Dycom Industries (DY) 25th Annual Diversified Industrials & Services Conference summary

Strategic positioning and growth outlook

• Focus on end-to-end infrastructure solutions, expanding from fiber and HFC to data centers and structured cabling.

• Growth strategy centers on meeting surging data demand, with long-term customer partnerships and workforce investments.

• Organic growth projected at 10%-12% for fiscal 2027, driven by telecommunications, with strong backlog and margins.

• Building System segment delivers high teens to low 20s adjusted EBITDA, supporting diversification.

• Multi-year customer conversations and planning extend three to five years out, ensuring readiness for future demand.

Market opportunities and demand drivers

• Fiber-to-the-home program work grew 60% year-over-year in the first half, outpacing industry averages.

• Long-haul and middle-mile fiber projects show over $1 billion in pure backlog, with a $20 billion addressable market over five years.

• BEAD funding is beginning to flow, expected to drive a surge in activity by 2028.

• Service and maintenance represent about half of communications revenue, providing a stable base.

• Anticipated industry-wide labor and fiber constraints by 2028 could extend project timelines.

Operational execution and complexity management

• Investments in workforce training and prefabrication enhance execution in complex, fast-paced data center builds.

• Complexity in long-haul and middle-mile fiber work requires six months of specialized training.

• Local market knowledge and relationships are key to managing cost and regulatory differences.

• Proven ability to step in and deliver on challenging projects where competitors have struggled.

• Margin profile remains strong, with ±13% adjusted EBITDA in communications and higher in Building Systems.