Dycom Industries Stock Earnings Reports

Dycom reported strong Q2 FY2026 results and reaffirmed full-year guidance. Key financials: revenue $1.378B (+14.5% YoY), adjusted EBITDA $205.5M (+29.8% YoY) at a 14.9% margin, net income $97.5M and diluted EPS $3.33. Combined DSOs improved by nine days to 108. Backlog totaled ~$8.0B with $4.6B in next‑12‑months backlog (up ~17% and ~20% YoY). Management reaffirmed full‑year revenue guidance of $5.29B–$5.425B and sees continued multi‑year growth opportunities across FTTH, service & maintenance, wireless upgrades, and data‑center/outside‑plant work for hyperscalers. They estimate an initial addressable market of >$20B for outside‑plant data center network infrastructure over the next five years (likely conservative). BEAD program revenue is not included in guidance pending state plan approvals. Management highlighted operational efficiencies and operating leverage as drivers of margin improvement, a recent significant multistate award (FTTH + service & maintenance) to be added to Q3 backlog, continued strength in wireless equipment replacement work, and a ~$50M cash tax benefit expected to boost free cash flow this year. They remain focused on cash conversion, workforce development, selective M&A, and balancing reinvestment with shareholder returns. Key near‑term risks/considerations: quarter‑to‑quarter modulation of program ramps (seasonality), BEAD timing and approvals, supply chain/tariff developments, and ramp timelines for complex middle‑mile/inside‑fence data center projects (expected to contribute more materially in 2026–2027).