Dycom Q3 Earnings & Revenues Surpass Estimates, Stock Up

Dycom Industries Inc. DY reported strong third-quarter fiscal 2026 results (ended Oct. 25, 2025), with both contract revenues and quarterly earnings surpassing the Zacks Consensus Estimate, and increasing on a year-over-year basis. Following the results, DY stock gained 9.8% during yesterday’s trading session and rose an additional 1.8% in the after-hours.

In the fiscal third quarter, the company delivered strong results driven by sustained demand for fiber infrastructure, robust activity from long-standing carrier partners and accelerating demand from leading hyperscalers. EPS and adjusted EBITDA reached all-time highs. Backlog also hit a record $8.2 billion, supported by diversified bookings throughout the quarter, leading the company to raise the midpoint of its full-year revenue outlook.

Dycom also sees significant growth ahead, with expectations for substantial expansion through calendar 2027 and beyond. Leveraging its strong operational capabilities and national footprint, the company believes it is strongly positioned to capture a projected $20 billion market in outside-plant data center network construction over the next five years.

DY also announced its acquisition of Power Solutions for $1.95 billion, with the transaction expected to close by the end of the fiscal year on Jan. 31, 2026. Power Solutions is a major data center infrastructure provider, providing services across the Greater Washington, D.C., Maryland and Virginia region.

DY’s Q3 Earnings & Revenue Discussion

Dycom reported adjusted earnings per share (EPS) of $3.63, beating the Zacks Consensus Estimate of $3.15 by 15.2% and increasing 35.4% from $2.68 year over year.

Dycom Industries, Inc. Price, Consensus and EPS Surprise

Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote

 
Contract revenues of $1.45 billion topped the consensus mark of $1.40 billion by 3.7% and rose 14.1% year over year. Contract revenues increased 7.2% on an organic basis. Acquisitions contributed $110.9 million to contract revenues.

Operations & Backlog Details

Adjusted EBITDA increased 28.5% to $219.4 million from a year ago.

Adjusted EBITDA margin of 15.1% expanded 170 basis points from the year-ago level. 

Dycom ended the fiscal third quarter with a record backlog of $8.22 billion, supported by strong and diversified bookings throughout the period. Of the backlog, $4.99 billion is projected to be completed in the next 12 months.

Financials

As of Oct. 25, 2025, DY had liquidity of $706.5 million, including cash and cash equivalents worth $110.1 million, compared with $92.6 million as of Jan. 25, 2025. Long-term debt was $919.5 million at the fiscal third-quarter end, down from $933.2 million at the fiscal 2025 end.

Dycom Acquires Power Solutions for $1.95B

Dycom announced a definitive agreement to acquire Power Solutions for $1.95 billion, adding one of the Mid-Atlantic’s premier providers of mission-critical electrical infrastructure for data centers. 

The acquisition strengthens Dycom’s position in the rapidly expanding digital and AI infrastructure market and creates a fully integrated offering — from outside-plant fiber networks to electrical and low-voltage systems inside the data hall. The deal is expected to be accretive and will add more than 2,800 skilled employees to the company’s workforce, with the combined business projected to deliver roughly 2x net leverage within 12-18 months of closing.

Q4 View by Dycom

For the fiscal fourth quarter (ending on Jan. 31, 2026), DY expects $1.26 to $1.34 billion of contract revenues.

The adjusted EBITDA is expected to be between $140 million and $155 million. For the said period, Dycom expects the effective tax rate to be 26% and diluted shares of 29.4 million. Interest expenses, net, are likely to be $13.6 million and amortization expenses are expected to be $12.7 million.

Dycom Raises FY26 Revenue Guidance

Dycom has increased the midpoint of its revenue outlook for fiscal 2026 and now expects total contract revenues to range from $5.350 billion to $5.425 billion (prior expectation was $5.290-$5.425 billion), representing a 13.8% to 15.4% year-over-year increase, driven by robust digital infrastructure growth and long-term demand drivers.

DY’s Zacks Rank & Recent Construction Releases

Dycom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vulcan Materials Company VMC reported impressive third-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.

The quarterly performance of Vulcan was driven by solid contributions from its aggregates-led business, alongside effective commercial and operational execution. The market’s public infrastructure spending trends are favoring its business prospects despite tariff-related uncertainties circling the economy. Vulcan now expects adjusted EBITDA for 2025 to be between $2.35 billion and $2.45 billion, up from $2.06 billion reported in 2024.

Masco Corporation MAS posted lackluster third-quarter 2025 results, wherein the adjusted earnings and net sales missed the Zacks Consensus Estimate and tumbled year over year. The quarter’s performance was hurt due to the weak contributions from the Decorative Architectural Products segment, which outweighed the improved performance of the Plumbing Products segment.

The ongoing uncertainties in the global economy and tariff-related risks are restricting Masco’s near-term prospects. Masco expects net sales to be down in low single digits year over year, with an adjusted operating margin of approximately 16.5% (compared with 17.5% in 2024). Adjusted EPS is now expected to be between $3.90 and $3.95 compared with $3.90-$4.10 expected earlier. The revised range compares with the adjusted EPS of $4.10 reported in 2024.

United Rentals, Inc.’s URI third-quarter 2025 EPS missed the Zacks Consensus Estimate, while revenues beat the same. On a year-over-year basis, the top line increased, but the bottom line declined.

United Rentals reported record third-quarter revenues and adjusted EBITDA, driven by strong demand across construction and industrial end markets. Growth in both general rentals and specialty segments supported the results. Customer optimism, healthy backlogs and seasonal activity contributed to the overall strength. For 2025, United Rentals expects total revenues to be in the range of $16-$16.2 billion compared with $15.8-$16.1 billion expected earlier.

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