Dycom(DY) - 2026 Q4 - Annual Results

Revenue Growth - Contract revenues for Q4 2026 reached $1.458 billion, a 34.4% increase year-over-year, with organic growth of 16.6%[4] - For the fiscal year 2026, total contract revenues were $5.546 billion, up 17.9% compared to fiscal 2025, with organic growth of 6.5%[6] - The total backlog as of Q4 2026 was $9.542 billion, a 23.0% increase compared to the previous year[4] - Contract revenues for the quarter ended January 31, 2026, were $1,457,562, a 34.4% increase from $1,084,526 for the same quarter in 2025[30] - The Communications segment generated contract revenues of $1,361,722 for the quarter ended January 31, 2026, compared to $1,084,526 in the same quarter of the previous year, a growth of 25.5%[32] - Non-GAAP Organic Contract Revenues for the quarter ended January 31, 2026, were $1,264,456, reflecting a growth of 16.6% from $1,084,526 in the prior year[37] Net Income and Earnings - Net income for Q4 2026 was $16.3 million, or $0.55 per diluted share, a decrease of 50.1% from the previous year[9] - Adjusted net income for Q4 2026 was $60.5 million, or $2.03 per diluted share, reflecting a 42.0% increase year-over-year[9] - Net income for the fiscal year ended January 31, 2026, was $281,189, representing a 20.4% increase compared to $233,413 for the fiscal year ended January 25, 2025[30] - Basic earnings per common share for the quarter ended January 31, 2026, were $0.55, down from $1.12 in the same quarter of the previous year[30] - Non-GAAP Adjusted Net Income for the quarter ended January 31, 2026, was $60,488, compared to $42,088 for the quarter ended January 25, 2025[38] - Non-GAAP Adjusted Diluted Earnings per Common Share for the fiscal year ended January 31, 2026, was $11.97, up from $9.23 in the previous fiscal year[38] EBITDA and Margins - Adjusted EBITDA for Q4 2026 was $162.4 million, representing 11.1% of contract revenues, a 39.6% increase from the prior year[7] - The company anticipates continued adjusted EBITDA margin expansion, particularly in the Building Systems segment, which is expected to deliver a mid-teens adjusted EBITDA margin[17] - Non-GAAP Adjusted EBITDA for the quarter ended January 31, 2026, was $162,422, which is 11.1% of contract revenues, compared to $116,376 and 10.7% in the prior year[40] - Non-GAAP Adjusted EBITDA for the Communications segment was $151,313 for the quarter ended January 31, 2026, compared to $116,376 in the previous year[42] Cash Flow and Assets - The company’s cash and equivalents increased significantly to $709,165 as of January 31, 2026, compared to $92,670 a year earlier, reflecting a growth of 664.5%[27] - Net cash provided by operating activities for the fiscal year ended January 31, 2026, was $642,503, up from $349,096 for the fiscal year ended January 25, 2025[45] - Free Cash Flow for the quarter ended January 31, 2026, was $367,122, compared to $268,450 for the quarter ended January 25, 2025, representing a 37% increase[45] Debt and Liabilities - Long-term debt rose to $2,810,497 as of January 31, 2026, compared to $933,212 a year earlier, an increase of 201.5%[27] - The Company recognized a loss on debt extinguishment of approximately $7.3 million for the fiscal year ended January 31, 2026, compared to $1.0 million for the fiscal year ended January 25, 2025[46] Strategic Initiatives - The acquisition of Power Solutions, completed on December 23, 2025, is expected to enhance the company's position in the data center market[11] - The company anticipates continued growth in contract revenues and EBITDA, driven by strategic investments and market expansion initiatives[24] - The Company incurred costs of approximately $18.8 million related to the acquisition of Power Solutions in the quarter ended January 31, 2026[46] Other Financial Metrics - Capital expenditures for the quarter ended January 31, 2026, were $(54,388), compared to $(68,492) for the quarter ended January 25, 2025, indicating a reduction of 20%[45] - Stock-based compensation expense was $9.3 million for the quarter ended January 31, 2026, compared to $9.0 million for the quarter ended January 25, 2025[46] - Acquisition and integration costs for the quarter ended January 31, 2026, amounted to $18,758, compared to $4,163 in the previous fiscal year[38] - The Company’s provision for income taxes for the fiscal year ended January 31, 2026, included benefits from share-based awards of approximately $3.4 million[46]