en.Wedoany.com Reported - Dycom noted that the fiber-to-the-home (FTTH) market has long-term growth potential, with large and regional service providers advancing network construction while acquiring assets through targeted mergers and acquisitions.
AT&T and Verizon have acquired Lumen's FTTH business and Frontier, requiring not only the integration of new assets but also expansion into new markets. Additionally, multiple independent telecom companies, competitive service providers, and cable operators are expanding FTTH coverage. T-Mobile, in partnership with Oak Hill Capital, acquired GoNetspeed and Greenlight Networks to expand fiber access in the Northeast market; it also acquired i3 Broadband through a joint venture, strengthening its fiber footprint in the Midwest. Cable operator Wide Open West, after going private in January, is advancing FTTH expansion in southeastern Alabama, east-central Michigan, and South Carolina.
Dycom achieved strong revenue growth in the first quarter of fiscal 2027, driven by expansion into more regions and FTTH construction progress exceeding expectations. CEO Daniel Peyovich stated during the earnings call that the broadband industry is "still in the early stages" of FTTH construction, with the number of homes covered expected to increase steadily over the next few years, along with rising per-home coverage costs.
According to the Fiber Broadband Association, FTTH deployments have surpassed 11.8 million households. Fiber networks now cover 98.4 million U.S. households, exceeding 60% of all U.S. homes, and cover over 70% of Canadian households and businesses. Dycom's FTTH business grew 33% quarter-over-quarter. Peyovich cautioned that service providers' FTTH deployments are phased and not synchronized across all markets.
Dycom remains optimistic about the Broadband Equity, Access, and Deployment (BEAD) program. Peyovich expects BEAD-related revenue to be reported in the second quarter, but fiscal 2027 will be the phase when the program "truly gains traction" and accelerates. Different projects and sub-recipients will launch on their own timelines, with smaller projects potentially starting earlier.
Dycom's total contract revenue for the first quarter of fiscal 2027 was $1.97 billion, up 56.1% year-over-year. Communications segment revenue reached $1.57 billion, with organic growth of 24.7%, driven by accelerated FTTH projects, increased long-haul and middle-mile fiber deployments, and growth in maintenance services. Building Systems revenue was $395.4 million, accounting for approximately 20% of total quarterly revenue; Power Solutions revenue was also $395.4 million.
CFO H. Andrew DeFerrari stated that the results reflect the strength of customer relationships and the continued diversification of the customer base. Dycom forecasts communications segment contract revenue between $6.03 billion and $6.2 billion, with organic growth of approximately 12.6% to 15.8%; Building Systems segment contract revenue is expected to be between $1.35 billion and $1.45 billion. For the full fiscal 2027, DeFerrari expects total contract revenue between $7.38 billion and $7.65 billion.
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