Executive Summary
Dycom delivered solid Q4 2025 results setting up a constructive 2026 investment narrative driven by fiber-to-the-home (FTTH) programs, hyperscaler long-haul deployments, and ongoing maintenance work across a diversified customer base. Q4 revenue of $1.085 billion and adj. EBITDA of $116.4 million yielded a margin of 10.7% for the quarter, with full-year 2025 contract revenues of $4.702 billion and adj. EBITDA of $576.3 million (12.3% of revenue). Backlog remained robust at $7.76 billion, with $4.642 billion expected to be completed within 12 months. The company also highlighted strong cash flow generation, with operating cash flow of $328.2 million in Q4 and free cash flow of $137.8 million for the year, up 82% YoY. A new $150 million stock repurchase program was authorized, augmenting a disciplined capital allocation framework that combines organic growth, acquisitions, and buybacks. Management emphasized the durability of the addressable FTTH and AI/digital infrastructure markets and signaled a multi-year cycle of investment activity, supported by a 53-week fiscal calendar in 2026 and no BEAD/storm revenues included in the guide.
Key Performance Indicators
QoQ: -47.29% | YoY:25.41%
QoQ: -53.19% | YoY:39.51%
QoQ: -53.14% | YoY:40.00%
Key Insights
Revenue (Q4 2025): $1.085B, YoY +13.9%; QoQ +7.65%; Gross profit: $196.6M, margin 18.13%; Operating income: $53.7M, margin 4.95%; EBITDA: $115.1M, margin 10.61%; Net income: $32.7M, margin 3.01%; EPS (diluted): $1.11; Backlog: $7.76B; 12-month backlog: $4.642B; DSO/Working capital: DSOs improved by 6 days vs 120 days in 2024; Free cash flow (FY2025): $137.8M, up 82% YoY; Operating cash flow (FY2025): $349.1M; Net debt: $963.3M; Cash and equivalents: ~$92.7M; Capex net (FY2025): ~$211M; Capex out...
Financial Highlights
Revenue (Q4 2025): $1.085B, YoY +13.9%; QoQ +7.65%; Gross profit: $196.6M, margin 18.13%; Operating income: $53.7M, margin 4.95%; EBITDA: $115.1M, margin 10.61%; Net income: $32.7M, margin 3.01%; EPS (diluted): $1.11; Backlog: $7.76B; 12-month backlog: $4.642B; DSO/Working capital: DSOs improved by 6 days vs 120 days in 2024; Free cash flow (FY2025): $137.8M, up 82% YoY; Operating cash flow (FY2025): $349.1M; Net debt: $963.3M; Cash and equivalents: ~$92.7M; Capex net (FY2025): ~$211M; Capex outlook (FY2026): $220–$230M; Revenue guidance FY2026: +10–13% YoY; 53rd week in 2026; Q1 FY2026 guidance: Revenue $1.16B–$1.20B, Adj. EBITDA $130.6M–$140.6M, EPS (diluted) $1.50–$1.73; Storm BEAD exclusion from 2026 outlook; New $150M buyback authorization.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.08B |
13.87% |
7.65% |
| Gross Profit |
196.58M |
69.80% |
N/A |
| Operating Income |
53.67M |
25.41% |
-47.29% |
| Net Income |
32.67M |
39.51% |
-53.19% |
| EPS |
1.12 |
40.00% |
-53.14% |
Key Financial Ratios
operatingProfitMargin
4.95%
operatingCashFlowPerShare
$11.28
freeCashFlowPerShare
$8.93
Management Commentary
Key themes from management commentary: (1) Growth drivers and market backdrop: Fiber-to-the-Home (FTTH) expansion remains the top growth driver, with management citing >35 million incremental passings added in calendar 2024 and continued FTTH momentum into 2025/26. Daniel Peyovich emphasized that FTTH will be a significant growth driver in fiscal 2026. (2) Hyperscale/digital infrastructure: The firm highlighted ongoing long-haul and private fiber opportunities with hyperscalers, including Lumen over-pole work that has begun ramping in Q1 2026, and broader discussions with other hyperscalers; the opportunity is described as multi-year and “massive.” (3) Backlog and cash flow discipline: Backlog reached $7.76B with $4.642B to be completed within 12 months; management emphasized improving invoicing cycles and converting earnings into cash flow, evidenced by a strong free cash flow profile and a new $150M buyback authorization. (4) Capital allocation and risk management: The company signaled a balanced approach to capital allocation, noting acquisitions in 2025 and a continued focus on safety, quality, and “quality as a brand.” (5) BEAD/storm exposure: Management reiterated BEAD potential but excluded BEAD/storm revenues from the 2026 outlook; a BEAD-related flow is monitored but not assumed in the guide.
fiber-to-the-home will continue to be a significant growth driver for our business in fiscal 2026.
— Daniel Peyovich
free cash flow continues to be a focus for us. We have net leverage is low at about one and a half times. And so, you know, substantial room to grow the business.
— Andrew DeFerrari
Forward Guidance
Outlook and trajectory: Dycom guiding FY2026 total contract revenues to rise 10%–13% versus FY2025, with a 53-week fiscal year (extra week in Q4). The company explicitly excludes storm restoration revenues from the 2026 outlook and does not include BEAD opportunities in the FY2026 guidance. Q1 FY2026 revenue guidance is $1.16B–$1.20B with adj. EBITDA of $130.6M–$140.6M and diluted EPS of $1.50–$1.73. Capex net of disposals is expected to be $220–$230M, maintaining a disciplined balance between growth investments and shareholder returns. Risks to the forecast include: (i) variability in FTTH and hyperscaler cadence, (ii) potential BEAD award timing and state-federal program adjustments, (iii) weather-related disruptions, and (iv) competition and input cost pressures. Management’s commentary suggests a multi-year growth runway driven by FTTH passings, ongoing maintenance work, and hyperscaler capital expenditure, with upside potential if 2026–2027 BEAD allocations materialize and if private networks scale further into 2026–2028. Key monitoring factors for investors: cadence of FTTH passings, Lumen and other hyperscaler commitments, BEAD awards progress, storm restoration demand, and the company’s ability to realize operating leverage as volumes scale.