Executive Summary

Q4 FY2025 delivered solid growth and margin expansion: contract revenues rose 13.9% to $1.085B, Adjusted EBITDA margin improved 89 bps to 10.7%, and Adjusted EPS increased 48.1% to $1.17; backlog ended at $7.760B, underscoring visibility into demand .
Mix effects included $67.9M of storm restoration and $61.5M from acquired businesses; organic revenue growth was 7.4% after excluding acquired revenues not owned in both periods .
Management issued FY2026 revenue growth guidance of 10–13% and Q1 FY2026 guidance for revenues of $1.16–$1.20B, Adjusted EBITDA $130.6–$140.6M, and diluted EPS $1.50–$1.73; no storm restoration or BEAD revenue is included in FY2026 outlook .
A new $150M share repurchase authorization adds capital return optionality; combined with raised FY2026 revenue outlook (to 12.5–15.4%) in May, guidance and buyback comprise the principal stock reaction catalysts post-quarter .

What Went Well and What Went Wrong

What Went Well

Strong growth and profitability: Q4 revenues up 13.9% to $1.085B; Adjusted EBITDA margin expanded to 10.7%; Adjusted EPS up 48.1% to $1.17 .
Strategic pipeline building: management highlighted Verizon awards (maintenance and fiber-to-the-home), a ramp in Lumen long-haul “over-pull” fiber work, and robust hyperscaler dialogues, positioning Dycom for AI-driven long-haul builds in 2026+ .
Cash conversion improved: Q4 operating cash flow of $328.2M; DSO declined to 114 days from 120 days YoY; free cash flow focus reiterated for FY2026 .

Quote: “We delivered strong growth in revenues, profitability and cash flows… we are optimistic about the prospects for our business and our industry” – Dan Peyovich, CEO .

What Went Wrong

Weather and mix complexities: quarter included $67.9M of storm restoration revenue, complicating organic comparisons and adding volatility to quarterly cadence .
Margin sensitivity to investment: SG&A has been growing to support scale and acquisitions; management acknowledged reinvestment may temper near-term operating leverage while positioning for multiyear growth .
Estimates context unavailable: S&P Global consensus data could not be retrieved for comparison this quarter; investors should rely on company guidance until estimates can be refreshed (see Estimates Context) [GetEstimates error].

Financial Results

Metric	Q4 2024	Q3 2025	Q4 2025
Contract Revenues ($USD Billions)	$0.9525	$1.2720	$1.0845
Adjusted EBITDA ($USD Millions)	$93.7	$170.7	$116.4
Adjusted EBITDA Margin (%)	9.8%	13.4%	10.7%
GAAP Diluted EPS ($)	$0.79	$2.37	$1.11
Adjusted Diluted EPS ($)	$0.79	$2.68	$1.17
Net Income ($USD Millions)	$23.4	$69.8	$32.7
Storm Restoration Revenues ($USD Millions)	$0.0	$46.3	$67.9

Segment/customer mix and concentration

Item	Q4 2024	Q3 2025	Q4 2025
Top 5 Customers (% of Revenues)	58.6%	55.7%	56.7%
AT&T Revenues ($USD Millions)	$162.7	$265.6	$251.4
All Other Customers Revenues ($USD Millions)	$413.7	$563.8	$469.4

Key Performance Indicators

KPI	Q4 2024	Q3 2025	Q4 2025
Backlog ($USD Billions)	N/A	N/A	$7.760
DSO (days)	120	119	114
Operating Cash Flow ($USD Millions)	$325.1	$65.8	$328.2
Notional Net Debt ($USD Millions)	N/A	$1,089.7	$857.3
Liquidity ($USD Millions)	N/A	$462.8	$695.2
Share Repurchases (Shares; $USD Millions)	N/A	N/A	200,000; $35.9

Non-GAAP adjustments called out by management included stock-based compensation modification tied to CEO transition, acquisition integration costs, and loss on debt extinguishment; these are reconciled in the press release tables .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Contract Revenues Growth	FY2026	+10% to +13% vs FY2025	$5.290B to $5.425B (+12.5% to +15.4%)	Raised
Contract Revenues	Q1 FY2026	$1.16B to $1.20B	$1.16B to $1.20B	Maintained
Adjusted EBITDA	Q1 FY2026	$130.6M to $140.6M	$130.6M to $140.6M	Maintained
Diluted EPS	Q1 FY2026	$1.50 to $1.73	$1.50 to $1.73	Maintained
Storm Restoration in FY2026 Outlook	FY2026	Excluded	Excluded	Maintained
BEAD in FY2026 Outlook	FY2026	Excluded	Excluded	Maintained
Capital Expenditures (net of proceeds)	FY2026	N/A	$220M to $230M	New detail
Supplemental (Q1 FY2026)	Q1 FY2026	N/A	Amortization $12.0M; SBC $7.8M; Interest $14.7M; Tax rate 26.0%; Diluted shares 29.4M	New detail
Share Repurchase Authorization	18 months	Prior program had ~$55M remaining	New $150M authorization approved	Increased

