Core Viewpoint - Dycom Industries has experienced a decline of approximately 4.9% in share price over the past month, underperforming the S&P 500, raising questions about the potential for a breakout or continued negative trend leading up to the next earnings release [1] Estimates Movement - Estimates for Dycom Industries have trended downward over the past month, indicating a negative shift in expectations [2] VGM Scores - Dycom Industries holds a strong Growth Score of A, but has a lower Momentum Score of D. The stock has a value grade of B, placing it in the second quintile for value investment strategy. The overall aggregate VGM Score is A, which is significant for investors not focused on a single strategy [3] Outlook - The downward trend in estimates suggests a negative outlook for Dycom Industries, although it maintains a Zacks Rank of 2 (Buy), indicating expectations for above-average returns in the coming months [4]

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Financial Performance - Revenues for fiscal year ended January 25, 2025, were $4,702,014, an increase of 12.5% from $4,175,574 in fiscal 2024[141]. - Net income for fiscal year 2025 was $233,413, representing a 6.3% increase from $218,923 in fiscal 2024[141]. - Basic earnings per share for fiscal 2025 were $8.02, up from $7.46 in fiscal 2024, reflecting a 7.5% increase[141]. - Total assets at the end of fiscal 2025 were $2,945,367, compared to $2,516,885 at the end of fiscal 2024, marking a 17.0% increase[141]. - Long-term liabilities increased to $1,119,117 in fiscal 2025 from $955,925 in fiscal 2024, a rise of 17.1%[141]. - Contract revenues for fiscal 2025 were $4.702 billion, an increase of 12.5% from $4.176 billion in fiscal 2024[212]. - Contract revenues from acquired businesses were $379.7 million in fiscal 2025, compared to $102.7 million in fiscal 2024[212]. - Costs of earned revenues increased to $3.770 billion, or 80.2% of contract revenues, down from 80.5% in fiscal 2024[215]. - General and administrative expenses rose to $393.0 million, or 8.4% of contract revenues, compared to 7.8% in fiscal 2024[217]. - Depreciation expense was $167.2 million, or 3.6% of contract revenues, up from 3.4% in fiscal 2024[218]. - Interest expense, net increased to $61.0 million in fiscal 2025 from $52.6 million in fiscal 2024[219]. - Net income for fiscal 2025 was $233.4 million, representing 5.0% of contract revenues, compared to 5.2% in fiscal 2024[212]. - The effective income tax rate for fiscal 2025 was 24.2%, down from 25.0% in fiscal 2024[222]. Customer Base and Revenue Sources - The top five customers accounted for approximately 55.4% of total contract revenues in fiscal 2025, down from 66.7% in fiscal 2023, indicating a diversification in customer base[34]. - Approximately 20.1% of total contract revenues in fiscal 2025 came from AT&T Inc., followed by Lumen Technologies Inc. at 12.1%, and Comcast Corporation at 8.5%[34]. - The company derives approximately 55.4% of its total contract revenues from its top five customers in fiscal 2025, down from 57.7% in fiscal 2024 and 66.7% in fiscal 2023[67]. - Multi-year master service agreements represented 79.3% of contract revenues in fiscal 2025, compared to 77.7% in fiscal 2024 and 79.5% in fiscal 2023[153]. Operational Strategy and Workforce - The company employs approximately 15,623 individuals as of January 25, 2025, emphasizing the importance of human capital in its operations[44]. - Dycom's strategy includes pursuing selective acquisitions that provide incremental revenue and geographic diversification, targeting companies with defensible market positions[32]. - The company is positioned to benefit from increased demand for telecommunications bandwidth, driven by advancements in AI data centers and consumer applications[28]. - The company acquired telecommunications construction contractors for a total of $191.2 million in fiscal 2025, expanding its geographic presence and customer base[155][156][157]. - The company is highly dependent on attracting and retaining skilled labor, and any inability to do so could adversely affect productivity and competitive position[82]. Financial Liabilities and Risks - The company has significant accounts receivable and contract assets, which