Dycom Industries (DY) 21 Aug 242025 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Dycom Industries Inc.

Second Quarter 2025 Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Mr. Officer. Executive Chief Nielsen, Steven Please go sir. ahead,

Good to review everyone. Thank XXXX you call conference this attending our for results. morning, second fiscal quarter

X. Going Slide to

During our main page. slide slides to will found this by be Relevant our which number identified throughout on Center can be call, a Investor website's be will presentation. we presentation, referring

and Chief DeFerrari, our Drew Today, on call, the Officer; Counsel. we General [indiscernible], Financial Operating Ryan Officer; have our our President and Urness, Chief

turn will over it Ryan Urness. I Now to

made statements pursuant forward-looking this conference harbor All of provided Steve. you, Securities XXXX. during call are Act to provisions Thank of safe the Litigation the Private Reform

results all include differ projections, current those are statements about to Securities materially future risks expectations, These including the company's Commission. Exchange discussed comments U.S. Forward-looking actual assumptions the subject or which beliefs filings to reflecting our and uncertainties, with risks from statements forward-looking and in events. cause may

as this update we original are the broadcast made statements forward-looking statements. of any no solely assume Steve? date Forward-looking and of obligation call, conference to

after June our November CEO. effective Dycom's announced Thanks, retirement, I Ryan. as years retirement over Upon [indiscernible] XX will my CEO. my Dan become XX. On XX,

for Now call the will to opening over I comments. Dan turn some

upcoming for you you your business over dedication industry, the will on quality executing our the true decades leader welcoming I by continuing focus work alongside constantly X.X work customers. am Thank and and like delivering to retirement. to to your safely, Most years. would impressed importantly, my in I thank for Dicom coming your into Dycom you, all Steve. past to Congratulations passion support and for at me for thank of teammates He our for your our Dycom your for leadership. our your I build a look on forward months.

chapter. connect believe to pursue and Our well are to success am honored and as our we America. our lead growth we in Dycom back of I you. The our continue because unprecedented, this to vision excited is to Steve, to you. next are opportunities industry I positioned in

excited for lead as you company bright I'm Dan, Dycom to you future. a and our

results work Before to employees like I fellow dedication. hard and for and I review would their thank industry opportunities, our my

as the wisdom, Dycom thanks you. my And and finished of To be my I oversight. make is. handling discipline. and of for have your this as to our our support much to purposes because efforts directors, place counsel the shareholders, market's led for special benefit my better I it Thanks fellow guidance the Your last time call, your will invaluable. will call CEO, a your earnings has leader from company Q&A. be been finally, opportunity November's I the

our Now Slide of moving quarter results. X review to second and a

slides, measures. in for a of accompanying As corresponding today their we in please we measures our comments We to note review and to that reconciliation you XX these GAAP reference Slides the certain refer non-GAAP measures. results, our through XX non-GAAP

Revenue Organic for of billion, X.X%. increased year-over-year increase $X.XXX quarter. to the revenue XX.X%. an Now increased

and margin increase customers. compared in the of and wireline from to second of converged increased quarter an earnings X million. demand top $XXX networks, deploy networks, gigabit or XX.X% all quarter we per points million revenue. networks of basis this fiscal General was As and was expenses X at XXXX. strong $XXX.X reflected XX Gross wireless/wireline produced of our revenue wireless XX.X% adjusted Liquidity X.X% administrative adjusted $X.XX. We share of were these of and revenue, EBITDA of of factors and

business telecommunications construction of the $XXX to In in & the X. provides August, York, states million. infrastructure for public services, our quarter, wireless completed subsequent Slide going end we This of second Beach's Black the wireless New acquisition Now to of carrier business services and expands Open [indiscernible] acquisition. Montana Kansas, us including in Missouri, Utah, our modernization, presence, Jersey, to network deployment more transformation ever geographic Idaho and opportunities address wireless Wyoming, It wireless broadly is strategically growth largest initiatives New Colorado, services. and enabling our primarily

During expect year's as revenues quarter focused business acquisition construction our currently site for is next fiscal third modest on of the 'XX program. and we fourth

this For contribute with $XXX fiscal year $XXX EBITDA average. 'XX, revenue in we acquisition with to post-integration of our consolidated anticipate million to million margins line

Finally, in this total of will while currently add our our still preliminary, expect third we to $X review of quarter acquired which reflect billion we backlog is backlog, report. acquisition approximately

participants gigabit increasing These and an network number country. constructing consumers throughout moving Slide the businesses. wireline delivery to networks to Now industry speeds of upgrading or are of X. the Today, diverse wireline networks enable

