Dycom Industries, Inc. Reports Fiscal 2026 Fourth Quarter and Annual Results and Provides Fiscal 2027 Outlook

Core Insights - Dycom Industries, Inc. reported record fourth quarter and annual results for fiscal year 2026, exceeding revenue expectations and achieving significant organic growth [1][2][3] Fourth Quarter Highlights - Total contract revenues reached $1.458 billion, a 34.4% increase compared to the fourth quarter of fiscal 2025, with organic growth of 16.6% [4][5][6] - Net income for the fourth quarter was $16.3 million, or $0.55 per diluted share, while adjusted net income was $60.5 million, or $2.03 per diluted share, reflecting a 42.0% increase year-over-year [10][11] - Adjusted EBITDA for the fourth quarter was $162.4 million, representing a 39.6% increase, with an EBITDA margin of 11.1% [8][9] Annual Highlights - For fiscal year 2026, total contract revenues were $5.546 billion, a 17.9% increase from fiscal 2025, with organic growth of 6.5% [7][5] - Net income for the year increased by 20.5% to $281.2 million, or $9.56 per diluted share, while adjusted net income rose by 29.7% to $352.1 million, or $11.97 per diluted share [11][12] - Adjusted EBITDA for the year was $737.7 million, a 28.0% increase, with an EBITDA margin of 13.3% [9][11] Acquisition - The company completed the acquisition of Power Solutions, LLC on December 23, 2025, enhancing its capabilities in the data center market [12][3] - Power Solutions contributed $11.1 million to adjusted EBITDA in the fourth quarter, with a margin of 11.6% [8][12] Segment Reporting - Dycom has transitioned to a two-segment reporting structure: Communications and Building Systems, to better reflect its operational strategies [13][15] - The Communications segment generated $1.362 billion in revenues for the fourth quarter, while the Building Systems segment contributed $95.8 million [30] Fiscal 2027 Outlook - For fiscal 2027, Dycom anticipates contract revenues between $6.85 billion and $7.15 billion, driven by strong demand for fiber-to-the-home deployments and data center services [16][17] - The company expects continued expansion in adjusted EBITDA margins, particularly in the Building Systems segment [16]