Latest news with #DY
Yahoo
4 hours ago
- Business
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DY Q2 Deep Dive: Margin Expansion and Data Center Momentum Offset Revenue Miss
Telecommunications company Dycom (NYSE:DY) fell short of the market's revenue expectations in Q2 CY2025, but sales rose 14.5% year on year to $1.38 billion. Next quarter's revenue guidance of $1.41 billion underwhelmed, coming in 4.1% below analysts' estimates. Its GAAP profit of $3.33 per share was 14.2% above analysts' consensus estimates. Is now the time to buy DY? Find out in our full research report (it's free). Dycom (DY) Q2 CY2025 Highlights: Revenue: $1.38 billion vs analyst estimates of $1.41 billion (14.5% year-on-year growth, 2.5% miss) EPS (GAAP): $3.33 vs analyst estimates of $2.92 (14.2% beat) Adjusted EBITDA: $205.5 million vs analyst estimates of $191.9 million (14.9% margin, 7.1% beat) Revenue Guidance for Q3 CY2025 is $1.41 billion at the midpoint, below analyst estimates of $1.46 billion EPS (GAAP) guidance for Q3 CY2025 is $3.20 at the midpoint, beating analyst estimates by 2.9% EBITDA guidance for Q3 CY2025 is $205.5 million at the midpoint, above analyst estimates of $201.5 million Operating Margin: 10.1%, up from 8.6% in the same quarter last year Backlog: $8 billion at quarter end Market Capitalization: $7.44 billion StockStory's Take Dycom's second quarter results were met with a significant negative market reaction, as revenue growth failed to meet Wall Street's expectations despite rising 14.5% year over year. Management attributed the outcome to ongoing variability in the timing of large fiber-to-the-home deployments, with CEO Dan Peyovich noting that 'the programs are ramping' and that short-term fluctuations reflect the modulation of customer rollouts. Strong margin expansion and improved operational efficiency, particularly in service and maintenance work, were key positives in the quarter. Looking forward, Dycom's guidance reflects management's focus on capturing growth from accelerating digital infrastructure demand, especially in fiber and data center builds. CEO Dan Peyovich emphasized that the company is 'uniquely positioned to capitalize' on rising investments driven by AI, hyperscaler expansion, and carrier consolidation. While management reaffirmed long-term optimism, they cautioned that the pace of project ramps and the impact of recent customer tax benefits may affect the timing of revenue recognition, with substantial contributions from new contracts expected to materialize in the next year. Key Insights from Management's Remarks Management cited continued fiber-to-the-home project expansion, early data center infrastructure wins, and improved operational discipline as major factors shaping the latest quarter's performance. Fiber-to-the-home ramp: Dycom's top-line growth was driven by ongoing customer investment in fiber-to-the-home networks, with over 50 million incremental passings announced by clients in the past sixteen months. Management highlighted new and extended agreements across multiple states, reflecting expanding demand. Service and maintenance momentum: The company's recurring service and maintenance business, which forms the majority of its revenue, saw new awards and market expansions in the quarter. Management stressed that 'fiber put in the ground today is the maintenance work of tomorrow,' underscoring the segment's importance for long-term visibility. Data center and hyperscaler wins: Dycom reported early-stage contracts with hyperscale cloud providers for both inside-the-fence and service/maintenance work, marking a new recurring revenue stream independent from traditional telecommunications customers. Management described the $20 billion addressable market in data center network infrastructure as 'just a starting point.' Margin improvement through efficiency: Operating margin gains were attributed to ongoing operational discipline and field execution, with management noting that 'incremental margin increase' stemmed from 'work we've been putting in' and a disciplined approach to project delivery. Operating leverage and strategic investments also contributed. Policy and tax benefits: Recent U.S. legislation reinstating bonus depreciation and expensing of research costs is expected to free up capital for customers, supporting incremental network builds. CFO Drew DeFerrari noted an immediate $50 million cash tax benefit for Dycom itself, aiding free cash flow. Drivers of Future Performance Dycom's outlook is anchored in anticipated growth from fiber network expansion, data center construction, and a robust backlog, but management highlighted timing uncertainties and evolving customer investment plans as key variables. AI-driven digital infrastructure demand: Management expects continued acceleration in fiber and data center builds as hyperscalers and carriers invest to support artificial intelligence workloads. CEO