AI In of deployments advent XX level interest as of is intercity networks seen interest high networks intercity years. in we low-latency last capacity national has in well sparked centers metro highest rings. The in data of the the addition, the broad have new as

participants revenue Finally, high-capacity have single a and wireless broadly can stated provision most investment. that for more networks belief spectrum multiple cost consumers and streams services so bands Industry efficiently access. their businesses, are to from a fiber both single and mobile effectively broadband deploying equipment to as fixed and additional enabling deliver network higher services both

belief geographic is providers, support new deployments is fiber traditional have also believe providers that Some another ability of fiber footprint. as recently wireless views appetite provision the outside fiber these services same invested the its to strongly some and fiber wireline deploying while industry advantages. for wireless provider This provide our services, that is participants competitive converged These wireless significant evident will create belief massive wireless irreversible. wireline networks in

As continue a to set a meaningfully result, of our for see we opportunities broader industry.

years. These into regulatory capital refinancings, for fiber to our deployment We homes of XX XX incremental customers including several the months. provide necessary awaiting more million entered are which over X.X than individual the to the over transactions, next strategic expected the a that is intended to are currently currently next of pleased number transactions have approval,

of The largest incremental equity program, of meaningfully of market deployments. rural BED, with the for broadband in transactions, programs networks areas these these that broadband associated construction deployment of to or are will an wide programs, we and billion rural to expect the the addition the addressed. capital communications across the represents underserved In public includes country. This private increases unserved support support a ultimately providing $XX be unprecedented capital level over access and variety

As all as X have tab. the and of program billion XX approval of this [indiscernible] approval. initial represents opportunity. deployment NTIA, territories states of America not completed difficult a received We magnitude early and importance and by addresses date, total underappreciated deploy completed expensive has $XX XX of be and the approximately in of some steps to generational the the it have week, as the locations required believe proposal or XX% XX while others To most

purposes, quarter see we of planning expect year during For XXXX. opportunities currently need to the calendar third

employment As seeing Macroeconomic activity by BEAD and continues [indiscernible] also programs. seeing funded -- are appear to significant other state stable. conditions develop, we

and country. year. Within In around supply since this and normalized addition, strength the market and chains our that many in financial labor remain service to have the Automotive valuable confident for well equipment position for customers. equipment of stable have to regions has our context, been capital we scale prices improved the deliver first the us

X. Moving to Slide

revenue X.X%. quarter, the During increased

our total organically. Of them was organic customer of Comcast fifth X.X% XXXX Verizon all X.X% was quarter. from our customer was million, Lumen This or of largest customers from all is was X%. Revenue since X at million other revenue, X was utilities customer largest our note, excluding produced identify X% increased $XX.X fourth X was or grew other quarter of consecutive largest $XXX.X XX.X% who finally, customers, increasing And our organically. customers million. A the organically or organically. our second at from at top revenue not Comcast organically. revenue. million XX.X% customer Demand AT&T Our customers of largest X revenue. Dycom's quarter of of third customers top the have of of million organically in grew that top increased we XX.X%, $XX.X fiber million of revenue or construction XX.X% X.X% growth This or quarter. $XXX.X revenue. customer largest XX.X% first was customer $XX.X Lumen XXnd XX.X% $XXX.X customer. the the electric combined AT&T asked our revenue in aggregate, of where grew its of grown January

reach management services. network our and planning have and program geographic expanded our We extended

fact, will amount as be parallel believe several we have we our increased of maintained. of value we believe a and plant extended deployment the those long-term In the the must which network wireline maintenance years, over converged and our dramatically direct meaningfully networks increase outside that of trend last wireless/wireline gigabit operations business, and deployments

Now going quarter. billion April million. during $X.XXX the versus Of the we work quarter at existing an Slide the billion end is to the second of in the XXXX performance billion this work. the $XXX quarter XX completed solid next end months. renewed activity of to $X.XXX was at of expected X. booked backlog, be increase Backlog $X.XX as reflects new and approximately second Backlog

We future into array continue those partnerships. to our recently opportunities transactions anticipate across a entered substantial customers, strategic of have who including and broad

for York, Carolina Arizona, received construction New utility-like New During speed, North nationwide agreement and fiber a in construction agreement the in a Pennsylvania, quarter, various agreement locating Ohio, was construction and Jersey, for Carolina. and rural Bright North Verizon California AT&T agreement Alabama construction we XX,XXX. Arkansas, Oklahoma, from Headcount to maintenance in from Virginia in and Comcast agreements

review and for outlook. the call turn I his will Now Drew over financial to

and Thanks, morning, good Steve, everyone.

