In This Article:
-
Revenue: $1.259 billion, a 10.2% increase over Q1 2025.
-
Adjusted EBITDA: $150.4 million, representing 11.9% of revenues, a 14.9% increase over Q1 2025.
-
Net Income: $61 million.
-
Diluted EPS: $2.09 per share.
-
Share Repurchases: 200,000 shares for $30.2 million.
-
Backlog: $8.1 billion, with $4.7 billion expected in the next 12 months.
-
Operating Cash Flow: Used $54 million in the quarter.
-
DSOs: 111 days, a reduction of three days sequentially from Q4 2025.
-
Revenue Guidance for Fiscal 2026: Increased to a range of $5.29 billion to $5.425 billion.
-
Q2 Fiscal 2026 Outlook: Revenue of $1.38 billion to $1.43 billion, adjusted EBITDA of $185 million to $200 million, and diluted EPS of $2.74 to $3.05 per share.
Release Date: May 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Dycom Industries Inc (NYSE:DY) exceeded the high end of their guidance for the quarter on all metrics, including revenue, adjusted EBITDA, and EPS.
-
The company reported a 10.2% increase in first-quarter revenue over Q1 2025, reaching $1.259 billion.
-
Dycom Industries Inc (NYSE:DY) has a record backlog of $8.1 billion, including $4.7 billion expected to be completed in the next 12 months.
-
The company has diversified its customer base and services within the telecommunications and digital infrastructure space, reducing dependency on any single customer.
-
Dycom Industries Inc (NYSE:DY) increased its revenue expectations for the year to a range of $5.29 billion to $5.425 billion, indicating confidence in future growth.
Negative Points
-
Despite strong performance, Dycom Industries Inc (NYSE:DY) faces macroeconomic uncertainties, including tariffs and international trade actions, which could impact future operations.
-
Operating cash flows used in the quarter were $54 million, reflecting seasonal uses of cash and supporting revenue growth.
-
The company is closely monitoring tariff implications, which could lead to cost increases in some equipment components sourced offshore.
-
Dycom Industries Inc (NYSE:DY) has not included revenue from the BEAD program in their fiscal 2026 outlook, indicating uncertainty in this area.
-
The company's combined DSOs of accounts receivable and contract assets net were 111 days, suggesting room for improvement in cash flow management.
Q & A Highlights
Q: Dan, you noted the strong performance of Black & Veatch. Is this more of a pull forward of activity or have you seen a larger opportunity set here? Also, could you help size the maintenance business for Dycom? A: The performance of Black & Veatch is a mix of both pull forward and ramping quicker than expected. The maintenance business is a core part of our strategy, providing recurring revenue and stability. Historically, it has been over 50% of our business.