Core Insights - Dycom Industries Inc. (DY) reported mixed results for Q2 fiscal 2026, with earnings exceeding estimates while contract revenues fell short of expectations [1][3][8] Financial Performance - Adjusted EPS for Q2 was $3.33, surpassing the Zacks Consensus Estimate of $2.86 by 16.4% and increasing 35.4% year-over-year [3][8] - Contract revenues reached $1.378 billion, missing the consensus estimate of $1.396 billion by 1.3%, but showing a year-over-year increase of 14.5% [3][8] - Adjusted EBITDA rose 29.8% to $205.5 million, with an EBITDA margin of 14.9%, expanding 175 basis points from the previous year [4][8] Operational Highlights - The backlog at the end of Q2 totaled $7.989 billion, a 16.9% increase year-over-year, with $4.604 billion expected to be completed in the next 12 months [5][8] - Cash flow improved as Days Sales Outstanding (DSOs) decreased by nine days, contributing to a significant backlog increase of over 20% year-over-year [2][5] Future Outlook - For Q3 fiscal 2026, Dycom anticipates contract revenues between $1.38 billion and $1.43 billion [7] - The company expects total contract revenues for fiscal 2026 to range from $5.290 billion to $5.425 billion, reflecting a year-over-year increase of 12.5% to 15.4% [10] Shareholder Actions - Dycom repurchased 200,000 shares for $30.2 million at an average price of $150.93 per share during the first two quarters of fiscal 2026 [6]

Group 1 - Dycom Industries reported $1.38 billion in revenue for the quarter ended July 2025, a year-over-year increase of 14.5% [1] - The EPS for the same period was $3.33, compared to $2.46 a year ago, indicating a significant increase [1] - The reported revenue was a surprise of -1.3% compared to the Zacks Consensus Estimate of $1.4 billion, while the EPS surprise was +16.43% against a consensus estimate of $2.86 [1] Group 2 - Dycom Industries has a backlog of $8 billion, which is below the two-analyst average estimate of $8.56 billion [4] - Revenue from Lumen Technologies was $155.4 million, which is a -5.1% change compared to the year-ago quarter and above the average estimate of $128.49 million [4] - Revenue from AT&T Inc was $373 million, representing a year-over-year change of +77.5% and exceeding the average estimate of $289.16 million [4] Group 3 - Shares of Dycom Industries have returned -1.4% over the past month, while the Zacks S&P 500 composite has changed by +1.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's unaudited condensed consolidated financial statements and management's financial analysis [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Dycom's unaudited consolidated financial statements and related accounting notes [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section details the company's assets, liabilities, and equity at specific reporting dates Condensed Consolidated Balance Sheets (Dollars in thousands) | ASSETS | July 26, 2025 | January 25, 2025 | | :--------------------------------- | :------------ | :--------------- | | Cash and equivalents | $28,460 | $92,670 | | Accounts receivable, net | 1,587,961 | 1,373,738 | | Contract assets | 119,655 | 63,375 | | Total current assets | 1,938,922 | 1,694,630 | | Property and equipment, net | 564,678 | 541,921 | | Goodwill | 332,645 | 330,330 | | Total assets | $3,219,924 | $2,945,367 | | **LIABILITIES AND STOCKHOLDERS' EQUITY** | | | | Accounts payable | $264,908 | $223,490 | | Total current liabilities | 612,702 | 587,153 | | Long-term debt | 1,009,058 | 933,212 | | Total liabilities | 1,850,193 | 1,706,270 | | Total stockholders' equity | 1,369,731 | 1,239,097 | | Total liabilities and stockholders' equity | $3,219,924 | $2,945,367 | [Condensed Consolidated Statements of Operations (Three Months)](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Three%20Months)) This section details the company's revenues, expenses, and net income over specific reporting periods Condensed Consolidated Statements of Operations (Three Months Ended July 26, 2025 vs. July 27, 2024) (Dollars in thousands, except share amounts) | Metric | July 26, 2025 | July 27, 2024 | | :---------------------------------- | :------------ | :------------ | | Contract revenues | $1,377,944 | $1,203,059 | | Costs of earned revenues, excluding D&A | 1,070,450 | 952,882 | | General and administrative | 106,794 | 99,583 | | Depreciation and amortization | 60,854 | 46,572 | | Total Expenses | 1,238,098 | 1,099,037 | | Income before income taxes | 131,118 | 94,819 | | Provision for income taxes | 33,635 | 26,419 | | Net income | $97,483 | $68,400 | | Basic earnings per common share | $3.37 | $2.35 | | Diluted earnings per common share | $3.33 | $2.32 | [Condensed Consolidated Statements of Operations (Six Months)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Six%20Months)) This section details the company's revenues, expenses, and net income over specific reporting periods Condensed Consolidated Statements of Operations (Six Months Ended July 