Dycom Industries, Inc. (Dycom) provides specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States.
Dycom is made up of more than 40 operating companies that serve a diverse customer base across 49 states from hundreds of field offices.
Dycom’s operating companies supply telecommunications providers with a comprehensive portfolio of specialty services, including program management; planning; engineering and design; aerial, underg...
Dycom Industries, Inc. (Dycom) provides specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States.
Dycom is made up of more than 40 operating companies that serve a diverse customer base across 49 states from hundreds of field offices.
Dycom’s operating companies supply telecommunications providers with a comprehensive portfolio of specialty services, including program management; planning; engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services. Additionally, the company provides underground facility locating services for various utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities. Dycom supplies the expertise, labor, equipment, and tools necessary to provide services to the company’s customers.
Engineering Services
The company provides engineering services to telecommunications providers, including the planning and design of aerial, underground, and buried fiber optic, copper, and coaxial cable systems that extend from the telephone company hub location, or cable operator headend, to a consumer’s home or business. The company also plans and designs wireless networks in connection with the deployment of new and enhanced macro cell and new small cell sites. Additionally, the company obtains rights of way and permits in the support of the company’s engineering activities and those of the company’s customers and provide program and project management and inspection personnel in conjunction with engineering services or on a stand-alone basis.
Construction, Maintenance, and Installation Services
The company provides a range of construction, maintenance, and installation services, including the placement and splicing of fiber, copper, and coaxial cables. The company excavates trenches to place these cables; place related structures, such as poles, anchors, conduits, manholes, cabinets, and closures; place drop lines from main distribution lines to a consumer’s home or business; and maintain and remove these facilities. The company provides these services for both telephone companies and cable multiple system operators in connection with the deployment, expansion, or maintenance of new and existing networks. The company also provides tower construction, lines and antenna installation, foundation and equipment pad construction, small cell site placement for wireless carriers, and equipment installation and material fabrication and site testing services. In addition, the company provides underground facility locating services for various utility companies, including telecommunications providers. The company’s underground facility locating services include locating telephone, cable television, power, water, sewer, and gas lines. In addition, the company installs and maintains customer premise equipment, such as digital video recorders, set top boxes and modems, for cable multiple system operators and others. The company also performs construction and maintenance services for electric and gas utilities and other customers.
Business Strategy
The company’s business strategies are to capitalize on long-term growth drivers; selectively increase market share; and pursue selective acquisitions.
Customer Relationships
The company has established relationships with many leading telecommunications providers, including telephone companies, cable multiple system operators, wireless carriers, telecommunication equipment and infrastructure providers, as well as electric and gas utilities.
During the year ended January 27, 2024, the company derived approximately 16.9% of its total contract revenues from AT&T Inc., 15.6% from Lumen Technologies Inc., 10.7% from Comcast Corporation, 9.0% from Verizon Communications, Inc., and 5.5% from another customer.
The company serves its markets locally through dedicated and experienced personnel.
Seasonality
The company’s contract revenues and results of operations exhibit seasonality and are impacted by adverse weather changes as the company performs a significant portion of the company’s work outdoors. Consequently, adverse weather, which is more likely to occur with greater frequency, severity, and duration during the winter, as well as reduced daylight hours, impact the company’s operations during the fiscal quarters ending in January and April. Additionally, extreme weather conditions, such as major or extended winter storms, droughts and tornados, and natural disasters, such as floods, hurricanes, tropical storms, whether as a result of climate change or otherwise, could also impact the demand for the company’s services, or impact the company’s ability to perform the company’s services. Also, several holidays fall within the fiscal quarter ending in January, which decreases the number of available workdays in this fiscal quarter. Because of these factors, the company is most likely to experience reduced revenue and profitability or losses during the fiscal quarters ending in January and April compared to the fiscal quarters ending in July and October.
Regulation
The company is subject to the requirements of the federal Occupational Safety and Health Act (‘OSHA’) and comparable state statutes that regulate the protection of the health and safety of workers.
Subcontractors and Materials
The company contracts with subcontractors to perform a significant amount of its work and to manage fluctuations in work volumes and to reduce the amount the company expends on fixed assets and working capital. These subcontractors are typically small, privately owned companies that provide their own employees, vehicles, tools and insurance coverage. No individual subcontractor is financially significant to the company.
For a majority of the contract services the company performs, the company is provided the majority of the required materials by the company’s customers.
History
Dycom Industries, Inc. was founded in 1969. The company was incorporated in the state of Florida in 1969.