Dycom Industries (DY) Wells Fargo 8th Annual TMT Summit Conference summary

Strategic priorities and market outlook

• Leadership transition brings focus on growth opportunities in fiber, AI, and rural broadband over the next decade.

• Expansion to all 50 states and recent acquisitions have strengthened national coverage and customer base.

• Private capital expected to pass 80% of U.S. homes with fiber, with public funding filling remaining gaps.

• Industry consolidation and M&A activity seen as positive, enabling scale and capital deployment for network expansion.

• Emphasis on maintaining quality, schedule certainty, and enterprise partnerships as customers consolidate vendors.

Growth drivers and industry trends

• Fiber-to-the-home demand remains robust, with major telcos and overbuilders increasing passings targets.

• BEAD and other federal/state programs represent a $50 billion opportunity over four years, with strong economic incentives for customers.

• AI and hyperscaler-driven data center connectivity require new long-haul and metro fiber builds, creating multi-year growth potential.

• Wireless business expansion, including the Black & Veatch acquisition, positions for Open RAN and densification trends.

• Cable segment activity steady, with DOCSIS 4.0 rollout slower than expected but ongoing RDoF and rural projects.

Operational and financial execution

• Top 10 customers now comprise 75% of revenue, with diversification improving over recent years.

• Four acquisitions in the past year are integrating well, with focus on cultural and strategic fit.

• EBITDA margins have improved, with further leverage expected from revenue growth and operational efficiency.

• Labor force investments and training programs support growth, with headcount up 4% year over year.

• Commitment to capital allocation includes organic growth, M&A, and share repurchases.