Dan Peyovich described the sector as entering 'a generational deployment of digital infrastructure,' with large-scale projects projected to ramp in 2026 and beyond. Customer reinvestment from tax reform: Recent corporate tax changes are anticipated to unlock additional capital spending by major customers. Management expects most incremental investment to appear in the next calendar year, supporting a multi-year pipeline of fiber and broadband projects. Operational efficiency and margin focus: Dycom aims to sustain recent margin improvement through ongoing operational discipline, leveraging efficiencies gained in workforce management and project execution. Management flagged potential for further margin gains, but cautioned results may not be linear due to seasonality and project timing. Catalysts in Upcoming Quarters In the coming quarters, the StockStory team will watch (1) the pace of ramp-up in new fiber-to-the-home and data center contracts, (2) evidence of sustained margin improvement from operational efficiencies, and (3) the extent to which customer reinvestment from tax reform translates into incremental project awards. Updates on the BEAD broadband program and continued progress in securing hyperscaler service contracts will also be key milestones. Dycom currently trades at $259.95, down from $269.45 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it's free). Stocks That Trumped Tariffs When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that's already erased most losses. Don't let fear keep you from great opportunities and take a look at Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
19 hours ago
- Business
- Yahoo
Why Dycom (DY) Shares Are Falling Today
What Happened? Shares of telecommunications company Dycom (NYSE:DY) fell 8.5% in the afternoon session after the company reported mixed second-quarter 2025 results where revenues and forward guidance fell short of market expectations. The telecommunications infrastructure company posted second-quarter contract revenues of $1.38 billion. While this represented a 14.5% increase compared to the same period last year, it fell short of analyst estimates of $1.41 billion. Despite the revenue miss, Dycom delivered strong profitability. Its adjusted EBITDA of $205.5 million beat the consensus estimate of $191.9 million, and its earnings per share of $3.33 was a notable increase from $2.32 in the prior-year quarter. However, the company's revenue guidance for the upcoming third quarter of $1.41 billion also underwhelmed investors, coming in below Wall Street's forecast of $1.46 billion, overshadowing the profit beat. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Dycom? Access our full analysis report here, it's free. What Is The Market Telling Us Dycom's shares are somewhat volatile and have had 14 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. The previous big move we wrote about was 29 days ago when the stock dropped 3.4% as investors appeared to take profits after the stock reached a new all-time high in the previous trading session. The specialty contracting services company had reached a new 52-week and all-time high the previous day, trading as high as $260.84. The stock's move lower on Tuesday came amid a broader market retreat, as major indices like the S&P 500 and Nasdaq pulled back from their own record highs in early trading. The decline for Dycom followed a significant run-up in its share price, which had gained over 47% year-to-date as of Monday's close, supported by strong quarterly results in May and a series of positive analyst ratings. Dycom is up 41.7% since the beginning of the year, but at $250.46 per share, it is still trading 10.5% below its 52-week high of $279.99 from August 2025. Investors who bought $1,000 worth of Dycom's shares 5 years ago would now be looking at an investment worth $5,397. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
a day ago
- Business
- Yahoo
Dycom (NYSE:DY) Misses Q2 Revenue Estimates, Stock Drops
Telecommunications company Dycom (NYSE:DY) fell short of the market's revenue expectations in Q2 CY2025, but sales rose 14.5% year on year to $1.38 billion. Next quarter's revenue guidance of $1.41 billion underwhelmed, coming in 4.1% below analysts' estimates. Its GAAP profit of $3.33 per share was 14% above analysts' consensus estimates. Is now the time to buy Dycom? Find out in our full research report. Dycom (DY) Q2 CY2025 Highlights: Revenue: $1.38 billion vs analyst estimates of $1.41 billion (14.5% year-on-year growth, 2.5% miss) EPS (GAAP): $3.33 vs analyst estimates of $2.92 (14% beat) Adjusted EBITDA: $205.5 million vs analyst estimates of $191.9 million (14.9% margin, 7.1% beat) Revenue Guidance for Q3 CY2025 is $1.41 billion at the midpoint, below analyst estimates of $1.46 billion EPS (GAAP) guidance for Q3 CY2025 is $3.20 at the midpoint, beating analyst estimates by 2.9% EBITDA guidance for Q3 CY2025 