Latest news with #Dycom
Yahoo
4 days ago
- Business
- Yahoo
Can Data Center Demand Keep Driving Sterling's Margins in 2025?
Sterling Infrastructure, Inc. STRL has steadily carved out a strong position in the data-center construction space, capitalizing on growing demand for E-Infrastructure projects. The company's ability to efficiently manage complex, mission-critical projects and consistently deliver high-quality outcomes has made it a trusted partner for data-center developers. With E-Infrastructure projects becoming an increasingly strategic focus, sustained data-center demand appears to be a key driver supporting the company's margin strength. At the end of the first quarter, the company's total backlog was $2.1 billion. The gross margin of the backlog reached 17.7%, up 100 basis points (bps) from 16.7% at the end of 2024. The improvement was driven by higher E-Infrastructure backlog and its margin growth. E-Infrastructure Solutions accounted for $1.2 billion, representing approximately 57% of the total backlog. The company continues to concentrate on opportunities that offer solid returns while managing factors within its E-Infrastructure segment showed solid growth in the first quarter of 2025, driven largely by increasing demand in the data-center market. Revenues in this segment rose 18% year over year, with data center-related activity expanding roughly 60% compared with the prior year. Data-center projects now represent more than 65% of the segment's backlog, highlighting its critical role in future revenue visibility. This robust demand expanded adjusted operating margins by 618 bps year over year to 23%.Going forward, the company expects data-center demand to remain strong as customers plan multiyear capital deployments and seek partnerships to support these projects. Jacobs Solutions Inc. J and Dycom Industries, Inc. DY are among the key competitors positioned to capitalize on the rising demand for data-center is strengthening its position in the data-center space by securing key roles in emerging technology projects across global markets. In the first quarter of 2025, the company reported double-digit revenue growth in both life sciences and data-center markets. Recent contract awards reflect Jacobs' alignment with high-growth markets and support its efforts to maintain steady and profitable expansion. On May 19, 2025, Jacobs partnered with NVIDIA to support the development of data centers under the NVIDIA Omniverse Blueprint. (Read more: Jacobs & NVIDIA Partner for AI Factory Digital Twins Blueprint).Dycom is broadening its work with hyperscalers by connecting fiber networks and data centers. Fiber demand linked to data centers continues to grow as Artificial Intelligence infrastructure expands. The company is seeing more opportunities to build long-haul and middle-mile routes. This growth is expanding Dycom's addressable market and supporting its digital infrastructure services. Sterling stock has jumped 12.4% in a month, outpacing the Zacks Engineering - R and D Services industry's rise of 6.8%. Image Source: Zacks Investment Research From a valuation standpoint, STRL is currently trading at a premium with a price-to-earnings ratio of 23.21X compared with the industry's average of 20.43X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for STRL's 2025 and 2026 earnings implies a year-over-year uptick of 38.5% and 11.6%, respectively. The EPS estimates for 2025 have remained unchanged in the past 30 days. Image Source: Zacks Investment Research STRL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dycom Industries, Inc. (DY) : Free Stock Analysis Report Sterling Infrastructure, Inc. (STRL) : Free Stock Analysis Report Jacobs Solutions Inc. (J) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
26-05-2025
- Business
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Dycom Jumps 39% in 3 Months: Should You Buy, Sell or Hold the Stock?
Shares of Dycom Industries, Inc. DY have demonstrated strong performance over the past three months, outpacing the Zacks Building Products - Heavy Construction industry. The stock has risen 38.9%, significantly surpassing the industry's 11.5% growth. The DY stock has also outperformed the broader Construction sector's rise of 1.6% and the S&P 500 index's 1.1% fall during the same North America-based telecom infrastructure services provider recently reported first-quarter fiscal 2026 results, with adjusted earnings and Contract revenues surpassing the Zacks Consensus Estimate. The company's top line increased 10.2% year over year, supported by strong contributions from AT&T and all other customers. Owing to strong momentum and the favorable demand outlook, the company raised its 2026 guidance. (read more: Q1 Earnings & Revenues Beat, Backlog Up Y/Y, FY26 View Raised). Image Source: Zacks Investment Research The DY stock has outperformed some other players in the past three months, including MasTec, Inc. MTZ, EMCOR Group, Inc. EME and Fluor Corporation FLR. In the said time frame, MasTec, EMCOR and Fluor have gained 20.2% and 15.1%, and 9.9%, respectively. Technical indicators suggest continued strong performance for Dycom. From the graphical representation given below, it can be observed that DY stock is trading above both 50 and 200-day simple moving averages, signaling a bullish trend. The technical strength underscores positive market sentiment and confidence in its financial health and prospects. Image Source: Zacks Investment Research Let us take a closer look at the factors driving Dycom's recent growth and what this may signal for the stock going forward. The company continues to see growth in fiber-to-the-home projects and maintenance contracts. In the fiscal first quarter, Dycom benefited from customers increasing or reconfirming fiber deployment targets. Higher fiber passing volumes supported revenue growth. Ongoing project acceleration is expected to drive further the end of the fiscal first quarter, the backlog was $8.127 billion, up from $7.760 billion at the fiscal 2025-end and $6.364 billion as of the first quarter of fiscal 2025. Of the current backlog position, $4.685 billion is projected to be completed in the next 12 months. The company is broadening its work with hyperscalers by connecting fiber networks and data centers. This