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Dycom (DY)
NYSE:DY
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Dycom
(NYSE:DY)61Neutral
Positive Factors
Earnings
Dycom Industries reported FY4Q25 results that beat both BofA and Street estimates on revenues and adjusted EBITDA.
Strategic Partnerships
The wireless business outperformed expectations due to strong activity from AT&T's multi-year O-RAN equipment replacement program.
Negative Factors
Guidance
1Q26 guidance is slightly below Street expectations, with revenues expected to fall short of analyst forecasts.
Dycom (DY) vs. S&P 500 (SPY)
Market Cap
$4.46B
Dividend YieldN/A
Average Volume (3M)583.21K
Price to Earnings (P/E)18.1
Beta (1Y)0.89
Revenue Growth12.61%
EPS Growth7.43%
CountryUS
Employees15,611
SectorIndustrials
Sector Strength66
IndustryConstruction
Share Statistics
EPS (TTM)7.92
Shares Outstanding28,979,137
10 Day Avg. Volume912,987
30 Day Avg. Volume583,213
Financial Highlights & Ratios
PEG Ratio2.44
Price to Book (P/B)N/A
Price to Sales (P/S)0.95
Price to Cash Flow (P/CF)3.40
P/FCF Ratio4.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$211.50Price Target Upside50.04% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Dycom Business Overview & Revenue Model
Company DescriptionDycom Industries, Inc. is a leading provider of specialty contracting services in the telecommunications industry. The company primarily operates in the United States, delivering a wide range of services including engineering, construction, maintenance, and installation services for telecommunications infrastructure. Dycom partners with leading telecommunications providers, cable operators, and other utilities, leveraging its expertise to support the deployment and maintenance of broadband networks, wireless infrastructure, and other critical communication systems.
How the Company Makes MoneyDycom generates revenue primarily through contracts with telecommunications companies, cable operators, and utility providers. The company's key revenue streams include engineering and construction services for fiber optic networks, wireless infrastructure installation, and maintenance services for existing telecommunications systems. Dycom benefits from long-term contracts and partnerships with major industry players, which provide a steady flow of projects and recurring revenue. The company is also positioned to capitalize on industry trends such as increased demand for high-speed internet and 5G network deployment, which drive the need for expanded telecommunications infrastructure.
Dycom Financial Statement Overview
Summary
Dycom's financial performance reflects a strong growth trajectory, particularly in revenues and EBIT margins, enhancing overall profitability. The balance sheet remains stable with manageable leverage, although rising debt levels require monitoring. Cash flow generation is robust, but fluctuations in free cash flow necessitate careful capital management. Overall, Dycom demonstrates financial resilience with areas to monitor for sustained growth.Income Statement
Dycom exhibits strong revenue growth with a substantial increase from $3.1 billion in 2022 to $4.2 billion in 2024, reflecting a positive trajectory. The company maintains a healthy gross profit margin, although net profit margins indicate room for improvement. The EBIT and EBITDA margins are robust, indicating operational efficiency. However, net income growth appears to be moderate, necessitating careful cost management.75
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, highlighting manageable leverage levels. Return on equity has improved over time, showcasing enhanced profitability. The equity ratio indicates financial stability, but the total debt has increased significantly, requiring attention to debt servicing.70
Positive
Cash Flow
Operating cash flow has been consistently positive, supporting business operations, but free cash flow shows volatility due to capital expenditures. The company has demonstrated growth in free cash flow over recent years, enhancing liquidity. The operating cash flow to net income ratio is favorable, indicating efficient cash generation relative to earnings.68
