Dycom Industries, Inc. (NYSE:DY) posted record-breaking second-quarter results on Wednesday that topped Wall Street forecasts, but its decision to keep full-year guidance unchanged weighed on investor sentiment. Shares slipped 4.3% in premarket trading following the release.
The specialty contracting services company reported adjusted earnings per share of $3.33, far above analyst expectations of $2.67. Revenue also set a new quarterly high at $1.38 billion, edging past consensus of $1.37 billion and rising 14.5% from the prior year. On an organic basis, excluding acquisitions, revenue grew 3.4% year over year.
Even with the strong showing, Dycom reaffirmed its full-year revenue outlook of $5.29 billion to $5.43 billion, a move that appeared to disappoint investors hoping for an upgrade.
“This quarter, we delivered record revenue within our range of expectations and record earnings that exceeded our expectations. We meaningfully improved margins through operational efficiency and operating leverage,” said Dan Peyovich, Dycom’s President and Chief Executive Officer.
Margins improved significantly, with adjusted EBITDA rising 29.8% to $205.5 million, or 14.9% of contract revenue versus 13.2% a year earlier. Net income surged 42.5% to $97.5 million.
Looking ahead, Dycom guided third-quarter revenue between $1.38 billion and $1.43 billion, with adjusted EBITDA expected to range from $198 million to $213 million. Diluted EPS is projected at $3.03 to $3.36.
The company also highlighted a strong $8.0 billion backlog as of July 26, 2025, underscoring growth opportunities tied to ongoing digital infrastructure expansion. During the first half of fiscal 2025, Dycom repurchased 200,000 shares for $30.2 million, paying an average of $150.93 per share.
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