26, 2025 vs. July 27, 2024) (Dollars in thousands, except share amounts) | Metric | July 26, 2025 | July 27, 2024 | | :---------------------------------- | :------------ | :------------ | | Contract revenues | $2,636,551 | $2,345,482 | | Costs of earned revenues, excluding D&A | 2,081,562 | 1,874,518 | | General and administrative | 210,519 | 194,138 | | Depreciation and amortization | 119,243 | 91,777 | | Total Expenses | 2,411,324 | 2,160,433 | | Income before income taxes | 209,717 | 172,263 | | Provision for income taxes | 51,187 | 41,309 | | Net income | $158,530 | $130,954 | | Basic earnings per common share | $5.48 | $4.50 | | Diluted earnings per common share | $5.42 | $4.44 | [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This section presents the company's net income and other comprehensive income items Condensed Consolidated Statements of Comprehensive Income (Dollars in thousands) | Metric | Three Months Ended July 26, 2025 | Three Months Ended July 27, 2024 | Six Months Ended July 26, 2025 | Six Months Ended July 27, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $97,483 | $68,400 | $158,530 | $130,954 | | Disposal of foreign entity | — | — | — | 1,547 | | Comprehensive income | $97,483 | $68,400 | $158,530 | $132,501 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section details changes in the company's common stock, retained earnings, and total equity Condensed Consolidated Statements of Stockholders' Equity (Six Months Ended July 26, 2025) (Dollars in thousands) | Metric | Common Stock Shares | Common Stock Amount | Additional Paid-in Capital | Retained Earnings | Total Equity | | :------------------------------------ | :------------------ | :------------------ | :------------------------- | :---------------- | :----------- | | Balances as of January 25, 2025 | 28,978,949 | $9,659 | $8,991 | $1,220,447 | $1,239,097 | | Stock options exercised | 13,144 | 4 | (1,916) | — | (1,912) | | Stock-based compensation | 390 | — | 17,199 | — | 17,199 | | Issuance of restricted stock, net of tax withholdings | 155,882 | 52 | (102) | (12,948) | (12,998) | | Repurchase of common stock, including excise tax | (200,000) | (66) | (8,991) | (21,128) | (30,185) | | Net income | — | — | — | 158,530 | 158,530 | | Balances as of July 26, 2025 | 28,948,365 | $9,649 | $15,181 | $1,344,901 | $1,369,731 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes cash inflows and outflows from operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Six Months Ended July 26, 2025 vs. July 27, 2024) (Dollars in thousands) | Cash Flow Activity | July 26, 2025 | July 27, 2024 | | :------------------------------------ | :------------ | :------------ | | Net cash provided by (used in) operating activities | $3,478 | $(44,912) | | Net cash used in investing activities | $(107,693) | $(118,952) | | Net cash provided by financing activities | $39,905 | $82,342 | | Net decrease in cash, cash equivalents and restricted cash | $(64,310) | $(81,522) | | Cash, cash equivalents and restricted cash at end of period | $30,164 | $21,368 | [NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=12&type=section&id=NOTES%20TO%20THE%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides detailed explanations and disclosures for the financial statements [1. Basis of Presentation](index=12&type=section&id=1.%20Basis%20of%20Presentation) This note describes the company's business, fiscal year, and the basis for preparing interim financial statements - Dycom Industries, Inc. is a leading provider of specialty contracting services throughout the United States, primarily for telecommunications providers, including program management, planning, engineering, construction, maintenance, and fulfillment services. They also provide underground facility locating services for various utilities[27](index=27&type=chunk) - The company's fiscal year ends on the last Saturday in January, with fiscal 2026 consisting of 53 weeks and fiscal 2025 consisting of 52 weeks[28](index=28&type=chunk) - Dycom operates in one reportable segment, aggregating all operating segments due to similar economic characteristics, nature of services, production processes, customer types, and service distribution methods[30](index=30&type=chunk) [2. Significant Accounting Policies and Estimates](index=12&type=section&id=2.%20Significant%20Accounting%20Policies%20and%20Estimates) This note outlines the company's key accounting policies and estimates, noting any material changes - No material changes to significant accounting policies and critical accounting estimates from the fiscal 2025 Annual Report on Form 10-K[31](index=31&type=chunk) - Financial statements require management to make estimates and assumptions, which are based on historical experience and current facts, and actual results could differ materially[32](index=32&type=chunk) - Basic EPS is computed based on weighted average common shares outstanding (excluding unvested restricted share units), while diluted EPS includes dilutive potential common shares from stock-based awards using the treasury stock method[33](index=33&type=chunk) [3. Accounting Standards](index=13&type=section&id=3.