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 3.77B | 4.18B | 3.81B | 3.13B | 3.20B | Gross Profit |
| 3.77B | 813.76M | 648.20M | 496.64M | 557.18M | EBIT |
| 3.38B | 486.08M | 220.74M | 86.00M | 130.11M | EBITDA |
| 567.36M | 507.69M | 396.99M | 234.21M | 297.41M | Net Income Common Stockholders |
| 233.41M | 218.92M | 142.21M | 48.57M | 34.34M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 92.67M | 101.09M | 224.19M | 310.76M | 11.77M | Total Assets |
| 2.95B | 2.52B | 2.31B | 2.12B | 1.94B | Total Debt |
| 1.06B | 885.04M | 892.02M | 901.91M | 646.41M | Net Debt |
| 963.29M | 783.95M | 667.84M | 591.15M | 634.64M | Total Liabilities |
| 1.71B | 1.46B | 1.44B | 1.36B | 1.13B | Stockholders Equity |
| 1.24B | 1.05B | 868.75M | 758.54M | 811.31M |
| Cash Flow | Free Cash Flow | |||
| 98.64M | 40.48M | -36.17M | 151.61M | 323.73M | Operating Cash Flow |
| 349.10M | 258.98M | 164.79M | 308.65M | 381.78M | Investing Cash Flow |
| -395.20M | -306.16M | -183.93M | -151.68M | -44.63M | Financing Cash Flow |
| 37.69M | -75.91M | -67.43M | 142.01M | -383.44M |
Dycom Technical Analysis
Negative
140.96
Price Trends
178.59
Negative
181.97
Negative
180.63
Negative
Market Momentum
-10.02
Positive
23.97
Positive
12.33
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DY, the sentiment is Negative. The current price of 140.96 is below the 20-day moving average (MA) of 171.28, below the 50-day MA of 178.59, and below the 200-day MA of 180.63, indicating a bearish trend. The MACD of -10.02 indicates Positive momentum. The RSI at 23.97 is Positive, neither overbought nor oversold. The STOCH value of 12.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DY.
Dycom Risk Analysis
Dycom disclosed 45 risk factors in its most recent earnings report. Dycom reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Dycom Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $10.14B | 57.83 | 5.80% | ― | 2.56% | ― | |
72 Outperform | $37.52B | 41.98 | 13.32% | 0.15% | 13.36% | 20.00% | |
72 Outperform | $3.94B | 14.59 | 36.08% | ― | 7.28% | 85.63% | |
70 Outperform | $3.67B | 20.58 | 13.67% | 0.38% | 11.40% | 42.51% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
61 Neutral | $4.46B | 18.13 | 20.35% | ― | 12.61% | 7.43% | |
54 Neutral | $2.00B | 64.57 | 4.84% | ― | -7.73% | -65.81% |
* Industrials Sector Average
Performance Comparison
DY
Dycom
140.96
2.70
1.95%
MTZ
MasTec
115.47
26.93
30.42%
MYRG
MYR Group
112.67
-45.23
-28.64%
PRIM
Primoris Services
63.43
22.76
55.96%
PWR
Quanta Services
246.02
7.20
3.01%
STRL
Sterling Construction
118.00
9.43
8.69%
Dycom Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -18.02% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Positive
Dycom Industries reported strong revenue and growth, driven by significant fiber and 5G opportunities, with a positive outlook for fiscal 2026. However, challenges such as weather impacts, exclusion of BEAD revenues, and increased SG&A expenses present potential hurdles.Highlights
Strong Revenue and Growth
Dycom Industries reported Q4 2025 revenues of $1.085 billion, marking a 13.9% increase over the previous year, and full-year revenues of $4.702 billion, a 12.6% increase. The company also achieved an adjusted EBITDA of $116.4 million for Q4, or 10.7% of revenue, and $576.3 million for the full year, expanding their EBITDA margin by approximately 450 basis points over the past three years.
Backlog and Customer Diversification
The company's backlog at the end of the fiscal year was $7.8 billion, with $4.6 billion expected to be completed over the next twelve months. They further diversified their customer base, with the top five customers accounting for 55% of revenue in fiscal 2025, down from 66% in fiscal 2022.
Significant Fiber and 5G Opportunities
Dycom is capitalizing on fiber-to-the-home and 5G opportunities, with customers adding more than 35 million incremental passings. They were awarded new markets for Verizon and extended several existing agreements.
