Dycom Industries (DY)

Telecom + fiber construction (Dycom) — builds fiber networks incl. data-center connectivity

AI exposure 15% — derived from reported segment revenue, not asserted.

Where it sits

Physical Infrastructure → Grid Infrastructure Contractors · figures rebased to Q2 FY2027, reported 2026-08-26

Engineering/construction for telecom (fiber/broadband), utility… is 100% of revenue, so Grid Infrastructure Contractors is effectively the whole company rather than one leg of it.

Reported segments

• Communications — 80.2% of revenue
• Building Systems — 19.8% of revenue

Dycom ($2,005.9M contract revenues Q2 FY2027, +45.6% — but +16.7% ORGANIC). Dycom now reports TWO segments and the split is the whole story. Communications $1,608.4M (80.2%) is the historic telecom and fiber construction business, and it is the organic number: it grew 16.7% against the prior-year total, because Building Systems has no prior-year comparative. Building Systems $397.5M (19.8%) is entirely acquired — Power Solutions in data-centre and critical-facility electrical work, plus National Technology Integrators, bought for $275M this quarter and contributing $22.9M, which does…

How the 15% is built

• Communications — 80.2% of revenue × 8% AI-driven (estimate). Telecom and fiber construction for carriers — fiber-to-the-home, wireless and BEAD-funded rural broadband. Data-centre interconnect fiber is a genuine but minority slice of a business whose demand is set by carrier capex and federal broadband subsidy, not by AI
• Building Systems — 19.8% of revenue × 45% AI-driven (estimate). Power Solutions does data-centre and critical-facility electrical work and National Technology Integrators does inside-plant structured cabling explicitly including data centres — but NTI also does AV and security systems, and Power Solutions serves utilities and commercial facilities, so under half rather than most

Investment read

Moat. Scale and skilled-workforce density in a fragmented trade. Dycom is among the few contractors able to staff multi-state fiber programmes, and its $12.242B backlog (+53.2%) is contracted work under master service agreements. That is a real barrier to a smaller bidder, but it is not pricing power — the work is competitively bid.

Bottleneck / pricing power. Weak. Adjusted EBITDA margin improved to 15.7% from 13.4%, which is good execution rather than scarcity rent. Communications margin is guided to decline slightly this year on workforce investment; the margin gain is coming from Building Systems mix, which is to say from acquisitions.

Role in the AI stack. The installation layer: the contractor that physically builds the fiber routes and, increasingly, the electrical and cabling infrastructure inside data centres.

Connected companies

• Quanta Services (PWR) — DY competes with: specialty contractors — Dycom (fiber pure-play) vs Quanta in telecom/data-center network build
• EMCOR Group (EME) — DY competes with: adjacent data-center construction overlap — Dycom (outside-plant fiber) vs EMCOR (building MEP)
• MYR Group (MYRG) — DY competes with: specialty electrical/telecom construction overlap
• Equinix (EQIX) — DY supplies: fiber + network construction for data-center connectivity
• Microsoft (MSFT) — DY supplies: fiber/network construction for hyperscaler DC build-out (customers largely unnamed carriers/hyperscalers)
• Corning (GLW) — DY is supplied by: optical fiber cable installed by Dycom
• Meta Platforms (META) — DY supplies: long-haul/middle-mile fiber construction serving hyperscaler network buildout (Meta not publicly named as direct customer)
• Amazon (AMZN) — DY supplies: fiber construction serving AI data-center routes; direct AWS relationship not documented (carriers like Verizon/Lumen are the contracting customers)
• Alphabet (GOOGL) — DY supplies: fiber construction for Google networks
• Oracle (ORCL) — DY supplies: long-haul and metro fiber construction increasingly serving data-center connectivity (customer base is primarily carriers)
• CoreWeave (CRWV) — DY supplies: long-haul/metro fiber construction serving data-center corridors CRWV uses (contracted by carriers, not CRWV)

Others in Grid Infrastructure Contractors

• Quanta Services (PWR)
• EMCOR Group (EME)
• Comfort Systems USA (FIX)
• MYR Group (MYRG)

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