Dycom Industries Inc (NYSE:DY) stock fell 6.93% (As on March 5, 11:38:36 AM UTC-4, Source: Google Finance) after the company’s profit falls though posted better than expected results for the fourth quarter of FY26. The company’s earnings totaled $16.29 million, or $0.55 per share. This compares with $32.67 million, or $1.11 per share, last year. Dycom’s largest customers, including AT&T, Verizon and Lumen, each exceeded 10% of total revenues in the fiscal fourth quarter. Other customers, including Brightspeed, Charter, Comcast and Uniti, exceeded 5% of total revenues. Adjusted EBITDA increased 39.6% to $162.4 million from a year ago. Adjusted EBITDA margin of 11.1% expanded 40 basis points (bps) from the year-ago level. Dycom’s backlog as of the fiscal fourth quarter totaled $9.54 billion, up year over year by 23% from $7.76 billion. Of the current backlog position, $6.36 billion is projected to be completed in the next 12 months. As of Jan. 31, 2026, Dycom had liquidity of $1.46 billion, including cash and cash equivalents worth $709.2 million, compared with $92.7 million as of fiscal 2025-end.

Moreover, Communications segment’s contract revenues increased year over year by 25.6% to $1.36 billion. The results were driven by continued strong demand from FTTH programs, wireless activity and long-haul and middle-mile fiber infrastructure deployments. Building Systems segmental contract revenues were $95.8 million.

DY in the fourth quarter of FY26 has reported the adjusted earnings per share of $2.03, beating the analysts’ estimates for the adjusted earnings per share of $1.91, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 34.4 percent to $1.46 billion in the fourth quarter of FY26, beating the analysts’ estimates for revenue of $1.34 billion. Contract revenues rose 16.6% on an organic basis. Acquired businesses contributed $95.8 million.

Dycom expects contract revenues between $1.64 billion and $1.71 billion for the first quarter of fiscal 2027. This compares with $1.26 billion reported in the year-ago quarter. Q1 Adjusted EBITDA is expected to be between $202 million and $218 million, indicating growth from $150.4 million reported last year. Dycom anticipates adjusted EPS in the range to be in the range of $2.57-$2.90.

For fiscal 2027, Dycom expects full-year contract revenues to be between $6.85 billion and $7.15 billion, reflecting 23.6-29% year-over-year growth, and 6.6-10.3% organic growth. Adjusted EBITDA margin is expected to expand in fiscal 2027. In the Communications segment, Dycom expects modest adjusted EBITDA margin improvement as operating leverage offsets continued investment to support its growth. In the Building Systems segment, the company expects to deliver a mid-teen adjusted EBITDA margin as it scales the business to capitalize on favorable sector tailwinds.