is $205.5 million at the midpoint, above analyst estimates of $201.5 million Operating Margin: 14.6%, up from 8.6% in the same quarter last year Backlog: $8 billion at quarter end Market Capitalization: $7.80 billion 'Dycom's first-half performance confirms the strength of our strategy, disciplined execution and ability to capitalize on a rapidly expanding market. This quarter, we delivered record revenue within our range of expectations and record earnings that exceeded our expectations. We meaningfully improved margins through operational efficiency and operating leverage, and strengthened our financial position through measured cash flow management,' said Dan Peyovich, Dycom's President and Chief Executive Officer. Company Overview Working alongside some of the most popular mobile carriers in the world, Dycom (NYSE:DY) builds and maintains telecommunications infrastructure. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, Dycom grew its sales at a decent 8.9% compounded annual growth rate. Its growth was slightly above the average industrials company and shows its offerings resonate with customers. Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Dycom's annualized revenue growth of 11.1% over the last two years is above its five-year trend, suggesting its demand recently accelerated. This quarter, Dycom's revenue grew by 14.5% year on year to $1.38 billion but fell short of Wall Street's estimates. Company management is currently guiding for a 10.5% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 12.7% over the next 12 months, an improvement versus the last two years. This projection is admirable and implies its newer products and services will spur better top-line performance. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating Margin Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It's also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes. Dycom was profitable over the last five years but held back by its large cost base. Its average operating margin of 6.4% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. On the plus side, Dycom's operating margin rose by 6.3 percentage points over the last five years, as its sales growth gave it immense operating leverage. This quarter, Dycom generated an operating margin profit margin of 14.6%, up 5.9 percentage points year on year. The increase was solid, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Dycom's EPS grew at an astounding 28% compounded annual growth rate over the last five years, higher than its 8.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. We can take a deeper look into Dycom's earnings quality to better understand the drivers of its performance. As we mentioned earlier, Dycom's operating margin expanded by 6.3 percentage points over the last five years. On top of that, its share count shrank by 9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business. For Dycom, its two-year annual EPS growth of 17.9% was lower than its five-year trend. We still think its growth was good and hope it can accelerate in the future. In Q2, Dycom reported EPS of $3.33, up from $2.32 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Dycom's full-year EPS of $8.89 to grow 14.1%. Key Takeaways from Dycom's Q2 Results We enjoyed seeing Dycom beat analysts' EBITDA expectations this quarter. We were also glad its EPS outperformed Wall Street's estimates. On the other hand, its revenue missed and its revenue guidance for next quarter fell short of Wall Street's estimates. Overall, this was a weaker quarter. The stock traded down 6.9% to $250.95 immediately following the results. Is Dycom an attractive investment opportunity at the current price? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
a day ago
- Business
- Yahoo
Dycom Industries, Inc. Reports Fiscal 2026 Second Quarter Results
Second Quarter Highlights(All metrics compared to the second quarter of fiscal 2025) Record Contract Revenues of $1.378 billion, up 14.5% Record GAAP Diluted EPS of $3.33, up 35.4% compared to Q2 2025 Non-GAAP Diluted EPS Record Net Income of $97.5 million, up 42.5% Record Adjusted EBITDA of $205.5 million, up 29.8% and representing 14.9% of contract revenues Operating Cash Flows of $57.4 million Backlog of $8.0 billion as of July 26, 2025 WEST PALM BEACH, Fla., Aug. 20, 2025 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) announced today its results for the second quarter ended July 26, 2025. 'Dycom's first-half performance confirms the strength of our strategy, disciplined execution and ability to capitalize on a rapidly expanding market. This quarter, we delivered record revenue within our range of expectations and record earnings that exceeded our expectations. We meaningfully improved margins through operational efficiency and operating leverage, and strengthened our financial position through measured cash flow management,' said Dan Peyovich, Dycom's President and Chief Executive Officer. 