$X.XXX of CEO in billion, revenue points and was were higher higher of stocking in year Non-GAAP to revenue of $XXX.X or XX.X% $X.XX compensation and increase recently expense $X.X was from million stock-based compared XX.X% on depreciation revenue related basis and X.X% $XX.X and taxes. gains million XX.X% included increased The acquired million incremental reflects XX 'XX. G&A was income $XX.X XX.X% improved million to to by in QX Margin share the of X.X%. million the or adjusted sales, organic per revenues to to our $XXX.X million. X. of Going in of Contract and an Slide higher EBITDA 'XX compared of EBITDA last $X X.X% Adjusted income year. net compared asset higher $X.XX businesses increase to net in revenues this interest per QX transition. and Revenues amortization basis 'XX. were succession QX million QX change XX $X.X to points expense offset income contract G&A in share

to XX. Going Slide

remain and sheet million balance and and was equivalents $XX.X position were liquidity Cash strong. $XXX financial million. Our

amended facility revolving term January maturity of of end million term extend During facility. credit and loan our capacity credit $XXX million had we to the senior QX, At an to expand outstanding the $XXX and QX, undrawn XXXX. we loan

notes we have Additionally, million outstanding. $XXX of senior

and leverage. net historical of Our within prioritize context the followed range capital growth, our share opportunistic repurchases M&A to organic allocation by continues of

DSOs combined of and XX. support Slide receivable days, contract gross the operating to XXX flows growth in expenditures disposal of and million. QX. was sequentially. Cash net Going accounts to were increase net used of Capital $XX.X million CapEx an $X.X $XX.X X sequential were The proceeds, assets days were The in million, activities

QX, construction to million, the that During acquired we Beach's a morning, company this carrier contractor acquired, million $XXX acquired & net of telecommunications expanding announced $XX.X cash in infrastructure Alaska. wireless our for has Black cash And geographic during public we footprint telecommunications business for QX.

Going to Slide XX.

the quarter million to of current contract XXXX, acquired $X.XXX ahead $XX to and as to several projects. Included million closeout a to compared contract included we single October compared the revenues look third the in revenues revenues million of we revenues high XX year period in expect that the impacts QX to total $XX.X percentage prior for is billion quarter of approximately increase from the and of XX, the of digit $XX.X acquired of ending revenues expectation mid- As

of XX change of rate QX stock-based of a of CEO out expectations X.X% EBITDA projects. The contract transition, the to to We incremental million and interest 'XX of of compared compensation expectation of a 'XX related XX.X related EBITDA impacts revenues million to QX of includes non-GAAP include about XX in effective that increase also 'XX to expense $XX.X expense, XX.X% non-GAAP of expense the EBITDA adjusted from million amortization million close The excludes XX incremental several integration expect in outlook expect the separately shares. acquisition to the the exclude basis order after integration XX and of $X.X $X.X costs pretax $X.X acquisition and Other tax of million income acquisition. net $XX.X margin succession a presentation we we of costs from non-GAAP excluding carve-out disclose QX benefit XX.X% that our adjusted and diluted percentage adjusted an EBITDA. QX million existing non-GAAP and is million QX pretax will business $X.X from points

acquisition is the in expectation are is expense interest to included $X.X On included diluted expense of the total outlook $X.X and combined that pretax after-tax million expectation. that included $X.XX in other are costs basis. on amortization the pretax $X.X million costs consolidated in are million share million basis, Other expected related the to that common the company's integration a $XX.X million of GAAP per $XX.X and or an approximately

Now to call I back will turn Steve. the

Thanks, Drew.

to XX. Slide Moving

significant This quarter, we and activity capitalized experienced strengths. on solid our

maintain significant we our markets. foremost, and First presence customer throughout

by the our opportunities and encouraged breadth Black in with the increasing are acquisition & We accompanying business our Beach. pleased from

latency continues extensive market allowed projects newly for dramatically low Telephone rapidly. Federal electric access in to and forefront center for available support data this companies communications of Cable operations same. particularly usage for business. market fiber growth bands Dramatically rural the the is fiber-to-the-home connectivity share Rural Wireless and are growing, Our state America increasing our activity deploying consolidating capacity is fixed of utilities duration. enable in are scale AI construction growing and be are are increasing deployments of year. us Customers opportunities. and increased speeds high-speed value supply doing long-term gigabit presence to increasing consumers and networks opportunities wireless underway. connections. deployments Demand of evolving creating support has spectrum and upstream. provisioned at maintenance are chains, being are data for is the industry consumer of operators expansion Rural

stable spending economic to that nation initiatives customers pleased industry conditions. more many multiyear our and are experienced are We our as of capital committed

and confident our in team. prospect capabilities strategy, experience dedicated are our for company management employees the of our the the our of We

open will we operator, questions. Now the for call

come And Securities. Alex our Instructions] [Operator question from will from Rygiel Riley B.

