Dycom’s Fiber Backlog Grows, but Telecom Exposure Weighs on Valuation

Dycom Industries is trading at a lower forward valuation than industry, sector and S&P 500 benchmarks, even as its backlog expands. Zacks Equity Research put the company’s forward 12-month price-to-earnings ratio at 13.93, compared with 17.5 for its industry, 17.57 for the sector and 19.83 for the S&P 500. The article said shares had fallen 20.9% year to date. At 14:16 UTC Tuesday, they traded at $267.24, up 0.09% since the previous close.

Contract revenues rose 50.6% year over year to $3.97 billion in the first six months of fiscal 2027, with organic growth of 20.5%. Backlog stood at a record $12.24 billion as of Aug. 1, up 53.2% year over year. Dycom raised its fiscal 2027 revenue outlook to $7.48 billion to $7.66 billion.

The company completed its acquisition of National Technology Integrators in the second quarter of fiscal 2027. The business contributed about $22.9 million in quarterly revenue, while Dycom raised its full-year Building Systems revenue outlook to $1.58 billion to $1.65 billion.

Communications remains the company’s main source of revenue, accounting for about $3.18 billion of its $3.97 billion in first-half fiscal 2027 revenue. Management deferred about $150 million in wireless program revenue to fiscal 2028 and expects a slight decline in Communications adjusted EBITDA margin for fiscal 2027.

Zacks cited customer concentration, project timing, inflation and tariff uncertainty as risks to profitability. It also said Dycom faces competition from Quanta Services, EMCOR and MasTec, which have different levels of exposure across infrastructure markets.