Dycom Industries, Inc. (NYSE:DY) reported fourth-quarter results on Wednesday and outlined its outlook for fiscal 2027.

Earnings Details

Contract revenues were up 34.4% year over year (Y/Y) to $1.46 billion, beating the analyst estimates of $1.35 billion. Organic revenue grew 16.6% Y/Y in the quarter.

Adjusted EBITDA rose 39.6% Y/Y to $162.4 million, or 11.1% of contract revenues.

Adjusted EPS of $2.03 beat analyst estimates of $1.73.

Operating cash flow for the quarter was $419.0 million. The company ended the quarter with a backlog of $9.5 billion and cash and equivalents of $709.2 million.

Power Solutions Acquisition

The company completed the acquisition of Power Solutions in the fourth quarter of fiscal 2026. The firm provides electrical infrastructure for data centers and critical facilities in the Washington D.C., Maryland, and Virginia region—home to the world’s largest data center hub. Power Solutions employs over 2,900 workers and brings a 25-year track record and strong customer relationships.

Segment Performance

Beginning in the fourth quarter, the company revised its segment reporting from one reportable segment to two reportable segments – Communications and Building Systems.

The Communications segment reported contract revenue of $1.36 billion, and the Building Systems segment reported revenue of $95.8 million in the quarter.

Management Commentary

CEO Dan Peyovich said, “Our strong fourth quarter performance closed a record year for Dycom, with ramping organic growth, meaningful margin expansion, and increased Free Cash Flow.”

“The acquisition of Power Solutions positions us squarely at the intersection of digital infrastructure and the fast-growing data center market. The integration is progressing as planned, and the business is performing in line with our expectations.”

Outlook

For fiscal 2027, Dycom Industries expects sales of $6.850 billion to $7.150 billion, compared with analysts’ estimate of $6.695 billion.

For the first quarter, the company expects adjusted earnings of $2.57 to $2.90 per share, compared with analysts’ estimate of $2.66 per share. Sales are projected at $1.640 billion to $1.710 billion, versus the $1.606 billion analyst estimate.

DY Price Action: Dycom Industries shares were down 4.35% at $385.95 at the time of publication on Wednesday, according to Benzinga Pro data. The pullback comes after shares surged about 152% over the past year.

Photo by Piotr Swat via Shutterstock