Dycom Industries, Inc. closed its purchase of Power Solutions, LLC on December 23, 2025, finalizing a cash‑free, debt‑free transaction valued at $1.95 billion. The deal comprised $1.63 billion in cash and approximately 1.011 million shares of Dycom common stock, giving Power Solutions a 100% ownership stake in the new entity.
The acquisition marks a strategic pivot for Dycom, which has long been a fiber‑network contractor. By adding Power Solutions’ $1 billion in annual revenue and 15% compounded growth, Dycom now offers end‑to‑end digital‑infrastructure services that include electrical infrastructure for data‑center projects. Power Solutions’ workforce of 2,800 skilled electricians and low‑voltage technicians expands Dycom’s national footprint and positions the company to cross‑sell services to hyperscalers and telecom carriers.
Financially, the transaction is expected to be immediately accretive to Dycom’s adjusted EBITDA margin and free cash flow. The addition of a high‑margin, data‑center‑focused business is projected to lift the combined company’s margin profile, while the workforce expansion supports higher utilization rates. Dycom’s Q3 2025 results—revenue of $1.45 billion, EPS of $3.63, and an adjusted EBITDA margin of 15.1%—provide a baseline that the acquisition is expected to strengthen.
To fund the deal, Dycom amended its credit agreement, increasing the revolving commitment to $800 million and the term loan to $1.54 billion, with maturities extended to December 2030. A $600 million 364‑day bridge loan was also secured to cover immediate working‑capital needs. The company plans to manage leverage to roughly two times debt‑free EBITDA within 12 to 18 months.
President and CEO Dan Peyovich said the acquisition “represents a significant milestone for Dycom, reinforcing the Company’s position as a leader in the fast‑growing digital infrastructure industry.” He added that Power Solutions’ expertise in mission‑critical electrical work will “enable us to deliver integrated fiber and electrical solutions to the world’s largest data‑center operators.”
Analysts have noted the acquisition as transformational, citing the $240 billion data‑center construction, maintenance, and upgrade market that Dycom now gains access to. The deal is expected to accelerate growth in the AI‑driven infrastructure cycle and enhance Dycom’s competitive stance against other digital‑infrastructure providers.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.