Financial Data and Key Metrics Changes - Revenue for the quarter was $1,380,000,000, a 14.5% increase over the prior year [7] - Adjusted EBITDA reached $205,500,000, representing a 14.9% margin and a 29.8% increase over the prior year [8][27] - Net income was $97,500,000, with diluted EPS of $3.33 per share, exceeding expectations [28] - Total backlog at the end of Q2 was $7,989,000,000, including $4,604,000,000 expected to be completed in the next twelve months, marking a year-over-year increase of over 20% [29] Business Line Data and Key Metrics Changes - Revenue growth was driven by fiber to the home programs, wireless activity, maintenance and operations services, and initial contributions from fiber infrastructure programs for hyperscalers [27] - The service and maintenance business, which historically has been over half of the business, continues to grow with new awards and market expansions [51] Market Data and Key Metrics Changes - The demand for digital infrastructure is accelerating, with customers' fiber to the home build plans comprising over 125,000,000 passings, with significant incremental opportunities in the past sixteen months [11][12] - The addressable market for DICOM from spending on outside plant data center network infrastructure is estimated to exceed $20,000,000,000 over the next five years [19][53] Company Strategy and Development Direction - The company is focused on operational excellence, efficient cash flow management, and maintaining a diverse backlog that balances risk and shareholder returns [23][24] - DICOM is positioned to capitalize on the growing demand for digital infrastructure, particularly in relation to AI and hyperscaler investments [15][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities driven by customer investments and the recent tax legislation, which is expected to increase capital spending [30][22] - The company reaffirmed its fiscal 2026 revenue outlook range of $5,290,000,000 to $5,425,000,000, indicating confidence in achieving growth targets [10][31] Other Important Information - The company improved its Days Sales Outstanding (DSOs) by nine days year-over-year, ending the quarter at 108 days [8][29] - Recent corporate tax legislation is expected to provide a free cash flow benefit of approximately $50,000,000 due to reduced cash tax payments [30] Q&A Session Summary Question: What led to the low end of guidance for revenue in Q2? - Management noted that different customer programs are at various stages of ramping, impacting quarterly performance, but expressed optimism about the overall momentum and backlog growth [33][34] Question: Should we expect high margins to continue going forward? - Management confirmed that margins have been improving due to operational efficiencies and strategic reinvestments, and they expect to maintain strong margins moving forward [37][39] Question: What is the percentage of recurring revenue in the current business? - Management indicated that over 80% of their work is on Master Service Agreements (MSAs), which are repeatable, and they expect this to grow as they expand their service and maintenance business [50][51] Question: Can you provide an update on the data center opportunity in your backlog? - Management stated that they are seeing significant opportunities in the data center space, with ongoing conversations and awards contributing to their backlog [52][54] Question: How do you prioritize capital allocation between M&A and share repurchases? - Management emphasized that supporting growth is the first priority, but they are also open to M&A opportunities that fit their strategy and culture, balancing this with share repurchases when appropriate [72]