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 FY2025)	Trend
AI/hyperscaler long-haul fiber	Industry seeing “highest level of interest in national deployments… in the last 25 years” (AI data centers) ; pipeline building and acquisition of Black & Veatch wireless assets to position for modernization	Lumen long-haul over-pull work commenced and ramping; other IFPs announced ~5,100 route miles; management sees largest revenue opportunities in calendar 2026+	Strengthening pipeline; early revenue ramp; multi-year opportunity
Fiber-to-the-home (FTTH)	Massive fiber deployments deemed irreversible; customers funding incremental fiber over several years	Customers added >35M passings in 2024; Verizon awards extended and expanded; programs multi-year to 2030	Accelerating deployment velocity
BEAD/state programs	BEAD is a $40B generational opportunity; public capital support rising	>$1B awarded across 9 states in Q4; FY2026 outlook excludes BEAD; timing uncertain under new administration	State programs active; BEAD timing remains uncertain
Wireless equipment replacement	Acquisition expands wireless footprint; expected FY2026 contribution $250–$275M	AT&T wireless equipment replacement ramp “continues to meet expectations”; wireless ~7% of Q4 revenues	Ramping execution into FY2026
Cash flow/DSO	DSO 117–119 days; liquidity strong	DSO improved to 114; Q4 operating cash flow $328.2M; FCF a priority in FY2026	Improving cash conversion

Management Commentary

Strategic positioning: “We believe Dycom remains uniquely positioned to capitalize on the significant tailwinds… our strategy remains consistent… comprehensive footprint… highest level of service” .
AI and long-haul fiber outlook: “Customer dialogue around AI digital infrastructure needs remains robust… the most significant revenue opportunities for the long haul market will occur in calendar 2026 and beyond” .
FTTH momentum: “Our customers… added more than 35 million incremental passings… we believe fiber to the home will continue to be a significant growth driver… awarded new markets for Verizon” .
Capital allocation and FCF: “We remain committed to a balanced approach… organic growth augmented by M&A and share repurchases… improving free cash flow continues to be a priority” .
Quality as a brand: “We strive every day to be a partner that delivers quality… from day 1 to day done… we deliver on our commitments” .

Q&A Highlights

Guidance basis clarified: FY2026 +10–13% growth is off reported FY2025, which included $114.2M storm; FY2026 excludes storm and BEAD revenue .
Verizon awards nature: mix of maintenance and FTTH; not related to prior Fiber One program .
Margin outlook: No observed downward pressure; operating leverage expected as growth continues, with reinvestment into innovation and growth where appropriate .
Organic vs storm cadence: Storm work occurred throughout Q4; organic trajectory tied to >35M incremental passings and emerging hyperscaler projects .
AI fiber opportunity breadth: Work moving beyond over-pull to new routes; conversations with hyperscalers are increasingly active .
Free cash flow and leverage: DSO improved by 6 days YoY; net leverage ~1.5x, supporting growth and capital allocation flexibility .
Wireless revenue share: ~7% of Q4 revenues; focus on equipment replacement ramp .
CapEx: Q4 gross ~$68M; FY2026 net CapEx outlook $220–$230M .

Estimates Context

S&P Global consensus estimates for Q4 FY2025 (EPS, revenue, EBITDA, target price, recommendation) were unavailable due to retrieval limitations at the time of analysis; as a result, formal “vs. consensus” comparisons cannot be presented for this quarter. Investors should anchor on company-reported results and guidance until estimates are refreshed [GetEstimates error].
Where estimates are referenced in future updates, we will default to S&P Global data and clearly indicate beats/misses.

Key Takeaways for Investors

Demand visibility is strong: $7.760B backlog, improved Q4 cash conversion (DSO to 114), and raised FY2026 revenue outlook (12.5–15.4%) support multi-quarter execution and top-line expansion .
AI-driven long-haul fiber is a multiyear TAM: early work underway (Lumen over-pull), with route mile announcements from other operators; management expects larger revenue contribution beginning calendar 2026 .
FTTH remains the core growth engine: >35M passings added in 2024 across customers and expanded Verizon awards point to sustained deployment velocity into FY2026/2030 .
Mix tailwinds and volatility: Storm restoration ($67.9M in Q4) boosted the quarter, but normalized FY2026 outlook excludes storm, sharpening the lens on underlying growth drivers .
Margin trajectory constructive: EBITDA margin improved YoY (10.7% vs 9.8%); management sees no downward pressure, with operating leverage possible as growth scales, albeit with reinvestment into innovation and capacity .
Capital return and balance sheet: New $150M buyback authorization alongside low net leverage (~1.5x) and ample liquidity ($695M) provide optionality for shareholder returns and growth investment .
Near-term trading implications: Q1 FY2026 guide implies continued revenue/margin strength; monitor AI fiber award cadence, FTTH build velocity, and update to BEAD timing for catalysts; lack of consensus comparison this quarter suggests price action will key off guidance, backlog, and capital return announcements .

DYCOM INDUSTRIES INC (DY)·Q4 2025 Earnings Summary