expansion opens new markets and adds to the range of digital infrastructure services offered. The company is also pursuing opportunities to work directly with have also reaffirmed commitments to AI-related data centers and digital infrastructure, with increasing capital expenditure for the calendar year 2025. The company views long-haul and middle-mile networks as a significant market opportunity over the long term. Dycom recently secured a multi-year contract from an ISP for middle-mile network work, marking progress in this developing area. Dycom's service and maintenance segment provides a steady source of recurring revenues. The service and maintenance business has grown steadily alongside its revenues in recent years. This growth is reflected in the fiscal first quarter's results and the updated outlook for fiscal 2026. The company continues to focus on this segment and secured significant new contracts during the company aims to grow its service and maintenance segment while also expanding into fiber deployments, long-haul networks, hyperscaler projects and wireless equipment upgrades. This approach supports the company's overall growth plans. From a valuation standpoint, the company is currently trading at a premium relative to its industry and historical metrics, with the forward 12-month price-to-earnings (P/E) ratio sitting above the five-year Source: Zacks Investment Research Furthermore, DY also trades higher than some of its industry peers, such as MasTec, EMCOR and Fluor, which trade at 23.28X, 19X and 15.67X, company's premium valuation comes amid rising concerns over cost pressures that could affect profitability. Despite Dycom's positive outlook, ongoing tariffs and trade tensions continue to create risks for equipment costs and project margins. The company expects some increases in costs for equipment components sourced offshore. While the impact on current build plans is expected to be limited, these factors add uncertainty to expenses. Dycom is closely monitoring the situation and engaging with customers and suppliers to manage potential challenges. Dycom continues to gain from ongoing fiber-to-the-home programs, steady maintenance and operations activity, along with growing involvement in hyperscaler-related fiber infrastructure work. Despite ongoing tariff-related and macroeconomic challenges, fiber-to-the-home and hyperscaler initiatives continue to support long-term growth stakeholders are advised to hold their positions in this Zacks Rank #3 (Hold) stock, while prospective investors should monitor how the company manages these challenges before investing. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fluor Corporation (FLR) : Free Stock Analysis Report EMCOR Group, Inc. (EME) : Free Stock Analysis Report Dycom Industries, Inc. (DY) : Free Stock Analysis Report MasTec, Inc. (MTZ) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
24-05-2025
- Business
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Dycom price target raised to $250 from $210 at BofA
BofA raised the firm's price target on Dycom (DY) to $250 from $210 and keeps a Buy rating on the shares after fiscal Q1 results that beat BofA and the Street estimates in part due to outsized revenues from the company's Black and Veatch acquisition in 2024. Dycom remains exposed to multiple long-term vectors, which continue to grow, says BofA, which views the AT&T (T) and Lumen (LUMN) transaction positively for Dycom and says the stock remains the analyst's top 2025 SMID cap pick. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on DY: Disclaimer & DisclosureReport an Issue Dycom's Strong Financial Performance and Growth Potential: A Buy Recommendation by Alexander Waters Dycom Industries Exceeds Expectations in Earnings Call Dycom Highlights Strong Fiscal 2025 Financial Performance Dycom price target raised to $255 from $215 at Raymond James Dycom price target raised to $258 from $234 at UBS 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
22-05-2025
- Business
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Dycom Q1 Earnings & Revenues Beat, Backlog Up Y/Y, FY26 View Raised
Dycom Industries Inc. DY reported better-than-expected results for the first quarter of fiscal 2026 (ended April 26). Contract revenues and adjusted earnings surpassed the Zacks Consensus Estimate. On a year-over-year basis, the top line grew while the bottom line stock rose 15.8% during yesterday's trading session after the earnings announcement. The investors' sentiments are likely to have been boosted by an upbeat fiscal second-quarter view and raised fiscal 2026 revenue quarter's performance reflects market demand strength driving the backlog growth, benefits realized from the company's business model and ongoing execution of its strategy. Also, contributions from the acquired businesses added to the DY aims to maintain 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 reported adjusted earnings per share (EPS) of $2.09, which topped the Zacks Consensus Estimate of $1.60 by 30.6%. In the year-ago quarter, it reported an adjusted EPS of $2.12. Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. Quote Contract revenues of $1.259 billion surpassed the consensus mark of $1.199 billion by 5% and grew 10.2% year over year. Contract revenues rose 0.7% on an organic basis. Acquired businesses contributed $111.9 million. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Dycom's largest customer, AT&T, contributed 25.8% to total revenues and grew year over year by 50.9%. Lumen (the second-largest customer) contributed 9.9% to total revenues, which declined 20.2% from last year. Other customers, including Brightspeed, Charter, Comcast, Frontier, Lumen, Verizon and others, contributed 64.2% to the total revenues combined. Adjusted EBITDA increased 14.9% to $150.4 million from a year ago. Adjusted EBITDA margin of 11.9% expanded 40 basis points (bps) from the year-ago backlog as of the fiscal first quarter totaled $8.127 billion compared with $7.760 billion at the fiscal 2025 end and $6.364 billion as of the first quarter of fiscal 2025. Of the current backlog position, $4.685 billion is projected to be completed in the next 12 months. As of April 26, 2025, Dycom had liquidity of $529.6 million, including cash and cash equivalents worth $16.1 million, compared with $92.7 million as of fiscal 2025-end. Long-term debt was $1.018 million as of the fiscal first quarter, up from $933.2 million at the fiscal fiscal 2025, DY repurchased 200,000 shares of its common stock for $30.2 million. Dycom expects contract revenues between $1.38 billion and $1.43 billion for the second quarter of fiscal 2026. This compares with $1.203 billion reported in the year-ago EBITDA is expected to be between $185 million and $200 million, indicating growth from $158.3 million reported last anticipates EPS in the range of $2.74-$3.05, up from $2.46 reported in the year-ago compensation is expected to be $8 million. Net interest expense is expected to be $15.7 million, with the effective tax rate projected to be 26%. Owing to the favorable demand outlook and the upbeat fiscal first-quarter results, Dycom raised its revenue outlook for fiscal 2026. It now expects full-year revenues to be between $5.29 billion and $5.425 billion, reflecting 12.5-15.4% year-over-year growth. Previously, it expected revenues to grow between 10.0% and 13.0%. The forecast does not include storm restoration revenues. Dycom currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks Drainage Systems, Inc. WMS reported dismal results for the fourth quarter of fiscal 2025. Its adjusted earnings and net sales lagged the Zacks Consensus Estimate and tumbled on a year-over-year gloomy quarterly performance reflects unfavorable impacts from higher interest rates and ongoing economic uncertainties. Moreover, adverse winter weather conditions this year against a favorable scenario in the year-ago quarter made comparisons weak, thus adding to the headwinds. Notably, Advanced Drainage Systems' diversified market exposure across the United States, distinctive product mix, material conversion strategy and product innovation strategies position it well for navigating the market Corning OC reported better-than-expected results for first-quarter 2025, wherein adjusted earnings and net sales surpassed the Zacks Consensus Estimate. This marks the 24th consecutive earnings beat for the company. Year over year, the top line grew while the bottom line quarter's performance was attributable to strong commercial and operational execution in mixed markets, including positive price-cost mix. During the quarter, the top line witnessed an uptrend mainly due to strong contributions from the Roofing and Doors segments, somewhat offset by softer performance of the Insulation segment. Despite the several external challenges, Owens Corning will focus on growing its business and profitability through Corp. BLD reported mixed results for the first quarter of 2025, wherein its adjusted earnings topped the Zacks Consensus Estimate and the net sales missed the same. Year over year, both metrics quarterly performance reflects lower sales volume in the Installation segment, mainly due to softened housing demand caused by affordability concerns. However, strength in the Specialty Distribution segment somewhat offset the downward trend during the quarter. TopBuild remains optimistic about its opportunities in the maintenance and repair needs in the commercial and industrial sectors, along with the long-term growth expectations in the residential market. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Drainage Systems, Inc. (WMS) : Free Stock Analysis Report Dycom Industries, Inc. (DY) : Free Stock Analysis Report Owens Corning Inc (OC) : Free Stock Analysis Report TopBuild Corp. (BLD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
22-05-2025
- Business
- Yahoo
Q1 2026 Dycom Industries Inc Earnings Call
Callie Tomasso; Vice President Investor Relations; Dycom Industries Inc Daniel Peyovich; President and Chief Executive Officer; Dycom Industries Inc H. DeFerrari; Chief Financial Officer, Senior Vice President; Dycom Industries Inc Alexander Waters; Analyst; BofA Global Research Richard Choe; Analyst; JPMorgan Steven Fisher; Analyst; UBS Frank Louthan; Analyst; Raymond James Sangita Jain; Analyst; KeyBanc Capital Markets Inc. Adam Thalhimer; Analyst; Thompson, Davis & Company Jean Veliz; Analyst; D.A. Davidson Companies Laura Mayer; Analyst; B. Riley Securities Operator Good day, and thank you for standing by. Welcome to Dycom Industries Inc. first-quarter 2026 results conference call. (Operator Instructions) Please be advised that today's conference is being recorded. I would now like to hand the conference over to Tomasso, Dycom's Vice President of Investor Relations. Please go ahead. Callie Tomasso Thank you, operator, and good morning, everyone. Welcome to Dycom's first quarter fiscal 2026 results conference call. Joining me today are Dan Peyovich, our President and Chief Executive Officer; and Drew DeFerrari, our Chief Financial Officer. Earlier this morning, we released our fiscal 2026 first quarter results. along with certain outlook press release and accompanying materials are available in the Investor Relations section of our website. Today's discussion will include forward-looking statements made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements reflect our expectations, assumptions and beliefs regarding future events and are subject to risks and uncertainties that could cause actual results to differ materially.A detailed discussion of these risks and uncertainties is included in our filings with the SEC. Forward-looking statements are made as of today's date, and we undertake no obligation to update them. Additionally, we will reference certain non-GAAP financial measures during today's call. Explanations of these measures and reconciliations to the most directly comparable GAAP measures can be found in our press release and accompanying that, I will turn the call over to Dan Peyovich. Dan? Daniel Peyovich Thank you, Callie, and good morning, everyone, and thank you for joining us. We delivered a strong start to fiscal 2026 and continue to make progress against the goals I outlined at the start of the year. I'm pleased to report that we exceeded the high end of our guidance for the quarter on all metrics, including revenue, adjusted EBITDA and first quarter revenue was $1.259 billion, a 10.2% increase over Q1 2025. Our adjusted EBITDA was $150.4 million, representing 11.9% of revenues and an increase