Core Insights - Dycom Industries reported revenue of $1.26 billion for the quarter ended April 2025, marking a year-over-year increase of 10.2% [1] - The company's EPS for the same period was $2.09, slightly down from $2.12 a year ago, but exceeded the consensus estimate of $1.60 by 30.62% [1] - The revenue surpassed the Zacks Consensus Estimate of $1.2 billion, resulting in a surprise of 5% [1] Financial Performance - The backlog for Dycom Industries stands at $8.13 billion, exceeding the average estimate of $7.47 billion based on two analysts [4] - Revenue from Lumen Technologies (CenturyLink) was reported at $125.20 million, which is a decline of 20.2% year over year and below the average estimate of $151.63 million [4] - Revenue from AT&T Inc was reported at $325.10 million, reflecting a significant increase of 50.9% year over year and surpassing the average estimate of $259.41 million [4] Stock Performance - Dycom Industries shares have returned +39.4% over the past month, outperforming the Zacks S&P 500 composite's +13.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Viewpoint - Dycom Industries Inc. reported better-than-expected results for Q1 fiscal 2026, with contract revenues and adjusted earnings surpassing estimates, leading to a 15.8% increase in stock price following the announcement [1][3]. Financial Performance - Adjusted EPS for Q1 was $2.09, exceeding the Zacks Consensus Estimate of $1.60 by 30.6%, though down from $2.12 in the same quarter last year [3]. - Contract revenues reached $1.259 billion, surpassing the consensus mark of $1.199 billion by 5% and reflecting a year-over-year growth of 10.2% [4]. - Adjusted EBITDA increased by 14.9% to $150.4 million, with an adjusted EBITDA margin of 11.9%, up 40 basis points from the previous year [5]. Customer Contributions - AT&T, Dycom's largest customer, contributed 25.8% to total revenues, showing a year-over-year growth of 50.9% [4]. - Lumen, the second-largest customer, contributed 9.9% to total revenues, which declined by 20.2% from the previous year [4]. - Other customers combined contributed 64.2% to total revenues [4]. Backlog and Liquidity - The backlog as of Q1 totaled $8.127 billion, up from $7.760 billion at the end of fiscal 2025 and $6.364 billion in Q1 of fiscal 2025, with $4.685 billion projected to be completed in the next 12 months [5]. - As of April 26, 2025, Dycom had liquidity of $529.6 million, including cash and cash equivalents of $16.1 million, compared to $92.7 million at the end of fiscal 2025 [6]. Future Guidance - For Q2 fiscal 2026, Dycom expects contract revenues between $1.38 billion and $1.43 billion, compared to $1.203 billion in the same quarter last year [7]. - Adjusted EBITDA for Q2 is projected to be between $185 million and $200 million, indicating growth from $158.3 million reported last year [7]. - EPS is anticipated to be in the range of $2.74-$3.05, up from $2.46 in the year-ago quarter [8]. Revenue Outlook - Dycom raised its fiscal 2026 revenue outlook to between $5.29 billion and $5.425 billion, reflecting a year-over-year growth of 12.5-15.4%, up from the previous expectation of 10.0-13.0% [9].

Financial Data and Key Metrics Changes - The meeting confirmed that a majority of votes were cast for the director nominees and for the proposals regarding executive compensation and auditor ratification, indicating shareholder confidence in the company's governance and financial management [13][14]. Business Line Data and Key Metrics Changes - No specific data regarding individual business lines was discussed during the meeting [18]. Market Data and Key Metrics Changes - No specific market data or key metrics were provided during the meeting [18]. Company Strategy and Development Direction and Industry Competition - The meeting did not delve into specific strategic initiatives or competitive positioning within the industry [18]. Management's Comments on Operating Environment and Future Outlook - Management did not provide detailed comments on the operating environment or future outlook during the meeting [18]. Other Important Information - The meeting acknowledged the retirement of board member Steven Robinson, highlighting his invaluable service [16]. Q&A Session All Questions and Answers - There were no questions submitted during the Q&A session, indicating a lack of immediate shareholder inquiries [18].

