Financial Performance - Net income available to common stockholders for the three months ended October 25, 2025, was $106.4 million, compared to $69.8 million for the same period in 2024, representing a 52.5% increase [41]. - Basic earnings per common share increased to $3.67 for the three months ended October 25, 2025, from $2.39 in the same period of 2024, reflecting a 53.7% growth [41]. - For the three months ended October 25, 2025, total contract revenues were $1,451.8 million, a 14.1% increase from $1,272.0 million for the same period in 2024 [98]. - For the nine months ended October 25, 2025, total contract revenues were $4,088.3 million, an increase from $3,617.5 million for the same period in 2024 [99]. - The telecommunications sector represented 91.6% of total contract revenues for the three months ended October 25, 2025, compared to 90.6% for the same period in 2024 [99]. Acquisitions and Investments - 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 [42][43][44]. - The preliminary purchase price for the acquisition of Power Solutions, LLC is $1,950,000,000, with 15% of this amount ($292,500,000) to be paid in common stock [111]. - The acquisition will involve a mix of 1,011,069 shares of common stock and cash, with the cash portion being $1,657,500,000 minus purchase price adjustments [111]. - The company has secured a $1,000 million senior secured term loan A facility and a $700 million 364-day senior secured bridge loan facility to finance the acquisition [113]. - The acquisition is subject to customary conditions and is not obligated to close before December 22, 2025, with an outside termination date of May 18, 2026 [112]. - The company aims to integrate Power Solutions' operations to realize anticipated benefits and synergies from the acquisition [116]. - Forward-looking statements regarding the acquisition are subject to various risks and uncertainties, including regulatory approvals and integration challenges [116]. Assets and Liabilities - Total accounts receivable, net, as of October 25, 2025, was $1.59 billion, up from $1.37 billion as of January 25, 2025, indicating a 15.6% increase [51]. - As of October 25, 2025, net contract assets amounted to $92.8 million, a significant increase from a net liability of $10.2 million as of January 25, 2025 [52]. - The company recorded intangible assets totaling $142.2 million from acquisitions, with customer relationships valued at $114.3 million [48]. - Goodwill and intangible assets from acquisitions totaled $163.1 million, which are deductible for tax purposes [47]. - Goodwill increased to $332.6 million as of October 25, 2025, from $330.3 million as of January 25, 2025, reflecting adjustments from fiscal 2025 acquisitions [57]. - Intangible assets, net, were reported at $183.999 million as of October 25, 2025, with amortization expense for finite-lived intangible assets at $11.8 million for the three months ended October 25, 2025 [59][60]. - The net carrying amount of long-term debt as of October 25, 2025, was $919,480,000, a slight decrease from $933,212,000 as of January 25, 2025 [72]. Cash Flow and Liquidity - Total cash and equivalents increased to $110.1 million as of October 25, 2025, compared to $92.7 million as of January 25, 2025 [55]. - The Company had borrowing availability under its revolving facility of $596.4 million as of October 25, 2025 [77]. - Cash paid for lease liabilities during the three months ended October 25, 2025, was $10,286,000, compared to $12,063,000 in 2024, reflecting a decrease of 14.8% [70]. Tax and Compliance - The effective income tax rate for the three months ended October 25, 2025, was 24.2%, compared to 23.6% for the same period in 2024 [82]. - The company plans to adopt ASU 2023-09 regarding income tax disclosures in the fourth quarter of fiscal 2026, which will enhance transparency without impacting financial position [37]. Stock and Compensation - Stock-based compensation expense for the three months ended October 25, 2025, was $7.986 million, down from $14.024 million in the same period of 2024 [93]. - As of October 25, 2025, the company had unrecognized compensation expense related to RSUs of $36.4 million, which will be recognized over a weighted-average period of 2.3 years [94]. - The company incurred approximately $11.4 million of incremental stock-based compensation modification expense in fiscal 2025 related to previously issued equity awards [92]. Risk Management - There were no material changes to the company's market risk disclosures during the three months ended October 25, 2025, primarily related to interest rate changes [192].

