Dycom Reports Record Revenue Growth with Significant Contribution From Acquisitions
Dycom Industries (NYSE:DY) reported a record fiscal second-quarter contract revenue increase of 45.6% to $2.01 billion, driven largely by acquisitions that contributed approximately $397.5 million—nearly two-thirds of the total growth. Organic non-GAAP contract revenue rose 16.7% year over year to $1.61 billion, indicating strong underlying performance in its core business. The Communications segment saw robust demand with a 37.5% increase in backlog to $10.98 billion and an expected next-12-month pipeline of $5.36 billion up by 16.5%. The newly acquired Building Systems segment added significant revenue but also increased debt, as Dycom spent $225.5 million on acquisitions during the quarter. Despite strong organic growth in Communications, EBITDA margins declined due to operational investments and cost pressures. While overall fiscal 2027 revenue guidance was raised, wireless project delays reduced near-term operating leverage for that segment.
Tickers: $DY
Topics: communications_sector organic_vs_acquisition_growth revenue_growth