Aug 26, 2026 earnings call — Strong fiber and building-systems growth
Dycom reported record quarterly revenue of $2.01 billion and raised full-year revenue outlook to $7.48 billion–$7.66 billion.
Revenue $2.0B (est $2.0B) · EPS $5.29 (est $4.72) · Next-quarter revenue outlook $1.9B
Key quotes
"Demand across our portfolio remains robust. We see heightened activity across fiber-to-the-home, long-haul, data center interconnects and data center electrical and structured cabling systems."
"We also officially welcomed National Technology Integrators into the Dycom family during the quarter. Integration is progressing smoothly, and we are already benefiting from the expanded reach and customer diversification they bring."
"Third, margin expansion continued this quarter with adjusted EBITDA margin reaching 15.7%, an 81-basis-point improvement over the prior year."
Analyst Q&A 10
Wireless timing and wireline projects
Q (Richard Choe · JPMorgan): Clarify why wireless revenue was pushed out and how confident you are the revenue will arrive next year. Also, how much of first-half revenue was wireless so we can see non-wireless growth, and what is happening on wireline projects and maintenance vs new builds.
A: Management said the wireless shift is a deferral of $150 million into next year and they have line of sight to the projects. They said the wireless program is a multiyear equipment replacement program and they remain very confident. On wireline, about half of Communications is service and maintenance, FTTH was up 60% year-over-year in the first half, and Dycom is active in long-haul fiber work.
"A reminder that passings and revenue don't directly correlate, but you're talking about significant growth and really a very large presence for Dycom across the space." — Daniel Peyovich (CEO)
Wireless deferral and long-haul nature
Q (Frank Louthan · Raymond James & Associates): Is the wireless customer moving spending into other areas this year? And for long-haul fiber, what is the nature of those projects, are they in backlog, and are you involved?
A: They said the wireless deferral is the same equipment replacement program simply shifted from this year to next year and they remain confident in the added potential revenue. Customers reaffirmed their fiber-to-the-home build programs and Dycom is capitalizing on that. On long-haul, the work is highly diversified across customers, program sizes and geography, not a single program.
"If you look at the hundreds of millions that we've done to date, if you look at the $1 billion that we have, that's not one program." — Daniel Peyovich (CEO)
Margin drivers and wireless timing
Q (Manish Somaiya · Cantor Fitzgerald): Can you reconcile the year-over-year margin shortfall and explain drivers like fuel and investments? Also, what caused the $150 million wireless timing shift and what equipment is involved? And how should we think about Building Systems margins going forward?
A: They said fuel cost hurt margins by about 35 basis points year-over-year and that they are investing in benefits and the workforce, and the wireless deferral reduced operating leverage. They declined to give detailed program-level specifics on the wireless timing, saying the program has performed well, they have line of sight to builds, and overall spend has not decreased. On Building Systems, they said recent investments raised margins and they expect those investments to strengthen the business going forward.
"As I commented in my prepared remarks, the fuel impact was about 35 basis points in the quarter year-over-year." — H. DeFerrari (CFO)
Why FTTH outperformed first half
Q (Eric Luebchow · Wells Fargo): Was the 60% FTTH outperformance due to timing pull-forward or taking share versus competitors?
A: Management said complexity favors Dycom and that their ability to execute on complex programs allowed the outperformance. They pointed to a strong backlog and said deceleration reflects how projects are stacked and built project by project, not a loss of demand. They still see significant opportunities for continued growth.
"It's 17,000 people or so and crews that are less than 3 people all across the country." — Daniel Peyovich (CEO)
Core wireline and long-haul sizing
Q (Adam Thalhimer · Thompson Davis): How would you characterize the core wireline business and what are trends across various fiber programs? Also, how should we think about the size and timing of long-haul and middle-mile opportunities?
A: They said Dycom is executing well, with strong backlog and focus on high-quality work and margins, and that FTTH remains a multi-year growth program. They reiterated the $20 billion long-haul and middle-mile opportunity is taking shape, is back-half loaded, and they are positioned well, but they would not give more timing or sizing color today.
"That $20 billion we talked about over a year ago, Adam, really is taking shape." — Daniel Peyovich (CEO)
Tower customer link, BEAD, long-haul pricing
Q (Michael Funk · BofA): Was the tower-company slowdown the same customer with your wireless deferral? How should we think about BEAD engineering ramp into 2027? And have long-haul competitive dynamics shifted recently?
A: They said they are not sure on the tower company correlation but framed the wireless change as a confidence-backed deferral from this year to next year. For BEAD, they have some engineering revenue now and expect small amounts relative to Dycom's backlog but positioning for construction in fiscal '28 (calendar 2027). On long-haul, they said the work is complex, Dycom has been out in front, and they will watch competitive dynamics as backlog converts to work.
"Again, the way I would frame that is a ton of confidence in the remainder of that program, and it's still on track overall with what we outlined, just simply a deferral from this year to next year." — Daniel Peyovich (CEO)
Next-year Comms growth and margin pressures
Q (Steven Fisher · UBS): Can you comment on Communications segment growth for next year given H1 comps and exit rates? And were scaling costs and fuel impacts larger than expected this quarter and how will fuel recovery work?
A: They said it's too early to give next-year outlooks but emphasized continued FTTH growth, BEAD upside, and long-haul ramping, and that Dycom's 17,000 Communications employees are a differentiator. On margins, they said they have industry-leading Communications margins but are investing in people and capabilities to meet customer demand, and they noted Q4 seasonality means they remain prudent.
"There is a lot of training that has to happen if you're going to do long-haul fiber splicing." — Daniel Peyovich (CEO)
Building Systems scaling and Communications leverage
Q (Liam Burke · B. Riley): Will Building Systems face craft shortages that force reinvestment and hurt margins? And do you have visibility to return to positive operating leverage in Communications after initial investments?
A: They said they are comfortable scaling Building Systems and expect margins in the high teens to low 20s, but electricians remain in short supply and they are turning away some projects. On Communications leverage, they said it's an ongoing process and they are investing in benefits and workforce to stay ahead of demand while maintaining industry-leading margins.
"We are comfortable scaling that business, and that's really where you see the margin raise in the high teens to low 20s as we go forward." — Daniel Peyovich (CEO)
NTI integration and cross-sell
Q (Michael Stratoti · Guggenheim): Why have NTI's initial contributions exceeded expectations — smoother integration, cross-sell with Power Solutions, or stronger demand?
A: They said NTI fits the profile of businesses they seek: a strong management team, proven business, and strong customer relationships. NTI had a very strong performance in the month it was part of Dycom, they are seeing cross-sell with Power Solutions, and they expect to continue growing the Building Systems footprint via M&A.
"It was great to see them have a very strong performance in the approximate month that they were part of our business this quarter." — Daniel Peyovich (CEO)
Cash flow, leverage and capital allocation
Q (Michael Dudas · Vertical Research Partners): Thoughts on second-half operating and free cash flow dynamics, and how are you thinking about capital allocation into next year including M&A and share repurchases?
A: They reported over the past 12 months north of $700 million of operating cash flow and over $103 million this quarter, and they expect seasonal cash flow patterns for the rest of the year. Pro forma net leverage is about 2.3x and they plan to reduce toward a 2 area over a 12- to 18-month period. Capital allocation priorities are unchanged: invest in organic growth, pursue M&A, and use share repurchases opportunistically.
"As we talked about when we acquired Power Solutions last December, we talked about bringing that down throughout the year over a 12- to 18-month period to get back to that 2 area." — H. DeFerrari (CFO)