Dycom Industries, Inc. · NYSE:DY
Dycom Industries — Investor Presentation (November 2024)
28 slides from Dycom Industries's investor presentation, Nov 25, 2024
Slide 1: Investor Presentation November 2024
,,DYCOM The people connecting America® Investor Presentation November 2024
Slide 2: Important Information
Important Information 2 Caution Concerning Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the outlook for the quarter ending January 25
Slide 3: Who We Are
3 Nationwide footprint with 15,900+ employees across 560+ field offices throughout all 50 states Significant scale $4.2 Billion of contract revenues & $505 Million of Adjusted EBITDA in fiscal 2024 Durable customer relationships with well established, leading telecommunications providers that span d
Slide 4: Intensely Focused on Telecommunications Market
Intensely Focused on Telecommunications Market 4 Program Management From the smallest town to the largest city, we manage telecommunications projects that connect America Engineering Our integrated engineering teams work hand-in-hand with construction and logistics teams throughout the full lifecycl
Slide 5: Fiscal 2024 Highlights
Fiscal 2024 Highlights 5 FY 2024 FY 2023 Y/Y Contract Revenues $4,176 $3,808 9.6% Organic Revenue Growth2 6.9% Adjusted EBITDA3 $481 $366 31.4% Adjusted EBITDA %3 11.6% 9.6% Adjusted Diluted EPS3 $6.78 $4.74 43.0% Operating Performance • Revenue growth and margin expansion • Total Backlog1 of $7.856
Slide 6: Industry Overview
Industry Overview 6 We believe the appetite for massive fiber deployments will continue to drive strong demand for our services and broaden the opportunities for our industry Many of our customers have entered into strategic transactions and refinancings intended to increase capital expenditures for
Slide 7: Strong Secular Trend Around High-Speed Connectivity
Strong Secular Trend Around High-Speed Connectivity 7 Dramatically increased speeds for consumers are being provisioned and consumer data usage is growing - Pascal Desroches, CFO AT&T - October 2024 • In 3Q24, the percentage of Power Users consuming 1 TB or more per month increased 13% year-over-yea
Slide 8: Multiple Industry Tailwinds Driving Sustainable Growth
Multiple Industry Tailwinds Driving Sustainable Growth 8 Increasing amounts of capital are being attracted to the deployment and operations of high-capacity telecommunications infrastructure driven by strong consumer demand Fiber to the Home Deployments and Cable Capacity Expansion Projects Fiber de
Slide 9: Key Driver: Fiber to the Home Deployments
0 50 100 150 Passings as of 2023 Homes Available - Urban and Suburban Homes Available - Urban, Suburban & Rural U .S . H o m e s w it h F ib e r P a ss in g s (a ) (i n M il li o n s) Key Driver: Fiber to the Home Deployments 9 Increasing consumer demand for bandwidth continues to drive fiber deploy
Slide 10: Key Driver: Fiber to the Home Deployments (continued)
Key Driver: Fiber to the Home Deployments (continued) 10 Massive fiber investment presents significant opportunities for sustained growth Analyst research indicates the number of homes passed with fiber will exceed 10 million in 2025 and remain at this rate for several years Fiber capex continues to
Slide 11: Key Driver: Increased Fiber Capacity for Artificial Intelligence (AI)
Key Driver: Increased Fiber Capacity for Artificial Intelligence (AI) 11 AI data centers driving demand for broad new national deployments of high-capacity, low latency intercity networks and metro fiber rings • Hyperscalers may serve as a new source of capital to our industry for the dramatic expan
Slide 12: Key Driver: Wireless Deployments
Key Driver: Wireless Deployments 12 Wireless construction activity in support of newly available spectrum bands and fixed wireless access continues this year • Wireless networks are deploying additional spectrum bands and equipment to more broadly and efficiently provision higher broadband services
Slide 13: Key Driver: US Government Spending on Communications Infrastructure
Key Driver: US Government Spending on Communications Infrastructure 13 BEAD Funding Allocations by State Source: NTIA Internet for All: State Allocation Totals Select US Government Programs: Broadband, Equity, Access and Deployment (BEAD) Program Provides over $40 billion for the construction of rur
