Dycom Industries shares fall over 4% as guidance overshadows record earnings

Published 20/08/2025, 12:06
 Dycom Industries shares fall over 4% as guidance overshadows record earnings

WEST PALM BEACH, Fla. - Dycom Industries, Inc. (NYSE:DY) reported record second-quarter results that exceeded expectations on Wednesday, and presented unchanged full-year guidance despite the strong performance.

The company’s shares fell 4.29% in pre-market trading following the announcement.

The specialty contracting services provider posted adjusted earnings per share of $3.33, significantly higher than analyst estimates of $2.67, while revenue reached a record $1.38 billion, slightly above the expected $1.37 billion and up 14.5% YoY. On an organic basis, excluding acquired businesses, revenue increased 3.4% compared to the same quarter last year.

Despite the strong quarterly performance, Dycom maintained its full-year revenue outlook of $5.29 billion to $5.43 billion, which appears to have disappointed investors looking for an upward revision following the earnings beat.

"This quarter, we delivered record revenue within our range of expectations and record earnings that exceeded our expectations. We meaningfully improved margins through operational efficiency and operating leverage," said Dan Peyovich, Dycom’s President and Chief Executive Officer.

The company reported substantial margin improvement, with adjusted EBITDA increasing 29.8% to $205.5 million, representing 14.9% of contract revenues compared to 13.2% in the prior year quarter. Net income jumped 42.5% to $97.5 million.

For the third quarter, Dycom expects revenue between $1.38 billion and $1.43 billion and adjusted EBITDA of $198 million to $213 million, with diluted earnings per share projected at $3.03 to $3.36.

The company maintains a solid backlog of $8.0 billion as of July 26, 2025, positioning it well for future growth in the expanding digital infrastructure market. During the first half of the fiscal year, Dycom repurchased 200,000 shares of its common stock for $30.2 million at an average price of $150.93 per share.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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