Dycom Industries : Q1 2025 Presentation Materials

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May 22, 2024

Participants

Steven E. Nielsen	President and Chief Executive Officer
H. Andrew DeFerrari	Chief Financial Officer
Ryan F. Urness	General Counsel

Agenda

Q1 2025 Overview

Industry Update

Financial and Operational Highlights

Outlook

Closing Remarks

Q&A

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Important Information

Caution Concerning Forward-Looking Statements

This presentation contains forward-looking statements within the meaning of the 1995 Private Securities Litigation Reform Act. These forward-looking statements include those related to the outlook for the quarter ending July 27, 2024, including, but not limited to, those statements found under the "Outlook" section of this presentation. Forward-looking statements are based on management's expectations, estimates and projections, are made solely as of the date these statements are made, and are subject to both known and unknown risks and uncertainties that may cause the actual results and occurrences discussed in these forward-looking statements to differ materially from those referenced or implied in the forward-looking statements contained in this presentation. The most significant of these known risks and uncertainties are described in the Company's Form 10-K, Form 10-Q, and Form 8-K reports (including all amendments to those reports) and include future economic conditions and trends including the potential impacts of an inflationary economic environment, changes to customer capital budgets and spending priorities, the availability and cost of materials, equipment and labor necessary to perform our work, the adequacy of the Company's insurance and other reserves and allowances for doubtful accounts, whether the carrying value of the Company's assets may be impaired, the future impact of any acquisitions or dispositions, adjustments and cancellations of the Company's projects, the impact to the Company's backlog from project cancellations or postponements, the impacts of pandemics and public health emergencies, the impact of varying climate and weather conditions, the anticipated outcome of other contingent events, including litigation or regulatory actions involving the Company, the adequacy of our liquidity, the availability of financing to address our financial needs, the Company's ability to generate sufficient cash to service its indebtedness, the impact of restrictions imposed by the Company's credit agreement, and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. The Company does not undertake any obligation to update its forward-looking statements.

Non-GAAP Financial Measures

This presentation includes certain "Non-GAAP" financial measures as defined by Regulation G of the SEC. As required by the SEC, an explanation of the Non-GAAP financial measures and a reconciliation of those measures to the most directly comparable GAAP financial measures are provided in slides 14 through 19 of this presentation. Non-GAAP financial measures should be considered in addition to, but not as a substitute for, the Company's reported GAAP results.

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Q1 2025 Overview

Financial Snapshot

$ Millions, Except EPS	Q1-25	Q1-24	Y/Y
Contract Revenues	$1,142	$1,045	9.3%
Organic Revenue Growth1			2.5%
Adjusted EBITDA	$130.9	$113.5	15.3%
Adjusted EBITDA %	11.5%	10.9%
Diluted EPS*	$2.12	$1.73	22.5%

*Diluted earnings per common share included incremental tax benefits resulting from the vesting and exercise of share-based awards of $0.20 per common share in Q1-25, compared to $0.09 in Q1-24

Operating Performance

• Revenue growth and margin expansion

Liquidity

• Solid liquidity of $573.6 million
• In May 2024, amended Senior Credit Facility to expand capacity and extend maturity to January 2029

Capital Allocation

• In May 2024, acquired a telecommunications construction contractor that expands our geographic footprint to Alaska
• Repurchased 210,000 common shares for $29.8 million

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Industry Update

The effort to deploy high-capacity fiber networks continues to meaningfully broaden the set of opportunities for our industry

• Major industry participants are constructing or upgrading significant wireline networks across broad sections of the country
• High-capacityfiber networks are increasingly viewed as the most cost-effective technology, enabling multiple revenue streams from a single investment
• We are encouraged that a number of our customers are pursuing strategic transactions aimed largely in part to increase access to capital and expand fiber deployment programs
• Fiber network deployment opportunities are increasing in rural America; federal and state support programs for the construction of communications networks in unserved and underserved areas across the country are unprecedented and meaningfully increase the rural market that we expect will ultimately be addressed