'The demand for digital infrastructure is accelerating, and Dycom's breadth and proven execution set us up to lead. Our customers are actively seeking partners with the scale and national reach to meet their ambitious goals. We are well positioned to achieve our full-year growth target and remain squarely focused on creating long-term value for our shareholders and providing long-term opportunities for our people. I want to personally thank all our teammates for their dedication to safety, quality, and to each other every single day. Their hard work is the foundation of our success.' Second Quarter Results Contract revenues increased 14.5% to $1.378 billion for the quarter ended July 26, 2025, compared to $1.203 billion for the prior year quarter. On an organic basis, contract revenues increased 3.4% after excluding contract revenues from acquired businesses that were not owned for the entirety of both the current and prior year quarters. Total contract revenues from acquired businesses were $139.8 million for the quarter ended July 26, 2025, compared to $5.7 million for the prior year quarter. Non-GAAP Adjusted EBITDA increased to $205.5 million, or 14.9% of contract revenues, for the quarter ended July 26, 2025, compared to $158.3 million, or 13.2% of contract revenues, for the prior year quarter. On a GAAP basis, net income increased to $97.5 million, or $3.33 per common share diluted, for the quarter ended July 26, 2025, compared to $68.4 million, or $2.32 per common share diluted, for the prior year quarter. Non-GAAP Adjusted Net Income was $72.5 million, or $2.46 per common share diluted, for the prior year quarter. Year-to-Date Results Contract revenues increased 12.4% to $2.637 billion for the six months ended July 26, 2025, compared to $2.345 billion for the prior year period. On an organic basis, contract revenues increased 2.1% after excluding contract revenues from acquired businesses that were not owned for the entirety of both the current and prior year periods. Total contract revenues from acquired businesses were $256.6 million for the six months ended July 26, 2025, compared to $13.5 million for the prior year period. Non-GAAP Adjusted EBITDA increased to $355.9 million, or 13.5% of contract revenues, for the six months ended July 26, 2025, compared to $289.2 million, or 12.3% of contract revenues, for the prior year period. On a GAAP basis, net income increased to $158.5 million, or $5.42 per common share diluted, for the six months ended July 26, 2025, compared to $131.0 million, or $4.44 per common share diluted, for the prior year period. Non-GAAP Adjusted Net Income was $135.0 million, or $4.58 per common share diluted for the prior year period. During the six months ended July 26, 2025, the Company repurchased 200,000 shares of its common stock in open markettransactions for $30.2 million at an average price of $150.93 per share. Outlook Fiscal 2026 Annual Outlook We continue to expect total contract revenues for fiscal 2026 to range from $5.290 billion to $5.425 billion, representing a range of 12.5% to 15.4% total growth over the prior year. Fiscal 2026 will include 53 weeks of operations due to our fiscal calendar, with the extra week occurring in the Company's fiscal fourth quarter when operations are normally seasonally impacted by winter weather. Additionally, fiscal 2025 included $114.2 million of storm restoration services and we have not included storm restoration revenues in the fiscal 2026 outlook. Third Quarter Fiscal 2026 Outlook For the quarter ending October 25, 2025, the Company expects the following: Contract revenues $1.38 billion to $1.43 billion Non-GAAP Adjusted EBITDA $198 million to $213 million Diluted Earnings per Common Share $3.03 to $3.36 For additional information regarding the Company's outlook, please see the presentation materials available on the Company's website posted in connection with the conference call discussed below. Use of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company's quarterly results releases, slide presentations, conference calls, and webcasts, it may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. See Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Financial Measures in the press release tables that follow. Conference Call Information and Other Selected Data The Company will host a conference call to discuss fiscal 2026 second quarter results on Wednesday, August 20, 2025 at 9:00 a.m. ET. Interested parties may participate in the question and answer session of the conference call by registering at Upon registration, participants will receive a dial-in number and unique PIN to access the call. Participants are encouraged to join approximately ten minutes prior to the scheduled start time. For all other attendees, a live listen-only audio webcast of the call, including an accompanying slide presentation, can be accessed directly