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]

Core Points - Dycom Industries, Inc. will host a conference call on February 26, 2025, to discuss its fiscal 2025 fourth quarter and annual results [1] - A press release with the results will be issued earlier on the same day [1] Participation Details - Interested parties can register for the question and answer session at a provided link to receive a dial-in number and unique PIN [2] - Participants are encouraged to join the call 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, electric, and gas utilities [4]

Industry Overview - The Zacks Building Products - Heavy Construction industry is facing challenges such as high interest rates, project delays, labor market competition, and rising costs, yet maintains a strong outlook [1] - The industry includes mechanical and electrical construction, industrial and energy infrastructure, and building service providers, focusing on heavy civil construction for transportation projects [3] Growth Drivers - A robust infrastructure push from the U.S. government is driving significant growth, with investments in roads, bridges, broadband, and other critical upgrades [2] - The ramp-up of 5G projects is benefiting industry players, with increased demand for wireline and wireless networks [5] - The U.S. administration's infrastructure plan aims to create sustainable infrastructure, which is expected to boost the construction industry over the next five years [4] Market Performance - The Zacks Building Products - Heavy Construction industry has outperformed the broader Zacks Construction sector and the S&P 500, gaining 81.8% compared to the sector's 10.9% and the S&P 500's 22.4% over the past year [12] - The industry currently holds a Zacks Industry Rank of 87, placing it in the top 35% of over 250 Zacks industries, indicating solid near-term prospects [8][9] Earnings Outlook - Aggregate earnings estimates for the industry have increased from $7.09 to $7.18 per share for 2025, reflecting growing analyst confidence in earnings growth potential [10] - The industry's forward 12-month price-to-earnings ratio is 19.43, compared to the S&P 500's 22.25 and the sector's 17.48 [14] Company Highlights - **Primoris Services**: A specialty contractor with a backlog of $11.3 billion, focusing on solar and natural gas power generation, expected to grow earnings by 19.5% in 2025 [17][18] - **Orion Group**: Specializes in marine and concrete services, with earnings expected to grow 366.7% in 2025, supported by strong contractor relationships [21][22] - **MasTec**: A leading infrastructure construction company with a backlog of $13.9 billion, expected to grow earnings by 47.4% in 2025 [24][25] - **EMCOR Group**: Provides electrical and mechanical construction services, benefiting from resilient demand and disciplined cost control, with earnings expected to grow by 7.2% in 2025 [27][28] - **Dycom Industries**: A telecom contracting firm leveraging demand for high-speed connectivity, with earnings expected to grow by 14.3% in fiscal 2026 [30][32]

Core Insights - Dycom Industries is well-positioned to continue its earnings-beat streak, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 13.44% [1][3] Earnings Performance - For the most recent quarter, Dycom Industries reported earnings of $2.68 per share, surpassing the expected $2.35 per share, resulting in a surprise of 14.04% [2] - In the previous quarter, the company reported $2.46 per share against an expectation of $2.18 per share, achieving a surprise of 12.84% [2] Earnings Estimates - There has been a favorable change in earnings estimates for Dycom Industries, with a positive Earnings ESP of +3.91%, indicating analysts' bullish sentiment regarding the company's earnings prospects [3][6] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have a nearly 70% chance of producing a positive surprise [4] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [5]

Group 1 - The analyst has over 15 years of investment experience, focusing on mid-sized hedge funds with assets between $100 million and $500 million [1] - The investment strategy includes medium-term investing in ideas with catalysts for value unlocking or short selling in case of downside catalysts [1] - The analyst has a generalist approach but has significant experience in the industrial, consumer, and technology sectors, where higher conviction investments are typically made [1]

