Dycom Sees 34.4% Revenue Growth and $9.5B Backlog After Power Solutions Acquisition
Dycom reported fourth-quarter contract revenues up 34.4% to $1.46 billion and adjusted EBITDA rose 39.6% to $162.4 million, driving a record $9.5 billion project backlog and $709.2 million in cash. The acquisition of Power Solutions expands its electrical infrastructure footprint for data centers as fiscal 2027 sales guidance of $6.85–7.15 billion exceeds analyst forecasts.
1. Fourth-Quarter Financial Results
Dycom posted Q4 contract revenues of $1.46 billion, up 34.4% year over year, with organic growth of 16.6%. Adjusted EBITDA climbed 39.6% to $162.4 million (11.1% margin) and adjusted EPS reached $2.03, while operating cash flow totaled $419 million, supporting a $9.5 billion backlog and $709.2 million cash balance.
2. Power Solutions Acquisition
In Q4, Dycom completed its acquisition of Power Solutions, which provides electrical infrastructure for data centers and critical facilities across the D.C., Maryland, and Virginia region. The business adds over 2,900 employees, a 25-year track record, and strengthens customer relationships in the world’s largest data center hub.
3. New Segment Reporting
Dycom restructured its reporting into two segments: Communications and Building Systems. The Communications segment generated $1.36 billion in contract revenues, while Building Systems contributed $95.8 million in the quarter, reflecting its expanding digital infrastructure footprint.
4. Fiscal 2027 Outlook
For fiscal 2027, Dycom projects sales of $6.85 billion to $7.15 billion, surpassing estimates of $6.695 billion, and forecasts Q1 adjusted EPS between $2.57 and $2.90 on sales of $1.64 billion to $1.71 billion versus analyst expectations.