Financial Performance - Net income available to common stockholders for the three months ended April 26, 2025, was $61.048 million, compared to $62.554 million for the same period in 2024, reflecting a decrease of approximately 2.4%[34] - Basic earnings per common share for the three months ended April 26, 2025, was $2.11, down from $2.15 in the prior year, indicating a decline of about 1.9%[34] - Total contract revenues for the three months ended April 26, 2025, were $1,258.6 million, a 10.2% increase from $1,142.4 million for the same period in 2024[88] Acquisitions and Goodwill - The company acquired telecommunications construction contractors for a total cash purchase price of $191.2 million across three acquisitions in fiscal 2025, enhancing its geographic presence and customer base[35][36][37] - The company recorded goodwill and intangible assets totaling $161.0 million from the acquisitions, which are deductible for tax purposes[40] - Goodwill balance slightly increased to $330.5 million as of April 26, 2025, from $330.3 million on January 25, 2025, indicating a marginal growth[50] Accounts and Receivables - Total accounts receivable, net, as of April 26, 2025, was $1.528 billion, an increase from $1.375 billion as of January 25, 2025, representing a growth of approximately 11.1%[44] - Contract assets increased to $101.992 million as of April 26, 2025, from $63.375 million as of January 25, 2025, indicating a rise of about 60.7%[45] - Significant customers included Lumen Technologies, which accounted for 16.3% of total combined accounts receivable and contract assets as of April 26, 2025[46] Assets and Liabilities - Other current assets increased to $45.8 million as of April 26, 2025, from $34.6 million on January 25, 2025, representing a growth of approximately 32.3%[47] - Cash and equivalents decreased significantly to $16.1 million as of April 26, 2025, down from $92.7 million on January 25, 2025, a decline of about 82.7%[48] - Total property and equipment net value increased to $567.4 million as of April 26, 2025, compared to $541.9 million on January 25, 2025, reflecting a growth of approximately 4.7%[49] Debt and Interest - As of April 26, 2025, the company's long-term debt amounted to $1,017,635,000, an increase from $933,212,000 on January 25, 2025, representing an 8.99% increase[65] - The weighted average interest rate for the term loan facility was 6.04% as of April 26, 2025, compared to 6.02% on January 25, 2025[70] - The company has a total borrowing availability under its revolving facility of $513,500,000 as of April 26, 2025, down from $602,500,000 on January 25, 2025[70] Tax and Compensation - The effective income tax rate for the three months ended April 26, 2025, was 22.3%, up from 19.2% for the same period in the previous year[74] - The company realized $2,239,000 in income tax effects related to stock-based compensation for the three months ended April 26, 2025[82] - The company had unrecognized compensation expense related to stock options, RSUs, and target Performance RSUs of $1,100,000, $44,700,000, and $21,600,000, respectively, as of April 26, 2025[83] Operational Metrics - Total accrued insurance claims rose to $102.3 million as of April 26, 2025, compared to $96.5 million on January 25, 2025, an increase of approximately 6.0%[60] - Total lease cost recognized for the three months ended April 26, 2025, was $17.9 million, up from $15.5 million for the same period in 2024, representing a year-over-year increase of about 15.1%[62] - Total lease liabilities under long-term operating leases were $113.1 million as of April 26, 2025, slightly up from $112.8 million on January 25, 2025[62] Stock and Shareholder Activity - The company repurchased 200,000 shares of common stock at an average price of $150.93, totaling $30,200,000 during the three months ended April 26, 2025[76] - Performance RSUs granted during the three months ended April 26, 2025, included 95,514 shares with a weighted average grant date fair value of $161.57[85] - The total number of Performance RSUs outstanding as of April 26, 2025, was 275,236 shares, with a weighted average grant date fair value of $139.63[85] Market and Risk Disclosures - The company operates in one reportable segment, providing specialty contracting services throughout the United States[92] - The company has no material changes to its market risk disclosures, primarily related to interest rate fluctuations[169] - The company has issued $47.5 million in standby letters of credit under its credit agreement as of April 26, 2025[99]

Core Insights - Dycom Industries, Inc. reported a 10.2% year-over-year revenue increase for Q1 FY2026, reaching $1.26 billion, with adjusted EBITDA of $150.4 million and net income of $61 million, surpassing guidance [1] - The company raised its full-year revenue guidance, supported by a record backlog of $8.1 billion, indicating strong demand across telecom and digital infrastructure segments [2][3] Revenue and Backlog - The backlog of $8.1 billion includes $4.7 billion expected to convert to revenue in the next twelve months, showcasing Dycom's ability to secure long-duration projects from large telecom and utility customers [3][4] - The diverse mix of projects, with over 50% from recurring service and maintenance contracts, provides stability amid the shift to multi-year fiber buildouts [3] Market Expansion - Recent strategic wins include a multiyear middle mile fiber award to support AI infrastructure, marking Dycom's entry into hyperscaler markets, thus expanding