Record fiscal 2026 performance was driven by a diverse demand environment, specifically accelerated fiber-to-the-home deployments and increasing hyperscaler capital expenditures.

The acquisition of Power Solutions marks a strategic pivot into the Building Systems segment, positioning the company at the intersection of data center compute and fiber transmission.

Management attributes margin expansion to scaled efficiencies and high-grading the project pipeline to favor high-value engagements with superior returns.

Operational performance in Q4 was impacted by severe winter storms, which created temporary margin pressure despite record organic revenue growth of 16.6%.

The company is proactively addressing an anticipated industry-wide skilled labor shortage by breaking ground on a state-of-the-art immersive training facility.

Strategic positioning as an 'indispensable partner' for hyperscalers is supported by a $20,000,000,000 addressable market across long-haul, middle-mile, and inside-the-fence infrastructure.

Maintenance and operations services provided over 50% of Communications revenue, serving as a recurring bedrock that enables the pursuit of larger, high-velocity capital programs.

Fiscal 2027 revenue guidance of $6,850,000,000 to $7,150,000,000 assumes organic growth of 6.6% to 10.3% and a significant contribution from the new Building Systems segment.

Management expects modest EBITDA margin gains in Communications as operating leverage is partially offset by heavy front-end investments in workforce training and recruitment.

The BEAD program is expected to provide initial revenue opportunities in Q2, with a more significant ramp projected for calendar 2027 as programs move from planning to active construction.

Wireless equipment replacement revenue is projected to decline by approximately $100,000,000 in fiscal 2027 as the current program phase reaches its scheduled transition.

Capital expenditure guidance of $210,000,000 to $220,000,000 reflects a strategic shift toward fleet optimization and advanced telematics rather than short-term cost-cutting.

Implemented new segment reporting (Communications and Building Systems) to reflect the integrated strategy for digital infrastructure and data center solutions.

Pro forma net leverage ended the year at 2.3x, with management targeting a reduction to approximately 2.0x within the next 12 months.

The $1,950,000,000 Power Solutions acquisition was funded through a mix of stock, term loans, and cash, significantly expanding the company's total addressable market.

Net DSOs improved by 13 days year-over-year to 101 days, driven by internal process enhancements and the lower DSO profile of the acquired Building Systems business.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here.

Management noted that cross-selling between Communications and Building Systems is occurring earlier than anticipated, particularly with hyperscalers requiring both internal data center work and external fiber interconnectivity.

The 'Building Systems' name was chosen specifically to allow for future M&A in other data center disciplines beyond just electrical services, excluding civil infrastructure.

The $20,000,000,000 TAM is considered conservative as hyperscalers recently raised CapEx guidance by approximately 70% year-over-year.

While current revenue is driven by overpull programs, larger new construction builds are expected to ramp through 2027 and peak in calendar 2028 due to longer permitting and planning cycles.

Verbal awards have increased beyond the $500,000,000 previously reported and are expected to convert to contracted backlog in Q1 or Q2.

Management clarified that while some smaller subgrantees may start in Q2, the bulk of the BEAD-related construction will be a calendar 2027 event.

Management emphasized that margin improvements are driven by internal efficiencies and operating leverage rather than raising prices for customers.

They expressed confidence in continued margin growth even while investing in a workforce that is initially less productive during the multi-week training phase.

One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.