of 14.9% over Q1 2025. In addition, we repurchased 200,000 shares or $30.2 million during the quarter. As a result of our strong performance and our view of the market today, we are increasing our revenue expectations for the year to a range of $5.29 billion to $5.425 the current macroeconomic uncertainty, we remain confident in the drivers of our industry and our ability to capitalize on the opportunities. This is evident in our record backlog of $8.1 billion including a record $4.7 billion of next 12-month backlog. We worked hard to diversify our customer base and the services we offer within the telecommunications and digital infrastructure diversification offers us from the impact of any single customer or program. Underpinning each of these drivers and build programs is our service and maintenance business, which has grown significantly along with our revenue in recent services provide consistency and stability as other customers programs at and flow. The nature of the work within this business, that is day-to-day maintenance, restoration as well as accommodating road moves and other infrastructure work and extending networks in the greenfield developments. When taken at scale, creates consistency in the volume of work and associated revenue and growth in this business comes from maintaining a newly installed plant from the fiber-to-the-home builds as well as securing additional markets from our customers. The work is sustainable as the agreements are typically two to four years in duration, and as a reminder, we only include contracts up to their current expiration dates in our short, our service and maintenance business provides a stable base of recurring revenue. Our strategy is to build on our service and maintenance business while also capitalizing on other drivers, whether that's fiber-to-the-home deployments in urban, suburban and rural America, long haul, and middle mile networks, hyperscale at work inside the fence, wireless equipment replacements or other drivers. We continue to layer these programs into our business in alignment with our growth visible in the results from last year. It's visible on the results this quarter and is visible on the revised outlook we are providing for fiscal 2026. We've built Dycom to be resilient and nimble and we believe we've differentiated ourselves in the TAM in our industry, combined with the speed and commitment with which our customers are planning and executing their strategic plans means complexity has increased, and complexity favors Dycom. Our customers demand certainly of demand certainty of quality, and they want a partner they can trust every step of the way. Many customers have and continue to consolidate their vendors, shifting more and more work to proven partners with national reach. This shift, just like the increasing complexity of the work they need done, favors Dycom. Transitioning to the broader recent tariffs and international trade actions have created volatility and market uncertainty, we believe that the impact to Dycom and to our customers current build plans will be negligible. We continue to track this closely and have discussed it with many customers, telecommunications equipment manufacturers and our equipment there will be cost increases in some equipment components that come from offshore, the bulk of the components in these builds are produced in the United States. Since labor represents the majority of build costs, tariff implications are diluted as a percentage of the overall build and as such, we are not anticipating any impact to our current to our equipment suppliers. While there are some tariff implications, we believe that the percentage increases are manageable without impacting our margins or our customers programs. Of course, the policies and actions around tariffs and international trade are fluid, and there can be impacts different from what we anticipate against this backdrop, demand drivers in our business remain robust. First, many of our customers recently reconfirmed or increased their fiber-to-the-home targets. As I shared during our last call, the increase in fiber-to-the-home passing is a key driver for our revenue growth, and we delivered on that during the first quarter. We continue to see fiber-to-the-home ramping as many of these programs we added a number of new projects to our backlog this quarter, I would point to several notable awards with Verizon for both fiber-to-the-home and maintenance works with Windstream for both fiber-to-the-home and maintenance work as well as fiber-to-the-home awards with fiber demand related to data centers continues to grow. Opportunities to build long-haul and middle mile routes to meet the needs of AI infrastructure are increasing, and we are underway and executing well on the Lumen overall project. All the hyperscalers reiterated or increased their CapEx budgets and commitment to AI infrastructure on their most recent calls, and we continue to see these long-haul and middle mile networks as a significant addressable market over the long this driver is still in its early days, we are pleased to have received a substantial multiyear award from an ISP for middle mile network. We expect this recently awarded work to commence later this fiscal year with revenue ramping in fiscal the opportunities for long-haul and middle-mile routes, we are seeing and having discussions to move inside the fence to work directly with hyper-scalers. Generally, this work brings fiber from the BEAD vaults in the right of way directly into the data centers and includes connecting data centers via underground networks within BEAD vaults are typically where the backhaul work we performed for our ISP customers terminates. We were notified of an award from a hyper-scaler related to this work that will commence this year, but is not yet in backlog. Entry into this scope further expands our TAM and provides another opportunity for us to leverage our skill set, add value directly for the hyperscalers and further diversify our capabilities as a provider of digital infrastructure while the final construct of the BEAD program remains unknown, additional states that published sub-grant awards with a heavy lean toward fiber structure. We continue to believe that there will be considerable opportunities