Core Viewpoint - Dycom Industries, Inc. has announced a definitive agreement to acquire Power Solutions, LLC for a total consideration of $1.95 billion, enhancing its capabilities in the telecommunications and digital infrastructure sectors [1][4]. Company Overview - Dycom Industries is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries across the United States [14]. - Power Solutions is one of the largest electrical contractors in the Mid-Atlantic region, specializing in electrical infrastructure solutions for data centers and critical facilities [2][16]. Financial Highlights - Power Solutions is expected to generate approximately $1.0 billion in annual revenue for calendar 2025, with a compounded annual revenue growth of about 15% over the past four years [2]. - The transaction is projected to be immediately accretive to Dycom's Adjusted EBITDA margin and Adjusted Diluted EPS, while also improving free cash flow for the combined company [9][10]. Strategic Rationale - The acquisition diversifies Dycom's business and enhances its potential for long-term growth by expanding its exposure to the rapidly growing data center demand [5][6]. - Power Solutions' operations will provide significant opportunities to scale and expand existing relationships with hyperscalers and other technology companies [8]. - The transaction will combine two leading workforces, adding substantial skilled labor capacity and enabling the execution of large and complex projects [15]. Market Position - Power Solutions derives over 90% of its revenue from data center projects, strategically positioning Dycom in the world's largest data center hub located in the Greater Washington D.C., Maryland, and Virginia area [7]. - The U.S. demand for data center capacity is projected to grow at a CAGR of 20% to 25% through 2030, with traditional drivers like cloud migration sustaining a 16% CAGR [7].

Revenue Growth - Contract revenues for Q3 2026 increased by 14.1% to $1.452 billion compared to $1.272 billion in Q3 2025[4] - Year-to-date contract revenues reached $4.088 billion, a 13.0% increase from $3.617 billion in the prior year period[7] - For fiscal 2026, total contract revenues are expected to range from $5.350 billion to $5.425 billion, indicating a growth of 13.8% to 15.4% over the prior year[11] - The company anticipates Q4 2026 contract revenues between $1.26 billion and $1.34 billion[12] - GAAP Contract Revenues for Q3 2025 reached $1,451,798, representing a 14.1% increase from $1,272,007 in Q3 2024[26] - Non-GAAP Organic Contract Revenues for Q3 2025 were $1,340,891, reflecting a growth of 7.2% compared to $1,251,014 in Q3 2024[26] - Non-GAAP Organic Contract Revenues for the nine months ended October 25, 2025, totaled $3,710,768, compared to $3,569,876 for the same period in 2024, showing a growth of 3.9%[26] Profitability Metrics - Non-GAAP Adjusted EBITDA rose to $219.4 million, representing 15.1% of contract revenues, up from $170.7 million or 13.4% in the prior year quarter[5] - GAAP net income increased to $106.4 million, or $3.63 per diluted share, compared to $69.8 million, or $2.37 per diluted share in Q3 2025, marking a 35.4% increase[6] - Net Income for Q3 2025 was $106,365, up from $69,789 in Q3 2024, marking a significant increase of 52.4%[27] - Non-GAAP Adjusted Net Income for Q3 2025 was $106,365, compared to $79,150 in Q3 2024, indicating a growth of 34.3%[28] - Non-GAAP Adjusted Diluted Earnings per Common Share for Q4 2026 is projected to be between $1.62 and $1.97[12] - GAAP diluted earnings per share for Q3 2025 was $3.63, an increase from $2.37 in Q3 2024[28] - Non-GAAP Adjusted Diluted Earnings per Common Share for Q3 2025 was $3.63, compared to $2.68 in Q3 2024, reflecting a growth of 35.5%[28] Financial Position - The company reported a record backlog of $8.2 billion as of October 25, 2025[10] - Total assets increased to $3.325 billion as of October 25, 2025, up from $2.945 billion at the beginning of the year[22] - Operating cash flows for the quarter were strong at $220.0 million[10] Non-GAAP Adjustments - Total adjustments for Non-GAAP measures included stock-based compensation expenses of $7,986 for Q3 2025, down from $14,024 in Q3 2024[32] - The company incurred approximately $4.2 million in acquisition integration costs during the quarter ended October 26, 2024[32]

Third Quarter Highlights(All metrics compared to the third quarter of fiscal 2025) Record Contract Revenues of $1.452 billion, up 14.1%Record GAAP Diluted EPS of $3.63, up 35.4% compared to Q3 2025 Non-GAAP Diluted EPSRecord Net Income of $106.4 million, up 34.4% compared to Q3 2025 Non-GAAP Net IncomeRecord Adjusted EBITDA of $219.4 million, up 28.5% and representing 15.1% of contract revenuesStrong Operating Cash Flows of $220.0 millionRecord Backlog of $8.2 billion as of October 25, 2025Increasing Midpoi ...

