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1. Company Snapshot

1.a. Company Description

Dycom Industries, Inc.provides specialty contracting services in the United States.The company offers program management and engineering services; plans and designs aerial, underground, and buried fiber optic, copper, and coaxial cable systems; and construction, maintenance, and installation services, such as placement and splicing of fiber, copper, and coaxial cables to telecommunications providers.


It also provides tower construction, lines and antenna installation, foundation and equipment pad construction, and small cell site placement for wireless carriers, as well as equipment installation and material fabrication, and site testing services; and installs and maintains customer premise equipment, such as digital video recorders, set top boxes, and modems for cable system operators.In addition, the company offers construction and maintenance services for electric and gas utilities, and other customers; and underground facility locating services, such as locating telephone, cable television, power, water, sewer, and gas lines for various utility companies, including telecommunication providers.Dycom Industries, Inc.


was incorporated in 1969 and is headquartered in Palm Beach Gardens, Florida.

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1.b. Last Insights on DY

Dycom Industries' recent performance was driven by its impressive Q3 earnings report, which surpassed estimates with quarterly earnings of $3.63 per share, a significant beat over the Zacks Consensus Estimate of $3.15 per share. The company also announced a strategic acquisition, expanding its data-center reach with a $1.95 billion Power Solutions deal. This move, coupled with record Q3 results, led to an increase in its FY26 outlook. Additionally, Creative Planning increased its holdings in Dycom Industries by 88.7% in the second quarter, indicating growing investor confidence.

1.c. Company Highlights

2. Dycom Industries' Q3 FY 2026 Earnings: A Record-Breaking Quarter

Dycom Industries, Inc. reported a record third quarter for fiscal 2026, with revenue of $1.45 billion, a 14.1% increase from Q3 FY 2025, and adjusted EBITDA of $219 million. The company's actual EPS came out at $3.33, beating estimates of $2.92. The strong financial performance was driven by a robust backlog, which reached an all-time high of $8.2 billion, with strong bookings throughout the quarter.

Publication Date: Nov -20

📋 Highlights
  • Record Q3 Revenue:: Dycom reported $1.45 billion in revenue, a 14.1% increase year-over-year, with adjusted EBITDA of $219 million.
  • Acquisition of Power Solutions:: $1.95 billion deal for a data center electrical contractor, expected to boost EBITDA margins and EPS, with 90% of Power Solutions' revenue tied to data centers.
  • Full-Year Revenue Outlook Raised:: Guidance updated to $5.35–$5.425 billion (13.8%–15.4% growth), with Q4 contract revenue projected at $1.26–$1.34 billion.
  • Backlog Growth:: Total backlog hit $8.2 billion, while Power Solutions holds over $1 billion in backlog and has mid-to-high teens EBITDA margins.
  • Strategic Market Expansion:: $20 billion addressable market for outside plant work, expanded by the Power Solutions acquisition, with 15% CAGR in Power Solutions’ revenue over four years.

Acquisition of Power Solutions

The acquisition of Power Solutions, a premier data center electrical contractor, was announced for $1.95 billion, expected to close in Q4 and immediately accretive to adjusted EBITDA margin and adjusted diluted EPS. Power Solutions brings expertise in electrical infrastructure for data centers, with over 90% of its revenue from data centers, and a strong presence in the DMV region, the world's largest data center region.

Growth Prospects and Synergies

The acquisition is expected to expand Dycom's exposure to rapidly growing mission-critical data center demand, diversify its services, and add substantial skilled labor capacity. The company expects the acquisition to be accretive to its adjusted EBITDA margin and adjusted diluted EPS, excluding non-cash intangible amortization expense. The integration of Power Solutions is expected to preserve its culture, autonomy, and local leadership, while applying Dycom's scale, financial resources, and operational expertise to drive growth opportunities.

Valuation and Outlook

With a P/E Ratio of 36.07 and an EV/EBITDA of 16.61, the market is pricing in significant growth prospects for Dycom Industries, Inc. Analysts estimate next year's revenue growth at 15.1%, which is in line with the company's long-term growth strategy. The acquisition of Power Solutions positions Dycom Industries, Inc. for accelerated growth in digital and data center infrastructure services, and the company's strong backlog and robust demand drivers in the telecommunications space are expected to drive future growth.