here. here. to look over many call few hearing questions A the from to of years to quick couple come. you I next quarters welcome forward Dan, the and

very particularly Steve, First, about AI seemed on your bullish, networks. commentary intercity

Dycom's been in recently, opportunity trust has However, more city.

opportunity? this you talk So are to as Or is like demand leading positioned Dycom you can how about highlighting the of driver in work? City the intercity entrust sort

work. to recent years, think, Alex, I over of exposure intercity I X,XXX industry we when and No, the ahead. the Essentially last coming intercity we back in over looked several out, we fiber. miles had an situation have what announcements placed came most anticipate analogous

I in a if experienced think far that we're we'll activity. them. the long the subsidiaries, of as Because enough, we we routes some worked histories So And here back you market build think some anyone. I as probably in number we have go that of anticipate

think So I that's a significant opportunity us. for

from seen on latency highlighted Microsoft directly you've opportunity is announcements to it AI more interesting and in think of the but I of moves in that inference. industry general, low people the the number fact Corning, a Lumin that as events, to have AI is and from the training as probably importance

think of intracity had And processing And so hyperscalers that I I it, network. think preliminary some fiber the place. the of be data about also you'll to create they're the be high the of to rings edge, centers that's very as at opportunity opportunity. edge seems around going an And with put the trend moving the data takes or metro we've discussions you affected. And level, also the to some thinking but our a as way see

generally then first declines quarter. $XXX weaker and quarter XQ growth million increased Very the from sort fiscal is helpful. for nearly backlog secondly, sequentially quarter. And total of a backlog in the

was increase So in And I the BEAD into guess you is, starting to sequential catalyst question are backlog? backlog? build here awards what the to see the

beat in there question, your Alex, backlog. So to is the second answer no

performance in had in broad I a there next backlog the pleased some were their none beyond, that set that opportunities and didn't that just we we the and and it the sometime we highlighted we've opportunities comments, backlog. the do quarter. we're that this As said think of year, we but feed expect midyear time, was in with

that. a election? to pending see just on given follow-up And presidential risk you the quick awards Do any BEAD

deployments a bipartisan going you in rural to what's to of that was Bed part with But passed, Act think, Historically, hard only state have It's government. beat there interesting parties, was both Senate I states basis. in votes support enjoyed money, always Republican. change with states control not also but Infrastructure with have on those states have the those both programs. particularly It's that a is had allocated actively pretty fiber if those forecast the the from are recall, XX happen if active

both comments, said I at we there's think in fiber deep rural I and is think for support So no our guarantees, point. irreversible this as but the

Our next Davis. from question will from Adam Thompson, come Thalhimer

congrats your Nice quarter. congrats your promotion. on on And Dan, Steve, retirement.

Okay.

maybe I'm morning growth the but it, reading looks probably there's this this moving take is, correct? like of maybe so, a QX the call of half it in pieces, So in specific in decelerates are most is to revenue that a and would analysis I've question QX And gotten organic back question be, X% And the wrong, lot then there from, that if QX? versus QX. that customers step

Adam, in it's I'll jump Drew. here.

in And that and acquired QX, a $XX several recall million. order we that last of another change we had closeout of projects had was both million. year, $XX So revenues also then

So last year's million single-digit take the to you'll then which out overall of get that year's growth, if number, range. mid- organic expected to growth take number, $XX I you to that high similar is this and think in out of you

change could we year be out I it. that's a And close add, it be would it'd that every nice and have out of aware but just a third think I'd why if was million Adam, ago $XX order we quarter, called people

dry will the guidance. wanted reflected thing high has make but guidance wet supporting we been out, that that a mid- things it Hopefully, is so sure the to other think to far. in for I August our we

of that the the slower, we've they've the one seen approvals little of be BEAD approved. a summer. some state-level the half is calculate bit to customers and a little think coming, evidence had approvals, pretty customer always smaller of may it these for -- strong are this be but bit this counterintuitive, year. with up that with over by getting picked that, we pace have first And is states deal it encouraged And a hard by NTIA or but may hey, been then that's beating certainty, the We

they know the activity a an And plan that so tell certainty. the to have with to may back in weeks. the little of real into a on approvals half with there's it within hard state been that of going year. But again, it, slowed has that X But bit we year, going real impressive call run last, be

