Dycom's Q4 Earnings & Revenues Beat Estimates, Margins Up

Dycom Industries Inc. DY reported strong results for the fourth quarter of fiscal 2025 (ended Jan. 25). Contract revenues and earnings surpassed their respective Zacks Consensus Estimate and increased on a year-over-year basis.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Shares of the company plunged 5.8% during the trading session but gained 1.9% in the after-hours trading session yesterday.Dycom is positioned for sustained growth, driven by the continued expansion of fiber-to-the-home networks, AI infrastructure investments, and state and federal broadband funding. The company maintained a disciplined capital allocation strategy, balancing acquisitions, share repurchases and organic expansion. Long-term demand visibility remains strong, with potential upside from federal broadband programs expected in the coming years.Dycom Industries, Inc. Price, Consensus and EPS Surprise Dycom Industries, Inc. price-consensus-eps-surprise-chart | Dycom Industries, Inc. QuoteDY’s Q4 Earnings & Revenue DiscussionDycom reported adjusted earnings per share (EPS) of $1.17, which beat the Zacks Consensus Estimate of 91 cents by 28.6% and increased 48.1% from a year ago.Contract revenues of $1.09 billion surpassed the consensus mark of $1.03 billion by 5.6% and grew 13.9% year over year. Contract revenues rose 7.4% on an organic basis. Acquired businesses contributed $61.5 million, and storm restoration services added $67.9 million to total revenues.The company’s top five customers contributed 56.7% to total contract revenues (58.6% contributed in the prior year), which increased 14.2% and 4.6% (organically). Revenues from all other customers grew 13.5% and 11.1% organically in the quarter.Dycom’s largest customer, AT&T, contributed 23.2% to total revenues and grew organically by 22.7%. Lumen (the second-largest customer) contributed 9.5% to total revenues. Comcast contributed 8.1% and Brightspeed represented 8.1% of total revenues. Charter contributed 7.8% to total revenues.Operations & Backlog Details of DycomAdjusted EBITDA increased 24.2% to $116.4 million from a year ago. Adjusted EBITDA margin of 10.7% expanded 90 bps from the year-ago level.Dycom’s backlog at the fiscal 2025 end totaled $7.760 billion compared with $6.917 billion at the fiscal 2024 end. Of the backlog, $4.6 billion is projected to be completed in the next 12 months.Dycom’s Fiscal 2025 HighlightsAdjusted EPS was $8.44, an increase of 24.5% from fiscal 2023. Contract revenues grew 12.6% to $4.7 billion. Adjusted EBITDA grew 19.8% to $576.3 million from fiscal 2024. Adjusted EBITDA margin rose by 70 bps to 12.3%.Dycom’s Balance Sheet & Cash FlowAs of Jan. 25, 2025, Dycom had liquidity of $695.2 million, including cash and cash equivalents worth $92.7 million, compared with $101.1 million as of Jan. 27, 2024. Long-term debt was $933.2 million at the fiscal 2025 end, up from $791.4 million at the fiscal 2024 end.In fiscal 2025, DY repurchased 410,000 shares of its common stock for $65.6 million.Dycom’s Fiscal Q1 2026 GuidanceDycom expects contract revenues between $1.16 billion and $1.2 billion for the first quarter of fiscal 2026. This represents a strong year-over-year increase, driven by continued fiber-to-the-home (FTTH) deployments, hyperscaler long-haul fiber projects and wireless equipment upgrades. However, management acknowledged that the first quarter typically experiences seasonal softness due to winter weather conditions, which can temporarily impact project execution.Adjusted EBITDA is expected to be between $130.6 million and $140.6 million. This reflects the company's expectation of continued margin expansion despite potential weather-related challenges and the ongoing ramp-up of major projects.Dycom anticipates diluted EPS in the range of $1.50-$1.73 per share for the fiscal first quarter.What DY Expects for Fiscal 2026Dycom provided a full-year revenue outlook for fiscal 2026, projecting growth between 10% and 13% compared to 2025. The forecast does not include storm restoration revenues, and capital expenditures are expected to range from $220 million to $230 million to support continued expansion.Dycom’s Zacks Rank & Peer ReleasesDycom currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Quanta Services Inc. PWR reported mixed results for the fourth quarter of 2024, wherein adjusted earnings beat the Zacks Consensus Estimate, but revenues missed the same. However, the top and bottom lines grew year over year.PWR is leading the industry's transformation amid rising demand for power and infrastructure solutions. The company’s strong portfolio, disciplined execution and customer focus drive consistent growth while expanding market reach. In 2025, it anticipates double-digit revenues, adjusted EBITDA and EPS growth, along with a record backlog.Gibraltar Industries, Inc.’s ROCK fourth-quarter 2024 adjusted earnings topped the Zacks Consensus Estimate and grew year over year. On the other hand, net sales missed the consensus mark and tumbled year over year.ROCK’s quarterly bottom-line performance was backed by a favorable mix shift and continued strong operating execution. Although the timing on a large project last year hampered the net sales growth during the quarter, the company is optimistic about the prospects, given the robust public spending trends at the federal and state levels.AECOM ACM reported impressive results for the first quarter of fiscal 2025, where earnings surpassed the Zacks Consensus Estimate and grew on a year-over-year basis. Revenues also increased from the prior year, backed by solid organic net service revenue growth in its design business.As of the fiscal quarter’s end, AECOM’s total backlog was $23.88 billion compared with $23.32 billion reported in the prior-year period. The current backlog level includes 55.2% contracted backlog growth.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Quanta Services, Inc. (PWR): Free Stock Analysis Report AECOM (ACM): Free Stock Analysis Report Gibraltar Industries, Inc. (ROCK): Free Stock Analysis Report Dycom Industries, Inc. (DY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks