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Investing.com -- Shares of Dycom jumped around 9% after the company delivered stronger quarterly results, lifted the midpoint of its full-year revenue outlook, and announced a $1.95 billion deal to acquire Power Solutions.
The acquisition is expected to close before the end of the fiscal year, subject to customary conditions.
Dycom’s GAAP net income rose to $106.4 million, or $3.63 per diluted share, ahead of the average analyst estimate of $3.2.
The company’s contract revenue increased 14.1% to $1.452 billion. Organic revenue rose 7.2% after excluding contributions from recently acquired businesses. Acquisitions added $110.9 million in revenue, up from $21.0 million in the prior-year period, Dycom said.
Adjusted EBITDA during the quarter improved to $219.4 million, or 15.1% of contract revenues, compared with $170.7 million, or 13.4%, a year earlier.
“We delivered an exceptional third quarter with record revenue, profitability and backlog, reinforcing our industry leadership and operational discipline,” said CEO Dan Peyovich. “As a result of our strong performance, we are increasing the midpoint of our full-year revenue outlook."
For the fourth quarter ending January 31, 2026, Dycom expects adjusted earnings per share to be between $1.62 and $1.97, compared to the consensus estimate of $1.66.
The company forecasts Q4 contract revenues from $1.26 billion to $1.34 billion, and adjusted EBITDA of $140 million to $155 million.
Management also raised the midpoint of its fiscal 2026 revenue outlook. Dycom now anticipates contract revenues of $5.350 billion to $5.425 billion, implying 13.8% to 15.4% growth over the prior year.
Alongside the guidance update, the company said it has signed an agreement to acquire Power Solutions, an electrical contractor serving data centers, for $1.95 billion.
The buyout price will be funded through a mix of stock and cash, including about $293 million in Dycom shares. The remaining cash portion will be financed with existing cash, a committed $1.0 billion senior secured term loan, and a committed $700 million senior secured bridge loan facility.