Core Insights - Dycom's shares increased over 10% intra-day following the announcement of strong quarterly results, an increased revenue outlook, and a $1.95 billion acquisition of Power Solutions [1] Financial Performance - GAAP net income rose to $106.4 million, or $3.63 per diluted share, exceeding the average analyst estimate of $3.20 [2] - Contract revenue grew by 14.1% to $1.452 billion, with organic revenue increasing by 7.2% when excluding recent acquisitions [2] - Contributions from acquired businesses reached $110.9 million, significantly up from $21 million in the same period last year [2] - Adjusted EBITDA improved to $219.4 million, representing 15.1% of contract revenue, compared to $170.7 million, or 13.4%, a year earlier [2] Future Projections - For the fourth quarter ending January 31, 2026, Dycom projected adjusted EPS between $1.62 and $1.97, compared to the consensus estimate of $1.66 [3] - The company forecasts Q4 contract revenue to be between $1.26 billion and $1.34 billion, with adjusted EBITDA expected to be between $140 million and $155 million [3] - Dycom raised the midpoint of its fiscal 2026 outlook, now anticipating contract revenue between $5.350 billion and $5.425 billion, indicating a year-over-year growth of 13.8% to 15.4% [3]

Core Insights - U.S. stocks exhibited mixed performance, with the Nasdaq Composite increasing by over 100 points on Wednesday [1] - Dycom Industries, Inc. reported record third-quarter results, raised its outlook, and announced a significant acquisition [1] Company Performance - Dycom Industries' contract revenues rose by 14.1% year-over-year to $1.45 billion, surpassing analyst expectations of $1.41 billion [1] - The adjusted EPS for Dycom Industries was $3.63, exceeding analyst estimates of $3.20 [1] - Dycom Industries shares increased by 8.1% to $320.17 on Wednesday following the positive results [2] Other Notable Stock Movements - PACS Group, Inc. shares increased by 11.1% to $16.03 [4] - TransMedics Group, Inc. saw a rise of 10.4% to $129.27 [4] - MP Materials Corp. shares jumped by 9.3% to $63.95 after Goldman Sachs initiated coverage with a Buy rating and a $77 price target [4] - BellRing Brands, Inc. surged by 9.1% to $28.64 despite mixed fourth-quarter financial results and FY26 sales guidance below estimates [4] - Hinge Health, Inc. gained 8.2% to $43.93, announcing a $250 million share repurchase program [4] - Kyivstar Group Ltd. rose by 7.6% to $12.06 [4] - Lumentum Holdings Inc. increased by 7.2% to $265.33 after Mizuho Securities initiated coverage with an Outperform rating and a price target of $290 [4]

Core Insights - Dycom Industries stock experienced a nearly 18% surge following strong third-quarter results that exceeded analyst expectations [1] - The company provided a significant upward revision to its fiscal 2026 guidance as a result of the strong performance [1] Financial Performance - The third-quarter results were described as "crushing" analyst expectations, indicating a robust financial performance [1] - The specific financial metrics that contributed to this performance were not detailed in the provided content [1] Future Outlook - The upward revision to fiscal 2026 guidance suggests a positive outlook for the company, reflecting confidence in continued growth [1] - The implications of this guidance revision for investors and market positioning were not elaborated in the content [1]