could become uncollectible due to customer financial difficulties[76]. - The company may face significant liabilities if it fails to comply with environmental laws or workplace safety regulations[53][54]. - The company faces significant liabilities due to potential non-compliance with various laws and regulations, which could adversely affect its financial position[98][99][100][101]. - The company retains the risk of loss for certain liabilities, primarily being self-insured for most claims due to deductibles or retention levels[102]. - The company may incur significant liabilities from warranty claims, which could adversely impact its financial results[105]. - The company participates in multiemployer pension plans, which could lead to additional cash contributions if plans become underfunded[106]. - The company retains risk of loss up to $1.0 million for workers' compensation on a per occurrence basis[196]. - The company retained risk of loss up to $1.0 million for the first $5.0 million of automobile and general liability insurance coverage during fiscal 2025[197]. - The company retains risk of loss up to $750,000 per participant for employee group health claims in calendar year 2025[199]. Market Conditions and Economic Factors - The cyclical nature of the industry affects demand, influenced by customer capital expenditure budgets and seasonal spending patterns[38]. - Economic downturns and capital market fluctuations may adversely affect customer spending on the company's services, potentially impacting revenues and liquidity[65]. - Regulatory changes and government funding requirements may constrain customer spending on services, potentially impacting revenues and liquidity[78]. - Uncertainty regarding future government budget decisions could lead to reduced funding for infrastructure programs, affecting the company's reliance on such funding[79]. - Rapid technological changes in the telecommunications industry may influence customer spending on services, potentially reducing revenues[80]. - The demand for broadband services is significantly increasing due to high-speed connection requirements and mobile data usage growth[144]. - Federal and state support for rural broadband deployment programs is at unprecedented levels, providing significant capital for fiber deployment[147]. Operational Challenges - The company’s operations are affected by seasonality and adverse weather conditions, particularly during fiscal quarters ending in January and April[71]. - Dycom's services are significantly impacted by adverse weather conditions, particularly during the fiscal quarters ending in January and April[39]. - Adverse weather conditions and seasonality significantly impact contract revenues, particularly in the fiscal quarters ending in January and April[167]. - The company may experience variations in profitability due to fluctuations in contract revenues, job-specific costs, and other operational factors[168]. - The company actively monitors claims and participates with insurers in determining claims estimates, which can affect operating margins[51]. - The company centralizes certain financial activities to leverage scale and reduce costs while decentralizing transaction recording for operational accountability[31]. Stock and Shareholder Information - The market price of the company's common stock has shown significant volatility, ranging from $111.70 to $202.82 per share during fiscal 2025[91]. - The company repurchased 200,000 shares of common stock at an average price of $179.27, totaling $35.9 million during the fourth quarter of fiscal 2025[136]. - The Board of Directors authorized a new $150 million share repurchase program effective through August 2026, replacing the remaining $55 million from the previous program[137]. - The company has not paid cash dividends since 1982 and intends to retain earnings for business use and capital allocation strategies[134]. Compliance and Regulatory Environment - The company is subject to various federal, state, and local government regulations, which could impact its operations and financial performance[52]. - The company is subject to anti-takeover provisions that could make it more difficult to effect an acquisition or change in control[107].

