Financial Data and Key Metrics Changes - In Q4 2025, the company generated revenues of $1.085 billion and adjusted EBITDA of $116.4 million, representing 10.7% of revenue [9][30] - For the full fiscal year 2025, total revenues reached $4.702 billion, with an adjusted EBITDA margin of 12.3%, marking a 50% revenue increase over the past three years and a 450 basis point EBITDA margin expansion [10][31] - Adjusted net income for Q4 was $34.5 million, with adjusted diluted EPS increasing 48.1% to $1.17 per share [32] Business Line Data and Key Metrics Changes - The top five customers accounted for 56.7% of total revenue in Q4, growing 14.2%, while all other customers grew 13.5% [32] - AT&T was the largest customer, contributing $251.4 million, which grew 54.5% in total and 22.7% on an organic basis [33] Market Data and Key Metrics Changes - Backlog at the end of Q4 was $7.76 billion, with $4.642 billion expected to be completed in the next twelve months [34] - Operating cash flows were strong at $328.2 million in Q4, with a total of $349.1 million for the full year [35] Company Strategy and Development Direction - The company remains focused on organic growth, M&A, and share repurchases, having completed three acquisitions in fiscal 2025 and repurchased 410,000 shares [11][36] - The strategy emphasizes differentiation through a comprehensive footprint and high service levels, with a commitment to capitalizing on fiber-to-the-home and 5G opportunities [12][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning to benefit from significant industry tailwinds, particularly in fiber-to-the-home and hyperscaler long-haul projects [12][19] - For fiscal 2026, the company expects total revenue to increase by 10% to 13% compared to fiscal 2025, excluding storm restoration revenues [23][39] Other Important Information - The company announced a new $150 million stock repurchase program following the expiration of the previous authorization [5] - Capital expenditures for fiscal 2026 are expected to range from $220 million to $230 million [39] Q&A Session Summary Question: Clarification on 2026 guidance - Management confirmed that the 2026 revenue outlook does not include $114 million from storm work in fiscal 2025 [42][43] Question: Expectations for margins - Management indicated that while they are pleased with past margin improvements, they do not provide specific full-year margin guidance [50][52] Question: Organic revenue performance - Management noted that storm work contributed positively, but there were also unexpected weather challenges impacting overall performance [60][61] Question: AI data center opportunities - Management highlighted ongoing discussions with hyperscalers and the potential for significant long-term opportunities in AI infrastructure [82][85] Question: Capital allocation strategy - Management emphasized a balanced approach between growth investments and share repurchases, with a focus on maintaining low net leverage [90][91] Question: Headcount changes - Management clarified that the reduction in headcount was due to a mix of in-house labor and subcontractors, with no cause for concern [100][101] Question: Wireless revenues - Wireless revenues for the quarter were reported at a little over 7% [122] Question: BEAD revenues - Management confirmed that no BEAD revenues are included in the fiscal 2026 outlook, but they are actively pursuing opportunities [124][126]

Dycom Industries (DY) came out with quarterly earnings of $1.17 per share, beating the Zacks Consensus Estimate of $0.91 per share. This compares to earnings of $0.79 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 28.57%. A quarter ago, it was expected that this provider of specialty contracting services would post earnings of $2.35 per share when it actually produced earnings of $2.68, delivering a surprise of 14.04%.Over th ...

Core Viewpoint - Dycom Industries, Inc. has authorized a new $150 million share repurchase program to be executed over the next 18 months, replacing the previous program with approximately $55 million remaining [1] Company Overview - Dycom Industries, Inc. is a leading provider of specialty contracting services for telecommunications infrastructure and utility industries in the United States, offering services such as program management, planning, engineering, construction, maintenance, and fulfillment [2] Share Repurchase Program Details - The new share repurchase program allows for open market purchases or privately-negotiated transactions, including a Rule 10b5-1 plan, with the timing and amount dependent on market conditions [1] - The company currently has 28,979,138 shares of common stock outstanding, excluding the dilutive effect of stock options and unvested restricted stock [1]

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]