DY

Dycom is a leading US specialty contractor for digital infrastructure — fiber-to-the-home, hyperscaler data-center builds, and wireless modernization — and the secular demand backdrop is exactly what the 10-K describes: data-intensive AI and cloud compute driving extensive wireline and electrical infrastructure expansion. The financials confirm the momentum: FY2026 revenue grew 17.9% to $5.55B and net income rose 20.5% to $281M, capping a multi-year ramp from $3.13B revenue and just $48.6M net income in FY2022. Operating cash flow surged 84% to $643M and ROE is a healthy 15.1%.

The balance sheet changed materially this year. Total assets roughly doubled (+103%) and long-term debt jumped 201% to $2.81B, lifting liabilities/equity to 2.22x — consistent with a sizable debt-funded acquisition that also boosted cash to $709M (+665%). That added leverage raises the stakes: the business now carries meaningfully more financial risk than its historical profile, even though the cash build and strong operating cash flow provide coverage. Net margin remains thin at 5.1%, typical for construction contracting and leaving limited room for cost overruns.