I don't Okay. Beach. to don't other backlog curious & seems it than right? makes I'm customer different how All They standpoint. I'm that wanted $X from And the their -- construction. ask thing yours, And And self-perform they about about a is diversified curious then sense. Black billion high. is do any model is practically

how going change curious model. I'm you're So that to

it Well, press well we're the it's that first, well on date work new listed in the with, arrangements the turfing backlog, and a release builds familiar we've that primarily comes from customer. and good very site as as Adam, with

way in made us this even I project it more think acquisition systems synergies our systems years to and was think transaction. and value investments We in enhancing money and the great And management. the those last lot of we've at folks the the looked we we've a create there as last over are several work. the wireless program spent time out a for of that for significant prosecution think well. of our effort years. We've several do

from Markets. come will Jain from Capital question KeyBanc Sangita next Our

on from think here? & ask what seeing a you on you maybe Can growth of acquisition wireless making Steve, side. point on us made the acquisition, wireline you're a I strategic the an so tell about much can Black If follow-up the view, Reach side

that to begin Sangita about them. and only thought this we Well, not with, surfaced is something actually it, but approach we

I we in strategic something years. We significant broader at particularly now for We're theme customer those we where for business and of the ultimately, to XX us. made wireline do careful a We've a been efforts, but think same to in mean we And north in of have it's partner those wireless of us, just both it. this those a apply good So better people. think wireless. investments. I our customers, all the is for that work becoming is of organizations, do kind we that job

a and in -- was solid the our business, excited future. acquired, this to we're so bring business not we've And opportunities potential about only but may enhancement the that the

a expected. XQ little The I we have Great. if And what than a higher can follow-up. in would bit acquired guide F your seems revenue ask

couple was where going wondering [indiscernible] on there's specific if the modest to I like a the acquisition it So outperforming in next contributor because callout a is quarters? be seems of

This Drew again. Sure. is

third recall, an quarter, So on you in made we well. the acquisition, if year, last acquisition the as

year, And the so $XX acquisition as well the QX as X new this acquisition this in QX includes of now the backing we're earlier this the within that last million, done out of year. and the since year year that we've

acquired results. So combination those in the of a of it's businesses all

Yes. in owned business And We're Sangita, since We've Xth. preliminary. now it's still August our I think, mind, the modest working.

our moment. we're Hopefully, at tightening reasonable. still to but more expecting $XX million So quarter what forecast, $XX we're seems that's this the million but revenue down

come from Waters BofA. Our from question Alex next will

just but your you then for really well. a Dan and going center what's thoughts bit can revenues. about more And expectations retirement that Alex's Have a growth has that driving you've kind going back some forward? and maybe question. little little quarter. this prepared to the congrats opportunity off could you in the them Steve, on evolved congratulations past, it have bit data discuss Maybe that for know growth kind modest in to you spoke number I your be contributor secondly, what just of customer than of for it from to first as to really you remarks, a your much strong noted first more Steve, to here, been Dycom?

Sure.

were least that not existing previously, as centers, centers in what So associated the data constructed. observed were backbone. country at respect had constructed areas clearly talked some cases, there Internet about them closely we In we they Alex, being new in were being to with of data with

opportunities laterals. some certainly for were there So

you that thousands the small of not mean Microsoft I routes we know are Lumen don't announcement subsequent measured Corning. the supply If that look projects. at are miles. These what's going exactly by sizable exact for then transpire. network. These announcement about XX% the us are to having between and and years, in portion you next in But if of for of pretty for think their of capacity order year an that's Corning's the annual each opportunity. a the announcement few the outside plant projects

So a is opportunity for network, a really I think an seeing haven't long for what the seen we're essentially time. nationwide to we enhancement which intercity

stacks sources other customer capital that significant. we it, really a months X bunch how So in transactions the think to in you seen, new had but the I just last, we of networks. the of remains you referenced in strategic more were that And of call where pleased whole pretty a deployment the flow respect had news with then against number think coming new be opportunities let's it's with support the up to to over robust of high-capacity you broadly, to

several think to indicates that me things. so what And is I

seem pleased us. to So are their infrastructure. to out new a our of capital really well of #X as the They traditionally number significant like if high-capacity very returns to others first, with customers deployment as that build

either or broaden in programs duration. seeing geographically So we're

bit support. for and So and more state we're federal talked the longer. a We about little seeing