%20Accounting%20Standards) This note details the impact and adoption plans for recently issued accounting pronouncements - No changes in expected adoption dates or estimated effects of recently issued accounting pronouncements from those disclosed in the fiscal 2025 10-K[34](index=34&type=chunk) - The company will adopt ASU 2023-09 (Income Taxes: Improvements to Income Tax Disclosures) in the fourth quarter of fiscal 2026, effective for fiscal years beginning after December 15, 2024, and is evaluating its disclosure requirements[36](index=36&type=chunk) - The company is evaluating ASU 2024-03 (Disaggregation of Income Statement Expenses), effective for annual reporting periods beginning after December 15, 2026, with early adoption permitted[37](index=37&type=chunk) [4. Computation of Earnings per Common Share](index=14&type=section&id=4.%20Computation%20of%20Earnings%20per%20Common%20Share) This note provides the calculation of basic and diluted earnings per common share Earnings per Common Share (Dollars in thousands, except per share amounts) | Metric | Three Months Ended July 26, 2025 | Three Months Ended July 27, 2024 | Six Months Ended July 26, 2025 | Six Months Ended July 27, 2024 | | :---------------------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income available to common stockholders | $97,483 | $68,400 | $158,530 | $130,954 | | Basic earnings per common share | $3.37 | $2.35 | $5.48 | $4.50 | | Diluted earnings per common share | $3.33 | $2.32 | $5.42 | $4.44 | | Anti-dilutive weighted shares excluded | 131,554 | 145,860 | 154,493 | 145,868 | [5. Acquisitions](index=14&type=section&id=5.%20Acquisitions) This note details recent business acquisitions, including purchase price allocation and acquired assets - During fiscal 2025, Dycom acquired three telecommunications construction contractors for an aggregate cash purchase price of **$191.2 million**, expanding geographic presence and customer base[41](index=41&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) Aggregate Consideration Paid and Net Assets Acquired for Fiscal 2025 Acquisitions (Dollars in millions) | Quarter of Fiscal 2025 | Net Assets Acquired | | :--------------------- | :------------------ | | First quarter | $16.0 | | Second quarter | $24.5 | | Third quarter | $150.7 | | **Total** | **$191.2** | Intangible Assets Acquired in Fiscal 2025 Acquisitions (Dollars in millions) | Intangible Asset | Estimated Useful Life (in years) | Amount | | :------------------------------- | :------------------------------- | :----- | | Customer relationships | 12.0 | $114.3 | | Backlog intangibles (1st & 2nd Q) | 0.8 | $0.5 | | Backlog intangibles (3rd Q) | 2.0 | $26.3 | | Trade names | 10.0 | $1.1 | | **Total intangible assets acquired** | | **$142.2** | [6. Accounts Receivable, Contract Assets, and Contract Liabilities](index=16&type=section&id=6.%20Accounts%20Receivable,%20Contract%20Assets,%20and%20Contract%20Liabilities) This note provides details on accounts receivable, contract assets, liabilities, and customer credit concentration Accounts Receivable, Net (Dollars in thousands) | Category | July 26, 2025 | January 25, 2025 | | :------------------------ | :------------ | :--------------- | | Trade accounts receivable | $585,264 | $538,475 | | Unbilled accounts receivable | 976,584 | 801,423 | | Retainage | 28,708 | 34,934 | | Less: allowance for credit losses | (2,595) | (1,094) | | **Accounts receivable, net** | **$1,587,961** | **$1,373,738** | Net Contract Assets (Liabilities) (Dollars in thousands) | Category | July 26, 2025 | January 25, 2025 | | :-------------------------- | :------------ | :--------------- | | Contract assets | $119,655 | $63,375 | | Contract liabilities | 69,897 | 73,548 | | **Contract assets (liabilities), net** | **$49,758** | **$(10,173)** | Customer Credit Concentration (Combined Accounts Receivable and Contract Assets, Net) (Dollars in millions) | Customer | July 26, 2025 Amount | July 26, 2025 % of Total | January 25, 2025 Amount | January 25, 2025 % of Total | | :-------------------- | :------------------- | :----------------------- | :---------------------- | :----------------------- | | AT&T Inc. | $201.0 | 12.3% | $127.7 | 9.4% | | Charter Communications | $234.0 | 14.3% | $158.9 | 11.7% | | Lumen Technologies | $255.4 | 15.6% | $287.1 | 21.1% | [7. Other Current Assets and Other Assets](index=17&type=section&id=7.