Dycom to Acquire Power Solutions for $1.95 Billion, Lifts Full-Year Revenue Guidance
Shares of Dycom (NYSE:DY) jumped more than 10% intra-day on Wednesday after the company announced a $1.95 billion agreement to acquire Power Solutions, reported stronger-than-expected quarterly results, and raised its full-year revenue outlook.
The acquisition of Power Solutions, an electrical contractor serving the data center industry, is anticipated to close before the company's fiscal year-end, subject to customary approvals.
In its recent financial report, Dycom posted GAAP net income of $106.4 million, or $3.63 per diluted share. This exceeded the average analyst estimate of $3.20 per share. Contract revenue for the period increased by 14.1% to $1.452 billion. Organic revenue saw a 7.2% rise, excluding recent acquisitions. Contributions from acquired businesses totaled $110.9 million.
Adjusted EBITDA improved to $219.4 million, or 15.1% of contract revenue, compared with $170.7 million, or 13.4%, in the same period a year earlier.
For its fourth quarter ending January 31, 2026, Dycom forecasts adjusted EPS in the range of $1.62 to $1.97. The company projects Q4 contract revenue of $1.26 billion to $1.34 billion and adjusted EBITDA between $140 million and $155 million.
Dycom raised the midpoint of its fiscal 2026 outlook, now expecting contract revenue to be between $5.350 billion and $5.425 billion, which represents year-over-year growth of 13.8% to 15.4%.
For more information, readers can review the company's financial health and investor profile.
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