A specialty contractor that builds and maintains the networks behind modern digital life, Dycom lays fiber-optic cable, builds wireless towers, and — through its newer Building Systems arm — wires data centers and critical facilities. Its customers include telecom giants AT&T, Verizon, and Lumen. Founded in 1969 as Mobile Home Dynamics (yes, a mobile-home installer), it reinvented itself in the 1980s, betting early on fiber optics before that became the industry standard.
Dycom's Q2 FY2027 revenue rose 45.6% to $2.01B as the Power Solutions acquisition added a Building Systems segment.
The Power Solutions acquisition has reshaped Dycom's income statement. rose 45.6% to $2.01 billion and rose 18.6% to $115.6 million, with the new Building Systems contributing $397.5 million of revenue and $48.2 million of pre-tax income. The company is now a larger, more diversified contractor, but the acquired segment's $48.1 million in quarterly expense and the $2.79 billion in that funded the deal are now permanent features of the financial picture.
Key takeaways
rose 45.6% to $2.01 billion, with $397.5 million from acquired businesses and a $230.5 million organic increase driven by fiber-to-the-home and rural fiber deployments.
The new Building Systems contributed $397.5 million of and $48.2 million of income before taxes, while carrying $48.1 million in acquisition-related expense.
rose 18.6% to $115.6 million, and rose to $315.5 million, or 15.7% of contract revenues, from $205.5 million, or 14.9%, a year earlier.
Section summaries
Management's Discussion and Analysis
Q2 FY2027 revenue rose 45.6% to $2.006B, driven by acquisitions and fiber-to-the-home growth, while net income rose to $115.6M.
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Contract revenues increased 45.6% to $2.006 billion in Q2 FY2027, with $397.5 million from acquired businesses and a $230.5 million organic increase driven by fiber-to-the-home and rural fiber deployments.
narrowed 0.4 points to 22.0% as a 2.9% increase in direct material costs was partly offset by a 1.5% decrease in labor and subcontracted labor costs.
Total rose to $12.242 billion from $9.542 billion at fiscal year-end, with 52.9% expected to be completed in the next twelve months.
Cash and equivalents fell to $340.1 million from $709.2 million at fiscal year-end, while stood at $2.79 billion.
What changed
The Building Systems , which posted a $9.6 million pre-tax loss on $95.8 million in in FY2026, turned to $48.2 million of pre-tax income on $397.5 million of revenue in Q2 FY2027, though $48.1 million in quarterly expense continues to weigh on reported results.
Organic Communications growth of $230.5 million in Q2 FY2027 compares with $310.8 million in Q1 FY2027, as the acquired contribution annualizes.
of 22.0% in Q2 FY2027 is down from 22.3% a year earlier, as direct material costs rose 2.9% as a share of , reversing the favorable work-mix trend that had driven in prior quarters.
rose to $12.242 billion from $11.9 billion at the end of Q1 FY2027, resuming growth after the Q2 FY2026 decline from the record $8.127 billion.
The 82% variable-rate debt exposure flagged in FY2026 remains unchanged, with no material changes to market risk disclosures in the quarter.
What to watch
Whether the Building Systems sustains its $48.2 million quarterly pre-tax income as the $48.1 million in acquisition-related continues to run through the income statement.
Whether organic Communications growth of $230.5 million holds or accelerates as the acquired contribution annualizes.
Whether can hold near 22% as direct material costs rise, or whether the work-mix shift toward higher material costs continues.
Whether the $12.242 billion converts to at the pace implied by the 52.9% expected within twelve months, given that master service agreements are cancellable at any time.
For the six months, contract revenues rose 50.6% to $3.971 billion, including $792.9 million from acquired businesses and a $541.2 million organic increase.
Costs of earned revenues rose to 78.0% of contract revenues in Q2 from 77.7% a year earlier, as a 2.9% increase in direct material costs was partly offset by a 1.5% decrease in labor and subcontracted labor costs.
increased to $115.6 million in Q2 FY2027 from $97.5 million a year earlier, while rose to $315.5 million, or 15.7% of contract revenues, from $205.5 million, or 14.9%.
The new Building Systems contributed $397.5 million of Q2 and $48.2 million of income before taxes, with $48.1 million of acquisition-related expense.
Cash and equivalents fell to $340.1 million from $709.2 million at fiscal year-end, and total rose to $12.242 billion from $9.542 billion, with 52.9% expected to be completed in the next twelve months.
Quantitative and Qualitative Disclosures About Market Risk
There were no material changes to our quantitative and qualitative disclosures about market risk during the three months ended August 1, 2026. Our primary exposure to market risk relates to unfavorable changes in interest rates. Refer to the information on financial market risk…
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There were no material changes to our quantitative and qualitative disclosures about market risk during the three months ended August 1, 2026. Our primary exposure to market risk relates to unfavorable changes in interest rates. Refer to the information on financial market risk related to changes in interest rates in Item 7A. Quantitative and Qualitative Disclosures About Market Risk of Part II of our Fiscal 2026 Annual Report.
Refer to Note 21, Commitments and Contingencies, in the Notes to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10‑Q.
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Refer to Note 21, Commitments and Contingencies, in the Notes to the Condensed Consolidated Financial Statements in this Quarterly Report on Form 10‑Q.
Our business is subject to a variety of risks and uncertainties. These risks are described elsewhere in this Quarterly Report on Form 10-Q or our other filings with the U.S. Securities and Exchange Commission, including Part I, Item 1A of our Annual Report on Form 10-K for the f…
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Our business is subject to a variety of risks and uncertainties. These risks are described elsewhere in this Quarterly Report on Form 10-Q or our other filings with the U.S. Securities and Exchange Commission, including Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended January 31, 2026. The risks identified in such reports have not changed in any material respect.