at A replay of the live webcast and the related materials will be available on the Company's Investor Center website at for approximately 120 days following the event. About Dycom Industries, Inc. Dycom is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States. These services include program management, planning, engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers. Additionally, Dycom provides underground facility locating services for various utilities, including telecommunications providers, as well as other construction and maintenance services for electric and gas utilities. Forward Looking Information This press release contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the Company's current assumptions regarding future business and financial performance, including, but not limited to, those statements found under the 'Outlook' section of this press release. Forward-looking statements are based on management's expectations, estimates and projections, are made solely as of the date these statements are made, and are subject to both known and unknown risks and uncertainties that may cause the actual results and occurrences discussed in these forward-looking statements to differ materially from those referenced or implied in the forward-looking statements contained in this press release. The most significant of these known risks and uncertainties are described in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) and include future economic conditions and trends including the potential impacts of an inflationary economic environment, changes in government policies and laws affecting our business, including related to funding for infrastructure projects and tariff policies or changes to tax laws, changes to customer capital budgets and spending priorities, the availability and cost of materials, equipment and labor necessary to perform our work, the adequacy of the Company's insurance and other reserves and allowances for credit losses, whether the carrying value of the Company's assets may be impaired, the future impact of any acquisitions or dispositions, adjustments and cancellations of the Company's projects, the impact to the Company's backlog from project cancellations or postponements, the impacts of pandemics and public health emergencies, the impact of varying climate and weather conditions, the anticipated outcome of other contingent events, including litigation or regulatory actions involving the Company, potential liabilities or other adverse effects arising from occupational health, safety, and other regulatory matters, the adequacy of our liquidity, the availability of financing to address our financials needs, the Company's ability to generate sufficient cash to service its indebtedness, the impact of restrictions imposed by the Company's credit agreement, and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update its forward-looking statements. For more information, contact:Callie Tomasso, Vice President Investor RelationsEmail: investorrelations@ (561) 627-7171 ---Tables Follow--- DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) Unaudited July 26,2025 January 25,2025 ASSETS Current assets: Cash and equivalents $ 28,460 $ 92,670 Accounts receivable, net 1,587,961 1,373,738 Contract assets 119,655 63,375 Inventories 122,560 127,255 Income tax receivable 35,838 2,963 Other current assets 44,448 34,629 Total current assets 1,938,922 1,694,630 Property and equipment, net 564,678 541,921 Operating lease right-of-use assets 112,128 112,151 Goodwill and other intangible assets, net 528,484 550,076 Other assets 75,712 46,589 Total assets $ 3,219,924 $ 2,945,367 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 264,908 $ 223,490 Current portion of debt 20,000 10,000 Contract liabilities 69,897 73,548 Accrued insurance claims 46,345 46,686 Operating lease liabilities 39,217 35,823 Income taxes payable — 30,636 Other accrued liabilities 172,335 166,970 Total current liabilities 612,702 587,153 Long-term debt 1,009,058 933,212 Accrued insurance claims - non-current 54,602 49,836 Operating lease liabilities - non-current 78,575 76,928 Deferred tax liabilities, net - non-current 67,678 32,172 Other liabilities 27,578 26,969 Total liabilities 1,850,193 1,706,270 Total stockholders' equity 1,369,731 1,239,097 Total liabilities and stockholders' equity $ 3,219,924 $ 2,945,367 DYCOM INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share amounts) Unaudited Quarter Quarter Six Months Six Months Ended Ended Ended Ended July 26, 2025 July 27, 2024 July 26, 2025 July 27, 2024 Contract revenues $ 1,377,944 $ 1,203,059 $ 2,636,551 $ 2,345,482 Costs of earned revenues, excluding depreciation and amortization 1,070,450 952,882 2,081,562 1,874,518 General and administrative1 106,794 99,583 210,519 194,138 Depreciation and amortization 60,854 46,572 119,243 91,777 Total 1,238,098 1,099,037 2,411,324 2,160,433 Interest