Financial Data and Key Metrics Changes - Revenue for the quarter was $1,380,000,000, a 14.5% increase over the prior year [6] - Adjusted EBITDA reached $205,500,000, representing a 29.8% increase over the prior year, with a margin of 14.9% [7][25] - Net income was $97,500,000, with diluted EPS of $3.33 per share, exceeding expectations [26] - Total backlog at the end of Q2 was $7,989,000,000, with a next twelve months backlog of $4,604,000,000, reflecting a year-over-year increase of 20.2% [27] Business Line Data and Key Metrics Changes - Revenue growth was driven by fiber to the home programs, wireless activity, maintenance and operations services, and initial contributions from fiber infrastructure programs for hyperscalers [25] - The service and maintenance business, which provides stability and recurring revenue, continues to grow with new awards and market expansions [11][50] Market Data and Key Metrics Changes - The demand for digital infrastructure is accelerating, with customers' fiber to the home build plans comprising over 125,000,000 passings, including $15,000,000 of incremental plans in the past sixteen months [10] - The addressable market for DICOM from outside plant data center network infrastructure is estimated to exceed $20,000,000,000 over the next five years [17][53] Company Strategy and Development Direction - The company is focused on operational excellence, efficient cash flow management, and expanding its service and maintenance business [6][22] - DICOM aims to capitalize on the growing demand for digital infrastructure driven by AI investments and the need for fiber capacity [16][17] - The company is well-positioned to lead in the marketplace due to its scale and expertise, particularly in fiber to the home and service maintenance agreements [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the second half of the year, reaffirming the fiscal 2026 revenue outlook range of $5,290,000,000 to $5,425,000,000 [8][30] - The recent corporate tax legislation is expected to positively impact customers and DICOM, leading to increased capital spending and fiber broadband deployment [29] - Management highlighted the importance of maintaining strong relationships with customers and adapting to their evolving needs [20][104] Other Important Information - The company secured a significant new award for service and maintenance and fiber to the home work across multiple states, which will be reflected in the Q3 backlog [8][27] - The company is actively monitoring the supply chain and tariff impacts, with no significant adverse effects reported [21] Q&A Session Summary Question: What led to the low end of guidance for revenue in Q2? - Management noted that different customer programs are at various stages of ramping, impacting quarterly performance, but expressed optimism for the full year outlook [32][34] Question: Should we expect high margins to continue? - Management confirmed that margins have improved due to operational efficiencies and operating leverage, and they expect further opportunities for improvement [35][38] Question: What is the percentage of recurring revenue in the current business? - Over 80% of the work is on Master Service Agreements (MSAs), indicating a strong base of recurring revenue, which is expected to grow as more infrastructure is built [50][51] Question: Can you provide an update on the data center opportunity in the backlog? - Management indicated that the data center opportunities are still early-stage but are expected to contribute significantly starting next year [96] Question: How is the company planning to allocate excess capital? - The priority is to support growth, with an appetite for M&A opportunities that align with the company's strategy, balanced against share repurchases [72]

分组1 - Dycom Industries reported quarterly earnings of $3.33 per share, exceeding the Zacks Consensus Estimate of $2.86 per share, and up from $2.46 per share a year ago, representing an earnings surprise of +16.43% [1] - The company posted revenues of $1.38 billion for the quarter ended July 2025, which was 1.3% below the Zacks Consensus Estimate, but an increase from $1.2 billion year-over-year [2] - Dycom Industries has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates three times during the same period [2] 分组2 - The stock has gained approximately 54.9% since the beginning of the year, significantly outperforming the S&P 500's gain of 9% [3] - The current consensus EPS estimate for the upcoming quarter is $3.02 on revenues of $1.46 billion, and for the current fiscal year, it is $9.55 on revenues of $5.35 billion [7] - The Building Products - Heavy Construction industry, to which Dycom belongs, is currently ranked in the top 1% of over 250 Zacks industries, indicating strong performance potential [8]