Positive Free Cash Flow and Share Repurchases
The company saw improved free cash flow performance, generating $137.8 million for the full year. They also repurchased 410,000 shares of common stock and announced a new $150 million stock repurchase authorization.
2026 Revenue Growth Outlook
Dycom Industries expects fiscal 2026 total revenue to increase by 10% to 13% over fiscal 2025, driven by fiber-to-the-home expansions, hyperscaler long-haul projects, and wireless equipment replacements, excluding BEAD and storm-related revenues.
Lowlights
Weather and Seasonal Challenges
The company faced unforeseen weather challenges, including fires in California and snow in New Orleans, impacting Q4 operations. Additionally, Q1 2026 expectations consider potential impacts from difficult winter weather.
Exclusion of BEAD Revenues
No BEAD revenues are included in the fiscal 2026 outlook due to uncertainty in state broadband programs and the finalization of awards.
Increased SG&A Expenses
SG&A expenses have grown faster than revenues over the past few years, with the company needing to invest significantly to support growth and acquisitions, impacting operating leverage.
Company Guidance
During the Dycom Industries, Inc. Fourth Quarter 2025 Results Conference Call, the company provided guidance for fiscal 2026, forecasting a total revenue increase of 10% to 13% over fiscal 2025, which reported revenues of $4.702 billion and adjusted EBITDA of $576.3 million. The company stated that the fiscal 2026 outlook does not include potential revenues from storm restoration or the BEAD program, which is expected to contribute in calendar 2026. The backlog at the end of fiscal 2025 was $7.8 billion, with $4.6 billion expected to be completed over the next twelve months. The company also highlighted ongoing projects, including fiber-to-the-home expansions and 5G market awards, and noted that they are well-positioned to capitalize on increasing customer investments in digital infrastructure. Additionally, the company announced a new $150 million stock repurchase program and completed three acquisitions in fiscal 2025.Dycom Corporate Events
Business Operations and StrategyFinancial Disclosures
Dycom Reports Strong Fiscal 2025 Financial Performance
Positive
Mar 3, 2025
On March 3, 2025, Dycom Industries, Inc. released presentation materials on its website, highlighting its financial performance and strategic initiatives. The company reported strong revenue growth and margin expansion for fiscal 2025, with contract revenues reaching $4.7 billion and adjusted EBITDA at $576 million. Dycom’s success is attributed to its ability to meet growing industry demand and maintain high-quality service. The announcement also emphasized the increasing demand for high-speed connectivity and fiber infrastructure, driven by consumer data usage and government programs supporting broadband expansion. These trends position Dycom favorably in the telecommunications industry, with multiple tailwinds expected to drive sustainable growth.
Stock BuybackBusiness Operations and StrategyFinancial Disclosures
Dycom Announces Q4 Results and Stock Repurchase Plan
Positive
Feb 27, 2025
On February 26, 2025, Dycom Industries, Inc. held a webcast and conference call to discuss its fiscal 2025 fourth quarter results, reporting revenues of $1.085 billion and an Adjusted EBITDA of $116.4 million. The company announced a new $150 million stock repurchase program and highlighted its strategic focus on fiber-to-the-home expansion, long-haul fiber infrastructure, and broadband initiatives, positioning itself for continued growth in fiscal 2026 with an expected revenue increase of 10% to 13%.
Executive/Board ChangesBusiness Operations and Strategy
Dycom Appoints Jill L. Ramshaw as New HR Chief
Positive
Feb 18, 2025
On February 18, 2025, Dycom Industries, Inc. announced the appointment of Jill L. Ramshaw as Vice President and Chief Human Resources Officer effective February 17, 2025. With over 20 years of strategic human resources experience, Ramshaw will lead Dycom’s human capital strategy, enhancing talent acquisition, development, and performance management to meet industry demands. Her previous role was at Marathon Oil Corporation, where she was the Senior Vice President of Human Resources. This strategic appointment aims to strengthen Dycom’s workforce and reinforce its vision of being a key player in connecting America.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.