Dycom Industries Reports $61M Net Income, 10.2% Revenue Growth in Latest Quarter

Dycom Industries, Inc. reported a net income of $61.0 million for the three months ended April 26, 2025, a slight decrease from $62.6 million in the same period last year. Contract revenues increased to $1.259 billion, up from $1.142 billion, reflecting a growth of 10.2%. The company attributed this revenue growth primarily to increased demand for fiber-to-the-home deployments, including rural fiber deployment programs. However, the earnings per share saw a minor decline, with diluted earnings per share at $2.09 compared to $2.12 in the prior year.

The company's financial performance showed significant changes compared to the previous fiscal period. Costs of earned revenues rose to $1.011 billion, representing 80.3% of contract revenues, compared to 80.7% in the prior year. This increase was driven by higher direct labor and subcontractor costs, which rose by $82.4 million. General and administrative expenses also increased to $103.7 million, or 8.2% of contract revenues, reflecting higher administrative and payroll costs, including expenses from acquired businesses.

In terms of strategic developments, Dycom made several acquisitions during fiscal 2025, including a telecommunications construction contractor for $150.7 million, which expanded its geographic presence and customer base. The company also acquired two other contractors for $24.5 million and $16.0 million, respectively, further enhancing its service capabilities in various regions. These acquisitions contributed to a backlog of $8.127 billion as of April 26, 2025, an increase from $7.760 billion at the end of January 2025, indicating a strong pipeline of future work.

Operationally, Dycom's customer base remains concentrated, with AT&T Inc. and Lumen Technologies accounting for 25.8% and 9.9% of total contract revenues, respectively. The company reported a total of 28,924,326 shares outstanding as of April 26, 2025, down from 29,091,158 shares a year earlier. The company’s cash and equivalents decreased significantly to $16.1 million from $92.7 million, primarily due to increased capital expenditures and cash used in operations.

Looking ahead, Dycom anticipates continued growth driven by the expanding demand for high-speed broadband connectivity and ongoing investments in digital infrastructure. The company remains focused on leveraging its national footprint and established relationships with telecommunications providers to capitalize on these opportunities. However, it also acknowledges the cyclical nature of the industry and potential impacts from economic conditions and customer capital expenditure budgets.