Dycom Industries Reports Strong Revenue Growth, Strategic Acquisitions, and Increased Backlog in Latest 10-Q Filing

Dycom Industries, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending October 26, 2024. The company experienced a notable increase in total current assets, rising to $1.897 billion from $1.550 billion as of January 27, 2024. This growth was primarily driven by a substantial increase in accounts receivable, which surged from $1.243 billion to $1.661 billion during the same period. However, cash and equivalents saw a sharp decline, dropping from $101.1 million to $15.3 million.

For the three months ended October 26, 2024, Dycom reported contract revenues of $1.272 billion, up from $1.136 billion in the prior year. This increase was attributed to higher revenues from telecommunications services, which accounted for 90.6% of total revenues. Despite the revenue growth, net income for the quarter decreased to $69.8 million, down from $83.7 million, reflecting a decline in profitability margins. Basic earnings per share also fell to $2.39 from $2.85.

For the nine-month period, contract revenues increased to $3.618 billion from $3.223 billion, with net income rising slightly to $200.7 million from $195.5 million. The company’s effective income tax rate improved to 23.8% from 24.9% year-over-year.

Dycom's strategic activities included several acquisitions aimed at expanding its geographic presence. In fiscal 2025, the company acquired three telecommunications construction contractors for a total of $191.2 million, enhancing its service capabilities in various regions, including Alaska and the Midwest. Additionally, the acquisition of Bigham Cable Construction in August 2023 for $131.2 million further solidified its position in the southeastern U.S.

The company also reported an increase in total liabilities, which rose to $608.5 million from $506.3 million, while total stockholders' equity increased to $1.234 billion from $1.055 billion. The backlog of work as of October 26, 2024, reached $7.856 billion, up from $6.917 billion, indicating strong future revenue potential.

Operationally, Dycom faced rising general and administrative expenses, which increased to $110.8 million for the quarter, attributed to higher payroll and stock-based compensation costs related to a CEO succession plan. The company’s net cash provided by operating activities improved significantly, totaling $20.9 million compared to a net cash used of $66.1 million in the prior year.

Overall, Dycom Industries, Inc. demonstrated robust revenue growth and strategic expansion through acquisitions, despite facing challenges in profitability and cash management.