Dycom Reports 56% Q1 Revenue Growth and $275M Data Center Acquisition
DY•Dycom Industries delivered record Q1 contract revenues of $1.965 billion, up 56.1% year-over-year, and adjusted net income of $134.3 million ($4.42 per share). The company raised its fiscal 2027 revenue outlook to $7.38–7.65 billion and agreed to acquire National Technology Integrators for $275 million.
1. Record First Quarter Performance
Dycom delivered contract revenues of $1.965 billion in Q1, a 56.1% increase over last year, generating net income of $91.3 million ($3.00 per share) and adjusted net income of $134.3 million ($4.42 per share). Adjusted EBITDA reached $262.5 million, representing 13.4% of revenues, and total backlog rose 46.5% to $11.906 billion.
2. Segment Growth Drivers
The Communications segment grew organically by 24.7% to $1.569 billion, driven by expanded fiber-to-the-home builds and geographic expansion, with adjusted EBITDA margin up 31 basis points to 12.3%. Building Systems delivered $395.4 million in revenues and achieved a 17.7% adjusted EBITDA margin, outperforming initial forecasts.
3. National Technology Integrators Acquisition
Dycom agreed to acquire National Technology Integrators for $275 million, anticipating an initial annual revenue run-rate of approximately $175 million. This acquisition adds low-voltage engineering and structured cabling expertise for data centers, enhancing end-to-end digital infrastructure capabilities and operational synergies.
4. Fiscal 2027 Outlook Raise
Based on strong Q1 results, Dycom raised its fiscal 2027 contract revenue outlook to $7.38 billion–$7.65 billion, including $6.03 billion–$6.20 billion in Communications and $1.35 billion–$1.45 billion in Building Systems. Second-quarter guidance now targets $1.94 billion–$2.01 billion in revenues and $284 million–$303 million in adjusted EBITDA.
