Dycom (NYSE:DY) saw its stock jump roughly 9% on Wednesday after the company posted strong quarterly results, raised the midpoint of its full-year revenue forecast, and revealed a major deal to acquire Power Solutions for $1.95 billion.
The acquisition, which will expand Dycom’s presence in data center electrical infrastructure, is slated to close before the end of the fiscal year pending standard approvals.
Dycom reported GAAP net income of $106.4 million, or $3.63 per diluted share, comfortably beating analysts’ expectations of around $3.20 per share.
Total contract revenue climbed 14.1% to $1.452 billion, with organic growth of 7.2% after excluding contributions from newly acquired operations. Acquisitions added $110.9 million in revenue, up sharply from $21.0 million in the same quarter last year.
Adjusted EBITDA strengthened to $219.4 million (15.1% of contract revenue), compared with $170.7 million (13.4%) a year earlier.
“We delivered an exceptional third quarter with record revenue, profitability and backlog, reinforcing our industry leadership and operational discipline,” said CEO Dan Peyovich. “As a result of our strong performance, we are increasing the midpoint of our full-year revenue outlook.”
For the fiscal fourth quarter ending January 31, 2026, Dycom expects adjusted EPS between $1.62 and $1.97, versus the Street’s $1.66 midpoint estimate.
Contract revenue is projected to fall within $1.26 billion to $1.34 billion, while adjusted EBITDA should range from $140 million to $155 million.
Management also raised the midpoint of its fiscal 2026 revenue outlook. The company now anticipates contract revenue of $5.350 billion to $5.425 billion, representing 13.8% to 15.4% growth year over year.
Dycom additionally announced that it has agreed to acquire Power Solutions, a data center–focused electrical contracting firm, for $1.95 billion. The transaction will be financed through both cash and stock, including approximately $293 million in Dycom shares. The remaining cash outlay will be covered through existing liquidity, a committed $1.0 billion senior secured term loan, and a $700 million senior secured bridge facility.