $340.1 million compared with $709.2 million at the end of fiscal 2026. Long-term debt was $2.79 billion compared with $2.81 billion at the end of fiscal 2026. Liquidity stood at $1.09 billion, after the company used $225.5 million of cash for acquisitions during the quarter. DY expects contract revenues between $1.90 billion and $1.98 billion for the third quarter of fiscal 2027. The company projects adjusted EBITDA in the range of $281 million to $302 million.Adjusted earnings, excluding amortization expense, are expected between $4.33 and $4.79 per share. The guidance covers the quarter ending Oct. 31, 2026. Dycom raised its fiscal 2027 contract revenue outlook to $7.48-$7.66 billion from the previous guidance of $7.38-$7.65 billion. Building Systems revenues are now projected at $1.58-$1.65 billion, up from the prior range of $1.35-$1.45 billion, reflecting higher expected revenues from Power Solutions and contributions from National Technology Integrators. Conversely, the Communications revenue outlook was lowered to $5.90-$6.01 billion from $6.03-$6.20 billion. The Communications outlook incorporates the deferral of approximately $150 million of wireless program revenues into fiscal 2028, with overall program scope unchanged. Dycom expects consolidated adjusted EBITDA margin to increase for the year. Building Systems adjusted EBITDA margin is projected in the high-teens to low-twenties range for the remainder of fiscal 2027. Dycom currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Martin Marietta Materials, Inc. MLM reported outstanding second-quarter 2026 results, wherein adjusted earnings (from continuing operations) and revenues topped the Zacks Consensus Estimate and increased year over year.Martin Marietta’s results benefited from strong organic performance and contributions from acquisitions. Aggregate shipments increased 17% to a record 61.6 million tons, supported by infrastructure and heavy nonresidential demand. Heavy nonresidential demand also benefits from data center, power-generation and warehouse construction. Martin Marietta raised its 2026 revenue guidance to a range of $7.2-$7.4 billion, with a midpoint of $7.3 billion.CRH plc CRH reported exceptional second-quarter 2026 financial results with adjusted earnings and total revenues topping the Zacks Consensus Estimate and growing year over year. Positive pricing, favorable demand and acquisition contributions supported the quarterly growth. CRH completed 11 acquisitions during the quarter for $1.1 billion.The company reaffirmed 2026 net income guidance of $3.9-$4.1 billion, adjusted EBITDA guidance of $8.1-$8.5 billion and earnings guidance of $5.60-$6.05 per share. CRH expects public infrastructure spending and reindustrialization activity to support demand, while new-build residential conditions remain subdued.Quanta Services, Inc. PWR reported better-than-expected second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The company’s performance benefited from strong demand for grid, generation and data-center infrastructure, broader self-perform capabilities, efficient resource utilization and solid execution across both segments.Quanta increased its 2026 revenue forecast to $39.3-$39.7 billion, representing a $4.55 billion increase at the midpoint from its prior outlook. Adjusted earnings are now projected to be in the range of $16.45-$16.95 per share, while adjusted EBITDA is expected to be between $4.09 billion and $4.21 billion. Free cash flow is forecast to be in the $2-$2.5 billion range. 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 Dycom Industries, Inc. (DY) : Free Stock Analysis Report Quanta Services, Inc. (PWR) : Free Stock Analysis Report Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dycom Industries (DY) came out with quarterly earnings of $5.29 per share, beating the Zacks Consensus Estimate of $4.62 per share. This compares to earnings of $3.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.50%. A quarter ago, it was expected that this provider of specialty contracting services would post earnings of $2.73 per share when it actually produced earnings of $4.42, delivering a surprise of +61.9%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Dycom Industries, which belongs to the Zacks Building Products - Heavy Construction industry, posted revenues of $2.01 billion for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 1.65%. This compares to year-ago revenues of $1.38 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Dycom Industries shares have added about 4.1% since the beginning of the year versus the S&P 500's gain of 12.2%. While Dycom Industries has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Dycom Industries was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.67 on $1.92 billion in revenues for the coming quarter and $16.39 on $7.61 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Heavy Construction is currently in the top 20% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Construction sector, Matrix Service (MTRX), has yet to report results for the quarter ended June 2026. The results are expected to be released on September 2. This energy services company is expected to post quarterly earnings of $0.17 per share in its upcoming report, which represents a year-over-year change of +160.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Matrix Service's revenues are expected to be $247.06 million, up 14.2% from the year-ago quarter. 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 Dycom Industries, Inc. (DY) : Free Stock Analysis Report Matrix Service Company (MTRX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Telecommunications company Dycom (NYSE:DY) will be announcing earnings results this Wednesday morning. Here’s what to look for. Dycom beat analysts’ revenue expectations last quarter, reporting revenues of $1.96 billion, up 56.1% year on year. It was an incredible quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Is Dycom a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members. This quarter, the market is expecting Dycom’s revenue to grow 43.6% year on year, improving from the 14.5% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Dycom rarely misses Wall Street’s revenue estimates. Looking at Dycom’s peers in the engineering and design services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EMCOR delivered year-on-year revenue growth of 19.8%, beating analysts’ expectations by 9.4%, and Sterling reported revenues up 90.1%, topping estimates by 14.2%. EMCOR traded up 18.6% following the results while Sterling was down 11.4%. Read our full analysis of EMCOR’s results here and Sterling’s results here. Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the engineering and design services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.8% on average over the last month. Dycom is down 9.3% during the same time and is heading into earnings with an average analyst price target of $637.27 (compared to the current share price of $384.91). ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all. Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.