%20Other%20Current%20Assets%20and%20Other%20Assets) This note details the composition and changes in other current and non-current assets Other Current Assets (Dollars in thousands) | Category | July 26, 2025 | January 25, 2025 | | :-------------------------- | :------------ | :--------------- | | Prepaid expenses | $33,607 | $20,688 | | Deposits and other current assets | 8,023 | 11,332 | | Receivables on equipment sales | 1,446 | 1,237 | | Restricted cash | 1,372 | 1,372 | | **Total Other current assets** | **$44,448** | **$34,629** | Other Assets (Dollars in thousands) | Category | July 26, 2025 | January 25, 2025 | | :------------------------------------------ | :------------ | :--------------- | | Insurance recoveries/receivables for accrued insurance claims | $9,585 | $3,343 | | Deferred financing costs | 4,297 | 4,945 | | Restricted cash | 332 | 432 | | Cloud computing software | 53,478 | 29,844 | | Other non-current assets | 8,020 | 8,025 | | **Total Other assets** | **$75,712** | **$46,589** | [8. Cash and Equivalents and Restricted Cash](index=17&type=section&id=8.%20Cash%20and%20Equivalents%20and%20Restricted%20Cash) This note provides a breakdown of cash, cash equivalents, and restricted cash balances Cash and Equivalents and Restricted Cash (Dollars in thousands) | Category | July 26, 2025 | January 25, 2025 | | :------------------------------------ | :------------ | :--------------- | | Cash and equivalents | $28,460 | $92,670 | | Restricted cash included in: | | | | Other current assets | 1,372 | 1,372 | | Other assets (long-term) | 332 | 432 | | **Cash equivalents and restricted cash** | **$30,164** | **$94,474** | [9. Property and Equipment](index=18&type=section&id=9.%20Property%20and%20Equipment) This note details the company's property and equipment, including depreciation policies and expenses Property and Equipment, Net (Dollars in thousands) | Category | July 26, 2025 | January 25, 2025 | | :-------------------------- | :------------ | :--------------- | | Total Gross Property and Equipment | $1,609,892 | $1,585,007 | | Less: accumulated depreciation | (1,045,214) | (1,043,086) | | **Property and equipment, net** | **$564,678** | **$541,921** | Depreciation Expense (Dollars in thousands) | Period | July 26, 2025 | July 27, 2024 | | :----------------------- | :------------ | :------------ | | Three months ended | $48,900 | $40,700 | | Six months ended | $95,300 | $80,000 | [10. Goodwill and Intangible Assets](index=18&type=section&id=10.%20Goodwill%20and%20Intangible%20Assets) This note provides information on goodwill and other intangible assets, including amortization Goodwill Carrying Amount (Dollars in thousands) | Category | July 26, 2025 | January 25, 2025 | | :-------------------------------- | :------------ | :--------------- | | Goodwill | $332,645 | $330,330 | | Goodwill adjustment from fiscal 2025 acquisitions | 2,315 | — | | **Balance as of July 26, 2025** | **$332,645** | **$330,330** | Intangible Assets, Net (Dollars in thousands) | Category | July 26, 2025 | January 25, 2025 | | :-------------------- | :------------ | :--------------- | | Customer relationships | $167,295 | $182,207 | | Trade names, finite | 4,493 | 4,787 | | Trade name, indefinite | 4,700 | 4,700 | | Contract backlog | 19,317 | 28,010 | | Non-compete agreements | 34 | 42 | | **Total Intangible Assets, Net** | **$195,839** | **$219,746** | Amortization Expense for Finite-Lived Intangible Assets (Dollars in thousands) | Period | July 26, 2025 | July 27, 2024 | | :----------------------- | :------------ | :------------ | | Three months ended | $11,900 | $5,900 | | Six months ended | $23,900 | $11,800 | [11. Accrued Insurance Claims](index=19&type=section&id=11.%20Accrued%20Insurance%20Claims) This note details the company's self-insured retention levels and accrued insurance liabilities - For fiscal 2026 and 2025, Dycom retained the risk of loss up to **$1.0 million** per occurrence for workers' compensation[62](index=62&type=chunk) - For fiscal 2026, the company retained the risk of loss up to **$2.0 million** per occurrence for the first **$5.0 million** of automobile liability and general liability coverage[63](index=63&type=chunk) Accrued Insurance Claims and Recoveries/Receivables (Dollars in thousands) | Category | July 26, 2025 | January 25, 2025 | | :------------------------------------ | :------------ | :--------------- | | Accrued insurance claims - current | $46,345 | $46,686 | | Accrued insurance claims - non-current | 54,602 | 49,836 | | **Total Accrued insurance claims** | **$100,947** | **$96,522** | | Insurance recoveries/receivables (non-current) | $9,585 | $3,343 | [12. Leases](index=20&type=section&id=12.