for us in fiscal 2027 with the possibility of awards in the second half of this we noted during our last call, we have not included revenue from beef in our updated financial outlook for fiscal 2026. Importantly, while the beat opportunity is significant, we believe the other drivers in our space provide robust ongoing opportunities to support our continued growth in the years to come. Fourth, we maintain our focus on our service and maintenance business and added meaningful awards this day-to-day connection with our customers and our national footprint to serve these contracts enable further differentiation in the depth of our relationships and the scope and scale of our operations. Lastly, our wireless equipment replacement works, both organic and from our acquisition last year continues to deliver above we are not updating specific wireless guidance for the fiscal 2026 outlook, we believe this work will well outperform the original expectations we gave at the close of the transaction, and we have included this in our Q2 guidance and full year outlook. I'd like to shift to discussing our progress on the goals I outlined at the start of the fiscal year. We remain focused on providing long-term value for our shareholders and long-term opportunities for our approach to pursuit is consistent and disciplined with backlog that properly balances risk and return profiles to create value for our shareholders. We have proven our ability to capitalize on the opportunity set and that our customers value what Dycom brings with record backlog this quarter, and the new market awards across drivers I mentioned teams continue their focus on improving free cash flow and while our progress may not be linear, we expect to continue to improve our cash flow throughout the year. In summary, we have a well-defined strategy, clear objectives and explicit metrics to track our progress along the way. We are investing with intention and getting the outcomes and returns we demonstrated our ability to execute and capitalize on our strategy and on the increasing TAM in our industry. Despite some tariffs and macroeconomic uncertainty, our customers are steadfast in their fiber-to-the-home and hyper-scaler build programs, and we continue to see multiyear opportunities for expanded our services inside the fence with hyperscalers, opening us up to entirely new opportunities and further demonstrating the broad diversification of telecommunication and digital infrastructure verticals we we continue to deliver at a level that allows us to increase our revenue expectations for the year, and we believe raises the bar in the industry. I'd like to thank our nearly 16,000 teammates for their commitment to working safely every day, and for delivering another strong believe our customers recognize the difference in working with Dycom and we continue to work hard to earn their business every day as we pursue our vision to be the people connecting in that, I'll pass the call to Drew. H. DeFerrari Thanks, Dan, and good morning, everyone. We are pleased that we outperformed the high end of our expectations for Q1, delivering solid top line and adjusted EBITDA growth and margin expansion while also returning capital to our shareholders through share quarter total contract revenues of $1.259 billion grew 10.2% over Q1 of last year. Revenues in the quarter were driven by continued execution of fiber-to-the home programs, wireless activity, higher maintenance and operations services and initial revenue contribution from fiber infrastructure programs for EBITDA of $150.4 million or 11.9% of contract revenues increased 49 basis points as a percentage of contract revenues over Q1 '25 and exceeded the high end of our expectations for the quarter. Net income was $61 million and diluted EPS was $2.09 per share, also exceeding the high end of our for the quarter included income tax benefits resulting from the vesting and exercise of share-based awards of $2.2 million or $0.08 per share compared to $5.9 million or $0.20 per share in Q1 last year. We are pleased with the strength of our relationships and diversification across our customer base. We had one customer, AT&T, that exceeded 10% of total revenues. AT&T was at $325.1 million for the exceeding 5% of total revenues for the quarter were Brightspeed, Charter, Comcast, Frontier, Lumen, Verizon and an unnamed customer. This presentation of our customer base, combined with our annual revenue outlook provides insight into our performance, balanced with attention to customer preferences and competitive had solid bookings across a broad range of customers in the quarter. Backlog at the end of Q1 was $8.127 billion, including $4.685 billion that is expected to be completed in the next 12 months. Operating cash flows used in the quarter were $54 million, supporting the growth in revenue and reflected seasonal uses of combined DSOs of accounts receivable and contract assets net were 111 days, a reduction of three days sequentially from Q4 '25 and Strong cash flows remain a key focus area for the company, and we continue to see opportunities for the quarter, we repurchased 200,000 shares of our common stock for $30.2 million generating solid shareholder returns is a priority, and we will remain opportunistic in our approach towards capital allocation. We are closely monitoring the recent actions on tariffs and international trade. All of Dycom's business operations are based in the United States. And while these actions have created volatility and market uncertainty, we believe the impact of Dycom and to the customers current build plans will be observing increasing momentum across industry drivers, creating significant opportunities for our company. Building on our strong first quarter results and a favorable demand outlook, we are increasing our full year fiscal 2026 expected range of contract now expect total contract revenues to range from $5.29 billion to $5.425 billion, representing a range of 12.5% to 15.4% total growth over the prior year. For our Q2 of fiscal 2026 outlook, we expect contract revenues 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. Additional financial outlook metrics can be found in the presentation materials posted to our IR this concludes our prepared remarks. You may now open