Dycom Industries, Inc. announced a definitive agreement to acquire Power Solutions, LLC for $1.95 billion, consisting of $293 million in Dycom common stock and the remainder in cash. The deal expands Dycom’s presence in the Mid‑Atlantic data‑center market, where Power Solutions operates a 2,800‑employee workforce that generated roughly $1 billion in revenue in 2025. The transaction is expected to close before the end of Dycom’s fiscal year and is projected to be immediately accretive to adjusted EBITDA and diluted EPS.
On the same day, Dycom reported third‑quarter 2025 results that beat consensus expectations. Adjusted earnings per share rose to $3.63 from an estimate of $3.20, a $0.43 or 13.4% beat, while revenue climbed to $1.45 billion, surpassing the $1.40 billion estimate by $0.05 billion. The earnings beat was driven by disciplined cost management and a favorable mix shift toward high‑margin fiber and wireless contracts, which offset modest price pressure in the electrical segment.
Management guided for fourth‑quarter 2025 adjusted EPS in the range of $1.62 to $1.97 and revenue between $1.26 billion and $1.34 billion, maintaining the prior guidance range but adding a slight upward tilt in revenue expectations. The guidance reflects confidence in sustained demand for data‑center infrastructure, particularly from hyperscalers and the BEAD program, while acknowledging seasonal headwinds that could temper growth.
The acquisition aligns with Dycom’s strategy to deliver end‑to‑end digital‑infrastructure solutions. By combining its fiber and wireless expertise with Power Solutions’ electrical contracting capabilities, Dycom can offer a full suite of services to hyperscalers, reducing project cycle times and increasing cross‑sell opportunities. The deal also positions Dycom to capture a larger share of the high‑growth data‑center market, where integrated electrical and fiber solutions are increasingly critical.
CEO Dan Peyovich emphasized the strategic significance of the transaction, stating that it “diversifies our business and significantly enhances our potential to generate long‑term growth and value creation.” He added that the combined platform will “enable us to benefit from continued strong demand for digital infrastructure solutions among hyperscalers and other industry participants.”
Financially, Dycom expects pro‑forma net leverage to remain below 3.0x at closing and to decline to roughly 2.0x within 12 to 18 months, preserving flexibility for future growth and opportunistic share repurchases. The transaction’s cash‑plus‑stock structure and the company’s robust backlog of $8.2 billion further support a strong balance‑sheet profile.
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