Dycom Industries (DY) Q2 2025 earnings summary

Executive summary

• Q2 2025 contract revenues rose 15.5% year-over-year to $1.203 billion, with organic growth of 9.2% and net income increasing to $68.4 million.

• Adjusted EBITDA reached $158.3 million (13.2% margin), and adjusted EPS was $2.46; GAAP net income was $68.4 million ($2.32 per share).

• CEO Steven Nielsen announced retirement effective November 30, with Dan Peyovich to succeed; $11.4 million in stock-based compensation expected through transition.

• Completed $150 million acquisition of Black & Veatch's wireless infrastructure business, the largest wireless acquisition to date, and expanded into Alaska with another acquisition.

• Backlog increased to $6.83 billion, with 56% expected to be completed in the next 12 months.

Financial highlights

• Q2 contract revenues: $1.203 billion (up from $1.042 billion); net income: $68.4 million (up from $60.2 million); adjusted EBITDA: $158.3 million (13.2% margin).

• Adjusted diluted EPS rose to $2.46 from $2.03 year-over-year.

• Liquidity stood at $622 million, with net debt at $922.8 million and working capital at $1.25 billion.

• General and administrative expenses were 8.3% of revenue, including $2.2 million in incremental stock-based compensation due to CEO transition.

• Capital expenditures were $55.9 million net in Q2, with a full-year outlook of $220-$230 million.

Outlook and guidance

• Q3 2025 contract revenues expected to increase mid- to high-single digits year-over-year, with adjusted EBITDA margin expected to rise 25-50 basis points.

• Black & Veatch acquisition expected to contribute $250-$275 million in revenue for FY 2026 and $1 billion to backlog.

• BEAD program revenues anticipated to begin in Q3 of calendar 2025, with robust demand from public and private broadband investments.

• Stable macroeconomic and labor conditions, normalized supply chains, and strong customer capital budgets support continued growth.

• No formal quantitative guidance provided beyond Q3, but backlog and industry trends indicate robust demand.