We last this of over where it new the that's think interesting you always been years, been There's in about think to going is a the capital talked If AI governments. just both is amount X the know a What's by just opportunity. from. when money state you committed that's all industry and federal come you source. phenomenal about

So thinking providing the inventory participants to our hyperscalers active encouraging. capital is of could in be

just helpful. aggregate you I'm fight involvement year. Their something significant $XXX think strategic months, this joint with of very set going announcements if wireline. coming established in customers. you a supposedly billion industry. CapEx deep-pocketed, M&A then big spend well-respected seen over the is couple look to commitment. when in mergers But I we've some at just a or of broad like the program there's seen them, For last a is, the companies We've in And amongst today ventures into new sure, think opportunities

Our Steven Fisher UBS. come from next from question will

Best wishes off Dan, Steve follow-ups some [indiscernible]. with to start and on maybe just

[ rate million the for that your to Just embedded curious int what $XXX revenues fiscal ] of for $XXX is million growth XXXX 'XX.

what's you the trailing the Or curve? And to bigger of how the And and and on sort other shape So now? that investment cyclical calendar guess 'XX the backlog. picture million right of the much O-RAN curious wireless then $XXX just I'm in what's to I be? million is the how things of to like see for of curve investment relative expected fiber

Yes.

the way. visibility let's initiated In level. site the good for, revenues. programs And I didn't down buy a that next to that just of lots when create wireless, are use the Steve, So forecast about there's mean trailing to to take information months. your business the it, XX we first we question new call

these really literally in down and each one to sites back of the and the following this of that's of number the states. years So X half year

just have we each these X So $XX than revenue perspective, a growth we at of indicated, good not we're visibility. $XX more as million last million From quarters. looking to in

that that year, is organic obviously, calculate revenue of you organic the all growth. when the and the we out we of of to way be next the half see comp So going next acquisition in that essentially year, back

the growth beginning good We as a opportunity. increase scheduled, year. will that the activity it's think at think we So organic of construction the first

very solid good think we plan. so a And that's

really forecast, we're billion in then the the $X network. backlog equipment deployment backlog. all in of extends participate revenue end think of new terms I of mean this In And pleased just that's that [indiscernible] to in calendar through I in [indiscernible]. the general,

can that's of. announcement, we going while. a several space, was in and we're what think expect announcement it [indiscernible] that's to I year trend one very There's it major be a clearly that been support believe I that in and

up slower we all I'm funding, next follow there. and it's that with like Adam's kind kind double-digit the have the growth so to on assume think Okay. growth That's of of expected, should still on growth there curious gave I there mid- question we handful for is a public that guess potential organic this picture agree organic much kind private seems helpful. quarter. about and just I investment kind of little of about when to we should And just the growth from the we would on in third something quarters. some color be than kind here. Should here? maybe the earlier about then you here. upper that's building it be single-digit Or of of it bigger restraining

I months example, that double capital guarantees. outlook do customers encouraging we're for factoring advantage we growth, They're that -- hyperscaler our well say service and new X, we're last And there's to what announcements see no the incrementally This We the growth a just nothing have the at the think last a capital would announcing the a of over think, what's couple space time. we It's structurally opportunity it years. one But X is earned plans of added to fiscal day wouldn't there's of kind over that again. business. do. initiatives, lack into recall, able or been the support as the you understand business we is X interesting Steve, that there's We in take the when to the positioned, X.X last significant. to or sizable always we is We've business. growth digits grow of drivers space to coming more new most the over homes into had big always before. years. that X X next everybody's million in just recent over already

encouraged. So we're

question Palmisano will next Our Rob Raymond come James. from from

these part that generally with fiber. ground? more do This for that And on And in [indiscernible] How be a you the to nest a versus fiber process? expect guys you Rob AI do talked congratulations shovel you expect is Steve, Have the a on Lumen of congratulations business profitable putting Frank. guys? much do amount you your your opportunity. Curious, on do new from get to retirement. of build? Dan, decent is How

earlier, what of Rob, type can work. we mentioned I as over completed process and of guess miles say, X,XXX in have I Yes, we're I this

think the we part as we else. of as So well reasonably or that network anybody understand well

some of good enough, actually process. regions some the of of part were portion of back the go country, you we of intercity the If long the construction

have achieve don't our ever any can't do And structural comment we our wouldn't specifically anything about, opportunity. what in So that that say say lots would is we're how I before, history and margins that I incremental make figure of individual what current each part on we talked to with better. all opportunity. the that trying of But of hopefully customer see we an those about better as network. that's growth catalyst, would generally out we to is in

