Executive Summary

Record Q3 results with revenue $1.452B, diluted EPS $3.63, adjusted EBITDA $219.4M and margin 15.1%, driven by fiber-to-the-home ramps, hyperscaler-related fiber programs, strong wireless activity, and operating leverage .
Broad-based strength: backlog hit an all-time high $8.22B (NTM $4.99B), DSOs improved to 105 days, and operating cash flow rose to $220M .
Dycom raised the midpoint of FY26 revenue outlook to $5.350–$5.425B (from $5.290–$5.425B), and issued Q4 guidance: revenue $1.26–$1.34B, adj. EBITDA $140–$155M, EPS $1.30–$1.65; will introduce non-GAAP adjusted EPS (ex-intangible amortization) starting Q4 at $1.62–$1.97 .
Strategic catalyst: announced $1.95B acquisition of Power Solutions (≈$1B rev., mid-to-high-teens margins, >$1B backlog), immediately accretive to adj. EBITDA margin and adj. EPS; pro forma net leverage <3x at close with path to ≈2x in 12–18 months .

What Went Well and What Went Wrong

What Went Well
- “Exceptional third quarter with record revenue, profitability and backlog” and raised FY midpoint; adj. EBITDA margin expanded 169 bps YoY to 15.1% on operating leverage .
- Strong demand signals: fiber-to-home “fever pitch,” hyperscaler fiber infrastructure “strengthening at an incredible rate,” and service/maintenance renewals; >$500M verbal BEAD-related awards not yet in backlog .
- Cash and execution: DSOs improved by 14 days YoY to 105; operating cash flow $220M; ERP phase 1 deployed to drive future efficiencies .
What Went Wrong
- Q4 outlook reflects normal seasonal headwinds (fewer workdays, reduced daylight, winter weather), and wider revenue range given seasonality and holiday timing .
- Customer concentration remains material: AT&T ($361.9M) and Lumen ($170.3M) each >10% of Q3 revenue; execution risk if carrier programs modulate .
- BEAD timing still staged: revenue expected to begin in Q2 of next fiscal year and ramp thereafter; >$500M verbal awards not yet reflected in backlog .

Financial Results

Headline P&L (chronological: YoY and sequential context)

Metric	Q3 2025	Q2 2026	Q3 2026
Revenue ($USD Billions)	$1.272	$1.378	$1.452
Adjusted EBITDA ($USD Millions)	$170.7	$205.5	$219.4
Adjusted EBITDA Margin (%)	13.4%	14.9%	15.1%
Net Income ($USD Millions)	$69.8	$97.5	$106.4
Diluted EPS ($)	$2.37	$3.33	$3.63

Q3 Actuals vs Wall Street Consensus (S&P Global)

Metric	Q3 2026 Actual	Q3 2026 Consensus*
Revenue ($USD Billions)	$1.452	$1.408*
Adjusted EBITDA ($USD Millions)	$219.4	$205.6*
Diluted EPS ($)	$3.63	$3.21*
Values with asterisk retrieved from S&P Global.

Customer Concentration (revenue)

Customer	Q2 2026 ($M)	Q3 2026 ($M)
AT&T	$373.0	$361.9
Lumen	$155.4	$170.3

KPIs and Cash (chronological)

KPI	Q1 2026	Q2 2026	Q3 2026
Backlog ($B)	$8.127	$8.0	$8.22
Next-12-Month Backlog ($B)	$4.685	$4.604	$4.99
DSOs (days)	111	108	105
Operating Cash Flow ($M)	$(54)	$57.4	$220.0

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Revenue	FY 2026	$5.290–$5.425B (Aug 20)	$5.350–$5.425B (Nov 19)	Raised midpoint
Contract Revenues	Q4 2026	—	$1.26–$1.34B	New
Adjusted EBITDA	Q4 2026	—	$140–$155M	New
Diluted EPS	Q4 2026	—	$1.30–$1.65	New
Adjusted Diluted EPS (ex-intangible amort.)	Q4 2026	—	$1.62–$1.97	New (methodology)

Management will begin excluding intangible amortization in adjusted EPS starting Q4; Q3 adjusted EPS equaled GAAP ($3.63) as there were no adjustments impacting EPS .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 FY26)	Current Period (Q3 FY26)	Trend
AI/data center infrastructure	Hyperscaler CapEx up; long-haul/middle-mile TAM “over $20B” next 5 years; initial inside-the-fence awards	Stronger conviction; expects outside-plant data center build ramp in CY’26, substantial growth in 2027+; announced Power Solutions deal to enter data center electrical; DMV 27% of US capacity	Accelerating opportunity; expanding scope
BEAD	Not in FY26 outlook; expecting clarity mid-year; rural fiber expected	NTIA final plans approved for 15 states & 3 territories; >$500M verbal awards; revenue expected to start Q2 next FY	Firming pathway/timing
Service & maintenance	“Cornerstone,” >50% historically; new awards and renewals	Additional $500M+ agreements executed post-quarter (to hit Q4 backlog)	Growing, supports durability
Wireless programs	Outperforming; at least two more years on current programs	“Remains strong”; supports future densification opportunities	Sustained
Macro/tariffs	Minimal impact expected; US-based labor dilutes tariff effects	No material change; focus on cash and ERP deployment for efficiencies	Neutral

