On this page of StockholderLetter.com we present the latest annual shareholder letter from DYCOM INDUSTRIES INC — ticker symbol DY. Reading current and past DY letters to shareholders can bring important insights into the investment thesis.
2025 20 25 ANNUAL REPORT THE PEOPLE CONNECTING AMERICA

CORPORATE PROFILE Dycom Industries, Inc. is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States. Since our incorporation in the State of Florida in 1969, we have expanded our scope and service offerings organically and through acquisitions. Today, Dycom is made up of 40 operating companies that serve a diverse customer base across all 50 states from hundreds of field offices. Our deep industry knowledge, strong customer relationships, broad geographic presence and skilled workforce provide the scale needed to quickly execute on opportunities to service existing and new customers throughout urban, suburban and rural America. DYCOM S NATIONWIDE PRESENCE Dycom s operating companies supply telecommunications providers with a comprehensive portfolio of specialty services, including program management, planning, engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services. Additionally, we provide underground facility locating services for various utilities, including telecommunications providers, as well as other construction and maintenance services for electric and gas utilities. Dycom supplies the expertise, labor, equipment, and tools necessary to provide services to our customers. ENGINEERING SERVICES We provide engineering services to telecommunications providers, including the planning and design of aerial, underground, and buried fiber optic, copper, and coaxial cable systems that extend from the telephone company hub location, or cable operator headend, to a consumer s home or business. We also plan and design wireless networks in connection with the deployment of new and enhanced macro cell and new small cell sites. Additionally, we obtain rights of way and permits in support of our engineering activities and those of our customers and provide program and project management and inspection personnel in conjunction with engineering services or on a stand-alone basis. FINANCIAL HIGHLIGHTS The following financial information has been derived from the Company s consolidated financial statements. This information should be read in conjunction with the consolidated financial statements and the notes thereto contained in this Annual Report, as well as the section of this Annual Report entitled Management s Discussion and Analysis of Financial Condition and Results of Operations. Fiscal 2025 CONSTRUCTION, MAINTENANCE, AND INSTALLATION SERVICES We provide a range of construction, maintenance, and installation services, including the placement and splicing of fiber, copper, and coaxial cables. We excavate trenches to place these cables; place related structures, such as poles, anchors, conduits, manholes, cabinets, and closures; place drop lines from main distribution lines to a consumer s home or business; and maintain and remove these facilities. We provide these services for both telephone companies and cable multiple system operators in connection with the deployment, expansion, or maintenance of new and existing networks. We also provide tower construction, lines and antenna installation, foundation and equipment pad construction, small cell site placement for wireless carriers, and equipment installation and material fabrication and site testing services. In addition, we provide underground facility locating services for various utility companies, including telecommunications providers. Our underground facility locating services include locating telephone, cable television, power, water, sewer, and gas lines. In addition, we install and maintain customer premise equipment, such as digital video recorders, set top boxes and modems, for cable multiple system operators and others. We also perform construction and maintenance services for electric and gas utilities and other customers. Fiscal 2024 Fiscal 2023 In thousands, except earnings per common share amounts and number of employees Revenues $ 4,702,014 $ 4,175,574 $ 3,808,462 Net income 233,413 218,923 142,213 Earnings per common share diluted 7.92 7.37 4.74 Non-GAAP Adjusted earnings per common share diluted 8.44 7.37 4.74 Weighted average number of common shares diluted 29,482 29,699 29,997 Total assets $ 2,945,367 $ 2,516,885 $ 2,313,254 Long-term obligations $ 1,119,117 955,925 974,948 Stockholders equity $ 1,239,097 $ 1,054,656 868,755 15,623 15,611 Number of employees 15,410 2025 Annual Report 3
DEAR FELLOW SHAREHOLDERS,, SHAREHOLDERS April 2025 As I step into the role of Chief Executive Officer, I am honored and energized to lead Dycom into its next chapter and am committed to driving sustainable growth and delivering long-term value to you, our shareholders. As Dycom s Chief Operating Officer for the past four years, I helped develop and execute our strategy, have engaged extensively with our operating groups, customers, and stakeholders, and I continue to be inspired by the dedication of our thousands of employees. As CEO, I am more confident than ever about our collective ability to drive Dycom s future success. We remain steadfast in our core strategy: to consistently deliver services to our customers and communities at a level of quality that defines the industry and to provide unparalleled opportunities for our people as we fulfill our vision to be The People Connecting America. By doing so, we will continue to deliver exceptional value to our shareholders. We call this concept Quality as a Brand. We define it as the highest level of safety and quality in the field and in the infrastructure we install. We take it further by elevating standards at every step of the process and throughout the entire experience, from day one to day-done. Our teams proactively communicate to stay ten steps ahead and ensure certainty for our customers, the communities where we operate, and our stakeholders. Our comprehensive footprint and proven experience across the telecommunications and digital infrastructure markets enable our people to bring the know-how and relationships that drive excellence and success. We remain steadfast in our core strategy: to consistently deliver services to our customers and communities at a level of quality that defines the industry. We have demonstrated our ability to capitalize on both near and long-term opportunities and are well-positioned for continued growth. With rapidly evolving digital infrastructure needs, the complexity of projects in our industry has increased, and we expect it to continue to do so. This complexity favors Dycom. Our customers have ambitious plans, and we consistently deliver to support their needs. Our intense focus on the wireline and wireless telecommunications industry means we constantly innovate, whether in process, applications, AI deployment, or at the face of the work; we commit the capital and the horsepower to move the needle. Our local-first approach, fostering relationships built on decades of work in our cities and communities, is complimented by our enterprise knowledge and expertise. The result? Intense coordination and next-level systems and processes that quickly and reliably turn complexity into achievable objectives that are clearly measured and openly accountable. 4 Dycom Industries, Inc.
The demand drivers in our industry are robust and have never been more significant: Fiber-to-the-Home (FTTH): Since being reinvigorated several years ago, FTTH builds have continued to make substantial progress, and the opportunity remains significant in the coming years. In the last 14 months our customers have collectively added an incremental 37 million passings to their plans. In total, an estimated 76.5 million homes are uniquely passed as of calendar 2024, so these plans, and the incremental increase, are significant and provide further evidence that high-speed broadband has become an essential service. We delivered millions of passings in calendar 2024 and are well-positioned to continue capturing this growth. Hyperscaler AI Infrastructure: The AI race continues to escalate. For calendar 2025, the five major hyperscalers have committed approximately $320 billion in capital expenditures, largely for AI infrastructure, a $100 billion increase over last year. While the majority of that spend will be on data centers and equipment, they will also need high-capacity, ultra-low latency, private, secure, redundant fiber infrastructure to connect their data centers nationwide. We are building these long-haul networks today and expect this driver to continue for many years. Rural Broadband Expansion: The necessity of connecting every home to high-speed broadband means bridging the digital divide in rural America, and state and federal funding continues to close the gap. States awarded over $1 billion for broadband infrastructure in Q4 2024 alone. Federal programs like RDOF have been funding rural builds for several years, and newer programs, like BEAD, will provide additional funds to support this effort. We expect this driver to connect millions of additional rural homes this decade and potentially into the next. The benefits of our strategy, the power of our positioning and execution, and the drivers of demand in our markets drove a track record of strong performance. Underlying these drivers, our core service and maintenance business ensures the upkeep, modernization and extension of installed plant, and continues to grow. With each new project, whether FTTH, long-haul, or rural, we look to add the follow-on service and maintenance to our business. Each new award expands our footprint and readiness for new build initiatives. The benefits of our strategy, the power of our positioning and execution, and the drivers of demand in our markets drove a track record of strong performance. Since FY2022, we have achieved a 50% total revenue increase, expanded our Adjusted EBITDA1 margin by 450 basis points, and diversified our top 5 customer concentration from 66% to 55%. We generated another year of excellent results in FY2025. We achieved record revenues of $4.7 billion, an increase of 12.6%, and Adjusted EBITDA1 grew 19.8% to $576.3 million. Our Adjusted EBITDA1 margin expanded 66 bps to 12.3%, and our Adjusted Diluted EPS1 grew 24.5% to a record of $8.44. We improved our cash flow in FY2025, reducing DSOs to 114 days and generating operating cash flow of $349.1 million and free cash flow1 of $137.8 million, an 82% increase over the prior year. We utilized this strong cash flow to execute against our capital allocation strategy, funding continued growth and closing three acquisitions, including the $150 million purchase of the wireless business from Black & Veatch, which is already exceeding our initial expectations. We also returned capital to our shareholders, repurchasing 410,000 shares of common stock over the course of the year. Adjusted EBITDA, Adjusted Diluted Earnings per Common Share, and free cash flow are non-GAAP financial measures. Please refer to Appendix A of this Annual Report for a reconciliation of these measures to the most directly comparable financial measures calculated and presented in accordance with U.S. generally accepted accounting principles. 1 2025 Annual Report 5
 • shareholder letter icon 4/10/2025 Letter Continued (Full PDF)
 • stockholder letter icon 4/13/2023 DY Stockholder Letter
 • stockholder letter icon 4/11/2024 DY Stockholder Letter
 • stockholder letter icon More "Construction" Category Stockholder Letters
 • Benford's Law Stocks icon DY Benford's Law Stock Score = 39


DY Shareholder/Stockholder Letter Transcript:

2025
20
25
ANNUAL REPORT
THE PEOPLE
CONNECTING
AMERICA



CORPORATE PROFILE
Dycom Industries, Inc. is a leading provider of specialty
contracting services to the telecommunications infrastructure
and utility industries throughout the United States. Since
our incorporation in the State of Florida in 1969, we have
expanded our scope and service offerings organically
and through acquisitions. Today, Dycom is made up of 40
operating companies that serve a diverse customer base
across all 50 states from hundreds of field offices. Our deep
industry knowledge, strong customer relationships, broad
geographic presence and skilled workforce provide the scale
needed to quickly execute on opportunities to service
existing and new customers throughout urban, suburban
and rural America.
DYCOM   S NATIONWIDE PRESENCE
Dycom   s operating companies supply telecommunications
providers with a comprehensive portfolio of specialty services,
including program management, planning, engineering
and design; aerial, underground, and wireless construction;
maintenance; and fulfillment services. Additionally, we provide
underground facility locating services for various utilities,
including telecommunications providers, as well as other
construction and maintenance services for electric and gas
utilities. Dycom supplies the expertise, labor, equipment, and
tools necessary to provide services to our customers.
ENGINEERING SERVICES
We provide engineering services to telecommunications
providers, including the planning and design of aerial,
underground, and buried fiber optic, copper, and coaxial
cable systems that extend from the telephone company hub
location, or cable operator headend, to a consumer   s home
or business. We also plan and design wireless networks in
connection with the deployment of new and enhanced macro
cell and new small cell sites. Additionally, we obtain rights of
way and permits in support of our engineering activities and
those of our customers and provide program and project
management and inspection personnel in conjunction with
engineering services or on a stand-alone basis.
FINANCIAL HIGHLIGHTS
The following financial information has been derived from the Company   s
consolidated financial statements. This information should be read in
conjunction with the consolidated financial statements and the notes thereto
contained in this Annual Report, as well as the section of this Annual Report
entitled    Management   s Discussion and Analysis of Financial Condition and
Results of Operations.   
Fiscal 2025
CONSTRUCTION, MAINTENANCE,
AND INSTALLATION SERVICES
We provide a range of construction, maintenance, and
installation services, including the placement and splicing of
fiber, copper, and coaxial cables. We excavate trenches to
place these cables; place related structures, such as poles,
anchors, conduits, manholes, cabinets, and closures; place
drop lines from main distribution lines to a consumer   s
home or business; and maintain and remove these facilities.
We provide these services for both telephone companies
and cable multiple system operators in connection with
the deployment, expansion, or maintenance of new and
existing networks. We also provide tower construction, lines
and antenna installation, foundation and equipment pad
construction, small cell site placement for wireless carriers,
and equipment installation and material fabrication and site
testing services. In addition, we provide underground facility
locating services for various utility companies, including
telecommunications providers. Our underground facility
locating services include locating telephone, cable television,
power, water, sewer, and gas lines. In addition, we install and
maintain customer premise equipment, such as digital video
recorders, set top boxes and modems, for cable multiple
system operators and others. We also perform construction
and maintenance services for electric and gas utilities and
other customers.
Fiscal 2024
Fiscal 2023
In thousands, except earnings per common
share amounts and number of employees
Revenues
$ 4,702,014
$ 4,175,574
$ 3,808,462
Net income

233,413

218,923

142,213
Earnings per common share    
diluted

7.92

7.37

4.74
Non-GAAP Adjusted earnings
per common share     diluted

8.44

7.37

4.74
Weighted average number of
common shares     diluted
29,482
29,699
29,997
Total assets
$ 2,945,367
$ 2,516,885
$ 2,313,254
Long-term obligations
$ 1,119,117