Core Insights - Dycom Industries, Inc. is set to release its quarterly earnings on November 19, 2025, with an estimated EPS of $3.15 and projected revenue of approximately $1.41 billion, continuing a trend of surpassing earnings estimates [1][6] Financial Performance - In the previous quarter, Dycom exceeded the Zacks Consensus Estimate by 16.4%, with a 35.4% increase in earnings year-over-year, despite a 14.5% rise in contract revenues that fell short of the consensus by 1.3% [2] - The company is expected to experience double-digit growth in both revenue and EPS for the third quarter, driven by strength in AI and fiber buildout, with margins anticipated to expand due to operating leverage [3] - Wall Street analysts forecast a 17.5% increase in EPS year-over-year, with revenues expected to reach $1.4 billion, reflecting a 10.1% rise from the previous year's quarter [4] Financial Ratios - Dycom Industries has a price-to-earnings (P/E) ratio of approximately 33.10, indicating investor willingness to pay for earnings, with a price-to-sales ratio of about 1.73 and an enterprise value to sales ratio around 1.95 [5] - The company demonstrates a strong financial position with a debt-to-equity ratio of approximately 0.84 and a current ratio of about 3.16, indicating capability to cover short-term liabilities [5][6]

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Core Insights - Dycom Industries, Inc. (DY) is set to report its third-quarter fiscal 2026 results on November 19, with previous earnings exceeding estimates by 16.4% and showing a year-over-year increase of 35.4% [1] - The Zacks Consensus Estimate for fiscal third-quarter earnings per share (EPS) is stable at $3.15, reflecting a 17.5% year-over-year growth, while contract revenues are expected to reach $1.40 billion, a 10.1% increase from $1.27 billion [2] Revenue Expectations - Dycom's revenue growth in the fiscal third quarter is anticipated to be driven by fiber-to-the-home initiatives, wireless activities, maintenance services, and infrastructure projects linked to hyperscalers [3] - The demand for data-intensive applications and AI workloads is projected to further enhance revenue, with an addressable market opportunity exceeding $20 billion over the next five years [4] - Contract revenues are expected to be between $1.38 billion and $1.43 billion, compared to $1.272 billion in the same quarter last year [4] Customer Segmentation - Revenue from Telecommunications is expected to rise by 9.3% to $1.09 billion, while Underground Facility Locating revenues are projected to increase by 18% to $95.9 million [5] - Conversely, revenues from Electric and Gas Utilities are anticipated to decline by 30.5% to $27 million [5] Earnings and Margins - Dycom's bottom line is expected to grow year over year due to contract revenue growth, with adjusted EBITDA projected between $198 million and $213 million, up from $170.7 million in the prior-year quarter [6] - The anticipated diluted EPS for the fiscal third quarter is in the range of $3.03-$3.36, compared to $2.37 in the previous year [6] - Adjusted EBITDA is expected to grow by 17.7% to $201 million, with an adjusted EBITDA margin expanding by 90 basis points to 14.3% [7] Market Dynamics - The strength in AI and fiber buildout is expected to drive double-digit revenue and EPS growth for Dycom in Q3, with margins likely expanding due to operating leverage [8] - Despite rising administrative and payroll costs, the increasing top line and favorable market trends are expected to offset these challenges [9] Backlog Insights - The total backlog for the fiscal third quarter is projected to be $8.94 billion, reflecting a growth of 13.8% from $7.86 billion reported in the prior-year quarter [10]

