Dycom Acquires Power Solutions for $1.95 Billion, Expands into Data Center Electrical Infrastructure

Dycom Industries has acquired Power Solutions for $1.95 billion, enhancing its capabilities in data center electrical infrastructure alongside its existing fiber optic network services. In Q3, Dycom reported revenues of $1.452 billion, a 14% increase year-over-year, with organic growth of 7.2%.

Adjusted EBITDA rose to $219 million, an increase of nearly 29%, while net income per share reached $3.63, up from $2.37. The backlog grew to a record $8.2 billion, with nearly $5 billion expected to be realized within the next year.

Dycom's client base remains diversified, with AT&T and Lumen each contributing over 10% of revenues. The BEAD program for broadband expansion could yield significant contracts, expected to begin generating revenue in Q2 2027. Dycom anticipates full-year revenues between $5.35 billion and $5.425 billion, reflecting a 14-15% growth from the previous year, despite upcoming pressures from rising debt and economic cycles.