Management Commentary

“We delivered an exceptional third quarter with record revenue, profitability and backlog... As a result of our strong performance, we are increasing the midpoint of our full-year revenue outlook” (CEO) .
“Telecommunications demand drivers have never been stronger... accelerating fiber builds, a massive ramp-up in data center needs, and the much anticipated arrival of BEAD” (CEO) .
On Power Solutions: “Transaction... expected to be immediately accretive to our adjusted EBITDA margin and adjusted diluted EPS... pro forma net leverage below three times at closing, path to ~two times in 12–18 months” (CFO) .
“We have already secured over $500 million in verbal awards related to BEAD deployments, which is not yet reflected in our backlog” (CEO) .
“Adjusted EBITDA was 15.1% of contract revenues... as we performed well and continued to benefit from operating leverage” (CFO) .

Q&A Highlights

Cash discipline and collections: DSOs improved 14 days YoY to 105; management expects to remain “in a much better place overall,” though not always perfect .
Seasonality and Q4 range: Wider revenue range reflects normal Q4 seasonality (mid-week holidays, reduced daylight, winter weather) despite higher midpoint .
BEAD timing: Last step is funding; Louisiana already funded; Dycom expects revenue start in Q2 of next fiscal year; >$500M verbal awards are growing .
Expansion opportunity with Power Solutions: Initial focus on DMV with measured approach to new markets; business is capital-light with DSOs ~60+ days, supportive of deleveraging .
Margin sustainability: Operating leverage and efficiency initiatives driving expansion; aim to sustain mid-teens adjusted EBITDA margins as mix scales .

Estimates Context

Q3 FY26 delivered broad beats vs consensus: revenue $1.452B vs $1.408B*, EPS $3.63 vs $3.21*, and adjusted EBITDA $219.4M vs $205.6M*; beats stemmed from fiber-to-the-home ramps, hyperscaler programs, wireless strength, and operating leverage . Values with asterisk retrieved from S&P Global.
Q4 FY26 guidance: revenue $1.26–$1.34B and adj. EBITDA $140–$155M vs consensus* revenue $1.303B and EBITDA $145.9M; GAAP EPS $1.30–$1.65 vs consensus* $1.60, while new adjusted EPS methodology (ex-intangible amortization) is $1.62–$1.97, above GAAP consensus* midpoint . Values with asterisk retrieved from S&P Global.

Guidance Details vs Consensus

Q4 FY26 Guidance vs S&P Global Consensus

Metric	Company Guidance	Consensus*
Revenue ($B)	$1.26–$1.34	$1.303*
Adjusted EBITDA ($M)	$140–$155	$145.9*
Diluted EPS ($)	$1.30–$1.65	$1.60*
Adjusted Diluted EPS ex-amort. ($)	$1.62–$1.97	—

Values with asterisk retrieved from S&P Global.

Implications of the Power Solutions Acquisition

Strategic fit: brings electrical scope “inside the fence,” complementing Dycom’s fiber outside-plant; >90% of Power Solutions revenue from data centers in DMV, the largest US data center market (27% of US capacity) .
Financials and financing: ~$1.95B price (≈$293M stock, rest cash), term loan A $1.0B, 364-day bridge $700M; weighted average interest rate expected <6%; if $1.7B drawn for FY27, incremental cash interest ≈$96M; leverage <3x at close and path to ≈2x in 12–18 months .
Accretion: immediately accretive to adjusted EBITDA margin and adjusted EPS (ex-amort.); Power Solutions EBITDA margins mid-to-high teens with >$1B backlog .

Key Takeaways for Investors

Durable multi-year growth vectors: carrier fiber-to-home ramps, hyperscaler-driven long-haul/middle-mile fiber, and BEAD underwrite multi-year revenue visibility; record backlog and expanding NTM backlog support trajectory .
Quality of earnings improving: margin expansion from operating leverage and process efficiencies; DSOs and cash flow trending better; ERP program should add efficiencies through FY27 .
Q4 seasonality acknowledged; FY midpoint raised: despite normal seasonal headwinds, Dycom raised full-year revenue midpoint and introduced higher-visibility adjusted EPS framework (ex-amort.) .
Strategic M&A broadens TAM and margins: Power Solutions acquisition positions Dycom to capture data center electrical alongside fiber, with immediate adjusted EBITDA and EPS accretion and manageable leverage trajectory .
Estimate revisions likely: Q3 beats and raised FY midpoint, plus Q4 adjusted EPS framework, should prompt adjustments to EPS frameworks and valuation comps; monitor impact of purchase accounting and amortization on reported GAAP vs adjusted EPS .

Notes: All non-estimate financials and commentary sourced to company filings, press releases, and transcripts as cited. Consensus figures marked with an asterisk are Values retrieved from S&P Global.

DYCOM INDUSTRIES INC (DY)·Q3 2026 Earnings Summary