Dycom Announces Authorization of a New $150 Million Stock Repurchase Program

Rhea-AI Summary

Dycom Industries (NYSE: DY) has announced a new $150 million stock repurchase program authorized by its Board of Directors. The program will run over the next 18 months, allowing the company to repurchase shares through open market purchases or privately-negotiated transactions, including under Rule 10b5-1 plan.

This new initiative replaces Dycom's previous $150 million repurchase program, which had approximately $55.0 million remaining. As of February 25, 2025, Dycom reported 28,979,138 outstanding common shares, excluding stock options and unvested restricted stock. The company maintains flexibility in the program's execution, with no obligation to acquire any specific amount of shares and the ability to suspend or discontinue at any time.

Positive

• New $150M share repurchase program shows confidence in company's value
• Program provides flexibility in execution timing and amount
• Potential reduction in share count could boost EPS

Negative

• Capital allocation to buybacks reduces funds for other investments
• No guarantee of full program execution
• Previous program left $55M unused

Insights

Financial Analyst

Dycom's new $150 million stock repurchase program represents a significant capital allocation decision, equating to approximately 3% of the company's $4.9 billion market capitalization. The decision to replace the existing program that still had $55 million remaining capacity suggests an accelerated approach to capital returns or a strategic reset of their repurchase framework.

This buyback occurs against a favorable industry backdrop, with specialty contractors like Dycom positioned to benefit from substantial infrastructure investments in broadband expansion, 5G deployment, and utility modernization projects. The timing appears strategic, potentially indicating management's confidence in both their project pipeline and the company's valuation relative to future growth opportunities.

From a financial perspective, the repurchase program reflects healthy free cash flow generation and balance sheet strength. For investors, the buyback mathematically supports earnings per share growth by reducing the outstanding share count, while providing a tax-efficient alternative to dividends. At current prices, the program could retire approximately 872,000 shares, enhancing ownership stakes of remaining shareholders.

The 18-month timeframe and built-in flexibility allow management to opportunistically execute purchases based on market conditions and alternative capital deployment opportunities. This balanced approach preserves optionality for potential M&A activity or increased capital expenditures should high-return opportunities emerge.

Compared to industry peers, this represents a middle-of-the-road capital return strategy that balances shareholder returns with maintaining financial flexibility for operational growth in a capital-intensive industry experiencing secular tailwinds from digital infrastructure investments.

PALM BEACH GARDENS, Fla., Feb. 26, 2025 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY) today announced that its Board of Directors has authorized a new $150 million program to repurchase shares of Dycom’s outstanding common stock. Repurchases under the new program are authorized to be made over the next eighteen (18) months in open market purchases or privately-negotiated transactions, including pursuant to a Rule 10b5-1 plan. The exact timing and amount of repurchases will depend on market conditions and other factors. The repurchase program does not obligate Dycom to acquire any particular amount of common stock, and may be suspended or discontinued at any time. The new program replaces the Company’s previous $150 million stock repurchase program of which approximately $55.0 million remained outstanding. As of February 25, 2025, the Company had 28,979,138 shares of common stock outstanding, excluding the dilutive effect of stock options and unvested restricted stock.

About Dycom Industries, Inc.
Dycom is a leading provider of specialty contracting services to the telecommunications infrastructure and utility industries throughout the United States. These services include program management, planning, engineering and design; aerial, underground, and wireless construction; maintenance; and fulfillment services for telecommunications providers. Additionally, Dycom provides underground facility locating services for various utilities, including telecommunications providers, as well as other construction and maintenance services for electric and gas utilities.

Forward Looking Information
This press release contains forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act, including those related to our stock repurchase program. 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 press release. 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 financials 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.

For more information, contact:
Callie Tomasso, Vice President Investor Relations
Email: investorrelations@dycomind.com
Phone: (561) 627-7171

FAQ

How much is Dycom's new stock buyback program worth?

Dycom's new stock buyback program is worth $150 million, replacing their previous program.

When does Dycom's stock repurchase program expire?

The program runs for 18 months from its announcement on February 26, 2025.

How many shares does Dycom (DY) have outstanding as of February 2025?

Dycom has 28,979,138 shares of common stock outstanding, excluding stock options and unvested restricted stock.

How much remained unused in Dycom's previous buyback program?

Approximately $55.0 million remained unused in DY's previous $150 million stock repurchase program.