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DY Q2 Earnings Call Focuses on Fiber Demand and Higher Outlook
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Key Takeaways
Dycom raised fiscal 2027 revenue guidance to $7.48B-$7.66B despite a $150M wireless deferral.
First-half fiber-to-the-home revenues rose nearly 60%, with more than $1B in contracted fiber backlog.
Building Systems posted a 24.5% adjusted EBITDA margin as data-center demand and Power Solutions drove growth.
Dycom Industries, Inc. (DY - Free Report) 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 and EPS Surprise
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.
Dycom Defends the Wireless Timing Shift
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.
DY Sees Fiber Growth Extending Beyond the Quarter
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.
Dycom Expands Building Systems Around Data Centers
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.
DY Invests Through Communications Margin Pressure
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.
Dycom Keeps Execution and Workforce at the Center
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's Zacks Signals Remain Mixed
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.
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.
View the Zacks #1 Rank List
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DY Q2 Earnings Call Focuses on Fiber Demand and Higher Outlook
Key Takeaways
Dycom Industries, Inc. (DY - Free Report) 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 and EPS Surprise
Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote
DY Raises Its Full-Year Revenue Outlook
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.
Dycom Defends the Wireless Timing Shift
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.
DY Sees Fiber Growth Extending Beyond the Quarter
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.
Dycom Expands Building Systems Around Data Centers
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.
DY Invests Through Communications Margin Pressure
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.
Dycom Keeps Execution and Workforce at the Center
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's Zacks Signals Remain Mixed
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.