Dycom Industries 2026 Q1 Earnings Solid Performance as Net Income Declines 2.4%
Generated by AI AgentAinvest Earnings Report Digest
Friday, May 23, 2025 1:08 am ET2min read
DY--
Dycom Industries (DY) reported its fiscal 2026 Q1 earnings on May 22nd, 2025. The company saw a 10.2% increase in total contract revenues compared to fiscal 2025 Q1, reaching $1.26 billion. Despite the revenue growth, Dycom's EPS declined to $2.11, slightly below expectations, with net income also experiencing a 2.4% decrease. The company raised its fiscal 2026 guidance, projecting higher contract revenue and adjusted EBITDA for the year. This boost in guidance aligns with Dycom's strategic focus on diversifying its customer base and service offerings to mitigate risks.
Revenue
Dycom Industries witnessed a 10.2% increase in its total contract revenues for fiscal 2026 Q1, reaching a notable $1.26 billion from the previous year's $1.14 billion. This growth reflects the company's ability to capitalize on strong demand, underscoring its strategic initiatives and operational execution.
Earnings/Net Income
Dycom Industries experienced a slight decrease in EPS, moving from $2.15 in fiscal 2025 Q1 to $2.11 in fiscal 2026 Q1. Additionally, net income declined to $61.05 million, representing a 2.4% drop from $62.55 million in the previous year. This decline indicates a modest performance in earnings.
Price Action
The stock price of Dycom IndustriesDY-- decreased by 0.83% during the latest trading day but surged 16.72% over the most recent full trading week. Month-to-date, the stock has shown impressive growth, with an increase of 45.03%.
Post Earnings Price Action Review
The investment strategy of purchasing DycomDY-- Industries stock following a revenue miss and holding it for 30 days led to significant returns, achieving a 481.27% gain and a compound annual growth rate of 42.43%. However, this approach came with a maximum drawdown of -34.66%, highlighting moderate risk and returns. The Sharpe ratio of 0.92 further indicates a balanced risk-return profile. This strategy showcases the potential for substantial gains despite the inherent risks, underscoring the importance of careful investment timing and risk management. Dycom's stock performance demonstrates the company's resilience and ability to navigate market fluctuations, offering investors a profitable opportunity with calculated risks.
CEO Commentary
Dycom Industries, Inc. President & CEO Dan Peyovich expressed satisfaction with the company's strong start to fiscal 2026, noting that they exceeded revenue, adjusted EBITDA, and EPS guidance. He highlighted a revenue increase of 10.2% year-over-year and a record backlog of $8.1 billion, with a focus on diversifying their customer base and service offerings to mitigate risks from any single program. Peyovich emphasized the resilience and nimbleness of Dycom, stating, “Increasing TAM in our industry…means complexity has increased, and complexity favors Dycom.” He maintained an optimistic outlook for sustained growth driven by robust demand for fiber-to-the-home deployments and hyperscaler projects.
Guidance
Dycom Industries revised its full-year fiscal 2026 revenue expectations to a range of $5.29 billion to $5.425 billion, reflecting a growth rate of 12.5% to 15.4% compared to the previous year. For Q2 of fiscal 2026, the company expects contract revenues between $1.38 billion and $1.43 billion, with adjusted EBITDA projected at $185 million to $200 million and diluted EPS anticipated between $2.74 and $3.05 per share.
Additional News
In recent weeks, Dycom Industries has been actively repurchasing shares, with a notable buyback of 200,000 shares for $30.2 million during fiscal 2026 Q1. This move aligns with the company's focus on enhancing shareholder value through capital appreciation. Additionally, Dycom's strategic acquisitions have expanded its service offerings and geographic presence, particularly in wireless and fiber construction. These acquisitions, totaling $184 million in fiscal year 2025, aim to diversify revenue streams and capitalize on national telecom buildouts. The company also announced a CEO succession plan with stock-based compensation modification expenses related to previously issued equity awards, highlighting its commitment to leadership continuity and long-term strategic planning.
Revenue
Dycom Industries witnessed a 10.2% increase in its total contract revenues for fiscal 2026 Q1, reaching a notable $1.26 billion from the previous year's $1.14 billion. This growth reflects the company's ability to capitalize on strong demand, underscoring its strategic initiatives and operational execution.
Earnings/Net Income
Dycom Industries experienced a slight decrease in EPS, moving from $2.15 in fiscal 2025 Q1 to $2.11 in fiscal 2026 Q1. Additionally, net income declined to $61.05 million, representing a 2.4% drop from $62.55 million in the previous year. This decline indicates a modest performance in earnings.
Price Action
The stock price of Dycom IndustriesDY-- decreased by 0.83% during the latest trading day but surged 16.72% over the most recent full trading week. Month-to-date, the stock has shown impressive growth, with an increase of 45.03%.
Post Earnings Price Action Review
The investment strategy of purchasing DycomDY-- Industries stock following a revenue miss and holding it for 30 days led to significant returns, achieving a 481.27% gain and a compound annual growth rate of 42.43%. However, this approach came with a maximum drawdown of -34.66%, highlighting moderate risk and returns. The Sharpe ratio of 0.92 further indicates a balanced risk-return profile. This strategy showcases the potential for substantial gains despite the inherent risks, underscoring the importance of careful investment timing and risk management. Dycom's stock performance demonstrates the company's resilience and ability to navigate market fluctuations, offering investors a profitable opportunity with calculated risks.
CEO Commentary
Dycom Industries, Inc. President & CEO Dan Peyovich expressed satisfaction with the company's strong start to fiscal 2026, noting that they exceeded revenue, adjusted EBITDA, and EPS guidance. He highlighted a revenue increase of 10.2% year-over-year and a record backlog of $8.1 billion, with a focus on diversifying their customer base and service offerings to mitigate risks from any single program. Peyovich emphasized the resilience and nimbleness of Dycom, stating, “Increasing TAM in our industry…means complexity has increased, and complexity favors Dycom.” He maintained an optimistic outlook for sustained growth driven by robust demand for fiber-to-the-home deployments and hyperscaler projects.
Guidance
Dycom Industries revised its full-year fiscal 2026 revenue expectations to a range of $5.29 billion to $5.425 billion, reflecting a growth rate of 12.5% to 15.4% compared to the previous year. For Q2 of fiscal 2026, the company expects contract revenues between $1.38 billion and $1.43 billion, with adjusted EBITDA projected at $185 million to $200 million and diluted EPS anticipated between $2.74 and $3.05 per share.
Additional News
In recent weeks, Dycom Industries has been actively repurchasing shares, with a notable buyback of 200,000 shares for $30.2 million during fiscal 2026 Q1. This move aligns with the company's focus on enhancing shareholder value through capital appreciation. Additionally, Dycom's strategic acquisitions have expanded its service offerings and geographic presence, particularly in wireless and fiber construction. These acquisitions, totaling $184 million in fiscal year 2025, aim to diversify revenue streams and capitalize on national telecom buildouts. The company also announced a CEO succession plan with stock-based compensation modification expenses related to previously issued equity awards, highlighting its commitment to leadership continuity and long-term strategic planning.
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