Dycom Industries, Inc. ( DY ) shares are trading lower after the company reported its second quarter FY25 results.

Contract revenue increased 15.5% Y/Y to $1.203 billion, beating the consensus of $1.196 billion. Adjusted EBITDA increased to $158.3 million from $130.8 million a year ago. Adjusted EPS of $2.46 surpassed the street view of $2.26.

In the quarter ending July 27, the company revised its credit agreement to increase term loan capacity and extend the maturity date to January 2029. As of July 27, cash and equivalents stood at $19.6 million.

Outlook: For the third quarter, Dycom anticipates a mid- to high single-digit percentage increase in total contract revenues, which included the company expectation of around $75 million of acquired contract revenues for the quarter.

Adjusted EBITDA margin is projected to increase by about 25 to 50 basis points Y/Y, excluding the 1.8% incremental EBITDA margin benefit from change orders and project closeouts reported in the prior year.

In a separate release, Dycom revealed the acquisition of Black & Veatch’s public carrier wireless telecom infrastructure business, expanding its reach into nine states and boosting its capabilities in wireless network modernization.

The acquisition is projected to contribute $250 million to $275 million in contract revenues for fiscal 2026.

Investors can gain exposure to the stock via The Advisors’ Inner Circle Fund III Strategas Macro Momentum ETF and Hilton Small-MidCap Opportunity ETF ( SMCO ) .

Price Action: DY shares are down 1.13% at $192.00 premarket at the last check Wednesday.

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