Financial Performance - Total contract revenues increased by 14.5% from $1.2031 billion in Q2 2025 to $1.3779 billion in Q2 2026[5] - Organic revenue growth was 3.4%[5] - Adjusted EBITDA increased by 29.8% from $158.3 million in Q2 2025 to $205.5 million in Q2 2026[5] - Adjusted EBITDA margin improved by 175 bps from 13.2% in Q2 2025 to 14.9% in Q2 2026[5] - Adjusted diluted EPS increased by 35.4% from $2.46 in Q2 2025 to $3.33 in Q2 2026[5] Backlog and Outlook - Total backlog increased by 16.9% year-over-year[24] - Next 12 months backlog increased by 20.2% year-over-year[24] - The company reaffirms fiscal year 2026 revenue outlook range of $5.290 billion to $5.425 billion, representing a growth of 12.5% to 15.4% over the prior year[31] Debt and Liquidity - Total notional amount of debt was $1.035 billion in Q2 2026[25] - Notional net debt was $1.0065 billion in Q2 2026[25] - Liquidity was $545.9 million in Q2 2026[25]

Fiscal 2026 Second Quarter Results Overview [Second Quarter Highlights and Executive Commentary](index=1&type=section&id=Second%20Quarter%20Highlights) Dycom reported record Q2 FY26 revenue and earnings, exceeding expectations through operational efficiency and strong demand - Delivered **record revenue** within expectations and **record earnings** that exceeded expectations[2](index=2&type=chunk) - Meaningfully improved margins through **operational efficiency** and operating leverage, strengthening financial position via **measured cash flow management**[2](index=2&type=chunk) - Demand for **digital infrastructure** is accelerating, positioning Dycom to lead with its scale and national reach[3](index=3&type=chunk) Second Quarter and Year-to-Date Financial Highlights [Key Financial Highlights](index=1&type=section&id=Record%20Contract%20Revenues%20of%20%241.378%20billion) Dycom achieved record Q2 contract revenues, GAAP diluted EPS, net income, and Adjusted EBITDA, with positive operating cash flows and an $8.0 billion backlog | Metric | Q2 Fiscal 2026 | Change YoY | YTD Fiscal 2026 | Change YoY | | :-------------------------------- | :------------- | :--------- | :-------------- | :--------- | | Contract Revenues | $1.378 billion | +14.5% | $2.637 billion | +12.4% | | GAAP Diluted EPS | $3.33 | +35.4% | $5.42 | +22.1% | | Net Income | $97.5 million | +42.5% | $158.5 million | +21.1% | | Adjusted EBITDA | $205.5 million | +29.8% | $355.9 million | +23.0% | | Operating Cash Flows | $57.4 million | N/A | N/A | N/A | | Backlog (as of July 26, 2025) | $8.0 billion | N/A | N/A | N/A | Detailed Financial Performance [Second Quarter Fiscal 2026 Performance](index=1&type=section&id=Second%20Quarter%20Results) Dycom reported a 14.5% increase in contract revenues to $1.378 billion for Q2 FY26, with organic contract revenues growing 3.4%, and significant increases in Non-GAAP Adjusted EBITDA and GAAP net income | Metric | Q2 FY26 (July 26, 2025) | Q2 FY25 (July 27, 2024) | Change | | :-------------------------------- | :---------------------- | :---------------------- | :----- | | Contract Revenues | $1.378 billion | $1.203 billion | +14.5% | | Organic Contract Revenues | $1.238 billion | $1.197 billion | +3.4% | | Revenues from Acquired Businesses | $139.8 million | $5.7 million | N/A | | Metric | Q2 FY26 (July 26, 2025) | Q2 FY25 (July 27, 2024) | Change | | :-------------------------------- | :---------------------- | :---------------------- | :----- | | Non-GAAP Adjusted EBITDA | $205.5 million | $158.3 million | +29.8% | | Non-GAAP Adjusted EBITDA % of Contract Revenues | 14.9% | 13.2% | +1.7 pp | | GAAP Net Income | $97.5 million | $68.4 million | +42.5% | | GAAP Diluted EPS | $3.33 | $2.32 | +43.5% | | Non-GAAP Adjusted Net Income (Q2 FY25) | N/A | $72.5 million | N/A | | Non-GAAP Adjusted Diluted EPS (Q2 FY25) | N/A | $2.46 | N/A | [Year-to-Date Fiscal 2026 Performance](index=1&type=section&id=Year-to-Date%20Results) For the six months ended July 26, 2025, contract revenues increased 12.4% to $2.637 billion, with organic growth at 2.1%, and Non-GAAP Adjusted EBITDA grew to $355.9 million | Metric | YTD FY26 (July 26, 2025) | YTD FY25 (July 27, 2024) | Change | | :-------------------------------- | :----------------------- | :----------------------- | :----- | | Contract Revenues | $2.637 billion | $2.345 billion | +12.4% | | Organic Contract Revenues | $2.380 billion | $2.332 billion | +2.1% | | Revenues from Acquired Businesses | $256.6 million | $13.5 million | N/A | | Metric | YTD FY26 (July 26, 2025) | YTD FY25 (July 27, 2024) | Change | | :-------------------------------- | :----------------------- | :----------------------- | :----- | | Non-GAAP Adjusted EBITDA | $355.9 million | $289.2 million | +23.0% | | Non-GAAP Adjusted EBITDA % of Contract Revenues | 13.5% | 12.3% | +1.2 pp | | GAAP Net Income | $158.5 million | $131.0 million | +21.0% | | GAAP Diluted EPS | $5.42 | $4.44 | +22.1% | | Non-GAAP Adjusted Net Income (YTD FY25) | N/A | $135.0 million | N/A | | Non-GAAP Adjusted Diluted EPS (YTD FY25) | N/A | $4.58 | N/A | - Repurchased **200,000 shares** of common stock for **$30.2 million** at an average price of **$150.93 per share** during the six months ended July 26, 2025[11](index=11&type=chunk) Outlook [Fiscal 2026 Annual Outlook](index=2&type=section&id=Fiscal%202026%20Annual%20Outlook) Dycom maintains its fiscal 2026 annual outlook, projecting total contract revenues between $5.290 billion and $5.425 billion, representing 12.5% to 15.4% growth | Metric | Fiscal 2026 Annual Outlook | | :-------------------- | :------------------------- | | Total Contract Revenues | $5.290 billion to $5.425 billion | | Total Growth (YoY) | 12.5% to 15.4% | - Fiscal 2026 will include **53 weeks** of operations, with the extra week in the fourth quarter[12](index=12&type=chunk) - The fiscal 2026 outlook does not include storm restoration revenues, which were **$114.2 million** in fiscal 2025[12](index=12&type=chunk) [Third Quarter Fiscal 2026 Outlook](index=2&type=section&id=Third%20Quarter%20Fiscal%202026%20Outlook) For Q3 FY26, Dycom expects contract revenues between $1.38 billion and $1.43 billion, Non-GAAP Adjusted EBITDA between $198 million and $213 million, and diluted EPS between $3.03 and $3.36 | Metric | Q3 Fiscal 2026 Outlook | | :-------------------------- | :--------------------- | | Contract Revenues | $1.38 billion to $1.43 billion | | Non-GAAP Adjusted EBITDA | $198 million to $213 million | | Diluted Earnings per Common Share | $3.03 to $3.36 | Company Information [Use of Non-GAAP Financial Measures](index=2&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Dycom reports financial results in accordance with GAAP but may use Non-GAAP measures to provide useful information for investors, with reconciliations available in press release tables - Company reports financial results in accordance with U.S. GAAP[14](index=14&type=chunk) - Non-GAAP financial measures may be used to provide useful information to investors for direct comparison of performance with prior periods[14](index=14&type=chunk) - Reconciliation of Non-GAAP financial measures to comparable GAAP measures is provided in the press release tables[14](index=14&type=chunk) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Information%20and%20Other%20Selected%20Data) Dycom hosted a conference call on August 20, 2025, to discuss fiscal 2026 second quarter results, with registration and webcast options provided - Conference call to discuss fiscal 2026 second quarter results was held on Wednesday, August 20, 2025, at 9:00 a.m. ET[15](index=15&type=chunk) - Participants could register to join the Q&A session, receiving a dial-in number and unique PIN[15](index=15&type=chunk) - A live listen-only audio webcast and accompanying slide presentation were accessible online, with a replay available on the Company's Investor Center website for approximately 120 days[16](index=16&type=chunk) [About Dycom Industries, Inc.](index=2&type=section&id=About%20Dycom%20Industries%2C%20Inc.) Dycom is a leading provider of specialty contracting services for telecommunications infrastructure and utility industries across the United States - Dycom is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States[17](index=17&type=chunk) - Services include program management, planning, engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers[17](index=17&type=chunk) - Also provides underground facility locating services for various utilities and other construction and maintenance services for electric and gas utilities[17](index=17&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward%20Looking%20Information) This press release contains forward-looking statements based on management's expectations, subject to known and unknown risks and uncertainties that could cause actual results to differ materially - Press release contains forward-looking statements based on management's expectations, estimates, and projections, made as of the date of the statements[18](index=18&

