Dycom buys Power Solutions for $1.63 billion, expands data center reach

Dycom Industries closed its acquisition of Power Solutions on December 23, 2025, paying approximately $1.63 billion in cash on a cash free, debt free basis and issuing roughly 1.0 million shares of common stock as part of the transaction. Company filings and press releases describe the consideration as including an estimated working capital adjustment and show the deal was announced on November 19, 2025 and completed five weeks later.

Power Solutions, based in Bowie, Maryland, is one of the Mid Atlantic region's largest electrical contractors serving data centers. Dycom said Power Solutions will continue to operate under its own brand from its Bowie headquarters and that the existing management team will remain in place. Company disclosures indicate the combined execution capacity brings more than 2,800 skilled employees into Dycom's operations, expanding its ability to bid for and execute large scale data center electrical projects.

Dycom characterized the acquisition as immediately accretive to adjusted EBITDA margin and adjusted diluted earnings per share excluding non cash intangible amortization, and said the deal enhances free cash flow. The company simultaneously amended and restated its credit agreement to support the purchase, extending debt maturities to December 2030, expanding the revolving credit facility to $800 million and increasing its term loan. Dycom described the credit changes as an integral part of the financing package backing the transaction.

The acquisition aligns with Dycom's strategy to broaden its digital infrastructure and electrical contracting footprint. Earlier in fiscal 2025 Dycom completed an acquisition of Black and Veatch's public carrier wireless infrastructure business, a transaction that management said broadened its wireless construction capabilities. The Power Solutions deal follows a period of strong operating performance, with Dycom reporting fiscal third quarter earnings per share of $3.63, ahead of the $3.21 consensus, and revenue of $1.45 billion, above a $1.41 billion forecast. Over the past year Dycom's stock has nearly doubled, reflecting investor enthusiasm for the firm's exposure to infrastructure spending.

The move carries market and policy implications. From a market perspective, adding scale in data center electrical work positions Dycom to capture rising demand from hyperscalers and enterprise cloud buildouts, sectors expected to sustain capital expenditure as artificial intelligence applications proliferate. Financing the deal through larger revolving capacity gives Dycom more flexibility for working capital and project backlogs, but increases the importance of execution and margin discipline if macroeconomic conditions tighten.

The company acknowledged one external report that cited a $1.95 billion figure for the deal and described the transaction as transformational. Most primary company filings and Dycom press releases, however, state the purchase consideration as approximately $1.63 billion plus about 1.0 million shares. CEO Dan Peyovich said the closing "represents a significant milestone for Dycom, reinforcing the Company's position as a leader in the fast growing digital infrastructure industry," and welcomed Power Solutions to the Dycom family.

As data center investment accelerates globally, sector consolidation and vertical integration are likely to continue. For Dycom, the acquisition adds specialized electrical capacity at a time when clients value turnkey, integrated contractors that can deliver speed and reliability on large critical infrastructure projects.