Macro-economic conditions appear stable

The market for labor has improved in many regions and automotive and equipment supply chains are also improving

For several customers, we expect the pace of deployments to increase this year, including two significant customers whose capital expenditures were more heavily weighted toward the first half of calendar 2023

Our scale and financial strength position us well to take advantage of these opportunities to deliver valuable services to our customers, including integrated planning, engineering and design, procurement and construction and maintenance services

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Contract Revenues

Top 5 Customers2 - Percentage of Total Contract Revenues

$ Millions

Non-GAAP Organic Growth (Decline)%1

Top 5 customer concentration reduced to 56.4% in Q1 2025 compared to 65.5% in Q1 2024

Fiber construction revenue from electric utilities was $96.0 million in Q1 2025

Q1 2025 Organic Growth:

Total	Top 5	All Other
Customers	Customers2	Customers3
2.5%	0.1%	5.7%

Lumen Charter

15.0% 121.8%

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Backlog, Awards and Employee Headcount

Backlog4	Employee Headcount
$ Billions

Selected Q1 2025 Awards and Extensions:

Customer	Description of Services	Area	Term (in years)
Frontier	Construction and Maintenance	IL	2
Comcast	Construction	WA	1
Various	Rural Fiber Deployments	WA, AZ, TN, GA	1-2
Various	Utility Line Locating	CA, VA, GA	3

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Financial Highlights

Contract Revenues

Non-GAAP Adjusted EBITDA

Diluted EPS

10.9% 11.5%

Non-GAAP Adjusted EBITDA

• • of Contract Revenues
• Contract revenues of $1.142 billion increased 9.3% year-over-year
• Organic contract revenues increased 2.5% year-over-year after excluding $71.2 million of contract revenues from acquired businesses
• Non-GAAPAdjusted EBITDA increased to $130.9 million, or 11.5% of contract revenues
• Earnings increased to $2.12 per common share diluted and included incremental tax benefits of $0.20 per share

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Debt and Liquidity Overview

Debt Summary		Q4 2024		Q1 2025
$ Millions
4.50% Senior Notes, mature April 2029		$	500.0	$	500.0
Senior Credit Facility, matures April 2026:5			315.0		310.6
Term Loan Facility
Revolving Facility			-		55.0
Total Notional Amount of Debt	$	815.0	$	865.6
Less: Cash and Equivalents		101.1		26.1
Notional Net Debt		713.9		839.5
Liquidity6	$	703.6	$	573.6

• Solid liquidity of $573.6 million at Q1 2025

Proforma liquidity is $707 million as of Q1 2025 with the expansion of the capacity of Senior Credit Facility in May 2024

Debt maturity profile and liquidity provide financial flexibility

• Capital allocation prioritizes organic growth, followed by M&A and opportunistic share repurchases, within the context of the Company's historical range of net leverage

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Cash Flow Overview

Cash Flow Summary		Q1 2024		Q1 2025
$ Millions
Operating cash flow	$	(85.1)	$	(37.4)
Capital expenditures, net of proceeds from sale of assets	$	(33.6)	$	(29.3)
Cash paid for acquisitions, net of cash acquired	$	-	$	(13.0)
Borrowings (Repayments) on Senior Credit Facility	$	(4.4)	$	50.6
Repurchase of common stock	$	(20.3)	$	(29.8)
Other financing and investing activities, net	$	(9.4)	$	(16.2)

• Operating cash flow used to support sequential growth
• Days Sales Outstanding ("DSO")7 were 110 days, a reduction of 10 days sequentially
• Capital expenditures, net of $29.3 million for Q1 2025
• In February 2024, acquired a telecommunications construction contractor based in the Midwest US
• In May 2024, acquired a telecommunications construction contractor that expands our geographic footprint to Alaska
• Repurchased 210,000 common shares for $29.8 million during Q1 2025

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