Key Takeaways
Dycom Industries Inc. reported a record quarterly backlog of $11.9 billion, up 46.5% from a year earlier, as demand for fiber-optic networks and data center infrastructure accelerates across multiple end markets.
"These build cycles go well into the next decade," Chief Executive Officer Dan Peyovich said during a discussion with Guggenheim Securities analyst Joe Osha. The company's nearly $12 billion backlog reflects multiple demand drivers "coming in now on top of each other," he said, adding that Dycom's ability to supply a skilled workforce of more than 20,000 employees gives it a competitive edge.
The Palm Beach Gardens, Florida-based specialty contractor raised its fiscal 2027 revenue outlook to a range of $7.38 billion to $7.65 billion, up from a prior forecast of $6.85 billion to $7.15 billion. For the second quarter, Dycom expects revenue of $1.94 billion to $2.01 billion, compared with $1.38 billion a year earlier, and adjusted earnings per share of $4.40 to $4.82, up from $3.33. Adjusted EBITDA margin expanded 141 basis points to 13.4% in the fiscal first quarter.
Peyovich said the long-haul and middle-mile fiber opportunity, previously sized at $20 billion over five years, has "grown considerably" as customers plan higher-capacity routes with fiber counts reaching 7,500 to 10,000 strands. He described the build cycle as "extremely early," with activity expected to ramp next year and become more significant by calendar 2028. Dycom's Power Solutions business, more than 90% tied to data centers, saw its growth outlook raised to 35%, with demand described as "absolutely insatiable." The company also expects the federal Broadband Equity, Access and Deployment program to contribute meaningfully from calendar 2027, with an addressable market of about $17 billion.
The guidance raise signals management expects demand for digital infrastructure to sustain well beyond the current cycle. Investors will watch Dycom's fiscal second-quarter results for further margin expansion and updates on its pending acquisition of National Technology Integrators, which expands its data center and low-voltage capabilities.
This article is for informational purposes only and does not constitute investment advice.