Dycom Industries Inc. (DY) reported strong results for the fourth quarter of fiscal 2025 (ended Jan. 25). Contract revenues and earnings surpassed their respective Zacks Consensus Estimate and increased on a year-over-year basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Shares of the company plunged 5.8% during the trading session but gained 1.9% in the after-hours trading session yesterday.Dycom is positioned for sustained growth, driven by the continued expansion of fiber-to-t ...

Financial Data and Key Metrics Changes - In Q4 2025, the company generated revenues of $1.085 billion and adjusted EBITDA of $116.4 million, representing 10.7% of revenue [9][30] - For the full fiscal year 2025, total revenues reached $4.702 billion, with an adjusted EBITDA margin of 12.3%, marking a 50% revenue increase over the past three years and a 450 basis point EBITDA margin expansion [10][31] - Adjusted net income for Q4 was $34.5 million, with adjusted diluted EPS increasing 48.1% to $1.17 per share [32] Business Line Data and Key Metrics Changes - The top five customers accounted for 56.7% of total revenue in Q4, growing 14.2%, while all other customers grew 13.5% [32] - AT&T was the largest customer, contributing $251.4 million, which grew 54.5% in total and 22.7% on an organic basis [33] Market Data and Key Metrics Changes - Backlog at the end of Q4 was $7.76 billion, with $4.642 billion expected to be completed in the next twelve months [34] - Operating cash flows were strong at $328.2 million in Q4, with a total of $349.1 million for the full year [35] Company Strategy and Development Direction - The company remains focused on organic growth, M&A, and share repurchases, having completed three acquisitions in fiscal 2025 and repurchased 410,000 shares [11][36] - The strategy emphasizes differentiation through a comprehensive footprint and high service levels, with a commitment to capitalizing on fiber-to-the-home and 5G opportunities [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to benefit from significant industry tailwinds, particularly in fiber-to-the-home and hyperscaler long-haul projects [12][19] - For fiscal 2026, the company expects total revenue to increase by 10% to 13% compared to fiscal 2025, excluding storm restoration revenues [23][39] Other Important Information - The company announced a new $150 million stock repurchase program following the expiration of the previous authorization [5] - Capital expenditures for fiscal 2026 are expected to range from $220 million to $230 million [39] Q&A Session Summary Question: Clarification on 2026 guidance - Management confirmed that the 2026 revenue outlook does not include $114 million from storm work in fiscal 2025 [42][43] Question: Expectations for margins - Management indicated that while they are pleased with past margin improvements, they do not provide specific full-year margin guidance [50][52] Question: Organic revenue performance - Management noted that storm work contributed positively, but there were also unexpected weather challenges impacting overall performance [60][61] Question: AI data center opportunities - Management highlighted ongoing discussions with hyperscalers and the potential for significant long-term opportunities in AI infrastructure [82][85] Question: Capital allocation strategy - Management emphasized a balanced approach between growth investments and share repurchases, with a focus on maintaining low net leverage [90][91] Question: Headcount changes - Management clarified that the reduction in headcount was due to a mix of in-house labor and subcontractors, with no cause for concern [100][101] Question: Wireless revenues - Wireless revenues for the quarter were reported at a little over 7% [122] Question: BEAD revenues - Management confirmed that no BEAD revenues are included in the fiscal 2026 outlook, but they are actively pursuing opportunities [124][126]

Dycom Industries (DY) came out with quarterly earnings of $1.17 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this provider of specialty contracting services would post earnings of $2.35 per share when it actually produced earnings of $2.68, delivering a surprise of 14.04%.Over th ...

Core Viewpoint - Dycom Industries, Inc. has authorized a new $150 million share repurchase program to be executed over the next 18 months, replacing the previous program with approximately $55 million remaining [1] Company Overview - Dycom Industries, Inc. is a leading provider of specialty contracting services for telecommunications infrastructure and utility industries in the United States, offering services such as program management, planning, engineering, construction, maintenance, and fulfillment [2] Share Repurchase Program Details - The new share repurchase program allows for open market purchases or privately-negotiated transactions, including a Rule 10b5-1 plan, with the timing and amount dependent on market conditions [1] - The company currently has 28,979,138 shares of common stock outstanding, excluding the dilutive effect of stock options and unvested restricted stock [1]

