Dycom Industries (DY) investor relations material

Industry trends and growth drivers

• Significant industry consolidation among customers and peers is creating larger build programs and more opportunities for large-scale providers.

• Fiber-to-the-home builds are well underway, with expectations to reach 80% of U.S. homes, driven by both private capital and government programs like BEAD.

• AI and data center infrastructure are major growth areas, with hyperscalers planning exponential expansion and requiring extensive new fiber connectivity.

• The company is positioned nationwide, enabling it to capitalize on both urban and rural demand drivers.

• Service and maintenance now represent over 50% of business, providing a recurring revenue base and competitive differentiation.

Labor strategy and operational execution

• Focus on attracting and retaining skilled tradespeople, with a culture that promotes career growth from entry-level to leadership.

• Investment in training programs and facilities to ensure workforce readiness for continued growth.

• Emphasis on building a strong supervisory and management layer to support expansion.

• Labor force strategy is a key enabler for scaling operations to meet increasing demand.

Data center and AI-driven opportunities

• Data center connectivity, especially for hyperscalers, is a rapidly growing segment, with $20 billion in addressable market over the next five years.

• Aging infrastructure and the need for higher-capacity fiber bundles are driving large-scale network upgrades.

• Inside-the-fence data center work is expanding, as hyperscalers seek more reliable, scalable partners for campus interconnections.

• The company is winning significant awards and expects continued growth as demand accelerates through 2026 and beyond.