Clearfield (NasdaqGM:CLFD) Q1 2026 Earnings call February 04, 2026 05:00 PM ET Company ParticipantsCheri Beranek - President and CEODan Herzog - CFOGregory McNiff - Managing Director of Investor RelationsConference Call ParticipantsMatt Cavanagh - Managing Director and Senior Equity Research AnalystTim Savageaux - Managing Director and Senior Research AnalystOperatorGood afternoon, everyone, and welcome to the Clearfield Fiscal First Quarter 2026 conference call. All participants will be in a listen-only mo ...

Clearfield (NasdaqGM:CLFD) Q1 2026 Earnings call February 04, 2026 05:00 PM ET Company ParticipantsCheri Beranek - President and CEODan Herzog - CFOGregory McNiff - Managing Director of Investor RelationsConference Call ParticipantsMatt Cavanagh - Equity Research AnalystTim Savageaux - Managing Director and Senior Research AnalystOperatorGood afternoon, everyone, and welcome to the Clearfield Fiscal First Quarter 2026 Conference Call. All participants will be in a listen-only mode. A brief question and answ ...

Clearfield (NasdaqGM:CLFD) Q1 2026 Earnings call February 04, 2026 05:00 PM ET Speaker4Good afternoon, everyone, and welcome to the Clearfield Fiscal First Quarter 2026 conference call. All participants will be in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please also note, today's event is being recorded. At this time, I'd like to turn the fl ...

Core Insights - Dycom Industries, Inc. (DY) has experienced a 39.6% increase in stock price over the past three months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Construction sector, and the S&P 500 Index [1] Demand Drivers - The company is benefiting from strong demand for fiber and digital infrastructure, driven by increased data center projects and the Broadband Equity, Access and Deployment (BEAD) program [2][4] - Dycom is positioned to capitalize on the early stages of a generational deployment of digital infrastructure, with significant growth expected in the construction of new outside plant data center networks starting in 2026 [5] Financial Performance - For the first nine months of fiscal 2026, Dycom's contract revenues grew 13% year-over-year to $4.09 billion, supported by robust demand for telecommunications and digital infrastructure [5] - The total backlog as of October 2025 increased by 4.7% year-over-year to $8.22 billion, with the next 12-month backlog rising 11.4% [8] BEAD Program Impact - The BEAD program is expected to provide a multiyear catalyst with $29.5 billion in anticipated state and territory spending, of which approximately $26 billion is directed toward fiber or HFC infrastructure [9] - Dycom has secured over $500 million in verbal BEAD-related awards, indicating potential for substantial revenue growth as these awards convert to contracts [10] Strategic Acquisitions - Dycom's growth strategy includes targeted acquisitions, such as the acquisition of Power Solutions, which enhances its capabilities in electrical infrastructure solutions and strengthens ties with hyperscalers [11] - The acquisition of Black & Veatch's public-carrier wireless infrastructure business has expanded Dycom's wireless construction capabilities and is expected to contribute significantly to revenues [12] Future Outlook - Dycom anticipates contract revenues for the fiscal fourth quarter to be between $1.26 billion and $1.34 billion, reflecting growth from $1.085 billion in the prior year [13] - For fiscal 2026, total contract revenues are expected to range from $5.350 billion to $5.425 billion, representing a year-over-year increase of 13.8% to 15.4% [14] Earnings Estimates - Earnings estimates for fiscal 2026 and fiscal 2027 have trended upward, indicating year-over-year growth of 25.2% and 42.3%, respectively [15] - Dycom's trailing 12-month return on equity (ROE) stands at 22.2%, surpassing the industry average, highlighting its efficiency in generating shareholder returns [18] Valuation and Market Position - Dycom stock is currently trading at a premium with a forward 12-month price-to-earnings (P/E) ratio of 24.46, reflecting strong market fundamentals [19] - Analysts have a "Strong Buy" recommendation for Dycom, indicating positive sentiment towards the stock [25]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $3.7 million, representing a 100% year-over-year growth compared to $1.8 million in Q4 2023 [10][36] - Full year 2024 total net revenue was $14.6 million, up from $13.7 million in 2023 [36] - GAAP gross margin increased to 56.3% in Q4 2024 from 47% in the prior quarter and negative 147.3% in Q4 2023 [38] - Non-GAAP gross margin for Q4 2024 was 71.6%, compared to 61.7% in the prior quarter and negative 116.6% in Q4 2023 [38] - GAAP net loss for Q4 2024 was $1.6 million, improving from a net loss of $8.9 million in the same quarter a year ago [40] Business Line Data and Key Metrics Changes - Product revenue from memory integrated circuits and millimeter wave products in Q4 was $3.7 million, compared to $1.5 million in Q4 2023 [36] - Full year product revenue was $14.2 million, up from $12.9 million in the prior year [37] - Operating expenses decreased by 20% year-over-year in Q4 2024, despite revenue doubling [11] Market Data and Key Metrics Changes - The demand for fixed wireless access (FWA) is projected to increase significantly, with global FWA connections expected to reach 280 million by 2028 [17][19] - North American FWA has become the majority of all broadband net additions, with major carriers adding approximately 10.4 million FWA connections since 2021 [18] Company Strategy and Development Direction - The company is focusing on diversifying its customer base for mmWave solutions, expanding into new geographies and applications [13][15] - The DUNE mmWave platform is gaining traction in dense urban environments, addressing the challenges of high-speed connectivity [22] - The company is optimistic about the impact of the BEAD program, which aims to improve access to high-speed internet through various technologies, including mmWave [25][27] Management's Comments on Operating Environment and Future Outlook - Management noted a positive shift in customer demand and purchase orders, indicating the end of the inventory correction impacting fixed wireless access customers [20] - The company expects mmWave revenue for Q1 2025 to exceed the total revenue for the full year 2024, driven by increasing order backlog [35] - Management expressed optimism about the military applications of mmWave technology, with initial production orders expected to commence in Q2 2025 [31][80] Other Important Information - The company had $3.3 million in cash and cash equivalents as of December 31, 2024, up from $1.3 million at the end of Q3 2024 [42] - Adjusted EBITDA for Q4 2024 was negative $0.4 million, an improvement from negative $5.9 million in Q4 2023 [41] Q&A Session Summary Question: Can you provide details on the $3.6 million order and its fulfillment timeline? - Management indicated that the order fulfillment will be reasonably linear, with a slight weighting towards the second half of the year [50] Question: How are other customers trending regarding inventory? - Management noted a significant increase in the customer base, reducing dependency on any single customer, and expressed optimism for 2025 [53] Question: Are there developments in military applications? - Management confirmed active engagements in various military applications, with some expected to convert to production by 2026 [80] Question: How will AI trends impact connectivity needs? - Management highlighted that there is growing interest in enterprise environments for high-speed data transfer, which aligns with the company's capabilities [62] Question: What is the expected contribution from the BEAD program? - Management expressed hope that the BEAD program will start showing effects this year, with a focus on technology-neutral approaches to broadband access [84]