Revenue Performance - Contract revenues increased 13.9% to $1.085 billion for the fourth quarter ended January 25, 2025, compared to $952.5 million in the prior year quarter[3]. - For the fiscal year ended January 25, 2025, contract revenues increased 12.6% to $4.702 billion, compared to $4.176 billion in the prior year[7]. - Contract revenues for the quarter ended January 25, 2025, were $1,084,526, representing a 13.9% increase compared to $952,455 for the same quarter last year[24]. - Non-GAAP Organic Contract Revenues for the quarter were $1,023,031, reflecting a growth of 7.4% from $952,455 in the prior year[24]. - The company recognized $67.9 million of storm restoration revenues in the fourth quarter of fiscal 2025, compared to none in the prior year quarter[3]. - For fiscal 2026, the company expects total contract revenues to increase by 10% to 13% compared to fiscal 2025[11]. Profitability Metrics - Non-GAAP Adjusted EBITDA rose to $116.4 million, or 10.7% of contract revenues, up from $93.7 million, or 9.8% of contract revenues, in the prior year quarter[4]. - Non-GAAP Adjusted EBITDA for the quarter was $116,376, which is 10.7% of contract revenues, compared to 9.8% in the previous year[25]. - Net income for the fourth quarter was $32.7 million, or $1.11 per diluted share, compared to $23.4 million, or $0.79 per diluted share, in the prior year quarter[4]. - Net income for the quarter was $32,670, up from $23,418 in the same quarter last year, marking a significant increase[25]. - Non-GAAP Adjusted Net Income for the fiscal year was $248.7 million, or $8.44 per diluted share, compared to $201.4 million, or $6.78 per diluted share, in the prior year[9]. - Total adjustments for Non-GAAP Adjusted Net Income amounted to $1,861 for the quarter, leading to a Non-GAAP Adjusted Net Income of $34,531[26]. Cash Flow and Backlog - Operating cash flow for the fiscal year was $349.1 million, up 34.8%[6]. - Total backlog reached $7.760 billion as of January 25, 2025[6]. Shareholder Actions - The company repurchased 200,000 shares for $35.9 million at an average price of $179.27 per share during the fourth quarter[5]. - The company reported a total of 29,458,569 shares used in computing Non-GAAP Adjusted Diluted Earnings per Common Share for the quarter[26]. Expenses and Costs - The company incurred acquisition integration costs of approximately $4.2 million during the fiscal year[29]. - Stock-based compensation expense for Q1 2025 was $9.0 million, compared to $6.2 million for Q1 2024, and for the fiscal years, it was $40.3 million in 2025 versus $25.5 million in 2024[1]. - The company incurred costs of approximately $4.2 million related to the integration of a business acquired during the quarter ended October 26, 2024[1]. - Stock-based compensation modification expense related to the CEO succession plan was $2.1 million for Q1 2025 and $11.4 million for the fiscal year ended January 25, 2025[1]. Tax and Interest - Provision for income taxes included benefits from share-based awards of approximately $9.8 million for the fiscal year ended January 25, 2025, compared to $2.9 million for the fiscal year ended January 27, 2024[1]. - Interest expense, net for the quarter was $16,052, compared to $15,002 in the same quarter last year[25]. Future Outlook - The company expects continued growth in contract revenues and operational efficiency in the upcoming fiscal periods[28]. - The company recognized a loss on debt extinguishment of approximately $1.0 million related to the amendment of its credit agreement during the fiscal year ended January 25, 2025[1].

Core Insights - Dycom Industries, Inc. reported strong financial results for the fourth quarter and fiscal year 2025, highlighting successful execution of its strategy and ability to meet industry demand [2][3][6] Fourth Quarter Results - Contract revenues increased by 13.9% to $1.085 billion compared to $952.5 million in the same quarter last year [3] - Organic contract revenues rose by 7.4%, excluding revenues from acquired businesses [3] - The company recognized $67.9 million in storm restoration revenues during the quarter, compared to none in the prior year [3] Profitability Metrics - Non-GAAP Adjusted EBITDA for the fourth quarter was $116.4 million, representing 10.7% of contract revenues, up from $93.7 million or 9.8% in the prior year [4] - Net income for the quarter was $32.7 million, or $1.11 per diluted share, compared to $23.4 million, or $0.79 per diluted share in the previous year [4] Annual Results - For the fiscal year ended January 25, 2025, contract revenues increased by 12.6% to $4.702 billion from $4.176 billion in the prior year [6] - Adjusted EBITDA for the fiscal year was $576.3 million, or 12.3% of contract revenues, compared to $481.2 million or 11.6% in the previous year [8] - Net income for the fiscal year was $233.4 million, or $7.92 per diluted share, up from $218.9 million, or $7.37 per diluted share in the prior year [9] Share Repurchase - During the fourth quarter, the company repurchased 200,000 shares for $35.9 million at an average price of $179.27 per share [5] - For the fiscal year, a total of 410,000 shares were repurchased for $65.6 million at an average price of $160.10 per share [10] Outlook - For fiscal 2026, the company expects total contract revenues to increase by 10% to 13% compared to fiscal 2025 [11] - The first quarter of fiscal 2026 is projected to have contract revenues between $1.16 billion and $1.20 billion [12]

Core Insights - Dycom Industries, Inc. has appointed Jill L. Ramshaw as Vice President and Chief Human Resources Officer, bringing over 20 years of strategic human resources experience [1][2] - Ramshaw's previous roles include Senior Vice President of Human Resources at Marathon Oil Corporation and over 8 years in human resources at Subsea7 [2] - The company aims to enhance its talent acquisition, development, and performance management programs under Ramshaw's leadership to meet growing industry demands [2] Company Overview - Dycom Industries, Inc. is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries in the United States [3] - Services offered by Dycom include program management, planning, engineering and design, construction, maintenance, and fulfillment services for telecommunications providers [3] - The company also provides underground facility locating services for various utilities, including electric and gas utilities [3]