Dycom Industries, Inc. DY is scheduled to report its second-quarter fiscal 2027 results on Aug. 26, before the opening bell.In the last reported quarter, the company’s adjusted earnings and contract revenues topped the Zacks Consensus Estimate by 61.9% and 18%, respectively. On a year-over-year basis, both metrics grew 84.9% and 56.1%, respectively.Dycom’s earnings surpassed estimates in each of the trailing four quarters, with an average of 25%. The Zacks Consensus Estimate for fiscal second-quarter earnings per share (EPS) has moved down to $4.62 from $4.64 over the past 30 days. However, the revised estimate indicates 38.7% year-over-year growth.The consensus estimate for contract revenues is pegged at $1.97 billion, indicating a 43.2% year-over-year rise from $1.38 billion. Dycom Industries, Inc. price-eps-surprise | Dycom Industries, Inc. Quote RevenuesDycom’s top-line performance in the fiscal second quarter is expected to have benefited from surging digital infrastructure demand, mainly tied to Artificial Intelligence and hyperscale computing. This is likely because telecom operators and technology firms are accelerating network upgrades. Moreover, the company is expected to have witnessed increased activity for fiber-to-the-home deployments, long-haul and middle-mile fiber infrastructure builds and large data center campuses. Moreover, the Broadband Equity Access and Deployment (BEAD) program, offering to be a multiyear catalyst amid strong project activity, is likely to have added to the quarter’s top-line growth.Notably, the acquisition of Power Solutions, LLC, under the Building Systems segment, is expected to have aided this segment’s contributions in the quarter, as it strengthens DY’s position in data center infrastructure. For the fiscal second quarter, Dycom expects contract revenues between $1.94 billion and $2.01 billion.For the fiscal second quarter, our Zacks model expects revenues from the Communications and Building Systems segments to be $1.61 billion and $358 million, sequentially up 2.7% but down 9.5%, respectively.Earnings & MarginsFor the fiscal second quarter, Dycom’s bottom line is expected to have increased year over year because of incremental leverage from contract revenue growth and strong operational capabilities. Owing to the robust market fundamentals, the company projects adjusted EBITDA between $284 million and $303 million, up from $205.5 million reported in the prior-year quarter. The company anticipates adjusted EPS in the range of $4.40-$4.82 for the fiscal second quarter.Our model projects adjusted EBITDA to grow year over year by 41% to $289.8 million.Although trade policy uncertainty and tariff-related cost increases are concerning for bottom-line growth, the increasing top line and favorable market demand trends are expected to have more than offset these headwinds.BacklogFor the fiscal second quarter, our model expects a total backlog of $14.11 billion, indicating growth of 76.6% from $7.99 billion reported in the prior-year quarter. Our proven model does not conclusively predict an earnings beat for Dycom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.DY’s Earnings ESP: The company has an Earnings ESP of +0.69%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.DY’s Zacks Rank: The stock currently carries a Zacks Rank #4 (Sell).You can see the complete list of today’s Zacks #1 Rank stocks here. Martin Marietta Materials, Inc. MLM reported outstanding second-quarter 2026 results, wherein adjusted earnings (from continuing operations) and revenues topped the Zacks Consensus Estimate and increased year over year.Martin Marietta’s results benefited from strong organic performance and contributions from acquisitions. Aggregates shipments increased 17% to a record 61.6 million tons, supported by infrastructure and heavy nonresidential demand. Heavy nonresidential demand also benefits from data center, power-generation and warehouse construction. Martin Marietta raised its 2026 revenue guidance to a range of $7.2-$7.4 billion, with a midpoint of $7.3 billion.CRH plc CRH reported exceptional second-quarter 2026 financial results with adjusted earnings and total revenues topping the Zacks Consensus Estimate and growing year over year. Positive pricing, favorable demand and acquisition contributions supported the quarterly growth. CRH completed 11 acquisitions during the quarter for $1.1 billion.CRH reaffirmed 2026 net income guidance of $3.9-$4.1 billion, adjusted EBITDA guidance of $8.1-$8.5 billion and earnings guidance of $5.60-$6.05 per share. The company expects public infrastructure spending and reindustrialization activity to support demand, while new-build residential conditions remain subdued.NVR, Inc. NVR reported second-quarter 2026 results, with earnings and Homebuilding revenues missing the Zacks Consensus Estimate. Earnings and Homebuilding revenues also declined on a year-over-year basis.NVR’s quarter reflected stronger order activity and a lower cancellation rate, but fewer settlements, softer pricing and margin pressure weighed on results. Settlements fell 8% to 5,058 units from 5,475 units, limiting revenue generation during the period. Backlog units increased 9% year over year, while Homebuilding's gross margin contracted amid higher lot costs, affordability challenges and land deposit impairments. 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 Dycom Industries, Inc. (DY) : Free Stock Analysis Report Martin Marietta Materials, Inc. (MLM) : Free Stock Analysis Report NVR, Inc. (NVR) : Free Stock Analysis Report CRH PLC (CRH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research