Our next Davidson. question Thielman from will from D.A. come Brent

make investments & there Steve, just the just curious like get what that? Black there actions take legacy you you to average? at up the to need corporate need big anything to agreements, Are Beach margins to

the Yes. is we good investments in timeliness Brent, create improve business and delivery, made of the news scalability own efficiency I our and service to to all the exist. think that

and We're that it's the a from organization. complete big, understand familiarity blocking really we This business with is a administrative we exercise. customers' Now a it's systems. but folks, where the that big good getting have new tackling cooperation

execution just in investment investment, it's people And and so an that's systems really place.

to fiscal And margins guess by business in you contributions line context sort the XXXX. revenue guidance that Okay. about reach I of provided also the expect you're you Would in talking that for for that. of

hard see on no that generally, we more our the will have team to And to execute be we services performance providing able and reason work Yes, it yes, that based in better. But confidence we make absolutely. deliver. wireless will

your context favor the guess, the environment me that and in then in to Steve, And the that restraining that's in margin as EBITDA Okay. to of an I the anything third outlook, expand is regard. margins here, your faster ability is quarter XX.X% there meaning base should using be seems still

broadly as that's helpful. think we always look I we always if commented before I we've talked distributed Brent, before get as that ahead, growth,

growth us inorganic pool that G&A. like operating helped catalyst another which that we can costs and over even of leverage revenue and acquisition, So us, another this gives

the job our the really And can good match good to always, a we're as customer, the make then feel also. we and always a make like best we'd And resources we do about for hard So we're with that. to's shareholders the working that typically, do more, we so for customer. job to if opportunities. delivering

next Our Fargo. question Luebchow will come from Wells Eric from

on you luck board. on great Dan, Steve to of Best have retirement. And

beat the So I to wanted on opportunity. touch

recent remarks, up been have in a the this recently for that states application prepared of Steve, your approved process. lot brought You

investment second get timing from mentioned more there you we'll year to you rural half of And But make coming when 'XX when labor potential construction or or to so? subcontractors labor you a do just look year get I calendar you contribution be. in could to or at program. force kind is wanted think see build BEAD need ready the incremental as of of for direct wave the think either on you any think your I current confirmation that's next bigger

bit in they're out. again, that calendar these that has all Eric, requirements program We'll a there starts plays to different. government see program, be approvals little met. are Yes, to the that have a it are how secured, But in once any

should increased drive think it, of this within call more activity, so And cadence next we approvals that year. the let's

to going And that's the got underappreciate then that's for Not built. been things. material ever be again, that's passings be and to street, and on to tension always communications of we've Of design over get don't expensive most it's I think program also the other course, through difficult permitting addressing this those the significance all infrastructure of anticipate, some when but right? the a comes, and and significant. going to But

excited. we're so And

cadence a I I'm and that in about will this think in history as we from continue. and America. that talked use see long folks of least labor we subcontractors before, of this then rural we think we D.C. told we experts And in at approvals have will terms

footprint across master agreements where services provide for broad we both company cable telephone and a have We country. broad sections the of

investments I before we big, on size one pretty bit but so expenditures we the investments, make think be opportunity. want to going we'll speculative but prudent it. see increased start don't we this before think closer pulling to to be of is little And the the support We we trigger typically a make

And think understood. empty builds. center more type or revenues that IRUs Are or the in cases, over guess be on It or lot of one reoccurring how project-based dark do in initial mean data more you these AI like over just activity No, terms could for time? ground. these fiber maintenance selling conduit a of Yes. you the something I of view other routes time conversations. seems follow-up they that I after could these be of one-off the types in fiber some come may opportunity

Yes. the I got And of the network and size but think these to serve very substantially be builds tell, at it's have to the ambition country. given early large of the Corning, most orders that

leasing I that, and as the whole this in like mean I recall and in of move a at Corning side cables. do look this who sign data this trend. center and about from only commentary is that mean that's market things increased reduce a occurs. of there of capacity there coming I there you the the the they there's space that's no not switch anticipate interesting some it. XX latency the to that deploying. data highlighted If business, And that these of in the orders, they expert amounts ago, capacity intracity center legs started substantial to possibility I and lease but some flipped everybody behind could happens months good size inner that and city opportunities was I the Lumen, are that first of think announcement series were but am is metro X massive

from Alan Management. question Asset come our Lake next will Mitrani And Sylvan from

of couple ones. wireless the revenues quick were this quarter? a What Just

It's about so fairly of revenue, X% small.

were or... in sort this quarter line they the revenue overall the up And with of growth Okay.

