Dycom to Report Q2 Earnings: Here's What to Expect This Season

Dycom Industries, Inc. DY is scheduled to report its second-quarter fiscal 2027 results on Aug. 26, before the opening bell.

In the last reported quarter, the company’s adjusted earnings and contract revenues topped the Zacks Consensus Estimate by 61.9% and 18%, respectively. On a year-over-year basis, both metrics grew 84.9% and 56.1%, respectively.

Dycom’s earnings surpassed estimates in each of the trailing four quarters, with an average of 25%.

How are Estimates Placed for DY Stock?

The Zacks Consensus Estimate for fiscal second-quarter earnings per share (EPS) has moved down to $4.62 from $4.64 over the past 30 days. However, the revised estimate indicates 38.7% year-over-year growth.

The consensus estimate for contract revenues is pegged at $1.97 billion, indicating a 43.2% year-over-year rise from $1.38 billion.

Dycom Industries, Inc. Price and EPS Surprise

Dycom Industries, Inc. price-eps-surprise | Dycom Industries, Inc. Quote

Factors Likely to Have Shaped Dycom’s Q2 Performance

Revenues

Dycom’s top-line performance in the fiscal second quarter is expected to have benefited from surging digital infrastructure demand, mainly tied to Artificial Intelligence and hyperscale computing. This is likely because telecom operators and technology firms are accelerating network upgrades. Moreover, the company is expected to have witnessed increased activity for fiber-to-the-home deployments, long-haul and middle-mile fiber infrastructure builds and large data center campuses. Moreover, the Broadband Equity Access and Deployment (BEAD) program, offering to be a multiyear catalyst amid strong project activity, is likely to have added to the quarter’s top-line growth.

Notably, the acquisition of Power Solutions, LLC, under the Building Systems segment, is expected to have aided this segment’s contributions in the quarter, as it strengthens DY’s position in data center infrastructure. For the fiscal second quarter, Dycom expects contract revenues between $1.94 billion and $2.01 billion.

For the fiscal second quarter, our Zacks model expects revenues from the Communications and Building Systems segments to be $1.61 billion and $358 million, sequentially up 2.7% but down 9.5%, respectively.

Earnings & Margins

For the fiscal second quarter, Dycom’s bottom line is expected to have increased year over year because of incremental leverage from contract revenue growth and strong operational capabilities. Owing to the robust market fundamentals, the company projects adjusted EBITDA between $284 million and $303 million, up from $205.5 million reported in the prior-year quarter. The company anticipates adjusted EPS in the range of $4.40-$4.82 for the fiscal second quarter.

Our model projects adjusted EBITDA to grow year over year by 41% to $289.8 million.

Although trade policy uncertainty and tariff-related cost increases are concerning for bottom-line growth, the increasing top line and favorable market demand trends are expected to have more than offset these headwinds.

Backlog

For the fiscal second quarter, our model expects a total backlog of $14.11 billion, indicating growth of 76.6% from $7.99 billion reported in the prior-year quarter.

What Our Model Says for Dycom

Our proven model does not conclusively predict an earnings beat for Dycom this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.

DY’s Earnings ESP: The company has an Earnings ESP of +0.69%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

DY’s Zacks Rank: The stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Few Construction Releases

Martin Marietta Materials, Inc. MLM reported outstanding second-quarter 2026 results, wherein adjusted earnings (from continuing operations) and revenues topped the Zacks Consensus Estimate and increased year over year.

Martin Marietta’s results benefited from strong organic performance and contributions from acquisitions. Aggregates shipments increased 17% to a record 61.6 million tons, supported by infrastructure and heavy nonresidential demand. Heavy nonresidential demand also benefits from data center, power-generation and warehouse construction. Martin Marietta raised its 2026 revenue guidance to a range of $7.2-$7.4 billion, with a midpoint of $7.3 billion.

CRH plc CRH reported exceptional second-quarter 2026 financial results with adjusted earnings and total revenues topping the Zacks Consensus Estimate and growing year over year. Positive pricing, favorable demand and acquisition contributions supported the quarterly growth. CRH completed 11 acquisitions during the quarter for $1.1 billion.

CRH reaffirmed 2026 net income guidance of $3.9-$4.1 billion, adjusted EBITDA guidance of $8.1-$8.5 billion and earnings guidance of $5.60-$6.05 per share. The company expects public infrastructure spending and reindustrialization activity to support demand, while new-build residential conditions remain subdued.

NVR, Inc. NVR reported second-quarter 2026 results, with earnings and Homebuilding revenues missing the Zacks Consensus Estimate. Earnings and Homebuilding revenues also declined on a year-over-year basis.

NVR’s quarter reflected stronger order activity and a lower cancellation rate, but fewer settlements, softer pricing and margin pressure weighed on results. Settlements fell 8% to 5,058 units from 5,475 units, limiting revenue generation during the period. Backlog units increased 9% year over year, while Homebuilding's gross margin contracted amid higher lot costs, affordability challenges and land deposit impairments.

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This article originally published on Zacks Investment Research (zacks.com).

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