its total addressable market [5][7] - Demand for fiber build associated with data center and AI investments is accelerating, with significant project work expected to ramp up by FY2027 [6] Margin Improvement - Adjusted EBITDA margin improved by 49 basis points to 11.9% compared to the prior year, with future margin gains anticipated from operating leverage rather than one-time events [8][9] - Management projects full-year net capex at $220–$230 million and focuses on optimizing free cash flow [8] Future Outlook - Contract revenue guidance for FY2026 has been raised to $5.290 billion to $5.425 billion, reflecting a year-over-year increase of 12.5% to 15.4% [11] - Q2 FY2026 forecasts include contract revenues of $1.38 billion to $1.43 billion, adjusted EBITDA of $185 million to $200 million, and diluted EPS of $2.74 to $3.05 [11]

Company Overview - Dycom Industries, Inc. is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries across the United States [2] - The services offered by Dycom include program management, planning, engineering and design, aerial, underground, and wireless construction, maintenance, and fulfillment services for telecommunications providers [2] - Additionally, Dycom provides underground facility locating services for various utilities, including telecommunications providers, as well as construction and maintenance services for electric and gas utilities [2] Recent Developments - Dycom Industries announced its participation in the KeyBanc Industrial & Basic Materials Conference in Boston, MA on May 28, 2025, where senior management will engage in one-on-one and group meetings with investors [1]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $1,259,000,000, a 10.2% increase over Q1 2025 [5][19] - Adjusted EBITDA was $150,400,000, representing 11.9% of revenues and an increase of 14.9% over Q1 2025 [5][19] - Net income was $61,000,000, with diluted EPS of $2.90 per share, exceeding expectations [20] - The company increased its revenue expectations for the year to a range of $5,290,000,000 to $5,425,000,000, representing a growth of 12.5% to 15.4% over the prior year [6][23] Business Line Data and Key Metrics Changes - The service and maintenance business has grown significantly, providing a stable base of recurring revenue [8][9] - The company has diversified its customer base and services within telecommunications and digital infrastructure, which buffers against the impact of any single customer [7][9] - The backlog at the end of Q1 was $8,127,000,000, including $4,685,000,000 expected to be completed in the next twelve months [21] Market Data and Key Metrics Changes - The company noted robust demand drivers, particularly in fiber to the home programs and hyperscaler infrastructure [12][13] - Recent awards include significant contracts with Verizon and Windstream for fiber to the home and maintenance work [13] - The company is seeing increased opportunities related to AI infrastructure and middle mile networks [13][14] Company Strategy and Development Direction - The company aims to build on its service and maintenance business while capitalizing on fiber to the home deployments and other growth drivers [9][16] - The strategy includes expanding services inside the fence with hyperscalers, which opens new opportunities [17] - The company is focused on improving free cash flow and maintaining a balanced risk-return profile in its backlog [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on market opportunities despite macroeconomic uncertainties [6][11] - The impact of tariffs and international trade actions is expected to be negligible, with most components produced in the U.S. [11][23] - Management remains optimistic about the growth prospects, with ongoing opportunities in fiber infrastructure and service maintenance [12][16] Other Important Information - The company repurchased 200,000 shares for $30,200,000 during the quarter [6][22] - Operating cash flows used in the quarter were $54,000,000, reflecting seasonal uses of cash [22] - The company is closely monitoring the impact of tariffs and trade actions on its operations [23] Q&A Session Summary Question: Performance of Black and Veatch - Management noted that the performance is a mix of pull forward and ramping quicker than expected, with strong integration into operations [26][27] Question: Second Quarter Guidance - The guidance reflects continued strength from fiber to the home builds and wireless business, with expectations for ongoing growth [32][33] Question: CapEx and Tariff Impact - Management feels confident about managing equipment costs and has been proactive in planning to mitigate tariff impacts [34][36] Question: Margin Improvement - Operating leverage is a key factor in margin improvement, with expectations for continued growth in margins [39][41] Question: BEAD Program Importance - While the BEAD program is significant, it is not essential for current growth, with other drivers providing robust opportunities [42][44] Question: Backlog and Organic Growth - The backlog is diversified, and organic growth is slightly positive, with long-term opportunities expected [48][52] Question: Government Layoffs and Deregulation - Management is monitoring the potential easing of permitting and other regulatory changes that could positively impact the industry [80]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $1,259,000,000, a 10.2% increase over Q1 2025 [4][21] - Adjusted EBITDA was $150,400,000, representing 11.9% of revenues, and an increase of 14.9% over