Dycom Industries, Inc. (NYSE:DY) stock rose Wednesday after the company reported first-quarter results that topped Wall Street expectations and raised its fiscal 2027 revenue outlook above analyst estimates, supported by strong demand for fiber infrastructure and data center construction.

Earnings Details

Contract revenue rose 56.1% year over year to $1.97 billion, beating analyst estimates of $1.67 billion. Organic revenue increased 24.7% during the quarter.

Adjusted EBITDA climbed 74.6% from a year earlier to $262.5 million, representing 13.4% of contract revenue.

Adjusted earnings increased 84.9% year over year to $4.42 per share.

The company ended the quarter with a backlog of $11.9 billion and cash and equivalents of $538.8 million.

Segment Performance

In the Communications segment, contract revenue reached $1.57 billion, with organic growth of 24.7% year over year. The growth was driven by expansion into new markets, faster-than-expected fiber-to-the-home deployments and favorable seasonal conditions.

Adjusted EBITDA margin in the segment increased 31 basis points to 12.3%, reflecting operating leverage despite continued investments in workforce expansion and execution capacity for long-term projects.

In the Building Systems segment, revenue totaled $395.4 million. Adjusted EBITDA margin was 17.7%, helped by stronger-than-expected project execution and a faster revenue ramp.

Management Commentary

Chief Executive Officer Dan Peyovich said, "Demand for fiber infrastructure and data center builds is more robust today than it has ever been. We are strategically expanding our capabilities to meet this need both organically and through acquisitions."

Peyovich added, "Power Solutions outperformed in its first full quarter as a part of the Building Systems segment and the acquisition of National Technology Integrators will further enhance our ability to provide comprehensive, end-to-end digital infrastructure solutions for our customers."

Dycom Outlook

For the second quarter, Dycom forecast adjusted earnings of $4.40 to $4.82 per share, above analyst estimates of $4.10 per share. Revenue is expected to range from $1.94 billion to $2.01 billion, ahead of consensus estimates of $1.77 billion.

The company also raised its fiscal 2027 revenue guidance to a range of $7.38 billion to $7.65 billion from its prior outlook of $6.85 billion to $7.15 billion. Analysts were expecting revenue of $7.05 billion.

Dycom said it expects continued momentum from fiber deployments, accelerating data center construction and potential opportunities tied to the Broadband Equity, Access and Deployment program.

National Technology Integrators Acquisition

Dycom also announced a definitive agreement to acquire National Technology Integrators for $275 million.

The company said the acquisition is expected to add about $175 million in annualized revenue and expand its capabilities in low-voltage engineering and data center infrastructure.

Dycom expects the deal to be immediately accretive and to strengthen its exposure to high-growth areas including data centers, structured cabling and security systems.

Dycom Price Action

DY Price Action: Dycom Industries shares were up 27.95% at $538.00 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

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