The chart below shows how DY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, DY sees a -1.95% change in stock price 10 days leading up to the earnings, and a +3.12% change 10 days following the report. On the earnings day itself, the stock moves by +0.07%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Fourth Quarter Financial Highlights: Strong fourth quarter performance with revenues of $1.085 billion and adjusted EBITDA of $116.4 million, representing 10.7% of revenue.
Profitable Revenue Growth: Fiscal 2025 revenues reached $4.702 billion with an adjusted EBITDA margin of 12.3%, showcasing profitable growth.
Revenue and EBITDA Growth: Over the past three years, revenues increased by 50% and EBITDA margin expanded by approximately 450 basis points, indicating strong operational performance.
Customer Base Diversification: Diversification of customer base with top 5 customers contributing 55% of revenue in fiscal 2025, down from 66% in fiscal 2022, reflecting improved customer relationships.
Strong Backlog and Revenue Visibility: Backlog at the end of fiscal year was $7.8 billion, with $4.6 billion expected to be completed in the next 12 months, indicating strong future revenue visibility.
Stock Repurchase Program Authorization: Authorization of a new $150 million stock repurchase program, demonstrating commitment to returning capital to shareholders.
Fiber-to-Home Expansion: Continued execution of fiber-to-the-home programs with customers adding over 35 million incremental passings in calendar 2024, indicating strong demand in the market.
Partnerships and Growth Opportunities: New market awards from Verizon and extended agreements, highlighting strong partnerships and growth opportunities in fiber-to-the-home and maintenance services.
Long-Haul Fiber Market Opportunities: Significant opportunities in the long-haul fiber market driven by hyperscalers' demand for AI-related infrastructure, with new contracts awarded in Q4 2025.
Rural Broadband Expansion: State and federal programs progressing to provide broadband to rural areas, with over $1 billion awarded across 9 states for broadband infrastructure, presenting growth opportunities.
Free Cash Flow Improvement: Improved free cash flow performance with a total of $137.8 million for the year, up 82%, indicating strong cash generation capabilities.
Negative
Weather-Related Operational Challenges: Overall, the company faced unforeseen weather challenges that impacted operations, despite achieving strong revenue growth.
Customer Dependency Risk: The company has a high dependency on its top customers, with the top 5 customers accounting for 56.7% of total revenue, indicating potential risk if any of these relationships falter.
Revenue Outlook Concerns: The outlook for fiscal 2026 does not include any revenue from storm restoration services, which contributed significantly in fiscal 2025, potentially leading to lower revenue expectations.
Risky Contract Strategy: The company is willing to take on low-margin, high-risk contracts to grow backlog, which could impact profitability if not managed carefully.
Debt Risk Concerns: Despite strong cash flow performance, the company still has a significant amount of debt, which could pose risks in a rising interest rate environment.
Dycom Industries, Inc. (DY) Q4 2025 Earnings Call Transcript
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