the call for questions. Operator (Operator Instructions)Alex Waters, BofA. Alexander Waters Hey, good morning. Thanks so much for taking my question. Maybe first off, Dan, you noted the kind of strong performance of Black & Veatch. Is this more of a pull forward of activity or have you seen kind of a larger opportunity set here? And then secondly, just on the maintenance side. You noted it a couple of times in your opening remarks, but could you help size that business for us for Dycom? Daniel Peyovich Good morning Alex. On Black & Veatch, the wireless acquisition, that's a little bit of both, a little bit of a pull forward, but mostly ramping much quicker than expected and work is going extremely well. The business is well integrated into our overall operations and excited about how they've done this quarter and the projection the maintenance side, absolutely. As I talked about, service and maintenance underpins the drivers in our business, certainly a core part of our strategy that goes back a long way. It really enables the other drivers, as you've seen. And if you look at our backlog, that growth is not only in service and maintenance but across many very different today than maybe a few years ago. Recurring revenue, I think that's a very important point, longer-term contracts. And even though in our backlog, we only project them until the end of the current agreement, it's quite common that we get to renew that consistency when you take it at scale, and the scale that we have across the entirety of the United States and across many, many customers, really gives us embedded operations, and we can leverage that. We can leverage that into customer builds, we can certainly leverage that in opportunities. we leverage it and how we look at our labor and our labor forces and our ability to respond ultimately to our customers increasing demands. Yeah, specifically about size. What I would say, we don't give specifics, Alex, but it's historically been over 50% of our business. Alexander Waters Perfect thank you so much. Operator Thank Choe, JPMorgan Richard Choe I wanted to follow up a little bit on the second quarter guidance. Is that the continuation of the strength from the wireless side or do you see new projects kind of ramping up and helping contribute to that? Daniel Peyovich Good morning, Richard. First, I talked last quarter about fiber to the home builds and how they're ramping our customers. Now I think the total -- if you look back a little over a year, the total is over [45 million] incremental passings that they've added. And as you've heard on many of our calls, we've been fortunate to be part of those programs that are increasing and also win new markets. So Richard, as we look out over the years, certainly for Q1, those programs went a little bit quicker than we as we look towards the rest of the year, that certainly will be included in our outlook. The second part is absolutely the wireless business, as I mentioned, is going very well, integrating very well and ramping more quickly. So that very much helped in our Q1 results. It's very much part of the Q2 outlook and certainly the outlook for the full year. Richard Choe And you mentioned a little bit on the CapEx from your equipment suppliers and that being manageable. I know it could be a little confusing given all the changes we've kind of seen. But is there any potential or idea of maybe pulling forward some of the spending before the tariffs hit or maybe it's too late. Any kind of thoughts there? Daniel Peyovich So Richard, our strategy around the equipment that we purchased in order to do the work and of course, as you know, our customers buy the bulk of what we actually install. But for our equipment manufacturers, it's always been something we've been very strategic about. As you saw coming through COVID, we were able to stay ahead of that from an equipment perspective, even though when there were significant even then when costs increased considerably for some of those pieces of equipment, in this particular case, we feel really good about where we are with the growth that we've had, we've been spending a lot of time projecting and working with our equipment manufacturers to make sure we can enable that growth.I would add, we do that on the labor side as well, right? We want to make sure that neither of those are going to impede our customers' big plans and aspirations. So we feel good about where we're at. The tariffs impacts are real, right, for things that are coming in from outside of the United States, we're in constant conversations with the manufacturers. When you look at in the entirety, when you build up the whole model, what it cost to pass a home or to put in a foot of of fiber on the long haul, it's a very small component. So we feel that it's very manageable going forward and feel good about the size of our current fleet and our ability to adapt to that. Richard Choe Great. Thank you. Operator Steven Fisher, UBS. Steven Fisher Thanks. Good morning. Just a follow-up on some of the cost angles there. It was nice to see the year-over-year margin improvement I guess was there anything unusual with the cost this quarter or mix or execution that was contributing to that year-over-year growth? And just curious if there's any reason to think we won't see continued kind of year-over-year margin improvement for the balance of the year. Daniel Peyovich Hi, good morning, Steve. First, operating leverage is what I would focus on. So I talked about last quarter, we're pretty strategic about how we're investing in the business to make sure we can stay ahead of growth, make sure we can continue to deliver at the level that we've been delivering for our customers and the communities and certainly for our shareholders. So at times, we're investing in the business, and it doesn't drop through. And other times, we're able to pass that through down to the bottom operating leverage is a big part of that increase. As we look forward towards the year, and I think Drew mentioned this a little bit, we do see opportunities for continued margin growth, working very hard to achieve that. And again, most of that would come from operating leverage. We're always -- I should know, we're always working on efficiencies of the business, so I don't want