Dycom Industries (DY) Q4 2026 earnings summary

Executive summary

• Achieved record fourth quarter and full-year results, exceeding the high end of revenue outlook with strong organic growth and margin expansion year-over-year.

• Strategic M&A, notably the acquisition of Power Solutions, broadened business reach and accelerated entry into the data center market.

• Positioned for continued growth in FY 2027, with a disciplined approach to backlog and high-value engagements.

• Focused on strategic priorities including workforce development, Building Systems expansion, margin improvement, and cash flow optimization.

• Revised segment reporting to Communications and Building Systems to reflect expanded platform and strategy.

Financial highlights

• Q4 2026 revenue reached $1.458 billion, up 34.4% year-over-year; organic revenue grew 16.6%.

• Q4 adjusted EBITDA was $162.4 million (11.1% margin), up 39.6% year-over-year.

• Q4 adjusted diluted EPS was $2.03, a 42% increase year-over-year.

• Full-year 2026 revenue was $5.546 billion, up 17.9% (6.5% organic).

• Full-year adjusted EBITDA was $737.7 million (13.3% margin), up 28%; adjusted EPS $11.97, up 29.7%.

• Free cash flow for FY26 was $435.3 million, up 216%.

Outlook and guidance

• FY 2027 revenue expected between $6.85 billion and $7.15 billion; Communications segment $5.70–$5.90 billion, Building Systems $1.15–$1.25 billion.

• Q1 FY 2027 guidance: revenue of $1.64–$1.71 billion, adjusted EBITDA of $202–$218 million, adjusted EPS of $2.57–$2.90.

• Continued adjusted EBITDA margin expansion anticipated, with Building Systems targeting mid-teens margin.

• Wireless equipment replacement revenue expected to decline by $100 million in FY 2027.

• Annual capital expenditures projected at $210–$220 million.