Q1 2025 [4][22] - Net income was $61,000,000, with diluted EPS of $2.90 per share, exceeding expectations [22] - The company increased its revenue expectations for the year to a range of $5,290,000,000 to $5,425,000,000, representing a growth of 12.5% to 15.4% over the prior year [5][25] Business Line Data and Key Metrics Changes - The service and maintenance business has grown significantly, providing a stable base of recurring revenue [6][7] - The company has diversified its customer base and services within telecommunications and digital infrastructure, which buffers against the impact of any single customer [5][6] - The backlog at the end of Q1 was $8,127,000,000, including $4,685,000,000 expected to be completed in the next twelve months [23] Market Data and Key Metrics Changes - The company noted robust demand drivers, particularly in fiber to the home deployments and hyperscaler infrastructure projects [11][12] - Recent awards include significant contracts with Verizon and Windstream for fiber to the home and maintenance work [12] - The company is seeing increased opportunities related to AI infrastructure, with hyperscalers reiterating or increasing their CapEx budgets [12][15] Company Strategy and Development Direction - The company aims to build on its service and maintenance business while capitalizing on fiber to the home deployments and other growth drivers [7][18] - The strategy includes expanding services inside the fence with hyperscalers, which opens new opportunities [15][19] - The company is focused on improving free cash flow and maintaining a balanced risk and return profile in its backlog [17][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and tariff impacts, expecting negligible effects on current builds [10][25] - The demand for fiber to the home remains strong, with many customers reconfirming or increasing their targets [11][12] - Management believes that the company is well-positioned for continued growth, with a well-defined strategy and clear objectives [18][19] Other Important Information - The company repurchased 200,000 shares for $30,200,000 during the quarter, reflecting a commitment to returning capital to shareholders [5][24] - Operating cash flows used in the quarter were $54,000,000, reflecting seasonal uses of cash [24] Q&A Session Summary Question: Regarding the performance of Black and Veatch - Management indicated that the performance was a mix of pull forward and quicker ramp-up than expected, with strong integration into operations [28][29] Question: On the maintenance side, can you size that business? - Management noted that service and maintenance is a core part of the strategy, historically representing over 50% of the business [31] Question: Is the second quarter guidance a continuation of strength from the wireless side? - Management confirmed that both fiber to the home builds and the wireless business are contributing to the positive outlook for Q2 [34][35] Question: Any potential for pulling forward spending before tariffs hit? - Management stated that they are strategically managing equipment purchases and feel confident about their current position despite tariff impacts [36][38] Question: Was there anything unusual with costs this quarter? - Management attributed margin improvement to operating leverage and ongoing efficiency efforts [41][43] Question: What is the importance of the BEAD program for future growth? - Management believes that while BEAD is a significant opportunity, it is not necessary for current growth, with other drivers providing robust opportunities [46][47] Question: Is the pace of working through the backlog changing? - Management highlighted the diversification of the backlog and expressed confidence in the pace of business [50][51] Question: Does customer consolidation drive more business? - Management indicated that customer consolidation has historically been positive, leading to more opportunities for larger national players [80] Question: Have government layoffs affected the approval process? - Management noted that easing permitting could be a positive for the industry, and they are monitoring potential regulatory changes closely [86][87]

Group 1 - Dycom Industries reported quarterly earnings of $2.09 per share, exceeding the Zacks Consensus Estimate of $1.60 per share, with a year-over-year comparison showing a slight decrease from $2.12 per share [1] - The company achieved revenues of $1.26 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 5%, and showing an increase from $1.14 billion in the same quarter last year [2] - Dycom Industries has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Group 2 - The stock has gained approximately 11.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $2.76 on revenues of $1.35 billion, and for the current fiscal year, it is $9.25 on revenues of $5.2 billion [7] Group 3 - The Building Products - Heavy Construction industry, to which Dycom Industries belongs, is currently ranked in the top 1% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - The estimate revisions trend for Dycom Industries is mixed, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market in the near future [6]

1st Quarter 2026 Results May 21, 2025 Important Information Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the outlook for the fiscal year ending January 31, 2026 and the fiscal quarter ending July 26, 2025, including, but not limited to, those statements related to our recent acquisitions and those found under the "Outlook" s ...