Financial Data and Key Metrics Changes - The company reported record revenue of $1.45 billion for Q3 FY 2026, a 14.1% increase compared to Q3 FY 2025 [4][21] - Adjusted EBITDA reached $219 million, marking a 28.5% increase year-over-year, with an adjusted EBITDA margin of 15.1%, up 169 basis points from the previous year [5][21] - Net income was $106.4 million, resulting in diluted EPS of $3.63, exceeding expectations [22] - The backlog increased to an all-time high of $8.2 billion, with $4.99 billion expected to be completed in the next 12 months [6][22] Business Line Data and Key Metrics Changes - Organic revenue growth was reported at 7.2%, driven by fiber-to-the-home programs, wireless activity, and maintenance services [21] - The company secured over $500 million in verbal awards related to BEAD deployments, which will be reflected in the next quarter's backlog [9][23] Market Data and Key Metrics Changes - The company anticipates a $20 billion addressable market for outside plant data center network construction over the next five years, driven by increasing demand for fiber infrastructure [7][11] - The NTIA approved final BEAD deployment plans for 15 states, with $29.5 billion in total spending expected from states and territories [8][9] Company Strategy and Development Direction - The acquisition of Power Solutions for $1.95 billion is expected to enhance the company's capabilities in the digital infrastructure market and is projected to be immediately accretive to financial performance [12][13] - The company aims to leverage Power Solutions' expertise in electrical infrastructure to capitalize on the growing demand for data centers and digital infrastructure services [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for telecommunications infrastructure, particularly in fiber-to-home builds and data center growth [6][19] - The company is positioned to benefit from the ongoing AI-driven demand for infrastructure, with expectations of significant growth in the data center sector [17][19] Other Important Information - The company is implementing a comprehensive ERP system to enhance operational efficiencies, with the first phase completed during Q3 [23] - The acquisition is expected to improve free cash flow and provide a clear path to deleveraging to two times net leverage within 12 to 18 months [28][29] Q&A Session Summary Question: Improvement in DSOs and future expansion of Power Solutions - Management noted that the 14-day improvement in DSOs reflects strong cash management efforts and expressed optimism about future expansion opportunities for Power Solutions in Texas and other areas [34][36] Question: Customer relationships and opportunities with Power Solutions - Management indicated that Power Solutions primarily works with general contractors, but there is significant overlap with hyperscaler end users, providing opportunities for new builds and retrofits [40][42] Question: Fourth quarter guidance and backlog context - The wider revenue range for Q4 is attributed to seasonal factors and the ongoing growth in fiber-to-the-home programs, with confidence in achieving strong backlog performance [57][59] Question: Data center market expansion and new markets - Management emphasized a cautious approach to expanding into new markets, focusing on leveraging existing strengths in the DMV region while exploring M&A opportunities [61][64] Question: Service and maintenance agreements context - The $500 million in service and maintenance agreements reflects the company's scale and ability to meet customer needs, setting up a strong backlog for Q4 [72][75]