Core Viewpoint - Dycom Industries reported strong third-quarter fiscal 2025 results, with contract revenues and earnings exceeding estimates and showing year-over-year growth [7][8]. Financial Performance - As of October 26, 2024, Dycom's liquidity stood at $462.8 million, including cash and cash equivalents of $15.3 million, an increase from $101.1 million as of January 27, 2024 [1]. - Contract revenues reached $1.27 billion, surpassing the consensus estimate of $1.22 billion by 4.2% and growing 12% year-over-year [8]. - Adjusted earnings per share (EPS) were reported at $2.68, beating the Zacks Consensus Estimate of $2.35 by 14% and increasing 20.2% from $2.23 year-over-year [10]. - Adjusted EBITDA increased 19.3% to $170.7 million, with an adjusted EBITDA margin of 13.4%, expanding 52 basis points from the previous year [13]. - Gross margin improved by 45 basis points to 20.8% compared to 20.4% a year ago [15]. Customer Contributions - The top five customers contributed 55.7% to total contract revenues, up from 54.4% in the prior year, with a 16.7% organic growth [11]. - AT&T, Dycom's largest customer, contributed 20.9% to total revenues, growing organically by 58.4% [12]. Backlog and Future Outlook - Dycom's backlog totaled $7.856 billion at the end of the fiscal third quarter, up from $6.917 billion at the end of fiscal 2024, with $4.467 billion projected to be completed in the next 12 months [16]. - For the fiscal fourth quarter ending January 25, 2025, Dycom expects contract revenues to grow by mid to high single digits year-over-year, including $35 million from acquired contract revenues [17]. - The adjusted EBITDA margin is expected to increase by 25 basis points from the year-ago level of 9.8% [20].

Core Viewpoint - Dycom Industries, Inc. has reported mixed market reactions following its tepid results for the third quarter of fiscal 2025, with its stock growing only 1.3% over the past three months compared to a 25.5% growth in the Zacks Building Products - Heavy Construction industry [1]. Financial Performance - The adjusted EBITDA margin for Dycom expanded by 52 basis points year-over-year, primarily due to integration costs from the acquisition of Black & Veatch's wireless telecommunications infrastructure business [3]. - Earnings per share (EPS) estimates for the fourth quarter of fiscal 2025 have decreased from $1.00 to $0.97 over the past week, while fiscal 2026 EPS expectations have reduced by 3 cents [4]. Market Position and Growth Drivers - The telecommunications industry is experiencing rapid transformation, driven by increased demand for broadband expansion and 5G network buildouts, positioning Dycom favorably within this ecosystem [6]. - Dycom's acquisition of Black & Veatch's public carrier wireless telecommunications infrastructure business for $150.7 million is expected to enhance its capabilities in wireless construction services, contributing $250-$275 million in revenues by fiscal 2026 [7]. - The company's backlog at the end of the fiscal third quarter totaled $7.856 billion, up from $6.917 billion at the end of fiscal 2024, with $4.467 billion projected to be completed in the next 12 months [9]. Challenges and Outlook - Despite operational strengths, Dycom's stock has underperformed due to broader market conditions and sector-specific challenges, including expected pre-tax integration costs of $4.2 million in the fiscal fourth quarter [10]. - Organic revenue growth for the fiscal fourth quarter is projected to increase in the low to mid-single digits, influenced by seasonal factors and stronger customer performance in the first half of the year [11]. - Rising labor costs and supply chain constraints are pressuring margins, with the company's fiscal first and fourth quarters typically affected by seasonal weather and fewer available workdays [12]. Strategic Positioning - Dycom is well-positioned for long-term growth, supported by robust demand for its services and significant investments in digital infrastructure from governments and corporations, particularly following the Infrastructure Investment and Jobs Act [13].

PALM BEACH GARDENS, Fla., Nov. 21, 2024 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) announced today that Dan Peyovich, President and incoming CEO, and Drew DeFerrari, Senior Vice President and Chief Financial Officer, will participate in the following upcoming institutional investor conferences: Tuesday, December 3, 2024 –Wells Fargo 8th Annual TMT Summit, Rancho Palos Verdes, CAMr. Peyovich will present in a fireside chat format at 12:30 p.m. ET / 9:30 a.m. PT. Additionally, senior management wil ...