%20Leases) This note describes the company's lease arrangements, lease costs, and lease liabilities Total Lease Cost (Dollars in thousands) | Lease Cost Category | Three Months Ended July 26, 2025 | Three Months Ended July 27, 2024 | Six Months Ended July 26, 2025 | Six Months Ended July 27, 2024 | | :---------------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Lease cost under long-term operating leases | $12,537 | $10,903 | $25,518 | $21,364 | | Lease cost under short-term operating leases | 4,000 | 4,386 | 7,724 | 8,380 | | Variable lease cost | 1,118 | 913 | 2,308 | 2,005 | | **Total lease cost** | **$17,655** | **$16,202** | **$35,550** | **$31,749** | Supplemental Balance Sheet Information for Long-Term Operating Lease Liabilities | Metric | July 26, 2025 | January 25, 2025 | | :-------------------------- | :------------ | :--------------- | | Weighted average remaining lease term | 4.8 years | 4.6 years | | Weighted average discount rate | 5.8% | 5.8% | | Operating lease liabilities | $117.8 million | $112.8 million | Maturities of Long-Term Operating Lease Liabilities as of July 26, 2025 (Dollars in thousands) | Fiscal Year | Amount | | :---------------- | :----- | | Remainder of 2026 | $21,043 | | 2027 | 38,901 | | 2028 | 25,451 | | 2029 | 15,435 | | 2030 | 8,860 | | 2031 | 4,339 | | Thereafter | 22,646 | | **Total lease payments** | **$136,675** | | Less: imputed interest | (18,883) | | **Total** | **$117,792** | [13. Other Accrued Liabilities](index=21&type=section&id=13.%20Other%20Accrued%20Liabilities) This note provides a breakdown of other accrued current liabilities Other Accrued Liabilities (Dollars in thousands) | Category | July 26, 2025 | January 25, 2025 | | :------------------------------------ | :------------ | :--------------- | | Accrued payroll and related taxes | $45,621 | $35,543 | | Accrued construction costs | 40,930 | 36,078 | | Accrued employee benefit and incentive plan costs | 49,224 | 61,213 | | Other current liabilities | 36,560 | 34,136 | | **Total Other accrued liabilities** | **$172,335** | **$166,970** | [14. Debt](index=21&type=section&id=14.%20Debt) This note details the company's outstanding indebtedness, credit facilities, and financial covenants Outstanding Indebtedness (Net Carrying Value) (Dollars in thousands) | Debt Instrument | July 26, 2025 | January 25, 2025 | | :------------------------------------------ | :------------ | :--------------- | | Credit Agreement - Revolving facility | $85,000 | $— | | Credit Agreement - Term loan facility | $447,501 | $447,115 | | 4.50% senior notes, net (mature April 2029) | 496,557 | 496,097 | | **Total** | **$1,029,058** | **$943,212** | | Less: current portion | (20,000) | (10,000) | | **Long-term debt** | **$1,009,058** | **$933,212** | - The Credit Agreement, amended on May 15, 2024, includes a revolving facility with a maximum commitment of **$650.0 million** and a term loan facility of **$450.0 million**, maturing on January 15, 2029[72](index=72&type=chunk) Weighted Average Interest Rates and Fees for Credit Agreement Balances | Category | July 26, 2025 | January 25, 2025 | | :-------------------------- | :------------ | :--------------- | | Borrowings - Term loan facility | 5.95% | 6.02% | | Borrowings - Revolving facility | 5.94% | —% | | Standby Letters of Credit | 1.50% | 1.63% | | Unused Revolver Commitment | 0.25% | 0.30% | [15. Income Taxes](index=24&type=section&id=15.%20Income%20Taxes) This note explains the effective income tax rate and the impact of recent tax legislation Effective Income Tax Rate | Period | July 26, 2025 | July 27, 2024 | | :----------------------- | :------------ | :------------ | | Three months ended | 25.7% | 27.9% | | Six months ended | 24.4% | 24.0% | - The effective tax rate differs from the statutory rate due to state income tax rates, non-deductible/non-taxable items, tax credits, tax effects of share-based awards, and changes in unrecognized tax benefits[80](index=80&type=chunk) - New U.S. tax legislation enacted on July 4, 2025, reinstates **100% bonus depreciation** and immediate deductibility of domestic research & experimental expenditures, expected to reduce current fiscal year cash tax requirements[81](index=81&type=chunk) [16. Other Income, Net](index=24&type=section&id=16.%20Other%20Income,%20Net) This note details the components of other income and expenses, net Other Income, Net (Dollars in thousands) | Component | Three Months Ended July 26, 2025 | Three Months Ended July 27, 2024 | Six Months Ended July 26, 2025 | Six Months Ended July 27, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Gain on sale of fixed assets | $10,103 | $8,160 | $19,875 | $20,564 | | Miscellaneous expense, net | (3,273) | (1,741) | (5,782) | (4,895) | | **Other income, net** | **$6,830** | **$6,419** | **$14,093** | **$15,669** | - Other income, net, includes discount fee expense from a customer-sponsored vendor payment program, which effectively reduces the time to collect receivables[82](index=82&type=chunk) [17. Capital Stock](index=24&type=section&id=17.%20Capital%20Stock) This note provides information on share repurchase programs and stock-related transactions - On February 26, 2025, the Board authorized a new **$150 million** share repurchase program through August 25, 2026[83](index=83&type=chunk) - During the three months ended April 26, 2025, the company repurchased **200,000 shares** for **$30.2 million**, leaving **$119.8 million** available under the authorization as of July 26, 2025[83](index=83&type=chunk) - For the six months ended July 26, 2025, **84,296 shares** totaling **$13.0 million** were withheld to meet payroll tax withholding obligations from restricted share unit vesting[84](index=84&type=chunk) [18. Stock-Based Awards](index=24&type=section&id=18.