stockrowWhat it does
Dycom Industries is a specialty contractor that builds and maintains communications and utility infrastructure across the United States. Its customers include telephone and cable companies, wireless carriers, utilities and contractors building data centers. Daniel S. Peyovich is its president and chief executive officer. Dycom was incorporated in Florida in 1969.
The company helps customers plan and build networks that carry voice, video and data. Its work includes designing routes, obtaining permits, placing cables underground or overhead, splicing fiber and connecting homes and businesses to networks. It also builds wireless sites, installs equipment and maintains existing facilities. For utilities, Dycom locates underground lines before construction and performs electric and gas construction and maintenance work.
Dycom operates through local companies that supply the people, equipment and tools needed for projects. Its services range from individual construction tasks to program management, engineering and inspection. The company also installs and maintains equipment at customer premises.
A separate Building Systems business provides electrical, energy management, security and fire safety systems for data centers and other critical facilities. Dycom entered this business through its acquisition of Power Solutions in fiscal 2026. The company organizes its operations into Communications and Building Systems segments.
How it makes money
Dycom earns contract revenue by performing engineering, construction, installation and maintenance work. In Communications, crews place and splice fiber, copper and coaxial cable, install network structures and connect distribution lines to homes and businesses. They also build wireless facilities, locate underground utility lines and provide planning and project management. Building Systems installs infrastructure such as electrical and safety systems at data centers and other critical facilities.
In fiscal 2026, Communications revenue was $5.5 billion and Building Systems revenue was $95.8 million. Total contract revenue was $2.01 billion in the second quarter of fiscal 2027.
Much of Dycom’s work is performed under master service agreements and other contracts with customer-specified requirements. These agreements set separate prices for tasks such as placing fiber, directional boring and splicing, based on a unit of measure. Dycom generally has multiple agreements with each major customer. Multi-year agreements have historically been awarded mainly through competitive bidding, although extensions can sometimes be negotiated.
The company also performs work under contracts for individual projects. Customers may retain part of an invoice until a project is completed and closed out. Dycom recognizes contract revenue as it performs services, generally measuring progress by units delivered; for certain contracts it measures progress using costs incurred.
Service and maintenance work provides a recurring revenue base, while construction assignments depend on customers’ network and facility programs. Dycom estimates its backlog from existing agreements, but customers generally are not committed to buy a specific volume of services. Backlog and the timing of work can therefore change.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Communications | $5.5 billion | 98.3% | 15.9% |
| Building Systems | $95.8 million | 1.73% | — |
Customers and how it sells
Dycom serves telephone companies, cable operators, wireless carriers, telecommunications infrastructure providers and electric and gas utilities. Its Building Systems business also works with general contractors specializing in data center construction. The company serves customers across all 50 states through operating companies and field offices; local management teams handle sales, marketing and customer service, supported by executive management at local and national levels.
Revenue is concentrated among a small group of customers. In fiscal 2026, AT&T accounted for 25.4% of total contract revenue, Verizon for 14.0% and Lumen Technologies for 10.8%. Dycom expects a substantial portion of revenue and operating income to continue coming from a concentrated group, although the customers and their shares can change.
Customer acquisitions affect how that concentration is reported. Verizon’s fiscal 2026 revenue includes work attributable to Frontier Communications. AT&T acquired substantially all of Lumen’s mass markets fiber business after fiscal 2026; the related fiscal 2026 revenue remains reported under Lumen.
Power Solutions expanded Dycom’s work with data center contractors in the Greater Washington D.C., Maryland and Virginia area. Dycom subsequently acquired National Technology Integrators and identified opportunities to cross-sell structured cabling work alongside Power Solutions and its Communications operations.
| Segment | Revenue, FY2026 | Share | Change on the year |
|---|---|---|---|
| Communications | $5.5 billion | 98.3% | 15.9% |
| Building Systems | $95.8 million | 1.73% | — |
Suppliers and costs
Dycom supplies labor, equipment and tools for its services. It also uses subcontractors for a significant amount of work, helping it respond to changes in volume without carrying all the associated fixed assets and working capital itself. Subcontractors are typically small private companies that provide their own employees, vehicles, tools and insurance; no individual subcontractor is financially significant to Dycom.
Customers provide most required materials for a majority of Dycom’s contract services. Dycom does not include those customer-provided materials in its revenue or costs. When a contract requires Dycom to supply materials, it typically does not depend on a single source.