Financial Data and Key Metrics Changes - The company reported record revenue of $1.45 billion for Q3 FY 2026, a 14.1% increase compared to Q3 FY 2025 [4][21] - Adjusted EBITDA reached $219 million, marking a 28.5% increase year-over-year, with an adjusted EBITDA margin of 15.1%, up 169 basis points from the previous year [5][22] - The company’s backlog hit an all-time high of $8.2 billion, with $4.99 billion expected to be completed in the next 12 months [6][22] Business Line Data and Key Metrics Changes - Organic revenue growth was reported at 7.2%, driven by fiber-to-the-home programs, wireless activity, and maintenance services [21] - Major customers included AT&T with $361.9 million and Lumen with $170.3 million, each exceeding 10% of total revenues for the quarter [22] Market Data and Key Metrics Changes - The company anticipates a $20 billion addressable market for outside plant data center network construction over the next five years, driven by increasing demand for digital infrastructure [7][11] - The NTIA approved final BEAD deployment plans for 15 states, with $29.5 billion in total spending expected, creating a significant addressable market for fiber and HFC infrastructure [8][9] Company Strategy and Development Direction - The acquisition of Power Solutions is expected to enhance the company’s capabilities in the rapidly growing digital infrastructure market, particularly in the data center sector [12][29] - The company aims to leverage its scale and expertise to capitalize on the growing demand for fiber infrastructure and data center construction [7][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for telecommunications infrastructure, particularly fiber-to-home builds and data center growth [6][19] - The company is optimistic about the future, projecting revenue growth of 13.8% to 15.4% for the full fiscal year, excluding the impact of the pending acquisition [6][24] Other Important Information - The total purchase price for Power Solutions is $1.95 billion, expected to be immediately accretive to adjusted EBITDA margin and diluted EPS [13][29] - The company has secured over $500 million in verbal awards related to BEAD deployments, which will not be reflected in the backlog until the next quarter [9][23] Q&A Session Summary Question: Improvement in DSOs and Power Solutions Expansion - Management noted a 14-day improvement in DSOs, attributing it to strong cash management practices and expressed confidence in maintaining this improvement going forward [35] - Regarding Power Solutions, management highlighted the addition of skilled workforce and the alignment with hyperscaler demands as key growth drivers [36] Question: Customer Relationships and Opportunities - Management indicated that Power Solutions primarily works with general contractors, but there is significant overlap with hyperscaler end users, providing opportunities for diversification [40][42] Question: Fourth Quarter Guidance and Backlog - The wider revenue range for Q4 reflects seasonal factors and the ongoing growth in fiber-to-home programs, with expectations for continued strong performance [57] - Power Solutions has a backlog of over $1 billion, with contracts typically spanning 6 to 12 months, indicating a robust pipeline of work [59] Question: New Market Expansion and Long-Term Strategy - Management emphasized a cautious approach to expanding into new markets, focusing on long-term shareholder returns and leveraging existing strengths in the DMV region [64] Question: Service and Maintenance Agreements - The $500 million in service and maintenance agreements post-quarter reflects the company's ability to secure ongoing work and indicates strong momentum heading into Q4 [72][75]

Financial Data and Key Metrics Changes - Dycom Industries reported record revenue of $1.45 billion for Q3 FY 2026, a 14.1% increase compared to Q3 FY 2025 [4][20] - Adjusted EBITDA reached $219 million, marking a 28.5% increase year-over-year, with an adjusted EBITDA margin of 15.1%, up 169 basis points from the previous year [4][21] - The company’s backlog hit an all-time high of $8.2 billion, with $4.99 billion expected to be completed in the next 12 months [5][21] Business Line Data and Key Metrics Changes - Organic revenue growth was reported at 7.2%, driven by fiber-to-the-home programs, wireless activity, and maintenance services [20] - The service and maintenance business continues to grow, with additional agreements totaling over $500 million executed after the quarter [9][22] Market Data and Key Metrics Changes - The demand for fiber infrastructure to support data center growth is increasing significantly, with a projected $20 billion addressable market for outside plant data center network construction over the next five years [6][7] - The NTIA has approved final BEAD deployment plans for 15 states, with $29.5 billion in total spending expected, of which $26 billion will be used for fiber or HFC infrastructure [8][9] Company Strategy and Development Direction - The acquisition of Power Solutions is expected to enhance Dycom's capabilities in the digital infrastructure market, providing comprehensive services from core networks to data centers [12][13] - The company aims to capitalize on the growing demand for digital infrastructure driven by hyperscalers and technology companies, with a focus on long-term shareholder value [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand for telecommunications services and the ongoing growth of fiber-to-home builds, projecting continued acceleration in the coming years [5][6] - The company anticipates that the construction of new outside plant data center networks will ramp up significantly in 2026, leading to substantial growth [6][17] Other Important Information - The total purchase price for Power Solutions is $1.95 billion, expected to be immediately accretive to Dycom's adjusted EBITDA margin and diluted EPS [13][24] - The acquisition is anticipated to provide a clear path to deleveraging to two times net leverage within 12 to 18 months [26][28] Q&A Session Summary Question: Improvement in DSOs and future expansion of Power Solutions - Management noted that the 14-day improvement in DSOs reflects strong cash management efforts and expressed optimism about maintaining this improvement going forward [31] - Regarding Power Solutions, the focus will be on leveraging skilled workforce capabilities to meet the growing demands of hyperscalers [32] Question: Customer relationships and growth opportunities with Power Solutions - Power Solutions primarily works with general contractors, but there is significant overlap with hyperscaler end users, providing opportunities for customer diversification [35][36] Question: Fourth quarter guidance and backlog context - The wider revenue range for Q4 is attributed to seasonal factors and the ongoing growth in fiber-to-the-home programs [45] - Power Solutions has a backlog of over $1 billion, with contracts typically spanning 6 to 12 months [47] Question: Future market expansion and M&A opportunities - Management emphasized a strategic approach to growth, focusing on the proven DMV market while also considering future M&A opportunities in other regions [51][52] Question: Data center market concentration and future M&A - The data center contracting space remains fragmented, presenting opportunities for future acquisitions, while Dycom aims to leverage its scale in both telecommunications and data center services [63]