Financial Data and Key Metrics Changes - Fourth quarter revenue was $3.7 million, representing a 100% year-over-year growth compared to $1.8 million in Q4 2023 [10][36] - Full year 2024 total net revenue was $14.6 million, up from $13.7 million in 2023 [36] - GAAP gross margin increased to 56.3% in Q4 2024 from 47% in the prior quarter and negative 147.3% in the year-ago quarter [38] - GAAP net loss for Q4 2024 was $1.6 million, a significant improvement from a net loss of $8.9 million in Q4 2023 [40] Business Line Data and Key Metrics Changes - Product revenue from memory integrated circuits and millimeter wave products in Q4 was $3.7 million, compared to $1.5 million in Q4 2023 [36] - Full year product revenue was $14.2 million, up from $12.9 million in the prior year [37] - Operating expenses decreased by 20% year-over-year in Q4 2024, despite revenue doubling [11] Market Data and Key Metrics Changes - The demand for fixed wireless access (FWA) is projected to grow significantly, with global FWA connections expected to reach 280 million by 2028 [17][19] - North American FWA has become the majority of all broadband net additions, with major carriers adding approximately 10.4 million FWA connections since 2021 [18] Company Strategy and Development Direction - The company is focusing on diversifying its customer base for mmWave solutions, having increased its customer count significantly over the past two years [53] - The DUNE mmWave platform is gaining traction in dense urban environments, addressing the challenges of high-speed connectivity [22] - The company is optimistic about the potential of the BEAD program to enhance funding for fixed wireless access technologies [25][27] Management's Comments on Operating Environment and Future Outlook - Management noted a positive shift in customer demand and purchase orders, indicating the end of the inventory correction impacting fixed wireless access customers [20] - The company expects mmWave revenue for Q1 2025 to exceed the total revenue for the full year 2024, driven by increasing order backlog [35] Other Important Information - The company had $3.3 million in cash and cash equivalents as of December 31, 2024, up from $1.3 million at the end of Q3 2024 [42] - Adjusted EBITDA for Q4 2024 was negative $0.4 million, an improvement from negative $5.9 million in Q4 2023 [41] Q&A Session Summary Question: Can you provide details on the $3.6 million order and its fulfillment timeline? - Management indicated that the order fulfillment will be reasonably linear, with a slight weighting towards the second half of the year [50] Question: How are other customers trending regarding inventory? - Management expressed optimism about a more diverse customer base and indicated that the inventory crisis is over [53] Question: Are there developments in military applications? - Management confirmed ongoing engagements in military applications, with some expected to convert to production by 2026 [80] Question: What is the expected contribution from the BEAD program? - Management is hopeful that the BEAD program will start to show effects this year, with a focus on technology-neutral funding [84]