Dycom Industries reported record fiscal 2026 fourth‑quarter revenue of $1.458 billion, up 34.5% from $1.085 billion in Q4 2025, and full‑year revenue of $5.546 billion, an 18.4% increase from $4.702 billion in fiscal 2025. Adjusted EBITDA rose to $162.4 million, a 39.6% year‑over‑year gain, and annual adjusted EBITDA climbed to $737.7 million, up 28.0% from $576.3 million. Net income for the quarter was $16.3 million, while adjusted net income reached $60.5 million, a 42.0% jump. Adjusted diluted earnings per share of $2.03 beat the consensus estimate of $1.78, a $0.25 or 14% beat, and revenue surpassed the consensus range of $1.35 billion to $1.39 billion by roughly $70 million.
The results were bolstered by the completion of a $1.95 billion acquisition of Power Solutions, LLC on December 23, 2025, which added $1 billion in annual revenue and mid‑teens EBITDA margins. The acquisition is expected to be immediately accretive to adjusted EBITDA margin and EPS and positions Dycom squarely in the high‑growth data‑center market. The transaction increased long‑term debt from $933.2 million to $2.81 billion, but the company’s free‑cash‑flow generation and backlog of $9.542 billion provide a cushion for debt service.
Dycom reorganized its reporting into Communications and Building Systems segments. In Q4 2026, the Communications segment generated $1.02 billion in revenue, up 28% YoY, while the Building Systems segment contributed $438 million, up 12% YoY. Adjusted EBITDA margins improved to 11.1% from 10.7% in the prior year, driven by higher mix in the Building Systems segment and disciplined cost management across both segments.
Compared with Q4 2025, revenue grew 34.5% and adjusted EBITDA increased 39.6%, reflecting a 16.6% organic revenue growth in the quarter versus 6.5% for the full year. Net income rose 42.0% YoY, and adjusted EPS grew 14% YoY, underscoring the company’s ability to translate revenue growth into profitability gains.
For fiscal 2027, Dycom guided contract revenues of $6.85 billion to $7.15 billion, a slight upside to the consensus estimate of $6.88 billion, and maintained an adjusted EBITDA margin target of 13.3% to 13.5%, up from the prior guidance of 12.8% to 13.0%. The company also reiterated its adjusted EPS guidance of $2.30 to $2.40, reflecting confidence in continued margin expansion and the integration of Power Solutions.
Dan Peyovich, President and Chief Executive Officer, said, “Our strong fourth quarter performance closed a record year for Dycom, with ramping organic growth, meaningful margin expansion and increased Free Cash Flow. We executed against our strategy, setting new benchmarks across nearly every financial metric we track while fundamentally broadening our reach through strategic M&A. The acquisition of Power Solutions positions us squarely at the intersection of digital infrastructure and the fast‑growing data center market.” He added, “I want to thank the entire Dycom family for their unwavering dedication to safety, quality, and delivering for our customers every day. Their hard work is the foundation of our success.” Drew DeFerrari, Chief Financial Officer, noted, “With a record fiscal 2026 behind us, Dycom Industries, Inc. enters fiscal 2027 with solid strategic positioning and a strong financial foundation. We remain focused on the disciplined execution necessary to convert robust industry demand into long‑term value for our shareholders.”
Management acknowledged that severe winter weather at the end of the quarter imposed a temporary headwind, slightly compressing margins, but the company’s scale and pricing power offset the impact. Cost inflation remained manageable, and the company continued to invest in high‑margin data‑center and fiber‑to‑the‑home projects, which helped sustain revenue growth.
The combination of record revenue, margin expansion, and a robust backlog positions Dycom to capitalize on the accelerating demand for digital infrastructure. The acquisition of Power Solutions expands the company’s footprint in the data‑center market, while the increased debt load is offset by strong cash generation and a growing backlog, suggesting a solid balance sheet for the next fiscal year.
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