Core Insights - Dycom Industries reported record revenue and earnings for the second quarter of fiscal 2026, driven by strong demand for digital infrastructure and effective operational execution [2][10]. Financial Performance - Contract revenues increased by 14.5% to $1.378 billion for the quarter ended July 26, 2025, compared to $1.203 billion for the same quarter last year [4][10]. - On an organic basis, contract revenues rose by 3.4%, excluding revenues from acquired businesses [4][25]. - Non-GAAP Adjusted EBITDA for the quarter was $205.5 million, representing 14.9% of contract revenues, up from $158.3 million or 13.2% of contract revenues in the prior year [5][10]. - Net income on a GAAP basis increased to $97.5 million, or $3.33 per diluted share, compared to $68.4 million, or $2.32 per diluted share, in the prior year [6][10]. Year-to-Date Results - For the six months ended July 26, 2025, contract revenues increased by 12.4% to $2.637 billion compared to $2.345 billion for the same period last year [7][10]. - Non-GAAP Adjusted EBITDA for the six months was $355.9 million, or 13.5% of contract revenues, compared to $289.2 million, or 12.3% of contract revenues, in the prior year [8][10]. - Year-to-date net income was $158.5 million, or $5.42 per diluted share, compared to $131.0 million, or $4.44 per diluted share, in the prior year [9][10]. Outlook - The company expects total contract revenues for fiscal 2026 to range from $5.290 billion to $5.425 billion, indicating a growth of 12.5% to 15.4% over the previous year [12]. - For the third quarter of fiscal 2026, the company anticipates contract revenues between $1.38 billion and $1.43 billion, with Non-GAAP Adjusted EBITDA projected at $198 million to $213 million [13]. Market Position - Dycom is well-positioned to capitalize on the growing demand for digital infrastructure, with a strong backlog of $8.0 billion as of July 26, 2025 [10][3]. - The company emphasizes its ability to meet customer needs through its scale and national reach, aiming to create long-term value for shareholders [3][2].

Group 1 - Analysts forecast Dycom Industries (DY) to report quarterly earnings of $2.86 per share, reflecting a year-over-year increase of 16.3% [1] - Anticipated revenues for Dycom Industries are projected to be $1.4 billion, which represents a 16% increase compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating a reassessment of projections by covering analysts [1] Group 2 - Revenue from Lumen Technologies (CenturyLink) is expected to reach $128.49 million, showing a decline of 21.5% from the prior-year quarter [4] - Revenue from AT&T Inc is projected to be $289.16 million, indicating a year-over-year increase of 37.6% [4] - Analysts expect the backlog for Dycom Industries to be $8.56 billion, compared to $6.83 billion from the previous year [4] Group 3 - Dycom Industries shares have increased by 4.5% in the past month, outperforming the Zacks S&P 500 composite, which rose by 3.3% [5] - Dycom Industries holds a Zacks Rank 3 (Hold), suggesting it is expected to closely follow overall market performance in the near term [5]

Core Points - Dycom Industries, Inc. will host a conference call to discuss its fiscal 2026 second quarter results on August 20, 2025, at 9:00 a.m. ET [1] - A press release with the results will be issued earlier that morning [1] Participation Details - Interested parties can register for the question and answer session of the conference call at a provided link, receiving a dial-in number and unique PIN upon registration [2] - Participants are encouraged to join approximately ten minutes prior to the scheduled start time [2] Access Information - A live listen-only audio webcast of the call, along with a slide presentation, can be accessed via a specified link [3] - A replay of the live webcast and related materials will be available on the Company's Investor Center website for approximately 120 days following the event [3] Company Overview - Dycom Industries, Inc. is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries in the United States [4] - Services offered include program management, planning, engineering and design, aerial, underground, and wireless construction, maintenance, and fulfillment services for telecommunications providers [4] - The company also provides underground facility locating services for various utilities, including telecommunications providers, as well as construction and maintenance services for electric and gas utilities [4]

