Dycom Industries (DY) Q2 2026 Earnings Call August 20, 2025 09:00 AM ET Company ParticipantsCallie Tomasso - VP - FP&A and IRDaniel Peyovich - CEO, President & DirectorH. Andrew DeFerrari - SVP & CFORichard Choe - VP & Executive DirectorAlexander Waters - VP - Equity ResearchFrank Louthan - Managing DirectorAdam Thalhimer - Director - ResearchLiam Burke - Managing DirectorConference Call ParticipantsSangita Jain - Director & Equity Research AnalystEric Luebchow - Director - Senior Equity AnalystSteven Fishe ...

Financial Data and Key Metrics Changes - Revenue for the quarter was $1,380,000,000, a 14.5% increase over the prior year [6] - Adjusted EBITDA reached $205,500,000, representing a 29.8% increase over the prior year, with a margin of 14.9% [7][25] - Net income was $97,500,000, with diluted EPS of $3.33 per share, exceeding expectations [26] - Total backlog at the end of Q2 was $7,989,000,000, with a next twelve months backlog of $4,604,000,000, reflecting a year-over-year increase of 20.2% [27] Business Line Data and Key Metrics Changes - Revenue growth was driven by fiber to the home programs, wireless activity, maintenance and operations services, and initial contributions from fiber infrastructure programs for hyperscalers [25] - The service and maintenance business, which provides stability and recurring revenue, continues to grow with new awards and market expansions [11][50] Market Data and Key Metrics Changes - The demand for digital infrastructure is accelerating, with customers' fiber to the home build plans comprising over 125,000,000 passings, including $15,000,000 of incremental plans in the past sixteen months [10] - The addressable market for DICOM from outside plant data center network infrastructure is estimated to exceed $20,000,000,000 over the next five years [17][53] Company Strategy and Development Direction - The company is focused on operational excellence, efficient cash flow management, and expanding its service and maintenance business [6][22] - DICOM aims to capitalize on the growing demand for digital infrastructure driven by AI investments and the need for fiber capacity [16][17] - The company is well-positioned to lead in the marketplace due to its scale and expertise, particularly in fiber to the home and service maintenance agreements [8][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the second half of the year, reaffirming the fiscal 2026 revenue outlook range of $5,290,000,000 to $5,425,000,000 [8][30] - The recent corporate tax legislation is expected to positively impact customers and DICOM, leading to increased capital spending and fiber broadband deployment [29] - Management highlighted the importance of maintaining strong relationships with customers and adapting to their evolving needs [20][104] Other Important Information - The company secured a significant new award for service and maintenance and fiber to the home work across multiple states, which will be reflected in the Q3 backlog [8][27] - The company is actively monitoring the supply chain and tariff impacts, with no significant adverse effects reported [21] Q&A Session Summary Question: What led to the low end of guidance for revenue in Q2? - Management noted that different customer programs are at various stages of ramping, impacting quarterly performance, but expressed optimism for the full year outlook [32][34] Question: Should we expect high margins to continue? - Management confirmed that margins have improved due to operational efficiencies and operating leverage, and they expect further opportunities for improvement [35][38] Question: What is the percentage of recurring revenue in the current business? - Over 80% of the work is on Master Service Agreements (MSAs), indicating a strong base of recurring revenue, which is expected to grow as more infrastructure is built [50][51] Question: Can you provide an update on the data center opportunity in the backlog? - Management indicated that the data center opportunities are still early-stage but are expected to contribute significantly starting next year [96] Question: How is the company planning to allocate excess capital? - The priority is to support growth, with an appetite for M&A opportunities that align with the company's strategy, balanced against share repurchases [72]

