WEST PALM BEACH, Florida, August 26, 2026, 08:20 (EDT) – Dycom’s share price dropped 7.7% just ahead of its record second quarter, with the company’s Building Systems segment achieving a margin of 24.5%.
- Dycom posted record fiscal second-quarter revenue of $2.006 billion, a rise of 45.6%.
- Building Systems reported an adjusted EBITDA margin of 24.5%, contributing 30.8% to group EBITDA.
- On Tuesday, shares dropped 7.65%, trading at over triple their typical volume ahead of the release.
Dycom Industries, Inc. (NYSE:DY) posted record financial results for its fiscal second quarter on Wednesday following a 7.65% drop in its share price the previous session. Contract revenue climbed 45.6% to $2.006 billion. Adjusted EBITDA grew 53.5% to $315.5 million.
The key change was found beneath the headline. Building Systems contributed 19.8% of total revenue while accounting for 30.8% of adjusted EBITDA. Its margin reached 24.5%, coming in 10.9 percentage points higher than Communications.
This combination offers Dycom a more profitable pathway into data-center construction. However, it highlights a divergence: while communications revenue increased, the segment margin declined to 13.6% from 14.9%.
| Fiscal Q2 metric | 2027 | 2026 | Change |
|---|---|---|---|
| Contract revenue | $2.006B | $1.378B | up 45.6% |
| Adjusted EBITDA | $315.5M | $205.5M | rose 53.5% |
| Adjusted EBITDA margin | 15.7% | 14.9% | up 81 bps |
| Adjusted diluted EPS | $5.29 | $3.64 | increased 45.3% |
| Total backlog | $12.242B | $7.989B | rose 53.2% |
Building Systems reported quarterly revenue of $397.5 million and adjusted EBITDA of $97.2 million. Communications delivered $1.608 billion in revenue and $218.3 million in adjusted EBITDA.
Dycom finalized its acquisition of National Technology Integrators in the quarter. The structured-cabling business contributed $22.9 million in revenue, increasing Dycom’s presence in data centers and other key facilities.
Chief Executive Dan Peyovich reported demand was “stronger than ever.” He attributed this to an extended deployment cycle for digital infrastructure. The company’s backlog climbed to $12.242 billion, representing a 53.2% increase from a year earlier.
The company increased its fiscal 2027 revenue outlook to a range of $7.48 billion–$7.66 billion. The new midpoint, at $7.57 billion, is up $55 million from the previous midpoint. Approximately $150 million in wireless revenue has been moved to fiscal 2028.
Shares ended Tuesday at $351.80, a decline of $29.15. Trading volume was around 1.85 million shares, compared with the typical average of 560,000 shares. The most recent confirmed after-hours price was $354.65, marking a rise of 0.8%.
Dycom ended Tuesday with a market capitalization of $10.6 billion, trading at about 33.6 times its trailing earnings. Its backlog was around $1.7 billion greater than its equity value.
StockAnalysis data shows 11 analysts give the stock a Strong Buy consensus, with an average price target of $637.27—an increase of roughly 81% from Tuesday’s close. KeyBanc most recently reiterated its Overweight rating and boosted its target to $610.
Risks: Acquisitions and expanded project scopes supported Building Systems. Communications margins narrowed even with higher volume. Dycom faces acquisition-related debt, and fluctuations in labor supply or project schedules may move revenue across reporting periods.
Dycom’s next scheduled catalyst is its results call at 9:00 a.m. EDT. Market participants are set to watch for updates on the $150 million wireless deferral and will assess if Building Systems’ margin can be maintained.
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