Conclusion on Financial Health

Dycom Industries, Inc.'s pro forma net leverage is expected to be below three times at closing, with a clear path to delever to approximately 2x net leverage in the next twelve to eighteen months, indicating a manageable debt burden. With a ROE of 20.44% and ROIC of 10.79%, the company is demonstrating strong profitability and return on investment.

3. NewsRoom

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Can Dycom Offset Wireless Softness With Surging Fiber Demand?

Dec -04

Source: zacks.com

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Dycom Industries: The Bull Case Remains Intact

Dec -04

Source: seekingalpha.com

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Dycom Industries, Inc. (DY) Presents at UBS Global Industrials and Transportation Conference Transcript

Dec -03

Source: seekingalpha.com

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GLDD vs. DY: Which Stock Is the Better Value Option?

Dec -03

Source: zacks.com

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Best Momentum Stocks to Buy for Nov. 26

Nov -26

Source: zacks.com

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Bull of the Day: Dycom Industries (DY)

Nov -26

Source: zacks.com

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Best Growth Stocks to Buy for Nov. 26

Nov -26

Source: zacks.com

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Advisors Asset Management Inc. Sells 3,845 Shares of Dycom Industries, Inc. $DY

Nov -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.11%)

6. Segments

Telecommunications

Expected Growth: 10%

Dycom Industries, Inc.'s 10% growth in Telecommunications is driven by increasing demand for high-speed internet and mobile connectivity, 5G network deployments, and fiber-optic infrastructure investments. Additionally, growing adoption of IoT devices, rising need for network infrastructure upgrades, and strategic acquisitions are contributing to the segment's growth.

Underground Facility Locating

Expected Growth: 12%

Dycom Industries' Underground Facility Locating segment growth is driven by increasing demand for utility infrastructure upgrades, 5G network deployments, and fiber-optic installations. Additionally, government initiatives for grid modernization and renewable energy integration contribute to the 12% growth rate.

Electrical and Gas Utilities and Other

Expected Growth: 9%

Dycom Industries, Inc.'s 9% growth in Electrical and Gas Utilities and Other segments is driven by increasing demand for 5G network deployments, fiber-based broadband expansion, and grid modernization initiatives. Additionally, the company's strategic acquisitions and partnerships have enhanced its capabilities, leading to increased market share and revenue growth.

7. Detailed Products

Wireline Network Solutions

Dycom Industries provides wireline network solutions, including the installation, maintenance, and upgrade of fiber optic networks, copper networks, and hybrid fiber-coaxial networks.

Wireless Network Solutions

Dycom Industries offers wireless network solutions, including the installation, maintenance, and upgrade of cell towers, small cells, and distributed antenna systems.

Fiber-to-the-Home (FTTH) Solutions

Dycom Industries provides FTTH solutions, including the design, installation, and maintenance of fiber optic networks that deliver high-speed internet, voice, and video services directly to homes and businesses.

Data Center and Cloud Infrastructure Solutions

Dycom Industries offers data center and cloud infrastructure solutions, including the design, installation, and maintenance of data center facilities, cloud infrastructure, and edge computing solutions.

Smart City and IoT Solutions

Dycom Industries provides smart city and IoT solutions, including the design, installation, and maintenance of smart city infrastructure, IoT devices, and sensor networks.

8. Dycom Industries, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Dycom Industries, Inc. operates in a niche market, providing specialized services to the telecommunications industry. While there are some substitutes available, they are not as effective or efficient, reducing the threat of substitutes.

Bargaining Power Of Customers

Dycom Industries, Inc. has a diverse customer base, including major telecommunications companies. While customers have some bargaining power, the company's specialized services and long-term contracts reduce their negotiating power.

Bargaining Power Of Suppliers

Dycom Industries, Inc. relies on a few key suppliers for equipment and materials. While suppliers have some bargaining power, the company's large scale of operations and long-term contracts mitigate this risk.

Threat Of New Entrants

The telecommunications industry has high barriers to entry, including significant capital requirements and specialized expertise. This reduces the threat of new entrants.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with several established players competing for market share. Dycom Industries, Inc. must continually innovate and improve its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.36%
Debt Cost 7.93%
Equity Weight 55.64%
Equity Cost 10.79%
WACC 9.52%
Leverage 79.74%

11. Quality Control: Dycom Industries, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 5.0/10

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

351.8$

Current Price

351.8$

Potential

-0.00%

Expected Cash-Flows