Dycom Industries, Inc. (NYSE:DY) is looking for M&A. During the Dycom Industries, Inc. Fourth Quarter 2026 Results Conference Call, H. DeFerrari, Chief Financial Officer, said "Going forward, we remain committed to our capital allocation priorities of investing in organic growth, pursuing strategic M&A and opportunistically repurchasing shares. We continue to observe strong demand across a diverse set of drivers, creating significant opportunities for continued strong growth and performance". Daniel Peyovich, President and Chief Executive Officer, said "To finish the year with a very strong cash position in order to get that down to 2.3x pro forma, we feel really good about the opportunity set that allows us to think about from an M&A perspective.
Long-term strategy include improving our cash flow, right? And if you look at our free cash flow, I'm incredibly proud of what our team was able to accomplish there. Our free cash flow increased 216% year-over-year.
And I would point to these are durable changes that we built into the business. These are not simply pulling a lever or taking a onetime thing. This is really about how we change, one, how we collect cash, we changed our operating margin -- excuse me, our operating cash collection profile and how we're thinking about that.
So again, durable. On the free cash flow side, you heard me talk a little bit about how we're thinking about our fleet differently and using technology differently there so we can optimize that as well. And what that does is it positions us in a place where those are big changes in cash position overall, sets us up much better when you think about M&A".
Dycom Industries, Inc. is a provider of specialty contracting services. The Company supplies telecommunications providers with a portfolio of services, such as program management, planning, engineering and design, aerial, wireless construction, maintenance, and fulfillment services. It provides underground facility locating services for utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities. It also supplies the expertise, labor, equipment, and tools necessary to provide services to its customers. It provides engineering services to telecommunications providers, such as 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 consumers' home or businesses. It provides construction and installation services, including the placement and splicing of fiber, copper, and coaxial cables.
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