%20Stock-Based%20Awards) This note describes the company's stock-based compensation plans and related expenses - Stock-based awards, including common stock, stock options, time-based restricted share units (RSUs), and performance-based restricted share units (Performance RSUs), are granted to attract, retain, and reward employees, officers, and directors[86](index=86&type=chunk) Stock-Based Compensation Expense (Dollars in thousands) | Period | July 26, 2025 | July 27, 2024 | | :----------------------- | :------------ | :------------ | | Three months ended | $8,100 | $9,482 | | Six months ended | $17,199 | $17,305 | - As of July 26, 2025, unrecognized compensation expense for stock options, RSUs, and target Performance RSUs totaled **$0.9 million**, **$41.0 million**, and **$18.4 million**, respectively, to be recognized over weighted-average periods of **2.2**, **2.5**, and **1.4 years**[92](index=92&type=chunk) [19. Customer Concentration and Revenue Information](index=26&type=section&id=19.%20Customer%20Concentration%20and%20Revenue%20Information) This note details revenue concentration by major customers and service types Significant Customer Contract Revenues (Dollars in millions) | Customer | Three Months Ended July 26, 2025 Amount | Three Months Ended July 26, 2025 % of Total | Six Months Ended July 26, 2025 Amount | Six Months Ended July 26, 2025 % of Total | | :---------------- | :------------------------------------ | :------------------------------------ | :--------------------------------- | :--------------------------------- | | AT&T Inc. | $373.0 | 27.1% | $698.1 | 26.5% | | Lumen Technologies | $155.4 | 11.3% | $280.6 | 10.6% | | Total other customers combined | $849.5 | 61.6% | $1,657.9 | 62.9% | | **Total contract revenues** | **$1,377.9** | **100.0%** | **$2,636.6** | **100.0%** | Contract Revenues by Customer Type (Dollars in millions) | Customer Type | Three Months Ended July 26, 2025 Amount | Three Months Ended July 26, 2025 % of Total | Six Months Ended July 26, 2025 Amount | Six Months Ended July 26, 2025 % of Total | | :------------------------------------ | :------------------------------------ | :------------------------------------ | :--------------------------------- | :--------------------------------- | | Telecommunications | $1,269.1 | 92.1% | $2,418.0 | 91.7% | | Underground facility locating | 84.1 | 6.1% | 166.4 | 6.3% | | Electrical and gas utilities and other | 24.7 | 1.8% | 52.2 | 2.0% | | **Total contract revenues** | **$1,377.9** | **100.0%** | **$2,636.6** | **100.0%** | - Most individual work orders are completed within one year, making remaining performance obligations not meaningful for overall revenue disclosure[99](index=99&type=chunk) [20. Segment Reporting](index=27&type=section&id=20.%20Segment%20Reporting) This note explains the company's single reportable segment structure and CODM review - The Company operates in one reportable segment, providing specialty contracting services throughout the United States, including program management, planning, engineering, construction, maintenance, and fulfillment services for telecommunications and utilities[100](index=100&type=chunk) - All operating segments are aggregated into one reportable segment due to similar economic characteristics, nature of services, production processes, customer types, and service distribution methods[101](index=101&type=chunk) - The Chief Executive Officer, as the chief operating decision maker (CODM), reviews contract revenues and income before income taxes to assess performance and allocate resources[104](index=104&type=chunk) [21. Commitments and Contingencies](index=28&type=section&id=21.%20Commitments%20and%20Contingencies) This note outlines the company's legal proceedings, surety bonds, and other contingent obligations - Management believes that the ultimate resolution of current claims and legal proceedings will not have a material effect on the company's financial position, results of operations, or cash flow, after considering insurance coverage or indemnities[105](index=105&type=chunk) - As of July 26, 2025, Dycom had **$431.6 million** of outstanding performance and other surety contract bonds, with an estimated cost to complete projects secured by these bonds of approximately **$227.7 million**[106](index=106&type=chunk) - The company had **$47.5 million** of outstanding standby letters of credit issued under its credit agreement as of July 26, 2025, collateralizing obligations to insurance carriers[107](index=107&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Dycom's financial condition, operational results, strategy, and liquidity for the reported periods [Introduction](index=29&type=section&id=Introduction) This section introduces Dycom's business, strategic focus, and market opportunities in digital infrastructure - Dycom is a leading provider of specialty contracting services for telecommunications and digital infrastructure across the United States, including program management, planning, engineering, construction, maintenance, and fulfillment services[111](index=111&type=chunk) - Demand for high-speed and low-latency connectivity, driven by data-intensive applications and mobile usage, fuels significant opportunities in the digital infrastructure sector, including wireline network upgrades, fiber infrastructure for data centers (AI needs), and advanced wireless network deployments[112](index=112&type=chunk) - The company's strategy focuses on core maintenance and operations services, capitalizing on multi-year fiber-to-the-home deployments, fiber builds for hyperscaler data centers, state and federal digital divide programs, and wireless network modernization[113](index=113&type=chunk) [Understanding Our Results of Operations](index=31&type=section&id=Understanding%20Our%20Results%20of%20Operations) This section explains the key drivers and accounting principles behind the company's operational performance - Contract revenues are recognized over time as services are performed and customers simultaneously receive and consume benefits, primarily using output measures (units delivered) for progress assessment[127](index=127&type=chunk) - Costs of earned revenues include direct labor, subcontractor services, capital equipment operation (excluding depreciation), direct materials, and insurance costs[129](index=129&type=chunk) - Operating results exhibit seasonality, with reduced revenue and profitability or losses more likely during the fiscal quarters ending in January and April due to adverse weather, reduced daylight hours, and holidays[135](index=135&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including revenue, expenses, and profitability metrics Key Financial Results and Percentage of Contract Revenues (Dollars in millions) | Metric | Three Months Ended July 26, 2025 | % of Rev | Three Months Ended July 27, 2024 | % of Rev | Six Months Ended July 26, 2025 | % of Rev | Six Months Ended July 27, 2024 | % of Rev | | :------------------------------------------ | :------------------------------- | :------- | :------------------------------- | :------- | :----------------------------- | :------- | :----------------------------- | :------- | | Contract revenues | $1,377.9 | 100.0% | $1,203.1 | 100.0% | $2,636.6 | 100.0% | $2,345.5 | 100.0% | | Costs of earned revenues, excl. D&A | 1,070.5 | 77.7% | 952.9 | 79.2% | 2,081.6 | 79.0% | 1,874.5 | 79.9% | | General and administrative | 106.8 | 7.8% | 99.6 | 8.3% | 210.5 | 8.0% | 194.1 | 8.3% | | Depreciation and amortization | 60.9 | 4.4% | 46.6 | 3.9% | 119.2 | 4.5% | 91.8 | 3.9% | | Total Expenses | 1,238.1 | 89.9% | 1,099.0 | 91.4% | 2,411.3 | 91.5% | 2,160.4 | 92.1% | | Income before income taxes | 131.1 | 9.5% | 94.8 | 7.9% | 209.7 | 8.0% | 172.3 | 7.3% | | Net income | $97.5 | 7.1% | $68.4 | 5.7% | $158.5 | 6.0% | $131.0 | 5.6% | - Contract revenues increased by **$174.8 million (14.5%)** for the three months ended July 26, 2025, and by **$291.1 million (12.4%)** for the six months, driven by acquired businesses and net revenue increases in fiber-to-the-home deployments[139](index=139&type=chunk)[141](index=141&type=chunk) Non-GAAP Adjusted EBITDA (Dollars in millions) | Metric | Three Months Ended July 26, 2025 | Three Months Ended July 27, 2024 | Six Months Ended July 26, 2025 | Six Months Ended July 27, 2024 | | :------------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $97.5 | $68.4 | $158.5 | $131.0 | | Interest expense, net | 15.6 | 14.7 | 29.6 | 27.5 | | Provision for income taxes | 33.6 | 26.4 | 51.2 | 41.3 | | Depreciation and amortization | 60.9 | 46.6 | 119.2 | 91.8 | | EBITDA | 207.6 | 156.1 | 358.5 | 291.6 | | Gain on sale of fixed assets | (10.1) | (8.2) | (19.9) | (20.6) | | Stock-based compensation expense | 8.1 | 9.5 | 17.2 | 17.3 | | Loss on debt extinguishment | — | 1.0 | — | 1.0 | | **Non-GAAP Adjusted EBITDA** | **$205.6** | **$158.4** | **$355.8** | **$289.3** | | **Non-GAAP Adjusted EBITDA % of contract revenues** | **14.9%** | **13.2%** | **13.5%** | **12.3%** | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash position, working capital, debt, and ability to fund operations and investments - Working capital (total current assets less total current liabilities, excluding current portion of debt) increased to **$1,346.2 million** as of July 26, 2025, from **$1,117.5 million** as of January 25, 2025[159](index=159&type=chunk) Net Cash Flows (Six Months Ended July 26, 2025 vs. July 27, 2024) (Dollars in millions) | Cash Flow Activity | July 26, 2025 | July 27, 2024 | | :------------------------------------ | :------------ | :------------ | | Provided by (used in) operating activities | $3.5 | $(44.9) | | Used in investing activities | $(107.7) | $(119.0) | | Provided by financing activities | $39.9 | $82.3 | - Days sales