Dycom(DY) - 2026 Q2 - Quarterly Results

Fiscal 2026 Second Quarter Results Overview Second Quarter Highlights and Executive Commentary Dycom reported record Q2 FY26 revenue and earnings, exceeding expectations through operational efficiency and strong demand - Delivered record revenue within expectations and record earnings that exceeded expectations[2] - Meaningfully improved margins through operational efficiency and operating leverage, strengthening financial position via measured cash flow management[2] - Demand for digital infrastructure is accelerating, positioning Dycom to lead with its scale and national reach[3] Second Quarter and Year-to-Date Financial Highlights Key Financial Highlights Dycom achieved record Q2 contract revenues, GAAP diluted EPS, net income, and Adjusted EBITDA, with positive operating cash flows and an $8.0 billion backlog | Metric | Q2 Fiscal 2026 | Change YoY | YTD Fiscal 2026 | Change YoY | | :-------------------------------- | :------------- | :--------- | :-------------- | :--------- | | Contract Revenues | $1.378 billion | +14.5% | $2.637 billion | +12.4% | | GAAP Diluted EPS | $3.33 | +35.4% | $5.42 | +22.1% | | Net Income | $97.5 million | +42.5% | $158.5 million | +21.1% | | Adjusted EBITDA | $205.5 million | +29.8% | $355.9 million | +23.0% | | Operating Cash Flows | $57.4 million | N/A | N/A | N/A | | Backlog (as of July 26, 2025) | $8.0 billion | N/A | N/A | N/A | Detailed Financial Performance Second Quarter Fiscal 2026 Performance Dycom reported a 14.5% increase in contract revenues to $1.378 billion for Q2 FY26, with organic contract revenues growing 3.4%, and significant increases in Non-GAAP Adjusted EBITDA and GAAP net income | Metric | Q2 FY26 (July 26, 2025) | Q2 FY25 (July 27, 2024) | Change | | :-------------------------------- | :---------------------- | :---------------------- | :----- | | Contract Revenues | $1.378 billion | $1.203 billion | +14.5% | | Organic Contract Revenues | $1.238 billion | $1.197 billion | +3.4% | | Revenues from Acquired Businesses | $139.8 million | $5.7 million | N/A | | Metric | Q2 FY26 (July 26, 2025) | Q2 FY25 (July 27, 2024) | Change | | :-------------------------------- | :---------------------- | :---------------------- | :----- | | Non-GAAP Adjusted EBITDA | $205.5 million | $158.3 million | +29.8% | | Non-GAAP Adjusted EBITDA % of Contract Revenues | 14.9% | 13.2% | +1.7 pp | | GAAP Net Income | $97.5 million | $68.4 million | +42.5% | | GAAP Diluted EPS | $3.33 | $2.32 | +43.5% | | Non-GAAP Adjusted Net Income (Q2 FY25) | N/A | $72.5 million | N/A | | Non-GAAP Adjusted Diluted EPS (Q2 FY25) | N/A | $2.46 | N/A | Year-to-Date Fiscal 2026 Performance For the six months ended July 26, 2025, contract revenues increased 12.4% to $2.637 billion, with organic growth at 2.1%, and Non-GAAP Adjusted EBITDA grew to $355.9 million | Metric | YTD FY26 (July 26, 2025) | YTD FY25 (July 27, 2024) | Change | | :-------------------------------- | :----------------------- | :----------------------- | :----- | | Contract Revenues | $2.637 billion | $2.345 billion | +12.4% | | Organic Contract Revenues | $2.380 billion | $2.332 billion | +2.1% | | Revenues from Acquired Businesses | $256.6 million | $13.5 million | N/A | | Metric | YTD FY26 (July 26, 2025) | YTD FY25 (July 27, 2024) | Change | | :-------------------------------- | :----------------------- | :----------------------- | :----- | | Non-GAAP Adjusted EBITDA | $355.9 million | $289.2 million | +23.0% | | Non-GAAP Adjusted EBITDA % of Contract Revenues | 13.5% | 12.3% | +1.2 pp | | GAAP Net Income | $158.5 million | $131.0 million | +21.0% | | GAAP Diluted EPS | $5.42 | $4.44 | +22.1% | | Non-GAAP Adjusted Net Income (YTD FY25) | N/A | $135.0 million | N/A | | Non-GAAP Adjusted Diluted EPS (YTD FY25) | N/A | $4.58 | N/A | - Repurchased 200,000 shares of common stock for $30.2 million at an average price of $150.93 per share during the six months ended July 26, 2025[11] Outlook Fiscal 2026 Annual Outlook Dycom maintains its fiscal 2026 annual outlook, projecting total contract revenues between $5.290 billion and $5.425 billion, representing 12.5% to 15.4% growth | Metric | Fiscal 2026 Annual Outlook | | :-------------------- | :------------------------- | | Total Contract Revenues | $5.290 billion to $5.425 billion | | Total Growth (YoY) | 12.5% to 15.4% | - Fiscal 2026 will include 53 weeks of operations, with the extra week in the fourth quarter[12] - The fiscal 2026 outlook does not include storm restoration revenues, which were $114.2 million in fiscal 2025[12] Third Quarter Fiscal 2026 Outlook For Q3 FY26, Dycom expects contract revenues between $1.38 billion and $1.43 billion, Non-GAAP Adjusted EBITDA between $198 million and $213 million, and diluted EPS between $3.03 and $3.36 | Metric | Q3 Fiscal 2026 Outlook | | :-------------------------- | :--------------------- | | Contract Revenues | $1.38 billion to $1.43 billion | | Non-GAAP Adjusted EBITDA | $198 million to $213 million | | Diluted Earnings per Common Share | $3.03 to $3.36 | Company Information Use of Non-GAAP Financial Measures Dycom reports financial results in accordance with GAAP but may use Non-GAAP measures to provide useful information for investors, with reconciliations available in press release tables - Company reports financial results in accordance with U.S. GAAP[14] - Non-GAAP financial measures may be used to provide useful information to investors for direct comparison of performance with prior periods[14] - Reconciliation of Non-GAAP financial measures to comparable GAAP measures is provided in the press release tables[14] Conference Call Details Dycom hosted a conference call on August 20, 2025, to discuss fiscal 2026 second quarter results, with registration and webcast options provided - Conference call to discuss fiscal 2026 second quarter results was held on Wednesday, August 20, 2025, at 9:00 a.m. ET[15] - Participants could register to join the Q&A session, receiving a dial-in number and unique PIN[15] - A live listen-only audio webcast and accompanying slide presentation were accessible online, with a replay available on the Company's Investor Center website for approximately 120 days[16] About Dycom Industries, Inc. Dycom is a leading provider of specialty contracting services for telecommunications infrastructure and utility industries across the United States - Dycom is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States[17] - Services include program management, planning, engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers[17] - Also provides underground facility locating services for various utilities and other construction and maintenance services for electric and gas utilities[17] Forward-Looking Statements This press release contains forward-looking statements based on management's expectations, subject to known and unknown risks and uncertainties that could cause actual results to differ materially - Press release contains forward-looking statements based on management's expectations, estimates, and projections, made as of the date of the statements[18](index=18&