Direct costs include employee labor, subcontractors, equipment operation, materials and insurance. General and administrative expenses include compensation, professional fees, technology, and acquisition and integration costs. Vehicles, machinery and equipment require capital spending, and project costs can be paid before customers are invoiced and collections received. Dycom retains some insurance risk within specified limits for its Communications operations, while Building Systems is insured through third-party policies.
- Revenue$5.5B
- Cost of revenue−$4.4B
- Selling, general and administrative−$445.5M
- Other operating costs−$269.6M
- Operating income$425.1M
Competitive position
Dycom competes in a fragmented specialty contracting industry against large multinational companies, regional and privately owned contractors, and customers that perform some services themselves. No individual competitors are named. Competition depends on geographic presence, service quality, safety, price, breadth of services and reputation.
Dycom operates across all 50 states and combines local customer relationships and field operations with centralized functions such as technology, treasury and risk management. It also offers several stages of network work, from planning and permits through construction and maintenance. Its Building Systems operations add electrical and other facility services for data centers.
Our reading: National coverage and a range of services can help Dycom serve customers with projects across multiple locations, but those capabilities do not eliminate competition from local contractors or customers’ own crews.
Dycom’s employees have specialized technical skills, and the company trains workers in the safety and technical requirements of its work. It also generally has multiple agreements with significant customers. Most master service agreements can nevertheless be terminated for convenience, and exclusivity often has exceptions.
Our reading: Skilled crews and established customer relationships are useful competitive resources, but contract termination rights and the industry’s relatively low barriers to entry limit their protection. Organizations with financing, technical expertise and equipment can enter the markets Dycom serves.
Growth opportunities
Dycom’s growth plans center on fiber-to-the-home deployments, long-haul fiber routes, data center connections and electrical infrastructure, wireless modernization, and maintenance services. It also expects state and federal programs to support network deployment. The company pursues acquisitions that expand or diversify its services and geography.
Communications revenue grew 15.9% in fiscal 2026 to $5.5 billion. Dycom attributed the increase primarily to fiber-to-the-home deployments, including rural programs, and revenue from businesses acquired in fiscal 2025. Fiscal 2026 contained 53 weeks of operations, compared with 52 weeks in fiscal 2025.
Dycom sizes the addressable market for long-haul fiber corridors and high-strand interconnects at $20 billion. It sees demand from cloud migration, AI workloads and data center growth. At the end of the second quarter of fiscal 2027, the company reported $12.2 billion of total backlog, including $10.98 billion in Communications and $1.26 billion in Building Systems. Backlog is an estimate, and customers generally are not committed to specific service volumes.
The acquisition of Power Solutions created the Building Systems segment, and Dycom acquired National Technology Integrators in the second quarter of fiscal 2027. Dycom expects total contract revenue of $7.48 billion to $7.66 billion for fiscal 2027. It also expects approximately $150 million of wireless revenue to shift from the second half of that year into fiscal 2028, with the program’s overall scope and backlog unchanged.
- $3.1BFY2022
- $3.8BFY2023
- $4.2BFY2024
- $4.7BFY2025
- $5.5BFY2026
- $7.5BFY2027 guidance
Structural risks
- Customer spending and concentration. A small group of customers generates a substantial portion of revenue. Their capital budgets, financial condition, mergers and project decisions affect demand, and customers can cancel contracts or awarded work.
- Backlog and timing. Backlog is an estimate rather than a commitment to purchase specific volumes. Cancellations, changes in spending priorities, permitting, scheduling, job-site conditions and weather can change the amount or timing of work.
- Seasonality and weather. Much Communications work takes place outdoors. Winter weather, shorter daylight hours and holidays can reduce workdays and contribute to lower revenue and profitability in the quarters ending in January and April.
- Workforce and execution. Construction activities can be dangerous, and workplace safety failures can lead to liabilities or enforcement actions. Dycom expects pressure on the industry’s skilled workforce as fiber programs expand; it has turned away some projects while resources are ramped up and trained.
- Acquisitions and financing. Dycom may not realize the opportunities or synergies expected from Power Solutions or other acquisitions. Its credit agreement contains leverage and interest-coverage covenants, and the company may not have sufficient capital on favorable terms in the future.
Bottom line
Our reading
Dycom is a field-services business built around customer networks, skilled crews and multi-year contracting relationships, with an expanding position in data center infrastructure. Its national coverage and service breadth can support work across large programs, but customer concentration, cancellable work and exposure to customers’ spending decisions limit the certainty of that demand. Acquisitions and new fiber programs add opportunities alongside workforce, integration and financing demands.