Dycom Gears to Report Q4 Earnings: Here's What to Expect This Season

Dycom Industries, Inc. DY is scheduled to report its fourth-quarter fiscal 2026 results on March 4, before the opening bell.

In the last reported quarter, the company’s adjusted earnings and contract revenues topped the Zacks Consensus Estimate by 15.2% and 3.7%, respectively. On a year-over-year basis, both metrics grew 35.4% and 14.1%, respectively.

Dycom’s earnings surpassed estimates in each of the trailing four quarters, with an average of 22.7%.

How are Estimates Placed for DY Stock?

The Zacks Consensus Estimate for fiscal fourth-quarter earnings per share (EPS) has moved north to $1.66 from $1.60 in the past seven days. The revised estimate indicates 41.9% year-over-year growth.

The consensus estimate for contract revenues is pegged at $1.29 billion, indicating a 18.9% year-over-year rise from $1.09 billion.

Dycom Industries, Inc. Price and EPS Surprise

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

Factors Likely to Have Shaped Dycom’s Q4 Performance

Revenues

Dycom’s top-line performance in the fiscal fourth quarter is expected to have benefited from robust data center demand and the arrival of the Broadband Equity, Access and Deployment (BEAD) program. Also, the elevated demand for fiber-to-the-home programs, wireless activity and fiber infrastructure work for hyperscalers added to the uptrend. This favorable scenario is expected to have boosted the telecommunications and digital infrastructure market, thus favoring Dycom’s growth.

The growing need for data-intensive applications and AI workloads is likely to have been another top-line driver for Dycom, now as well as in the upcoming period. Over the next five years, Dycom projects that its addressable market opportunity from outside plant data center network infrastructure will exceed $20 billion. Also, accretive acquisitions are likely to have supported the quarter’s growth, expanding Dycom’s wireless construction capabilities and increasing its presence in several high-demand regions.

For the fiscal fourth quarter, DY expects contract revenues between $1.26 billion and $1.34 billion.

Per customer type, our model expects revenues from Telecommunications, Underground Facility Locating and Electric and Gas Utilities to increase year over year by 6.7% to $986.1 million, 16.2% to $81.7 million and 12.6% to $32.4 million, respectively.

Earnings & Margins

For the fiscal fourth quarter, Dycom’s bottom line is expected to have increased year over year because of incremental leverage from contract revenue growth and strong operational capabilities. Owing to the robust market fundamentals, the company projects adjusted EBITDA between $140 million and $155 million, up from $116.4 million reported in the prior-year quarter. The company anticipates adjusted EPS in the range of $1.62-$1.97 for the fiscal fourth quarter.

We expect adjusted EBITDA to grow year over year by 20.5% to $140.2 million, with adjusted EBITDA margin expanding 30 basis points (bps) to 11%. Our projection for total operating expenses (as a percentage of contract revenues) is 94.8%, down 30 bps from 95.1% reported a year ago.

Although increases in administrative, payroll and performance-based compensation are concerning for bottom-line growth, the increasing top line and favorable market demand trends are expected to have more than offset these adversities.

Backlog

For the fiscal fourth quarter, our model expects a total backlog of $7.99 billion, indicating growth of 3% from $7.76 billion reported in the prior-year quarter.

What Our Model Says for Dycom

Our proven model does not conclusively predict an earnings beat for Dycom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.

DY’s Earnings ESP: The company has an Earnings ESP of -2.71%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

DY’s Zacks Rank: The stock currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Construction Releases

EMCOR Group, Inc. EME reported impressive fourth-quarter 2025 results, with adjusted earnings and revenues topping the Zacks Consensus Estimate and increasing year over year.

EMCOR’s quarterly results reflect the benefits of strong demand in core end markets and customers’ confidence in its ability to deliver on complex projects. Strong field leadership, disciplined planning and continued investment in construction technology further supported the overall performance. EMCOR expects 2026 annual revenues to be in the band of $17.75-$18.5 billion and EPS within $27.25-$29.25.

Comfort Systems USA, Inc. FIX delivered stellar fourth-quarter 2025 results, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate and increasing year over year.

Comfort Systems’ quarterly performance reflects robust demand trends in the public infrastructure market, with strong growth in the technology sector, particularly in data centers. Besides, the company’s results benefited from the Feyen Zylstra, Meisner, Right Way, Century, Summit and J&S acquisitions, alongside increased same-store activity. In 2025, Comfort Systems paid its shareholders $217.9 million through share repurchases and $68.8 million through dividends.

Quanta Services, Inc. PWR reported record fourth-quarter 2025 results, driven by robust demand in its Electric Infrastructure Solutions segment and contributions from recent acquisitions.

Quanta’s growth was primarily fueled by accelerating utility investments, power generation and load-center related projects, along with incremental contributions from acquired businesses, including Tri-City, Wilson and Billings. For 2026, Quanta expects revenues between $33.25 billion and $33.75 billion, reflecting double-digit growth. GAAP EPS is projected to be in the range of $8.36-$9.06, while adjusted EPS is expected to be in the range of $12.65-$13.35. It is supported by record backlog, continued utility spending and anticipated contributions from recent acquisitions.

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This article originally published on Zacks Investment Research (zacks.com).

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