Slide 14: Local Credibility, National Capability
Local Credibility, National Capability 14 Dycom combines local knowledge with national reach Operating Subsidiaries Corporate headquarters Subsidiary headquarters Branch location
Slide 15: Durable Customer Relationships
Durable Customer Relationships 15 Increasing customer breadth and opportunity; well-established investment grade customers comprise a substantial portion of revenue
Slide 16: Anchored by Long-Term Agreements
Anchored by Long-Term Agreements 16 FY 2024 Revenue by Contract Type • Dycom is party to hundreds of MSA’s and other agreements with customers that extend for periods of one or more years • Generally multiple agreements maintained with each customer • Master Service Agreements (MSA’s) are multi-year
Slide 17: 10+ Years of Robust Cash Flow Generation
10+ Years of Robust Cash Flow Generation 17 Prudent approach to capital allocation: • $651 million invested in share repurchases • $375 million invested in business acquisitions • $1,411 million in CapEx, net of disposals Fiscal 2014 – Fiscal 2024 Strong operating cash flows of $2.201 billion over 1
Slide 18: Financial Update
Financial Update
Slide 19: Annual Trends
$3,131 $3,808 $4,176 FY 2022 FY 2023 FY 2024 Contract Revenues $ M il li o n s $244 $366 $481 7.8% 9.6% 11.6% FY 2022 FY 2023 FY 2024 Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA Non-GAAP Adjusted EBITDA % $ M il li o n s (0.2)% 21.8% 6.9% FY 2022 FY 2023 FY 2024 Non-GAAP Organic Growth (Declin
Slide 20: Quarterly Trends
Quarterly Trends 20 $917 $1,045 $1,042 $1,136 $952 $1,142 $1,203 $1,272 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Contract Revenues $ M il li o n s $83 $114 $131 $143 $94 $131 $158 $171 9.1% 10.9% 12.6% 12.9% 9.8% 11.5% 13.2% 13.4% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 202
Slide 21: Debt and Liquidity Overview
Debt and Liquidity Overview 21 • Strong liquidity6 of $462.8 million at Q3 2025 • Increase in net debt to fund acquisition in the quarter • Capital allocation prioritizes organic growth, followed by M&A and opportunistic share repurchases, within the context of the Company’s historical range of net
Slide 22: Cash Flow Overview
Cash Flow Overview 22 • Solid operating cash flows during Q3 2025 • Days Sales Outstanding (“DSO”)7 were 119 days at Q3 2025 • Gross capital expenditures were $74.6 million and disposal proceeds were $8.2 million for Q3 2025 • In Q3 2025, acquired Black & Veatch’s public carrier wireless telecommuni
Slide 23: Capital Allocated to Maximize Returns
Capital Allocated to Maximize Returns Invest in Organic Growth Focus on organic growth opportunities through strategic capital investments in the business Pursue Complementary Acquisitions Selectively acquire businesses that further strengthen our customer relationships, geographic scope, and techni
Slide 24: Committed to Sustainability
Committed to Sustainability 24 We believe that addressing sustainability risks and opportunities through our corporate strategy and operations allows us to best serve our stakeholders People Safety Environment Employees are our most important resource and are at the heart of everything we do. We str
Slide 25: Questions and Answers
an Question! and Ae a Answers _
Slide 26: Outlook slide used on November 20, 2024 conference call
26 This slide was used on November 20, 2024 in connection with the Company’s conference call for its fiscal 2025 third quarter results. This information is provided for your reference only and should not be interpreted as a reiteration of these projections by the Company at any time after the date o
Slide 27: Notes
Notes 27 1. The Company’s backlog represents an estimate of services to be performed pursuant to master service agreements and other contractual agreements over the terms of those contracts. These estimates are based on contract terms and evaluations regarding the timing of the services to be provid
Slide 28: The People Connecting America
The People Connecting America ®
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