Dycom Industries ((DY)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Dycom Industries, Inc. recently held an earnings call that conveyed a very positive sentiment, highlighting a strong quarter with record revenues, EBITDA, and EPS. The company announced a significant acquisition that is expected to bolster its growth in the digital and AI infrastructure space. The financial outlook remains robust, supported by a strong backlog, with no major challenges reported during the call.
Record-Breaking Revenue and Growth
Dycom Industries, Inc. reported an all-time record revenue of $1.45 billion for the third quarter of fiscal 2026, marking a 14.1% increase compared to the same period in the previous year. The company also achieved new highs in adjusted EBITDA at $219 million and EPS at $3.63. The adjusted EBITDA margin improved significantly, increasing by 169 basis points to 15.1%.
Acquisition of Power Solutions
A major highlight of the earnings call was the announcement of Dycom’s definitive agreement to acquire Power Solutions, a leading data center electrical contractor, for $1.95 billion. This acquisition is expected to be immediately accretive to Dycom’s adjusted EBITDA margin and EPS, strategically positioning the company to meet the rising demand for digital and AI infrastructure.
Increased Revenue Outlook
Dycom Industries has raised the midpoint of its full-year revenue outlook to a range of $5.35 billion to $5.425 billion. This represents a growth of 13.8% to 15.4% over the prior year, excluding results from the pending acquisition, indicating strong confidence in the company’s future performance.
Strong Backlog and Service Agreements
The company reported a record backlog of $8.2 billion, underscoring its strong market position. Following the quarter, Dycom executed additional service and maintenance agreements totaling over $500 million, further solidifying its future revenue streams.
Improved Cash Flow Management
Dycom Industries demonstrated effective cash flow management with operating cash flows of $220 million. Days Sales Outstanding (DSOs) improved to 105 days, a reduction of fourteen days year over year, reflecting enhanced operational efficiency.
Forward-Looking Guidance
Looking ahead, Dycom Industries has set a positive trajectory with its recent performance and strategic acquisition. The company expects the acquisition of Power Solutions to enhance free cash flow and provide a pathway to achieve 2x net leverage within the next twelve to eighteen months. With an eye on a $20 billion addressable market for data center construction over the next five years, Dycom is well-positioned to capitalize on emerging opportunities in the digital and AI infrastructure sectors.
In conclusion, Dycom Industries’ latest earnings call reflects a robust financial performance and strategic growth initiatives. The company’s record-setting results, strategic acquisition, and strong backlog underscore a positive outlook, positioning Dycom as a key player in the evolving digital infrastructure landscape.