that to be mistaken. We spent a lot of time on safety, a lot of time on quality, a lot of time on production, really up the training rigor across the this all comes back to making sure we could stay ahead of labor and deliver the quality for our customers. But at the end of the day, if you think about our margin opportunities right now, the bulk is going to be for operating leverage. Steven Fisher Great. And then it sounded like you reiterated your comments and message on BEAD, no change there. It seems like this quarter and the guidance tells us that you really don't need to deliver double-digit growth since you don't have anything in your revenues for it. I'm just curious what you're hearing on that program and how you see the importance of it for your business in the next couple of years, just in case as the policy landscape evolves, if it gets further diminished. Just kind of want to curious to see how you're thinking about it for the next couple of years. Daniel Peyovich I think you hit on the key message there. It's not in our outlook today. When you think about the other drivers, we think about the growth of our service and maintenance business that we've grown along with our revenue these past few years. We feel really good about our growth prospects you see that in the outlook for this year. And I think we feel good about opportunities that go well beyond this year regardless of that said, we continue to believe bed is going to be a real is expecting to hear something probably in mid-June or July. So hopefully, by next quarter, we can provide a little bit more clarity -- we're talking to the broadband offices weekly. Certainly, we're talking to many of the subgrantees and potential subgrantees constantly. There's still a lot of bullishness that a lot of fiber is going to get installed in rural America for the BEAD program. But as I noted, really, that's going to be calendar '26 or fiscal ' continue to update, Steve, but I think the important takeaway is it's really not needed for a current growth curve. We'd love to have it. We still think there's going to be plenty of rural opportunities with or without BEAD. Steven Fisher Perfect. Thanks very much. Operator Thank Louthan, Raymond James & Associates. Frank Louthan Great, thank you. Looking at your backlog, is the pace that you're working through the backlog change from how it's trended historically or things moving any faster? And can you give us an idea of the current organic growth rate and what percentage of your backlog is it represents organic growth? Thanks. Daniel Peyovich Yeah, the first part, Frank I think just touching on backlog overall that I'd like to highlight is the diversification. So across customers, across programs, and across drivers. We do feel like we have a really good mix across multiple opportunities and really what we look forward to our potential growth in the future, more opportunities out there to continue that that's the first point I'd make on backlog. As far as organic growth, I'll let Drew talk about that a little bit, but if I can just make a couple points, one, we continue to see long term opportunities for organic grow to, when you think about the businesses and the reason that we've really been highlighting our overall growth, when you think about the business, like the wireless business we recently acquired, we're investing huge amounts of capital into that growing it significantly. We're doing a lot of work to make that more efficient and more effective. So this isn't a situation where we're just adding another layer to the cake that came in operating at a certain level and comes into the business. And I can tell you when Drew and myself and the rest of the leadership team are having conversations, we don't differentiate internally about where we're going to invest. We're looking for the right kind of opportunities with the right kind of returns for our whether it's organic or inorganic doesn't matter. The point is that all of those opportunities were growing. So we feel good about, obviously the overall growth this year. We feel good about our opportunities for continued organic growth, and I'll let Drew touch on any of the numbers. H. DeFerrari Yes, Frank, good morning. So organic growth was slightly positive this quarter. We did disclose it. So you'll see that. And then if you recall from last quarter, I called out that last year, at the beginning of the year, we had a couple of customers that had a busier start and then they slowed later in the year. And so we're lapping those quarters in the first and second quarter of this year. so we see opportunities for organic growth to continue to grow from here. Daniel Peyovich Frank, I think you mentioned burn rate too. I apologize I didn't hit that one, but still feel good about the pace of our business and we don't see any big changes there. H. DeFerrari Okay, great, thank you. Operator Thank Jain, KeyBanc Capital Markets. Sangita Jain Thank you. Good morning. Thanks for taking my questions. So one, I have on your guidance raise. So if we look at 1Q results on the 2Q guide, I'm wondering if that implies some conservatism in your full year guidance range in the sense that you may not be factoring in the full impact of the extra week? Or if there's something else that we are missing? I know you referenced some pull forward. Daniel Peyovich Good morning, thank you. We certainly included the extra week in the year. And it's important to note. So one, yeah, we've included the outperformance in Q1. We certainly looked at Q2. But as you look across the scope of our business, we have hundreds, in fact, thousands of projects. And of course, when we project that we projected project by project, they don't all move in the same direction at the same we spent a lot of time about that. We feel really good about the growth and the increase in the outlook that we gave for the year and the increase in the outlooks for of Q2 and believe one is achievable, and there's opportunities for our continued growth. Sangita Jain Great. And then I'll follow up on your commentary around your expanded O&M business. Longer time, do you think that can reduce your capital intensity and be more like a free cash flow accretion event over time? How should we think about that? H. DeFerrari