Research · Sep 3, 2026
[DY] Dycom Industries Thesis 2026: Fiber and Data Center Backlog Positions for Multi-Year Growth
Dycom Industries (DY) FY26 (Jan) revenue $5.546B (+17.9%); organic +6.5%; op income $695M (+104%); NI $281M (+21%); EPS $9.56 (+21%); adj EBITDA $737.7M (13.3% margin); FCF $402M. Power Solutions acquisition (data center electrical contracting) closed ~Dec 23 2025 (~$1.95B); total debt $2.992B (+$1.94B). Record Q4 FY26 backlog $9.542B ($8.333B comms + $1.209B building systems); next 12-month backlog $6.358B. Q3 FY26 all-time record: revenue $1.453B, EBITDA $219M, EPS $3.63. Service/maintenance >50% of revenues. Key customers AT&T, Lumen, Verizon + hyperscalers (Power Solutions). FY27 guide: revenue $6.85-7.15B (+24-29%); comms $5.70-5.90B + building systems $1.15-1.25B; Q1 FY27 $1.64-1.71B; wireless equipment headwind -$100M. Deleverage target 2x net leverage in 12-18 months. BEAD $42B broadband program not in guide (upside optionality). Data center demand 'exceptional' per management. Risks: Power Solutions integration, leverage, wireless reversal, BEAD timing, labor, customer concentration.