Dycom Industries Inc at Goldman Sachs Communacopia & Technology Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : So Dan, there are probably a fair amount of people in the room and listening online that are relatively new to the Dycom story. Can you just kind of give us a high-level overview of the company and where you stand today? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2025 / 3:50PM, DY.N - Dycom Industries Inc at Goldman Sachs Communacopia & Technology Conference

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Exactly. So fiber deployments, both on the consumer and the enterprise side have been quite topical the past few years. And to your point, you kind of said at the middle of that theme, and many of your biggest customers are in the midst of major deployments being passing tens of millions more homes or building long haul networks to connecting data centers. So as you think about your business over the next, call it 5, 10 years, how do you envision how your customers are changed? How the industry will evolve, and ultimately, your financial trajectory?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : So if I can follow up on that, I guess one of the questions becomes labor. And if there's that much work to do, do you have the labor you need or is that something that you need to execute on? And what's your strategy for procuring labor?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Got it. And as we just kind of finish out kind of some of the higher-level strategic things, one of the things that is probably overlooked in your business is the Services and Maintenance part, which I think you said it results was a little over 50% of your business today. Most people think it's fiber-to-the-home builds and AI data center, but Services is quite large. So how do you think about the trajectory of that part? And how do you think about the margin of the Services business versus the more specific kind of project builds? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2025 / 3:50PM, DY.N - Dycom Industries Inc at Goldman Sachs Communacopia & Technology Conference

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : And I guess just as the fiber-to-the-home passings get larger and AI data center builds get larger and there's more fiber in the ground, that just is a nice trajectory for the Services business overall. Is that the right way to think about it?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Got it. I think the past three days of the conference, AI has been kind of the talk of everything. So moving, and when you think AI, you think data centers. So the data center connectivity part of your business has garnered a lot more attention in the past year or so probably than it has in the prior '20. We know that data centers already have fiber connectivity today. So what's changed in the past few years that it makes this a bigger theme for your company? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2025 / 3:50PM, DY.N - Dycom Industries Inc at Goldman Sachs Communacopia & Technology Conference

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : And I guess just following up on that, of that $20 billion TAM, what's the best way to think about your share of what that could be? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 11, 2025 / 3:50PM, DY.N - Dycom Industries Inc at Goldman Sachs Communacopia & Technology Conference

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Got it. And some of the data center work you've talked about is inside the fence. And maybe, can you take a step back and explain what exactly that entails? And as for those of us who've been in data center and those who haven't, like what exactly you're connecting that hasn't been connected today?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Got it. If we shift to the kind of fiber-to-the-home part of the story, you mentioned earlier, there's a lot of consolidation, Verizon, Frontier, AT&T, Lumen, all four of them are your customers. So how should we think about your ability to do, get incremental part of that business as those two mergers kind of happen.

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : And is it fair to say that most of the business you get with Lumen is from their enterprise side versus the resi side?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : You specifically have not put BEAD in your forecast. It's been a long process and it doesn't feel like it's ever going to really end.

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Where do we stand? And how do you think about the opportunity to take advantage of this?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Got it. If we can shift to the kind of financials for a minute, you provided an annual revenue guide, which you reiterated last quarter. But people are still very much focused on kind of quarter to quarter, month to month kind of changes and timing of build plans. So can you give us or elaborate on build cycles and how the impact results as we kind of think about the sequentials and timing through the year?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Got it. At the beginning of the year, you gave some margin and cash flow improvements and thoughts out there. We saw pretty good results this past quarter on that. Can you talk about the additional improvements or additional opportunities for improvements on margins and cash flows? How should we think about the long-term profile of the company?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : And I guess improving cash flow kind of leads me to leverage, which is pretty low. What are your plans to do with the cash? You do some buybacks, but you probably have capacity for more than what you do. How should we think about your capital allocation in total?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : What exactly does this kind of opportunity look like? Is it more of your type of construction or is it something adjacent? What's the most interesting?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : The other thing is your backlog is growing quite quickly, which in theory gives us a pretty good indication of where top line is going. I'm a big proponent of thinking about if revenue grows X, EBITDA grows Y, EPS grows Z, is there an algorithm that we should think about as to when we see the backlog, what that actually foreshadows into what earnings and cash flow can really grow?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Got it. And then just kind of just circling back to the AI side, you've talked about your conversations you've had with hyperscalers. Do you foresee conversations with major enterprises as they figure out what their applications will be? Or is it they're just going to ride on the networks that's already there and there's really nothing incremental on that side?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Got it. And real quickly, T-Mobile is relatively new to fiber. Do you have any kind of relationship with them or any of their subsidiaries that they've been working with?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : Got it. With the time we have left, what are the one or two things that we should take away from the conversation today and what makes you most excited about where you stand?

Question: Joshua Frantz - Goldman Sachs & Co. LLC - Analyst : That's a fantastic place to stop. Thanks so much for being here.