expense, net (15,558 ) (14,657 ) (29,603 ) (27,490 ) Loss on debt extinguishment2 — (965 ) — (965 ) Other income, net 6,830 6,419 14,093 15,669 Income before income taxes 131,118 94,819 209,717 172,263 Provision for income taxes3 33,635 26,419 51,187 41,309 Net income $ 97,483 $ 68,400 $ 158,530 $ 130,954 Earnings per common share: Basic earnings per common share $ 3.37 $ 2.35 $ 5.48 $ 4.50 Diluted earnings per common share $ 3.33 $ 2.32 $ 5.42 $ 4.44 Shares used in computing earnings per common share: Basic 28,941,976 29,096,224 28,936,188 29,105,081 Diluted 29,242,455 29,435,895 29,253,040 29,508,906 DYCOM INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURESTO COMPARABLE GAAP FINANCIAL MEASURES (Dollars in thousands) Unaudited CONTRACT REVENUES, NON-GAAP ORGANIC CONTRACT REVENUES, AND GROWTH % Quarter Quarter Six Months Six Months Ended Ended Ended Ended July 26, 2025 July 27, 2024 July 26, 2025 July 27, 2024 Contract Revenues - GAAP $ 1,377,944 $ 1,203,059 $ 2,636,551 $ 2,345,482 Contract Revenues - GAAP Growth % 14.5 % 12.4 % Contract Revenues - GAAP $ 1,377,944 $ 1,203,059 $ 2,636,551 $ 2,345,482 Revenues from acquired businesses4 (139,766 ) (5,732 ) (256,575 ) (13,529 ) Non-GAAP Organic Contract Revenues $ 1,238,178 $ 1,197,327 $ 2,379,976 $ 2,331,953 Non-GAAP Organic Contract Revenues Growth % 3.4 % 2.1 % NET INCOME AND NON-GAAP ADJUSTED EBITDA Quarter Quarter Six Months Six Months Ended Ended Ended Ended July 26, 2025 July 27, 2024 July 26, 2025 July 27, 2024 Reconciliation of net income to Non-GAAP Adjusted EBITDA: Net income $ 97,483 $ 68,400 $ 158,530 $ 130,954 Interest expense, net 15,558 14,657 29,603 27,490 Provision for income taxes 33,635 26,419 51,187 41,309 Depreciation and amortization 60,854 46,572 119,243 91,777 EBITDA 207,530 156,048 358,563 291,530 Gain on sale of fixed assets (10,103 ) (8,160 ) (19,875 ) (20,564 ) Stock-based compensation expense 8,100 9,482 17,199 17,305 Loss on debt extinguishment2 — 965 — 965 Non-GAAP Adjusted EBITDA $ 205,527 $ 158,335 $ 355,887 $ 289,236 Non-GAAP Adjusted EBITDA % of contract revenues 14.9 % 13.2 % 13.5 % 12.3 % DYCOM INDUSTRIES, INC. AND SUBSIDIARIES RECONCILIATION OF NON-GAAP FINANCIAL MEASURESTO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED) (Dollars in thousands, except share amounts) Unaudited NET INCOME, NON-GAAP ADJUSTED NET INCOME, DILUTED EARNINGS PER COMMON SHARE, AND NON-GAAP ADJUSTED DILUTED EARNINGS PER COMMON SHARE Quarter Quarter Six Months Six Months Ended Ended Ended Ended July 26, 2025 July 27, 2024 July 26, 2025 July 27, 2024 Reconciliation of net income to Non-GAAP Adjusted Net Income: Net income $ 97,483 $ 68,400 $ 158,530 $ 130,954 Pre-Tax Adjustments: Loss on debt extinguishment2 — 965 — 965 Stock-based compensation modification5 — 2,231 — 2,231 Tax Adjustments: Tax impact of pre-tax adjustments — 899 — 899 Total adjustments, net of tax — 4,095 — 4,095 Non-GAAP Adjusted Net Income $ 97,483 $ 72,495 $ 158,530 $ 135,049 Reconciliation of diluted earnings per common share to Non-GAAP Adjusted Diluted Earnings per Common Share: GAAP diluted earnings per common share $ 3.33 $ 2.32 $ 5.42 $ 4.44 Total adjustments, net of tax — 0.14 — 0.14 Non-GAAP Adjusted Diluted Earnings per Common Share $ 3.33 $ 2.46 $ 5.42 $ 4.58 Shares used in computing Non-GAAP Adjusted Diluted Earnings per Common Share 29,242,455 29,435,895 29,253,040 29,508,906 Amounts in tables above may not add due to rounding. DYCOM INDUSTRIES, INC. AND SUBSIDIARIESRECONCILIATION OF NON-GAAP FINANCIAL MEASURESTO COMPARABLE GAAP FINANCIAL MEASURES (CONTINUED) Explanation of Non-GAAP Financial Measures The Company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). In the Company's quarterly results releases, slide presentations, conference calls, and webcasts, it may use or discuss Non-GAAP financial measures, as defined by Regulation G of the Securities and Exchange Commission. The Company believes that the presentation of certain Non-GAAP financial measures in these materials provides information that is useful to investors because it allows for a more direct comparison of the Company's performance for the period reported with the Company's performance in prior periods. The Company cautions that Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results. Management defines the Non-GAAP financial measures used as follows: Non-GAAP Organic Contract Revenues - contract revenues from businesses that are included for the entirety of both the current and prior year periods, excluding certain non-recurring items. Non-GAAP Organic Contract Revenue change percentage is calculated as the change in Non-GAAP Organic Contract Revenues from the comparable prior year period divided by the comparable prior year period Non-GAAP Organic Contract Revenues. Management believes Non-GAAP Organic Contract Revenues is a helpful measure for comparing the Company's revenue performance with prior periods. Non-GAAP