Dycom Industries Inc. DY reported strong results for the fourth quarter of fiscal 2025 (ended Jan. 25). Contract revenues and earnings surpassed their respective Zacks Consensus Estimate and increased on a year-over-year basis.
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Shares of the company plunged 5.8% during the trading session but gained 1.9% in the after-hours trading session yesterday.
Dycom is positioned for sustained growth, driven by the continued expansion of fiber-to-the-home networks, AI infrastructure investments, and state and federal broadband funding. The company maintained a disciplined capital allocation strategy, balancing acquisitions, share repurchases and organic expansion. Long-term demand visibility remains strong, with potential upside from federal broadband programs expected in the coming years.
Dycom Industries, Inc. Price, Consensus and EPS Surprise
Dycom Industries, Inc. Price, Consensus and EPS Surprise
Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote
DY’s Q4 Earnings & Revenue Discussion
Dycom reported adjusted earnings per share (EPS) of $1.17, which beat the Zacks Consensus Estimate of 91 cents by 28.6% and increased 48.1% from a year ago.
Contract revenues of $1.09 billion surpassed the consensus mark of $1.03 billion by 5.6% and grew 13.9% year over year. Contract revenues rose 7.4% on an organic basis. Acquired businesses contributed $61.5 million, and storm restoration services added $67.9 million to total revenues.
The company’s top five customers contributed 56.7% to total contract revenues (58.6% contributed in the prior year), which increased 14.2% and 4.6% (organically). Revenues from all other customers grew 13.5% and 11.1% organically in the quarter.
Dycom’s largest customer, AT&T, contributed 23.2% to total revenues and grew organically by 22.7%. Lumen (the second-largest customer) contributed 9.5% to total revenues. Comcast contributed 8.1% and Brightspeed represented 8.1% of total revenues. Charter contributed 7.8% to total revenues.
Operations & Backlog Details of Dycom
Adjusted EBITDA increased 24.2% to $116.4 million from a year ago. Adjusted EBITDA margin of 10.7% expanded 90 bps from the year-ago level.
Dycom’s backlog at the fiscal 2025 end totaled $7.760 billion compared with $6.917 billion at the fiscal 2024 end. Of the backlog, $4.6 billion is projected to be completed in the next 12 months.
Dycom’s Fiscal 2025 Highlights
Adjusted EPS was $8.44, an increase of 24.5% from fiscal 2023. Contract revenues grew 12.6% to $4.7 billion. Adjusted EBITDA grew 19.8% to $576.3 million from fiscal 2024. Adjusted EBITDA margin rose by 70 bps to 12.3%.
Dycom’s Balance Sheet & Cash Flow
As of Jan. 25, 2025, Dycom had liquidity of $695.2 million, including cash and cash equivalents worth $92.7 million, compared with $101.1 million as of Jan. 27, 2024. Long-term debt was $933.2 million at the fiscal 2025 end, up from $791.4 million at the fiscal 2024 end.
In fiscal 2025, DY repurchased 410,000 shares of its common stock for $65.6 million.
Dycom’s Fiscal Q1 2026 Guidance
Dycom expects contract revenues between $1.16 billion and $1.2 billion for the first quarter of fiscal 2026. This represents a strong year-over-year increase, driven by continued fiber-to-the-home (FTTH) deployments, hyperscaler long-haul fiber projects and wireless equipment upgrades. However, management acknowledged that the first quarter typically experiences seasonal softness due to winter weather conditions, which can temporarily impact project execution.
Adjusted EBITDA is expected to be between $130.6 million and $140.6 million. This reflects the company's expectation of continued margin expansion despite potential weather-related challenges and the ongoing ramp-up of major projects.
Dycom anticipates diluted EPS in the range of $1.50-$1.73 per share for the fiscal first quarter.
What DY Expects for Fiscal 2026
Dycom provided a full-year revenue outlook for fiscal 2026, projecting growth between 10% and 13% compared to 2025. The forecast does not include storm restoration revenues, and capital expenditures are expected to range from $220 million to $230 million to support continued expansion.
Dycom’s Zacks Rank & Peer Releases
Dycom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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