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1. Company Snapshot

1.a. Company Description

Dycom Industries, Inc.provides specialty contracting services in the United States.The company offers program management and engineering services; plans and designs aerial, underground, and buried fiber optic, copper, and coaxial cable systems; and construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers.


It also provides tower construction, lines and antenna installation, foundation and equipment pad construction, and small cell site placement for wireless carriers, as well as equipment installation and material fabrication, and site testing services; and installs and maintains customer premise equipment, such as digital video recorders, set top boxes, and modems for cable system operators.In addition, the company offers construction and maintenance services for electric and gas utilities, and other customers; and underground facility locating services, such as locating telephone, cable television, power, water, sewer, and gas lines for various utility companies, including telecommunication providers.Dycom Industries, Inc.


was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.

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1.b. Last Insights on DY

Dycom Industries' recent performance was driven by strong Q4 earnings and revenue beat, exceeding the top end of its fiscal 2026 revenue outlook. The company reported record Q4 results, with operational excellence driving record free cash flow. Additionally, the acquisition of Power Solutions is accelerating the company's entry into the high-growth data center market. Furthermore, the appointment of a Chief Revenue Officer and new board members, including Raejeanne Skillern, is expected to drive strategic market expansion and strengthen relationships with key stakeholders.

1.c. Company Highlights

2. Dycom Industries' Record Fiscal 2026 Results: Strong Revenue Growth and Margin Expansion

Dycom Industries, Inc. reported record fourth-quarter revenue of $1,460,000,000, a 34.4% increase from Q4 fiscal 2025, with organic revenue growth of 16.6%. Adjusted EBITDA was $162,400,000, with an adjusted EBITDA margin of 11.1%, a 41-basis-point increase year-over-year. Non-GAAP adjusted diluted EPS was $2.03, a 42% increase, beating analyst estimates of $1.66. For the full year, revenue reached a record $5,550,000,000, up 17.9% from fiscal 2025, with organic revenue growth of 6.5%. Non-GAAP adjusted EBITDA was $737,700,000, and non-GAAP adjusted EBITDA margin was 13.3%.

Publication Date: Mar -05

📋 Highlights
  • 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.

3. NewsRoom

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Dycom Industries, Inc. Appoints Regina Salazar as Chief Information and Digital Officer

Apr -06

Source: globenewswire.com

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Dycom Industries, Inc. Appoints Company Veteran Bo Gresham as its First Chief Revenue Officer to Lead Next Phase of Growth

Mar -31

Source: globenewswire.com

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Dycom Industries, Inc. (NYSE:DY) Receives Average Rating of “Moderate Buy” from Brokerages

Mar -31

Source: defenseworld.net

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Dycom Industries: Strong Visibility Into Near-Term Growth

Mar -26

Source: seekingalpha.com

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Dycom Industries, Inc. Appoints Raejeanne Skillern to Board of Directors

Mar -24

Source: globenewswire.com

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Nordea Investment Management AB Grows Stake in Dycom Industries, Inc. $DY

Mar -23

Source: defenseworld.net

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MasTec vs. Dycom: Which Telecom Infrastructure Stock Has More Upside?

Mar -19

Source: zacks.com

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Dycom Industries: Fiber Provides Growth Path For Next Decade

Mar -16

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.11%)

6. Segments

Telecommunications

Expected Growth: 10%

Dycom Industries, Inc.'s 10% growth in Telecommunications is driven by increasing demand for high-speed internet and mobile connectivity, 5G network deployments, and fiber-optic infrastructure investments. Additionally, growing adoption of IoT devices, rising need for network infrastructure upgrades, and strategic acquisitions are contributing to the segment's growth.

Underground Facility Locating

Expected Growth: 12%

Dycom Industries' Underground Facility Locating segment growth is driven by increasing demand for utility infrastructure upgrades, 5G network deployments, and fiber-optic installations. Additionally, government initiatives for grid modernization and renewable energy integration contribute to the 12% growth rate.

Electrical and Gas Utilities and Other

Expected Growth: 9%

Dycom Industries, Inc.'s 9% growth in Electrical and Gas Utilities and Other segments is driven by increasing demand for 5G network deployments, fiber-based broadband expansion, and grid modernization initiatives. Additionally, the company's strategic acquisitions and partnerships have enhanced its capabilities, leading to increased market share and revenue growth.

7. Detailed Products

Wireline Network Solutions

Dycom Industries provides wireline network solutions, including the installation, maintenance, and upgrade of fiber optic networks, copper networks, and hybrid fiber-coaxial networks.

Wireless Network Solutions

Dycom Industries offers wireless network solutions, including the installation, maintenance, and upgrade of cell towers, small cells, and distributed antenna systems.

Fiber-to-the-Home (FTTH) Solutions

Dycom Industries provides FTTH solutions, including the design, installation, and maintenance of fiber optic networks that deliver high-speed internet, voice, and video services directly to homes and businesses.

Data Center and Cloud Infrastructure Solutions

Dycom Industries offers data center and cloud infrastructure solutions, including the design, installation, and maintenance of data center facilities, cloud infrastructure, and edge computing solutions.

Smart City and IoT Solutions

Dycom Industries provides smart city and IoT solutions, including the design, installation, and maintenance of smart city infrastructure, IoT devices, and sensor networks.

8. Dycom Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Dycom Industries, Inc. operates in a niche market, providing specialized services to the telecommunications industry. While there are some substitutes available, they are not as effective or efficient, reducing the threat of substitutes.

Bargaining Power Of Customers

Dycom Industries, Inc. has a diverse customer base, including major telecommunications companies. While customers have some bargaining power, the company's specialized services and long-term contracts reduce their negotiating power.

Bargaining Power Of Suppliers

Dycom Industries, Inc. relies on a few key suppliers for equipment and materials. While suppliers have some bargaining power, the company's large scale of operations and long-term contracts mitigate this risk.

Threat Of New Entrants

The telecommunications industry has high barriers to entry, including significant capital requirements and specialized expertise. This reduces the threat of new entrants.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with several established players competing for market share. Dycom Industries, Inc. must continually innovate and improve its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.36%
Debt Cost 7.93%
Equity Weight 55.64%
Equity Cost 10.79%
WACC 9.52%
Leverage 79.74%

11. Quality Control: Dycom Industries, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

396.95$

Current Price

396.95$

Potential

-0.00%

Expected Cash-Flows