No, a other but The business industry ready think commentary this Alan, broad XX%, XX% I modernization for line trend. in industry and I it, call network is gets think the this effort. that's year-over-year, as is with down,

prior bit quarter it less So it than a down quarter. this actually was little the was

year and CapEx Okay. And can you the cadence on next of the maybe for guide half? also, that the the update in Drew, us second

the not $XXX We're the changed Alan, anticipating Yes, outlook $XXX there. to we million. have still million

Okay. issue And deliveries? terms of no anymore in there's

Yes.

I I'll jump in think there.

that were I they did it's the to we that comments, when That's said supply mean we the why As up our encouraging. And little encouraging quarter. I we've bit some that what to has we'll up. Alan, get see, equipment we it. be that we mean, able that's opportunities this normalized. had need capital a that and do we stopped of freed given spend equipment magnitude the orders in did

XX XX And then up others, helpful. and we're but all about Is territories XX you, states about. other that to are and that to beat, adding with territories. I Steve, territories and the That's states I I it's Okay. misheard X regard you to talking maybe finished said, understand want states and XX

but territories, Obviously, not correct. that XX primary on the the the focus states, That's is our Alan, is program. total

been sort it at spent And about in lot and of of Okay. this lot like they the to at government But always they've a there's talk ability way people's lot the discount through it, to the preparatory is going. cheaper. by understand, are I a I cost worried. need, it lot could money they never some just which don't a spending, whether be or If nevertheless, views, a least the up obviously, of providers. of of just it least there's satellites People end spend of mean, the work seems traditional done to spend

calendar that 'XX. think said see that correct? the you third Is you revenues of You in quarter

Yes.

it emphasize this whether don't month big the program impacts it's see and it's shows that's early X we'll tie up in think if big want beginning quarter, down. again, fourth timing, just to I quarter, the think that month, to I the And third how significant scheme or of things. of I in business, is. But next too

Right.

integrating this the starting point going latest some the next counting went seems guys in over but years. over operating once for these step-up meaningful made this all completed taking we're a terms of it, different the to customers. year, Dan set and It sense with to last, that know you you business. in that and the programs as call let's wireless I business wireline, all in in comes. as getting which a with just -- like, function you business over room scale get XX mean starts all one you everything you've this started you concentrated I typically of So were. -- obviously, decades, in and said, seems is states, fits between up year, the experience, it, mean this business last XX grow, my business between have the lot you in on customers step before X, acquisitions the in X at in timing in essence, XX just last let's them built like permissions of the of this and next I speaking you're to a different It ready as not XX things you're have already in now with a is in with regions, call months,

next but question where thought terms for do also you see set more phase up when next of going a process years? the Steve this and for and dollars do Steve, XX, the in playing it few you built table, -- of if is lasts. starting Dan the in as How comes XX long the of see however Dycom in Dycom for just next business gigantic my billions So months out potentially the XX, you, in

XXXX to I mean, it that out business business, flows acquisitions cash of create that from want in to Quanta We'll it's within growing we strategic look reinvesting as I over on interesting what So right, aggregate start framework the the have mean as the last bigger. always, the worked we the approximate in can that acquisitions capital over at year. you we I allocation, we acquisitions make did Alan, with they the inside right? the a us. think, we have spend year, if for last size

ultimate good these success And operating belief is a why is With that, to Dan. long-term company. So I'll -- your based ability investments where to to business. execute having right, our this over is always focused we the always turn on that business, it which in think you we've on your

in a closely Yes, I would Drew and much worked and I'm past X Steve is what now. the that see ago, create years tell have strategy Dycom, been here and I've say been with we they can continuing the and I very the I very that is on help for you time Alan. long aligned What that almost successful that's future.

One generation might he only strategy of from to Alan, that that rewards say or you anyway. the -- up might generate really say, he set and Drew

and The execution. about rewards all

will shareholders that's we that you don't next years. over well work hope of something So couple out We purse control the know the strings.

So it's of just to and a question best luck and on capitalizing that you. doing of

like from the any Steve no now showing back our over to remarks. conference for Nielsen closing questions am I turn And I'd phone lines. further to

before the Well, week not we to third to for everybody week thankfully thank just company, on the want next you is and the this November, and the everybody, again year, in look I attendance Thanksgiving. speaking our for to everybody interest Thanksgiving, it's we week which, is quarterly call. of and forward time of your note

again to you. talk we'll you So then. Thank

concludes for your This today's you conference call. participation. Thank

have You may now disconnect. wonderful Everyone, a day.