Dycom (NYSE:DY) saw its shares jump more than 10% intra-day on Wednesday after the company reported stronger quarterly results, raised the midpoint of its full-year revenue outlook, and announced a $1.95 billion agreement to acquire Power Solutions.
The company said the acquisition, which involves an electrical contractor serving data centers, was expected to close before the fiscal year-end, subject to customary approvals.
GAAP net income climbed to $106.4 million, or $3.63 per diluted share, topping the average analyst estimate of $3.20. Contract revenue increased 14.1% to $1.452 billion, with organic revenue rising 7.2% when excluding recent acquisitions. Contributions from acquired businesses totaled $110.9 million, up sharply from $21 million in the same period last year.
Adjusted EBITDA improved to $219.4 million, or 15.1% of contract revenue, compared with $170.7 million, or 13.4%, a year earlier.
For the fourth quarter ending January 31, 2026, Dycom projected adjusted EPS of $1.62 to $1.97, versus the consensus estimate of $1.66. It forecast Q4 contract revenue of $1.26 billion to $1.34 billion and adjusted EBITDA of $140 million to $155 million.
The company also raised the midpoint of its fiscal 2026 outlook, now anticipating contract revenue between $5.350 billion and $5.425 billion, representing 13.8% to 15.4% year-over-year growth.