Core Insights - The Zacks Building Products - Heavy Construction industry is experiencing strong growth driven by favorable long-term trends, despite facing near-term challenges such as inflation and elevated interest rates [1][8]. Industry Overview - The industry encompasses mechanical and electrical construction, industrial and energy infrastructure, and building service providers, focusing on heavy civil construction projects like highways, bridges, and ports [3]. - Companies in this sector are engaged in engineering, construction, and maintenance of communications infrastructure, oil and gas pipelines, and energy processing facilities [3]. Growth Drivers - A robust federal infrastructure agenda is unlocking significant investments in transportation, broadband, and energy networks, leading to increased demand in high-growth sectors [2]. - The data center market's expansion is creating new opportunities for heavy construction firms, driven by the need for large-scale infrastructure solutions [2][5]. - The ramp-up of 5G projects is benefiting industry players, with increased demand for wireline and wireless networks [6]. Trends Impacting the Industry - The U.S. administration's infrastructure plan aims to create sustainable infrastructure, which is expected to significantly impact the construction industry over the next five years [4]. - Acquisitions are being utilized by companies to solidify product portfolios and leverage new business opportunities, particularly in renewable energy projects [7]. Financial Performance - The Zacks Building Products - Heavy Construction industry has outperformed the broader Zacks Construction sector and the S&P 500, with a collective gain of 49.8% over the past year compared to 0.3% for the sector and 16.1% for the S&P 500 [13]. - The industry's forward 12-month price-to-earnings ratio is currently at 22.94, slightly above the S&P 500's 22.87 [17]. Company Highlights - **MasTec, Inc. (MTZ)**: Reports an 18-month backlog of $15.88 billion, a 23.7% year-over-year increase, with a growth outlook supported by diversified operations and strategic focus on clean energy [20][21]. - **Orion Group Holdings, Inc. (ORN)**: Positioned to benefit from rising demand for specialized marine and concrete services, with a focus on operational efficiency and debt reduction [25][26]. - **Primoris Services Corporation (PRIM)**: Gaining from increased activity in power delivery and renewable energy projects, with a robust backlog of $11.4 billion [29][30]. - **Dycom Industries, Inc. (DY)**: Leveraging demand for telecommunications infrastructure, particularly in 5G and fiber-optic deployment, with a strong financial performance reflected in recent earnings [34][35].

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Dycom Industries (DY) - Dycom Industries currently holds a Momentum Style Score of A, indicating strong momentum characteristics [3] - The company has a Zacks Rank of 2 (Buy), suggesting a favorable outlook compared to the market [4] Performance Metrics - Over the past week, DY shares increased by 3.16%, outperforming the Zacks Building Products - Heavy Construction industry, which rose by 2.59% [6] - In the last month, DY's price change was 8.13%, significantly higher than the industry's 1.31% [6] - Over the past quarter, DY shares have surged by 44.44%, and over the last year, they have gained 48.42%, while the S&P 500 only increased by 15.97% and 18.37% respectively [7] Trading Volume - DY's average 20-day trading volume is 252,676 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the last two months, two earnings estimates for DY have been revised upwards, raising the consensus estimate from $9.50 to $9.56 [10] - For the next fiscal year, two estimates have also moved higher, with no downward revisions noted [10] Conclusion - Given the strong performance metrics and positive earnings outlook, Dycom Industries is positioned as a promising investment opportunity with a Momentum Score of A [12]