Core Insights - Dycom Industries reported quarterly earnings of $3.63 per share, exceeding the Zacks Consensus Estimate of $3.15 per share, and showing an increase from $2.68 per share a year ago, resulting in an earnings surprise of +15.24% [1][2] - The company achieved revenues of $1.45 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 3.70% and up from $1.27 billion year-over-year [2] - Dycom Industries has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of Dycom Industries' stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.34 on revenues of $1.27 billion, while for the current fiscal year, it is $10.01 on revenues of $5.31 billion [7] Industry Context - Dycom Industries operates within the Zacks Building Products - Heavy Construction industry, which is currently ranked in the top 29% of over 250 Zacks industries, indicating a favorable industry outlook [8] - The empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Dycom's stock performance [5][6]

Financial Highlights - Total contract revenues increased by 14.1% year-over-year, from $1.272 billion in Q3 2025 to $1.4518 billion in Q3 2026[6] - Organic revenue growth was 7.2%[6] - Adjusted EBITDA increased by 28.5% year-over-year, from $170.7 million in Q3 2025 to $219.4 million in Q3 2026[6] - Adjusted EBITDA margin improved by 169 basis points, from 13.4% in Q3 2025 to 15.1% in Q3 2026[6] - Adjusted diluted EPS increased by 35.4% year-over-year, from $2.68 in Q3 2025 to $3.63 in Q3 2026[6] Backlog and Debt - Total backlog increased by 4.7% year-over-year[16] - Next 12 Months Backlog increased 11.8% year-over-year[16] - The company executed additional service and maintenance agreements totaling over $500 million subsequent to the quarter[16] - Total notional amount of debt was $945 million in Q3 2026, compared to $1.035 billion in Q2 2026[17] Power Solutions Acquisition - Dycom is set to acquire Power Solutions for a total purchase price of $1.95 billion[36] - Power Solutions' annual revenue is expected to be approximately $1.0 billion for CY2025, with a 4-year revenue CAGR of approximately 15%[36] - Power Solutions has consistently delivered Adjusted EBITDA margins in the mid-to-high teens, which is expected to be sustained in CY2026[36] Fiscal 2026 Outlook - The company is increasing the midpoint of its revenue guidance and now expects total contract revenues for fiscal 2026 to range from $5.350 billion to $5.425 billion, representing a range of 13.8% to 15.4% total growth over the prior year[22]

Core Viewpoint - Dycom Industries, Inc. reported strong financial results for Q3 and raised its contract revenue projections for FY 2026 due to favorable demand outlook [1][2]. Financial Performance - For Q4, the company anticipates earnings between $1.30 and $1.65 per share, with adjusted earnings ranging from $1.62 to $1.97 per share, and contract revenues expected to be between $1.26 billion and $1.34 billion [1]. - Analysts expect the company to report earnings of $1.66 per share on revenues of $1.30 billion for the quarter [2]. Revenue Projections - For fiscal year 2026, Dycom now projects contract revenues between $5.350 billion and $5.425 billion, indicating a total growth of 13.8% to 15.4% compared to the previous year [2]. - The consensus among analysts is for revenues of $5.34 billion for the year [2].