Core Insights - MasTec, Inc. (MTZ) reported a strong second-quarter performance for 2025, with revenue increasing by 20% year over year to a record $3.54 billion and earnings per share of $1.49, surpassing consensus estimates by 5.7% [1][9] - The Communications segment experienced significant growth, with a 42% increase in revenue and a 55% rise in adjusted EBITDA, driven by robust demand in wireless and wireline services [1][9] Industry Trends - The surge in fiber infrastructure needs is primarily fueled by AI advancements, with hyperscaler capital spending, data center construction, and broadband expansion converging to create a long-term opportunity for fiber deployment [2] - Major telecom companies such as AT&T, Verizon, and T-Mobile have set aggressive multi-year fiber passing targets, effectively doubling their footprints by the end of the decade, positioning MasTec to capture a significant share of this investment wave [2] Company Performance - The backlog in the Communications segment reached a record $5 billion in the second quarter, reflecting a 13% year-over-year increase, indicating strong demand durability [3][9] - Federal broadband initiatives and middle-mile build-outs further support this demand, while MasTec's recent 10% workforce expansion enhances its ability to execute large-scale projects [3] Future Outlook - Management anticipates continued double-digit sequential revenue growth in the third quarter, along with margin expansion due to operating leverage [4] - The Communications segment is well-positioned for sustained growth, driven by AI applications that increase data consumption and telecoms' efforts to meet bandwidth requirements [4] Competitive Landscape - MasTec operates in a competitive telecom and fiber infrastructure market, with significant players including Quanta Services, Dycom Industries, and Uniti Group [5] - Quanta Services has a strong presence in utility and telecom infrastructure, leveraging its resources to secure major fiber deployment contracts, making it a formidable competitor [6] - Dycom focuses on telecom infrastructure and benefits from broadband expansion initiatives, directly competing with MasTec for multi-year build-out budgets [7] - Uniti Group specializes in communications infrastructure, owning and leasing fiber networks, and is positioned within the same ecosystem as MasTec due to the increasing demand for fiber networks driven by AI [8]

Summary of American Tower's Conference Call Company Overview - **Company**: American Tower - **Industry**: Telecommunications Infrastructure Key Points and Arguments 1. Strategic Focus and Investments - American Tower aims to transition from a passive tower business to a more technical and integrated infrastructure model, including investments in data centers and satellite technology [4][5] - The acquisition of CoreSite in 2021 is a significant part of the capital plan, focusing on data centers and edge computing [5][8] 2. Edge Computing and Data Centers - The company is developing edge facilities, with a notable project in Raleigh, to support the growing demand for localized data processing [9][12] - Initial investments in small edge facilities did not meet expectations, leading to a strategic pivot towards larger, modular facilities that can support higher power densities [14][16] - The focus on power as a service is critical, especially in regions like Africa, where power constraints drive the need for localized solutions [5][16] 3. Convergence of Wireless and Wireline Networks - The convergence of wireless and wireline networks is seen as essential for future growth, particularly with the advent of 5G and anticipated 6G technologies [11][12] - The company believes that distributed computing will become increasingly important as data gravity shifts towards edge locations [12][22] 4. Satellite Technology and Competitive Landscape - American Tower views its investment in AST Space Mobile as complementary to its tower business, enhancing connectivity in underserved areas without replacing existing infrastructure [31][32] - The company anticipates that satellite technology will provide a thin layer of coverage, particularly in rural areas where building towers is economically unfeasible [32][36] 5. Spectrum Opportunities - The recent tax bill granting the FCC auction authority is expected to create new opportunities for American Tower, particularly in acquiring spectrum for future deployments [40][41] - The company is focused on several key frequency bands, including the upper C band, which is anticipated to drive new deployments and enhance capacity [43][44] 6. Future of 5G and 6G - The rollout of 5G has been slower than expected, but the company sees potential for monetization as new devices and applications emerge [53][56] - The transition to 6G is viewed as a necessary evolution, integrating telecommunications and computing at the edge to enhance user experiences [57][58] Additional Important Insights - The company is actively harmonizing datasets from various global operations to improve efficiency and productivity through AI [27][28] - There is a recognition of the challenges in transforming legacy systems to meet modern requirements, particularly in terms of power and cooling [22][23] - The need for shared infrastructure and community-based solutions is emphasized, particularly in academic and research settings [24][30] This summary encapsulates the key themes and insights from the conference call, highlighting American Tower's strategic direction, industry challenges, and future opportunities.

Company Overview - Crown Castle Inc. owns, operates, and leases approximately 40,000 cell towers and around 90,000 route miles of fiber, supporting small cells and fiber solutions across every major U.S. market [2] - The company's nationwide portfolio of communications infrastructure connects cities and communities to essential data, technology, and wireless service [2] Upcoming Event - Sunit Patel, Crown Castle's Executive Vice President and Chief Financial Officer, is scheduled to present at the KBCM Technology Leadership Forum on August 12, 2025, at 11:00 a.m. Eastern Time [1] - The presentation will be broadcast live over the Internet and is expected to last approximately 25 minutes [1] - The live audio webcast link and presentation will be available on Crown Castle's website and archived for replay [1]