Yes, Sangita, I appreciate the question. So free cash flow continues to be a priority for the company. Pleased that we had DSO improvement in the quarter. We work hard at that, and we'll continue to. We're not satisfied yet with where we're at from a CapEx perspective, we did have a busier start to the year or an active start to the year, I should say, around that. We do still see the range of total our net CapEx for the year in that $220 million to $230 million range, and we're working hard at the operating cash flow. Sangita Jain Great, appreciate that. Operator Adam Thalhimer, Thompson Davis. Adam Thalhimer Hey, good morning guys. Congrats on the beat. Daniel Peyovich Hey, good morning. Adam Thalhimer Hey Dan, I wanted to follow up on you're talking kind of fast. It sounded like there were two incremental awards. One was for middle mile fiber for data centers and one was for inside of the fence work for a hyper-scaler customer. Were those both awarded after the quarter? And are they in the revenue guide? Daniel Peyovich Thanks, Adam, and good point. So I appreciate the opportunity to highlight it. So the first one is for a customer other than Lumen women, that's middle mile at work to enable the AI infrastructure for hyperscalers. So different customer, a great opportunity, multiyear. We're very excited to partner with the customer there. The second is that one is included in our backlog. And the second one, the inside defense work that I talked about. The important point I was trying to make is this is a new opportunity set for us. It's work that we do all the time. But moving from the right away and inside the fence, quite literally inside the fence into these data centers and data center clusters, is a new work that we know now well, this really comes out of the evolution of us spending years now with the hyperscalers. And myself, personally, of course, I spent a couple of decades working with hyperscalers building these data things that we feel really good about, but it is a good opportunity set and one that we hope to be able to expand in future years and certainly in future quarters. The reason I noted about the award itself is this one is just a little have an MSA for the work. They won't issue the PO technically until we're about to start. So that work is not included in backlog, but we do anticipate that work to happen this year. Adam Thalhimer Got it. And are you working inside of the walls of the data center or is it more connecting? When you look at a data center campus, it's more connecting the data centers within the campus. Daniel Peyovich Absolutely. So typically, we're going to take the work that we do for the carriers to evolve in the right way that we referred to as the meet me vault. From that point, is more typically where our work is. Again, that's on the carrier side. So this is work that the carriers themselves would not typically we're going to take it from that Vault actually inside fence and ultimately, inside the data centers to land. We won't be taking it in the data center holes into the racks themselves. But we will terminate inside the data center walls. So the good scope opportunity. We also will connect data centers where they have multiple data centers in one cluster or on one set of have an opportunity to connect those as well. So again, great opportunity for us, one that we're excited about and certainly appreciate the work that we've done and we'll continue to do for the hyper-scalers. Adam Thalhimer All right, great, thanks for the color. Operator (Operator Instructions)Jean Veliz, D.A. Davidson. Jean Veliz Good morning, and congrats on the quarter. Daniel Peyovich Morning. Thank you. Jean Veliz Regarding the Charter Cox acquisition following the Verizon and Frontier acquisition, does that further -- does further customer consolidation drive more business? Daniel Peyovich So historically, and I think it's a little, you're breaking up just a little bit, but I think you're talking about Verizon Frontier, and then, crossing additional milestones. So typically when we think about customer consolidation, that's been a positive for us. One, larger customers typically want a national player like us to be able to work across many of their two, anytime there's capital infusion and and consolidation like that, generally speaking, there's going to be more opportunities, more investment, overall. So generally, yeah, we think that's a positive for us historically it has been, and again, customers we've been working with for a long time and we're excited about their combination. Jean Veliz Great, thank you. I appreciate the time. Operator [Laura Mayer], B. Riley Securities. Laura Mayer Hi, thanks for taking the question. Daniel Peyovich Good morning. Laura Mayer So I was wondering as it relates to government layoffs have you seen this affect the approval process at all? And are you seeing any early benefits of deregulation? Daniel Peyovich So again, something that these days is quite fluid, and we're following very closely. If you're referring to the potential for easing permitting, that would obviously be a positive for the industry. I think there are a lot of opportunities. We talk a lot about bed and some of the potential pullbacks. But to your point, there are a lot of things that could further enable expansion for our you look at bonus depreciation in the latest bill, that would obviously be a positive for our customers, and they've talked about how that could increase spending. So there are a lot of potential positives and we'll see how it plays out something we're watching closely every day. Laura Mayer Okay, thanks. I'll pass it on. Operator Thank you. And that does conclude our question-and-answer session for today's call. I'd now like to turn the conference back to Mr. Dan Peyovich for any closing remarks. Daniel Peyovich Yeah, I'd like to thank everyone for joining us this morning and look forward to seeing you next quarter. Be safe and be you. And this does conclude our conference. Thank you for participating, and you may now disconnect. Everyone, have a wonderful day. Operator Thank you, and this does conclude our conference. Thank you for participating and you may now disconnect. Everyone, have a wonderful day. 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