Core Viewpoint - Analysts forecast Dycom Industries (DY) will report quarterly earnings of $3.15 per share, reflecting a year-over-year increase of 17.5%, with revenues expected to reach $1.4 billion, a 10.1% increase compared to the previous year [1] Earnings Estimates - Changes in earnings estimates are crucial for predicting investor reactions to stock performance, with empirical research showing a strong correlation between earnings estimate revisions and short-term stock price performance [2] Revenue Projections - Analysts estimate that revenue from Lumen Technologies (CenturyLink) will be $156.53 million, indicating a year-over-year change of +6.9% [4] - Revenue from AT&T Inc is projected to reach $357.27 million, reflecting a significant change of +34.5% from the prior-year quarter [4] Backlog Assessment - The estimated backlog for Dycom Industries is $8.52 billion, an increase from $7.86 billion reported in the same quarter of the previous year [5] Stock Performance - Dycom Industries shares have shown a return of -4.3% over the past month, contrasting with the Zacks S&P 500 composite's +1.4% change, but with a Zacks Rank 2 (Buy), DY is expected to outperform the overall market in the near future [5]

Core Insights - Dycom Industries, Inc. has appointed Stephen O. LeClair to its Board of Directors effective November 7, 2025 [1] - LeClair is currently the Executive Chair and Executive Director of Core & Main Inc., bringing extensive experience in infrastructure and industrial distribution [3][5] - His leadership at Core & Main included overseeing significant growth and the successful IPO in 2021 after the company's separation from HD Supply [5] Leadership Impact - Richard K. Sykes, Dycom's Independent Chairman, expressed confidence that LeClair's strategic execution and value creation will benefit Dycom's growth and shareholder value [4] - Dan Peyovich, Dycom's President and CEO, highlighted LeClair's operational excellence and financial performance in complex markets as a strong complement to Dycom's objectives [4] Professional Background - LeClair has over a decade of senior executive experience at HD Supply, including roles as Chief Operating Officer and President of HD Supply Waterworks [6] - He also held senior positions at General Electric, contributing to his extensive background in distribution, manufacturing, and sales [6][7] - LeClair has been a board member of AAON, Inc. since 2017 and holds an MBA and a bachelor's degree in mechanical engineering [7] Company Overview - Dycom is a leading provider of specialty contracting services for telecommunications infrastructure and utility industries in the U.S., offering a range of services including program management, engineering, and construction [8]

Core Viewpoint - Bornite Capital Management LP has established a new position in Dycom, acquiring 150,000 shares valued at approximately $43.76 million, which now represents 4.1% of the fund's reportable U.S. equity assets [2][6]. Company Overview - Dycom is a leading provider of specialty contracting services to the telecommunications and utility sectors, with nearly $5.0 billion in trailing twelve-month revenue as of July 26, 2025 [5]. - The company specializes in network design, construction, and maintenance, supporting the expansion and modernization of critical infrastructure for large national clients [5][9]. Financial Performance - As of September 30, 2025, Dycom reported a revenue of $4.99 billion and a net income of $260.99 million [3]. - The company's stock price was $282.92 as of November 6, 2025, reflecting a one-year price change of 57.8%, outperforming the S&P 500 by 21.6 percentage points [3][10]. - Dycom's fiscal second quarter ended July 26, 2025, showed record contract revenue of $1.4 billion, up 14.5% year over year, leading to a record net income of $97.5 million, a strong 42.5% year-over-year increase [11]. Growth Prospects - Dycom expects its fiscal 2026 revenue to increase by 12.5% to 15.4% year over year, projecting a range between $5.3 billion to $5.4 billion [12]. - The company is positioned to benefit from over $42 billion in federal funding allocated for broadband expansion in the U.S., which provides a favorable environment for growth [11][12]. - The rise of artificial intelligence is anticipated to lead to upgrades in telecommunications equipment, potentially driving further growth for Dycom in the coming years [12].

Core Points - Dycom Industries, Inc. will host a conference call to discuss its fiscal 2026 third quarter results on November 19, 2025, at 9:00 a.m. ET [1] - A press release with the results will be issued earlier that morning [1] Participation Details - Interested parties can register for the question and answer session of the conference call at a provided link, receiving a dial-in number and unique PIN upon registration [2] - Participants are encouraged to join approximately ten minutes before the scheduled start time [2] Access Information - A live listen-only audio webcast of the call, along with a slide presentation, will be available at a specified link [3] - A replay of the webcast and related materials will be accessible on the Company's Investor Center website for approximately 120 days following the event [3] Company Overview - Dycom Industries, Inc. is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries in the United States [4] - Services offered include program management, planning, engineering and design, construction, maintenance, and fulfillment services for telecommunications providers [4] - The company also provides underground facility locating services for various utilities, including telecommunications, as well as construction and maintenance services for electric and gas utilities [4]