outstanding (DSO) improved to **108** as of July 26, 2025, compared to **117** as of July 27, 2024[166](index=166&type=chunk) - Backlog, an estimate of uncompleted services under contractual agreements, totaled **$7.989 billion** at July 26, 2025, up from **$7.760 billion** at January 25, 2025. Approximately **57.6%** of the July 26, 2025 backlog is expected to be completed within the next twelve months[182](index=182&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily interest rate fluctuations - No material changes to quantitative and qualitative disclosures about market risk during the three months ended July 26, 2025[184](index=184&type=chunk) - The company's primary exposure to market risk relates to unfavorable changes in interest rates[184](index=184&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section assesses the effectiveness of the company's disclosure controls and internal financial reporting controls - As of July 26, 2025, the Company's disclosure controls and procedures were effective to provide reasonable assurance that information required for SEC reports is recorded, processed, summarized, and reported timely[186](index=186&type=chunk) - No material changes in the Company's internal control over financial reporting occurred during the most recent fiscal quarter[187](index=187&type=chunk) [PART II - OTHER INFORMATION](index=41&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) This section provides additional disclosures, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section references disclosures on ongoing legal claims and contingencies - Legal proceedings information is referenced from Note 21, Commitments and Contingencies, in the Notes to the Condensed Consolidated Financial Statements[190](index=190&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section outlines the key risks and uncertainties impacting the company's business operations and financial performance - The risks identified in the Annual Report on Form 10-K for fiscal 2025 have not changed in any material respect[191](index=191&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section reports on equity security sales not registered with the SEC and the use of proceeds from share repurchases - No unregistered equity securities were sold during the three months ended July 26, 2025[192](index=192&type=chunk) - A new **$150 million** share repurchase program was authorized on February 26, 2025, through August 25, 2026[193](index=193&type=chunk) - During the three months ended April 26, 2025, **200,000 shares** were repurchased for **$30.2 million**, leaving **$119.8 million** available for repurchases as of July 26, 2025[193](index=193&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section includes disclosures on director and officer trading arrangements - No Rule 10b5-1 or non-Rule 10b5-1 trading arrangements were adopted, terminated, or modified by directors and officers during the three months ended July 26, 2025[194](index=194&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists all supplementary documents and certifications filed with the report - Exhibits include Fifth Amended and Restated Bylaws, CEO and CFO certifications (Rule 13a-14(a)/15d-14(a) and 18 U.S.C. Section 1350), and Inline XBRL formatted financial statements and cover page[196](index=196&type=chunk) [SIGNATURES](index=43&type=section&id=SIGNATURES) This section contains the required signatures for the financial report

Core Insights - Dycom Industries reported a strong second-quarter earnings performance, with a notable increase in revenue and net income, leading to a positive market reaction despite a slight miss on revenue expectations [1][4]. Financial Performance - The company achieved a record revenue of nearly $1.38 billion for the second quarter of fiscal 2026, reflecting a 15% year-over-year growth [2]. - GAAP net income rose by 43% to $97.5 million, translating to $3.33 per share [2]. - Dycom's revenue slightly missed analyst expectations of $1.41 billion, while the GAAP net income exceeded expectations of $2.92 per share [4]. Growth Drivers - The growth was attributed to increased customer demand for digital infrastructure, improved operational efficiency, and effective cash-flow management [4]. - Dycom expressed confidence in sustaining growth, projecting fiscal 2026 revenue between $5.29 billion and $5.43 billion, indicating at least 12.5% growth compared to the previous year [5][6].

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&

Second Quarter Highlights (All metrics compared to the second quarter of fiscal 2025) WEST PALM BEACH, Fla., Aug. 20, 2025 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended July 26, 2025. "Dycom's first-half performance confirms the strength of our strategy, disciplined execution and ability to capitalize on a rapidly expanding market. This quarter, we delivered record revenue within our range of expectations and record earnings that exceeded our ...