Dycom Q2 2027 slides: record revenue, $12B backlog amid margin pressure

Dycom Industries released its Q2 2027 financial results on August 26, 2026, reporting record revenue and a substantial backlog, driven by a surge in fiber infrastructure deployment. The company's adjusted earnings per share reached $5.29 on revenue of $2.01 billion, exceeding analysts' expectations. However, shares declined 8.67% to $321.31 as investors focused on margin pressure in the communications segment and a $150 million shift of wireless revenue into fiscal 2028.

The company's total contract revenues increased by 45.6% year-over-year to $2,005.9 million, representing a 16.7% organic growth. Adjusted EBITDA grew 53.5% to $315.5 million, with the EBITDA margin expanding 81 basis points to 15.7%. CEO Dan Peyovich highlighted the company's commitment to a generational deployment of digital infrastructure, projected to continue for the next decade.

Dycom's backlog expanded significantly, reaching $12.242 billion in Q2 2027, a 28% increase year-to-date, with the next 12 months backlog at $6.472 billion. The company demonstrated a 1.4x organic book-to-bill ratio year-to-date, indicating sustained demand. Total contracted backlog for long-haul, middle-mile, and inside-the-fence fiber infrastructure reached over $1 billion as of Q2 2027.

The communications segment, the core of Dycom's business, reported a 16.7% year-over-year revenue increase to $1,608.4 million, driven by fiber-to-the-home programs, increased fiber infrastructure builds, and growing maintenance and operations services. However, the adjusted EBITDA margin contracted by 134 basis points to 13.6% due to workforce expansion and higher fuel costs. The segment's backlog surged 37.5% to $10.983 billion.

The building systems segment emerged as a growth driver with exceptionally strong margins, generating $397.5 million in revenue and an adjusted EBITDA margin of 24.5%. Dycom acquired National Technology Integrators during the quarter, expanding its end-to-end digital infrastructure capabilities. The company maintained a strong liquidity position with $1,086.5 million in total liquidity as of Q2 2027, supporting its growth initiatives.