Dycom(DY) - 2026 Q4 - Annual Report

Backlog and Revenue - The total backlog as of January 31, 2026, is $9,542.0 million, an increase from $6,358.0 million on January 25, 2025[42] - The Communications segment backlog is $8,333.5 million, up from $5,249.6 million year-over-year[42] - The Building Systems segment backlog is $1,208.5 million, compared to $1,108.4 million in the previous year[42] - Approximately 25.4% of total contract revenues in fiscal 2026 were derived from AT&T Inc., 14.0% from Verizon Communications, Inc., and 10.8% from Lumen Technologies Inc.[36] Workforce and Operations - The company has a workforce of approximately 19,556 employees as of January 31, 2026[47] - The fiscal year consists of either 52 or 53 weeks, with fiscal 2026 having 53 weeks of operations[34] - The company’s services are significantly impacted by seasonal weather conditions, particularly in the fiscal quarters ending in January and April[41] - The company’s operating structure promotes accountability by decentralizing transaction recording while centralizing certain financial activities[31] Financial Strategy and Debt - The company pursues selective acquisitions to enhance revenue and diversify geographic and service offerings[33] - As of January 31, 2026, 18% of the company's debt incurred interest at a fixed rate, while 82% incurred interest at a variable rate[264] - The company issued $500 million in 4.50% senior notes due 2029, with a fair value of $492.2 million as of January 31, 2026[265] - A hypothetical 50 basis point change in market interest rates would result in an increase or decrease in the fair value of the 2029 Notes of approximately $7.2 million[265] - The company had variable rate debt outstanding of $1,540 million under its Term Loan A Facility and $800 million under its Term Loan B Facility as of January 31, 2026[266] - For every 50 basis point change in the interest rate, interest expense associated with the variable rate borrowings would change by approximately $11.7 million annually[266] Market Demand - The company aims to capitalize on the growing demand for network telecommunications bandwidth driven by data-intensive applications and mobile usage[29]