Adjusted EBITDA - EBITDA (earnings before interest, taxes, depreciation and amortization) adjusted for gain on sale of fixed assets, stock-based compensation expense, and certain non-recurring items. Management believes Non-GAAP Adjusted EBITDA is a helpful measure for comparing the Company's operating performance with prior periods as well as with the performance of other companies with different capital structures or tax rates. Non-GAAP Adjusted Net Income - GAAP net income before certain non-recurring items and the related tax impact. Management believes Non-GAAP Adjusted Net Income is a helpful measure for comparing the Company's operating performance with prior periods. Non-GAAP Adjusted Diluted Earnings per Common Share - Non-GAAP Adjusted Net Income divided by weighted average diluted shares outstanding. Management excludes or adjusts each of the items identified below from Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Diluted Earnings per Common Share: Loss on debt extinguishment - Loss on debt extinguishment includes the write-off of deferred financing fees in connection with the amendment of the Company's credit agreement during the quarter ended July 27, 2024. Management believes excluding the loss on debt extinguishment from the Company's Non-GAAP financial measures assists investors' overall understanding of the Company's current financial performance and provides management with a consistent measure for assessing the current and historical financial results. Stock-based compensation modification - In connection with the Company's CEO succession plan and transition completed in November 2024, the Company incurred stock-based compensation modification expense. The Company excludes the impact of the modification because the Company believes it is not indicative of its underlying results or ongoing operations. Tax impact of pre-tax adjustments - The tax impact of pre-tax adjustments reflects the Company's estimated tax impact of specific adjustments and the effective tax rate used for financial planning for the applicable period. Notes 1 Includes stock-based compensation expense of $8.1 million and $9.5 million for the quarters ended July 26, 2025 and July 27, 2024, respectively, and $17.2 million and $17.3 million for the six months ended July 26, 2025 and July 27, 2024, respectively. 2 During the quarter ended July 27, 2024, the Company recognized a loss on debt extinguishment of approximately $1.0 million in connection with the amendment of its credit agreement. 3 Provision for income taxes includes tax benefits resulting from the vesting and exercise of share-based awards of approximately $0.6 million and $0.1 million for the quarters ended July 26, 2025 and July 27, 2024, respectively, and approximately $2.8 million and $6.0 million for the six months ended July 26, 2025 and July 27, 2024, respectively. 4 Amounts represent contract revenues from acquired businesses that were not owned for the entirety of both the current and prior year periods. 5 In connection with the Company's CEO succession plan and transition completed in November 2024, the Company incurred stock-based compensation modification expense of $2.2 million during the quarter and six months ended July 27, 2024 related to previously issued equity awards.
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Dycom (DY) Reports Q2: Everything You Need To Know Ahead Of Earnings
Telecommunications company Dycom (NYSE:DY) will be reporting earnings this Wednesday before the bell. Here's what to expect. Dycom beat analysts' revenue expectations by 5.7% last quarter, reporting revenues of $1.26 billion, up 10.2% year on year. It was an exceptional quarter for the company, with a beat of analysts' EPS estimates and an impressive beat of analysts' EBITDA estimates. Is Dycom a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Dycom's revenue to grow 17.5% year on year to $1.41 billion, improving from the 15.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.92 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Dycom has missed Wall Street's revenue estimates twice over the last two years. Looking at Dycom's peers in the engineering and design services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. EMCOR delivered year-on-year revenue growth of 17.4%, beating analysts' expectations by 4.9%, and Sterling reported revenues up 5.4%, topping estimates by 10.8%. EMCOR traded down 2.3% following the results while Sterling was up 8.9%. Read our full analysis of EMCOR's results here and Sterling's results here. There has been positive sentiment among investors in the engineering and design services segment, with share prices up 4.8% on average over the last month. Dycom is up 6.5% during the same time and is heading into earnings with an average analyst price target of $278 (compared to the current share price of $273.50). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