955,925

974,948
Stockholders    equity
$ 1,239,097
$ 1,054,656

868,755
15,623
15,611
Number of employees
15,410
2025 Annual Report
3

DEAR FELLOW
SHAREHOLDERS,,
SHAREHOLDERS
April 2025
As I step into the role of Chief Executive Officer, I am honored and
energized to lead Dycom into its next chapter and am committed to
driving sustainable growth and delivering long-term value to you,
our shareholders.
As Dycom   s Chief Operating Officer for the past four years, I helped
develop and execute our strategy, have engaged extensively with our
operating groups, customers, and stakeholders, and I continue to be
inspired by the dedication of our thousands of employees. As CEO,
I am more confident than ever about our collective ability to drive
Dycom   s future success.
We remain steadfast in our core strategy: to consistently deliver
services to our customers and communities at a level of quality
that defines the industry and to provide unparalleled opportunities
for our people as we fulfill our vision to be    The People Connecting
America.    By doing so, we will continue to deliver exceptional value
to our shareholders.
We call this concept    Quality as a Brand.    We define it as the highest
level of safety and quality in the field and in the infrastructure we
install. We take it further by elevating standards at every step of the
process and throughout the entire experience, from day one to
day-done. Our teams proactively communicate to stay ten steps
ahead and ensure certainty for our customers, the communities
where we operate, and our stakeholders. Our comprehensive
footprint and proven experience across the telecommunications
and digital infrastructure markets enable our people to bring the
know-how and relationships that drive excellence and success.
We remain
steadfast in our
core strategy:
to consistently
deliver services to
our customers and
communities at
a level of quality
that defines
the industry.
We have demonstrated our ability to capitalize on both near and long-term opportunities and are well-positioned for continued growth.
With rapidly evolving digital infrastructure needs, the complexity of projects in our industry has increased, and we expect it to continue to do so.
This complexity favors Dycom. Our customers have ambitious plans, and we consistently deliver to support their needs.
Our intense focus on the wireline and wireless telecommunications industry means we constantly innovate, whether in process, applications,
AI deployment, or at the face of the work; we commit the capital and the horsepower to move the needle. Our local-first approach, fostering
relationships built on decades of work in our cities and communities, is complimented by our enterprise knowledge and expertise. The result?
Intense coordination and next-level systems and processes that quickly and reliably turn complexity into achievable objectives that are clearly
measured and openly accountable.
4
Dycom Industries, Inc.

The demand drivers in our industry are robust and have never been
more significant:

Fiber-to-the-Home (FTTH): Since being reinvigorated several
years ago, FTTH builds have continued to make substantial
progress, and the opportunity remains significant in the coming
years. In the last 14 months our customers have collectively
added an incremental 37 million passings to their plans. In
total, an estimated 76.5 million homes are uniquely passed as
of calendar 2024, so these plans, and the incremental increase,
are significant and provide further evidence that high-speed
broadband has become an essential service. We delivered
millions of passings in calendar 2024 and are well-positioned to
continue capturing this growth.

Hyperscaler AI Infrastructure: The AI race continues to escalate.
For calendar 2025, the five major hyperscalers have committed
approximately $320 billion in capital expenditures, largely for AI
infrastructure, a $100 billion increase over last year. While the
majority of that spend will be on data centers and equipment,
they will also need high-capacity, ultra-low latency, private,
secure, redundant fiber infrastructure to connect their data
centers nationwide. We are building these long-haul networks
today and expect this driver to continue for many years.

Rural Broadband Expansion: The necessity of connecting every
home to high-speed broadband means bridging the digital
divide in rural America, and state and federal funding continues
to close the gap. States awarded over $1 billion for broadband
infrastructure in Q4 2024 alone. Federal programs like RDOF
have been funding rural builds for several years, and newer
programs, like BEAD, will provide additional funds to support
this effort. We expect this driver to connect millions of additional
rural homes this decade and potentially into the next.
The benefits of our
strategy, the power
of our positioning
and execution,
and the drivers
of demand in our
markets drove
a track record of
strong performance.
Underlying these drivers, our core service and maintenance
business ensures the upkeep, modernization and extension of
installed plant, and continues to grow. With each new project,
whether FTTH, long-haul, or rural, we look to add the follow-on
service and maintenance to our business. Each new award expands
our footprint and readiness for new build initiatives. The benefits of
our strategy, the power of our positioning and execution, and the
drivers of demand in our markets drove a track record of strong
performance. Since FY2022, we have achieved a 50% total revenue
increase, expanded our Adjusted EBITDA1 margin by 450 basis
points, and diversified our top 5 customer concentration from 66%
to 55%. We generated another year of excellent results in FY2025.
We achieved record revenues of $4.7 billion, an increase of 12.6%,
and Adjusted EBITDA1 grew 19.8% to $576.3 million. Our Adjusted
EBITDA1 margin expanded 66 bps to 12.3%, and our Adjusted
Diluted EPS1 grew 24.5% to a record of $8.44.
We improved our cash flow in FY2025, reducing DSOs to 114 days
and generating operating cash flow of $349.1 million and free cash
flow1 of $137.8 million, an 82% increase over the prior year.
We utilized this strong cash flow to execute against our capital
allocation strategy, funding continued growth and closing three
acquisitions, including the $150 million purchase of the wireless
business from Black & Veatch, which is already exceeding our
initial expectations. We also returned capital to our shareholders,
repurchasing 410,000 shares of common stock over the course of
the year.
Adjusted EBITDA, Adjusted Diluted Earnings per Common Share, and free cash flow
are non-GAAP financial measures. Please refer to Appendix A of this Annual Report for
a reconciliation of these measures to the most directly comparable financial measures
calculated and presented in accordance with U.S. generally accepted accounting principles.
1
2025 Annual Report
5



shareholder letter icon 4/10/2025 Letter Continued (Full PDF)
 

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