• Q4 Revenue: $1.085 billion, a 13.9% increase over Q4 of last year.
• Q4 Adjusted EBITDA: $116.4 million, representing 10.7% of revenue.
• Fiscal 2025 Revenue: $4.702 billion, a 12.6% increase year-over-year.
• Fiscal 2025 Adjusted EBITDA Margin: 12.3%.
• Q4 Adjusted Net Income: $34.5 million.
• Q4 Adjusted Diluted EPS: $1.17, a 48.1% increase.
• Fiscal 2025 Adjusted Net Income: $248.7 million.
• Fiscal 2025 Adjusted Diluted EPS: $8.44, a 24.5% increase from fiscal 2024.
• Backlog: $7.8 billion, with $4.6 billion expected to be completed in the next 12 months.
• Operating Cash Flow: $328.2 million in Q4; $349.1 million for the full year.
• Free Cash Flow: $137.8 million for fiscal 2025, an 82% increase.
• Share Repurchases: 410,000 shares repurchased in fiscal 2025, totaling $65.6 million.
• Fiscal 2026 Revenue Outlook: Expected increase of 10% to 13% over fiscal 2025.
• Q1 Fiscal 2026 Revenue Outlook: $1.16 billion to $1.2 billion.
• Q1 Fiscal 2026 Adjusted EBITDA Outlook: $130.6 million to $140.6 million.
• Q1 Fiscal 2026 Diluted EPS Outlook: $1.50 to $1.73 per share.

• Warning! GuruFocus has detected 2 Warning Sign with UTHR.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Dycom Industries Inc (NYSE:DY) reported strong fourth-quarter revenues of $1.085 billion, reflecting a 13.9% increase over the previous year.
• The company achieved an adjusted EBITDA of $116.4 million, representing 10.7% of revenue, despite facing unforeseen weather challenges.
• Dycom Industries Inc (NYSE:DY) announced a new $150 million stock repurchase program, demonstrating a commitment to returning capital to shareholders.
• The company has diversified its customer base, reducing reliance on its top five customers from 66% of revenue in fiscal 2022 to 55% in fiscal 2025.
• Dycom Industries Inc (NYSE:DY) has a strong backlog of $7.8 billion, with $4.6 billion expected to be completed over the next 12 months, indicating robust future revenue potential.

Negative Points

• The company's fiscal 2026 outlook does not include any revenue from storm restoration services, which contributed $114.2 million in fiscal 2025.
• Dycom Industries Inc (NYSE:DY) is not including any potential revenue from the BEAD program in its fiscal 2026 outlook, indicating uncertainty in this area.
• The company faces competitive pressures in the long-haul market, which could impact pricing and margins.
• Dycom Industries Inc (NYSE:DY) experienced a sequential reduction in headcount, which may indicate challenges in workforce management or project demand.
• The company's SG&A expenses have grown faster than revenues in recent years, potentially impacting operating leverage and profitability.

Q & A Highlights

Q: On the 2026 guidance, is the 10% to 13% growth based on the reported revenue including the $114 million from storm work? Also, are the 5,100 miles of long-haul builds part of the Lumen activity? A: The 2026 guidance does not include storm revenue. The 5,100 miles are public statements from other customers, not Lumen, indicating the breadth of the hyperscaler opportunity. We are in early stages, and this opportunity will play out over multiple years. - Daniel Peyovich, CEO

Q: Could you discuss your expectations for margins throughout 2026 and the impact of Black & Veatch's strong performance in Q4? A: We are not providing a full-year margin outlook but are pleased with our margin expansion over the past three years. We continue to seek efficiencies and invest in innovation. Black & Veatch ramped up faster than expected in Q4, pulling some work forward, but we still feel good about our initial projection for the year. - Daniel Peyovich, CEO

Q: How did organic revenues in Q4 compare to expectations, excluding storm work? And what are the organic assumptions for Q1? A: Storm work occurred throughout the quarter, and we did not have full insight when we gave the initial outlook. Organic growth was higher than forecasted. For Q1, we expect work to pick up after Q1, with some new awards and acquired businesses ramping. - Daniel Peyovich, CEO and H. Andrew DeFerrari, CFO

Q: Can you elaborate on the AI data center opportunity and whether you are diversifying beyond Lumen? A: The AI data center opportunity is increasing, with conversations intensifying. We are talking to hyperscalers and other customers about various opportunities. The need for high-capacity, low-latency networks is driving this demand, and we expect it to be a significant opportunity over time. - Daniel Peyovich, CEO

Q: What is your approach to capital allocation, considering potential acquisitions versus share repurchases? A: We completed three acquisitions last year and are actively looking for opportunities that fit our strategy and culture. We prioritize growth and innovation, investing in AI and safety. Share repurchases are considered where it makes sense, balancing growth and capital allocation. - Daniel Peyovich, CEO and H. Andrew DeFerrari, CFO

For the complete transcript of the earnings call, please refer to the full earnings call transcript.