Dycom Q2 Earnings Beat Estimates, Revenues Miss, Stock Down

Core Insights - Dycom Industries Inc. (DY) reported mixed results for Q2 fiscal 2026, with earnings exceeding estimates while contract revenues fell short of expectations [1][3][8] Financial Performance - Adjusted EPS for Q2 was $3.33, surpassing the Zacks Consensus Estimate of $2.86 by 16.4% and increasing 35.4% year-over-year [3][8] - Contract revenues reached $1.378 billion, missing the consensus estimate of $1.396 billion by 1.3%, but showing a year-over-year increase of 14.5% [3][8] - Adjusted EBITDA rose 29.8% to $205.5 million, with an EBITDA margin of 14.9%, expanding 175 basis points from the previous year [4][8] Operational Highlights - The backlog at the end of Q2 totaled $7.989 billion, a 16.9% increase year-over-year, with $4.604 billion expected to be completed in the next 12 months [5][8] - Cash flow improved as Days Sales Outstanding (DSOs) decreased by nine days, contributing to a significant backlog increase of over 20% year-over-year [2][5] Future Outlook - For Q3 fiscal 2026, Dycom anticipates contract revenues between $1.38 billion and $1.43 billion [7] - The company expects total contract revenues for fiscal 2026 to range from $5.290 billion to $5.425 billion, reflecting a year-over-year increase of 12.5% to 15.4% [10] Shareholder Actions - Dycom repurchased 200,000 shares for $30.2 million at an average price of $150.93 per share during the first two quarters of fiscal 2026 [6]