Core Insights - Crown Castle reported revenue of $1.06 billion for the quarter ended June 2025, reflecting a year-over-year decline of 34.8% [1] - The earnings per share (EPS) for the quarter was $1.02, an increase from $0.58 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.04 billion by 2.14%, while the EPS also surpassed the consensus estimate of $1.00 by 2% [1] Revenue Breakdown - Revenue from services and other was $52 million, exceeding the average estimate of $47.1 million by four analysts, representing a year-over-year increase of 13% [4] - Site rental revenue was reported at $1.01 billion, compared to the estimated $991.83 million, but this reflects a significant decline of 36.2% year-over-year [4] Earnings Performance - Net earnings per share (diluted) was $0.67, surpassing the average estimate of $0.52 from five analysts [4] - Gross margin for services and other was $25 million, exceeding the average estimate of $20.9 million from three analysts [4] - Gross margin for site rental was reported at $757 million, compared to the average estimate of $745.18 million from three analysts [4] Stock Performance - Crown Castle's shares have returned +6.8% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Q2 2025 Results - Site Rental Revenues decreased to $1,008 million, a decrease of $56 million or 5% compared to Q2 2024's $1,064 million[9] - Adjusted EBITDA decreased to $705 million, a decrease of $22 million or 3% compared to Q2 2024's $727 million[9] - AFFO decreased to $444 million, a decrease of $5 million or 1% compared to Q2 2024's $449 million[9] - Organic Contribution to Site Rental Billings Excluding Impact of Sprint Cancellations was 47%[9] Updated 2025 Outlook - Site Rental Revenues are projected to be between $3,997 million and $4,042 million, an increase of $10 million from the previous outlook of $3,987 million to $4,032 million[12] - Adjusted EBITDA is projected to be between $2,780 million and $2,830 million, an increase of $25 million from the previous outlook of $2,755 million to $2,805 million[12] - AFFO is projected to be between $1,805 million and $1,855 million, an increase of $35 million from the previous outlook of $1,770 million to $1,820 million[12] Organic Contribution to Site Rental Billings - Previous FY 2025 Outlook for Organic Contribution to Site Rental Billings was $160-$190 million[15] - Previous FY 2025 Outlook for Sprint Cancellations was ($205) million[15] - Previous FY 2025 Outlook for Organic Contribution to Site Rental Billings Excluding Impact of Sprint Cancellations was ($45)-($15) million[15]

Group 1 - The article provides a buy rating for Dycom Industries (NYSE: DY), highlighting its strong positioning as a beneficiary of the ongoing digital infrastructure investment supercycle [1] - The core fiber-to-the-home rollout for Dycom Industries remains robust, indicating a solid demand for its services [1] - The author emphasizes a diverse investment background, utilizing various investment strategies such as fundamental, technical, and momentum investing to enhance the investment process [1] Group 2 - There is no disclosure of any stock, option, or similar derivative position in any of the companies mentioned, nor any plans to initiate such positions in the near future [2] - The article expresses the author's personal opinions and is not compensated beyond the platform used for publication [2] - Seeking Alpha clarifies that past performance does not guarantee future results and that the views expressed may not reflect the opinions of the platform as a whole [3]

Company Overview - Crown Castle Inc. owns, operates, and leases over 40,000 cell towers and approximately 90,000 route miles of fiber, supporting small cells and fiber solutions across major U.S. markets [3] Upcoming Financial Results - Crown Castle plans to release its second quarter 2025 results on July 23, 2025, after market close [1] - A conference call is scheduled for the same day at 5:30 p.m. eastern time [1] Conference Call Details - The conference call will be accessible via a live audio webcast on the Crown Castle website [2] - Participants can join the call by dialing 833-816-1115 (Toll Free) or 412-317-0694 (International) at least 30 minutes prior to the start time [2] - A replay of the webcast will be available on the Investor page of Crown Castle's website until July 23, 2026 [2]

Core Insights - Mavenir has been selected by Tampnet as the primary technology partner to provide cloud-native 5G services, marking a significant shift in Tampnet's technology strategy [1][2][3] - The partnership aims to enhance mobile connectivity for offshore energy, maritime, and operator sectors, leveraging Mavenir's advanced Converged Packet Core solution [1][2][4] Company Overview - Mavenir is recognized as a pioneer in cloud-native, AI-driven solutions, focusing on building future networks that are environmentally friendly and enable operators to realize 5G advantages [6] - Tampnet operates the largest offshore high-capacity communication network globally, providing reliable, scalable, low-latency connectivity solutions for the offshore energy industry [6] Strategic Partnership Details - The collaboration will facilitate a seamless transition between Tampnet's existing 4G and 5G non-standalone networks and the introduction of 5G standalone networks, while also laying the groundwork for future 6G capabilities [2][3] - Mavenir's fully containerized architecture will enhance network flexibility, scalability, and performance, allowing for tailored services based on customer needs [2][4] Industry Impact - This partnership is expected to transform the offshore telecommunications industry by improving connectivity and digital services for global customers [3][4] - The integration of AI-driven automation and energy-efficient network orchestration will optimize network performance and reduce operational costs for Tampnet [2][4]