- Record Q4 Revenue: Dycom achieved $1.46 billion in Q4 revenue, a 34.4% YoY increase with 16.6% organic growth excluding acquisitions and an extra week.
- Adjusted EBITDA Surge: Q4 adjusted EBITDA rose to $162.4 million (39.6% YoY growth), with a 11.1% margin, up 41 basis points year-over-year.
- Full-Year Revenue & Margin Expansion: Annual revenue hit $5.55 billion (+17.9% YoY) and adjusted EBITDA reached $737.7 million, with a 13.3% margin, reflecting operational efficiency.
- Backlog Growth: Closed fiscal 2026 with $9.5 billion in backlog, including $6.3 billion expected in 12 months, signaling strong future revenue visibility.
- 2027 Guidance & Strategic Goals: Projects fiscal 2027 revenue of $6.85–$7.15 billion (+23.6–29% YoY) and prioritizes margin expansion, workforce development, and Building Systems growth.
Segment Performance
The Communications segment revenue was $1.362 billion, driven by fiber-to-the-home programs, wireless activity, and fiber infrastructure programs. AT&T and Lumen each exceeded 10% of total revenue for the quarter. The Building Systems segment, which includes Power Solutions, had revenue of $95.8 million and adjusted EBITDA of $11.1 million. The acquisition of Power Solutions was completed in the quarter, with a purchase price of $1.95 billion.
Outlook and Guidance
For fiscal 2027, Dycom expects total contract revenues to range from $6.85 billion to $7.15 billion, representing year-over-year growth of 23.6% to 29%, or 6.6% to 10.3% organically. The company anticipates continued adjusted EBITDA margin expansion, driven by operating leverage and investments in growth. In Q1, Dycom expects total contract revenues of $1.64 billion to $1.71 billion, adjusted EBITDA of $200 million to $220 million, and adjusted diluted EPS of $2.57 to $2.90 per share.
Valuation and Growth Prospects
With a P/E Ratio of 37.66 and an EV/EBITDA of 3325.44, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 22.8%. The company's focus on talent and workforce development, expansion of its Building Systems segment, margin expansion, and operating cash flow and fleet optimization are expected to drive future growth. Dycom's acquisition of Power Solutions and its exploration of other M&A opportunities in the Building Systems segment are also expected to contribute to its growth prospects.
Margin Profile and Operating Leverage
Dycom's margin profile is expected to continue growing, but at a slower pace than last year, which saw over 100 basis points of growth. The company is investing in training and headcount to ensure future growth. The Building Systems segment has a mid-teens margin profile, with a growth opportunity to improve over time. The company is optimistic about the continued growth of the Building Systems segment and sees opportunities for M&A.