Dycom Industries Completes Acquisition of Power Solutions

Rhea-AI Summary

Dycom Industries (NYSE: DY) completed its acquisition of Power Solutions, LLC on December 23, 2025. The purchase consideration on a cash-free, debt-free basis comprised approximately $1.63 billion cash (including an estimated working capital adjustment) and approximately 1.0 million shares of Dycom common stock.

Power Solutions will operate under its brand with management and headquarters retained in Bowie, Maryland. The company said the deal is expected to be immediately accretive to Adjusted EBITDA margin and Adjusted diluted EPS (excluding non-cash amortization of intangibles) and is projected to improve free cash flow for the combined company.

Dycom amended its credit agreement to increase the revolving commitments to $800 million (from $650 million), raise the term loan to $1.540 billion (from $440 million), extend maturities to December 2030, and establish a $600 million 364-day bridge loan to finance the transaction.

Positive

• Transaction expected to be immediately accretive to Adjusted EBITDA margin
• Deal projected to improve free cash flow for the combined company
• Acquisition adds a large Mid-Atlantic data-center electrical contractor with HQ in Bowie, Maryland

Negative

• Significant financing increases leverage: term loan raised to $1.540 billion (from $440 million)
• Use of a $600 million 364-day bridge loan creates near-term refinancing requirement
• Share consideration of approximately 1.0 million Dycom shares may dilute existing shareholders

News Market Reaction

-0.16%

1 alert

-0.16% News Effect

On the day this news was published, DY declined 0.16%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Cash consideration: $1.63 billion Stock consideration: Approximately 1.0 million shares Revolver size: $800 million +5 more

8 metrics

Cash consideration $1.63 billion Cash component of Power Solutions purchase price, cash-free, debt-free basis

Stock consideration Approximately 1.0 million shares Dycom common stock issued as part of Power Solutions acquisition

Revolver size $800 million Revolving facility commitments increased from $650 million

Prior revolver $650 million Previous revolving facility commitments before amendment

Term loan facility $1.540 billion Amended term loan facility, up from $440 million

Prior term loan $440 million Existing term loan facility before amendment

Bridge loan facility $600 million Senior secured 364-day bridge loan facility for transaction funding

Debt maturity December 2030 Extended maturity of amended revolving and term loan facilities

Market Reality Check

Price: $427.48 Vol: Volume 437,003 is about 2...

normal vol

$427.48 Last Close

Volume Volume 437,003 is about 28% below the 20-day average of 610,522 ahead of this news. normal

Technical Shares at $347.11 are trading above the 200-day MA of $247.83, near the 52-week high of $366.65.

Peers on Argus

Peer moves were mixed: ROAD gained 2.3%, while IESC and FLR fell 2.15% and 1.23%...

Peer moves were mixed: ROAD gained 2.3%, while IESC and FLR fell 2.15% and 1.23% respectively, indicating stock-specific rather than sector-driven action for DY.

Historical Context

5 past events · Latest: Nov 25 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 25	Investor conferences	Positive	+1.9%	Management participation in several institutional investor conferences and webcasts.
Nov 19	Acquisition announcement	Positive	+9.8%	Agreement to acquire Power Solutions to expand data center electrical capabilities.
Nov 19	Earnings results	Positive	+9.8%	Record Q3 results with higher revenues, EPS, EBITDA and raised guidance.
Nov 10	Board appointment	Positive	+2.5%	Appointment of an experienced infrastructure executive to Dycom’s Board.
Nov 07	Earnings call setup	Neutral	+1.2%	Announcement of timing and access details for the Q3 results call.

Pattern Detected

Recent news – earnings, the Power Solutions deal announcement, governance, and conferences – has generally coincided with positive next-day price reactions.

Recent Company History

Over the last two months, Dycom reported record Q3 fiscal 2026 results on Nov 19 with strong revenue, EPS and backlog, and the stock rose 9.82%. On the same day it announced the Power Solutions acquisition, also followed by a 9.82% move. Board refresh and multiple conference appearances in November–December saw smaller but positive reactions between 1.23% and 2.52%. Today’s closing of the Power Solutions deal fits this pattern of growth-focused news.

Market Pulse Summary

This announcement confirms Dycom’s completion of the Power Solutions acquisition, shifting the story...

Analysis

This announcement confirms Dycom’s completion of the Power Solutions acquisition, shifting the story from agreement to execution. The deal combines $1.63B in cash with about 1.0M shares and is accompanied by an expanded credit agreement, including an $800M revolver, $1.540B term loan, and $600M bridge facility maturing in 2030. Investors may monitor integration progress, actual EBITDA and EPS accretion versus expectations, and how the enlarged debt stack interacts with free cash flow and backlog growth.

Key Terms

adjusted ebitda, adjusted diluted earnings per share, free cash flow, credit agreement, +4 more

8 terms

adjusted ebitda financial

"expected to be immediately accretive to Dycom’s Adjusted EBITDA margin"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

adjusted diluted earnings per share financial

"Adjusted Diluted Earnings Per Share, excluding non-cash amortization"

Adjusted diluted earnings per share is the company’s net profit per share after accounting for potential extra shares (from options or convertible securities) and removing one‑time or unusual items so the number reflects ongoing business results. Think of it like timing a runner’s steady pace after excluding a few unexpected stops; it gives investors a clearer view of sustainable profit available to each share. Investors use it to compare companies and judge underlying profitability and valuation without short‑term distortions.

free cash flow financial

"It is also projected to improve free cash flow for the combined company."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

credit agreement financial

"the Company amended and restated its existing credit agreement to, among other things"

A credit agreement is a written loan contract between a borrower and a bank or other lender that lays out how much money can be borrowed, the interest rate, repayment schedule, fees, and the rules the borrower must follow. For investors, it matters because those terms affect a company’s cash costs, borrowing flexibility and risk of default — similar to how a mortgage’s rules determine a homeowner’s monthly budget and freedom to make changes.

revolving facility financial

"increase the existing revolving facility commitments to $800 million from $650 million"

A revolving facility is a bank loan that works like a company credit card: the borrower can draw funds, repay them, and draw again up to a set limit during the agreement period. It matters to investors because it provides short-term cash flexibility for operations, investments, or emergencies, and the cost or availability of that credit can affect a company’s liquidity, interest expenses, and financial stability.

term loan facility financial

"increase the existing term loan facility to $1.540 billion from $440 million"

A term loan facility is a type of loan provided by a lender that is repaid over a set period of time, usually with fixed payments. It functions like a large, upfront loan that a borrower agrees to pay back gradually, often used to fund major investments or projects. For investors, understanding a company's use of such loans helps assess its financial stability and risk level.

bridge loan facility financial

"establish a $600 million senior secured 364-day bridge loan facility"

A bridge loan facility is short-term financing that helps a company cover an immediate cash need while it arranges longer-term funding, like a temporary bridge spanning a river until a permanent road is built. For investors, it matters because it signals short-term liquidity pressure or planned transactions, can carry higher interest or fees, and may affect future equity or debt terms if the company must refinance, dilute shares, or accept tighter covenants.

form 8-k regulatory

"Further details regarding the credit agreement amendment will be available in a Current Report on Form 8-K."

A Form 8-K is a report that companies file with the government to share important news quickly, such as changes in leadership, major business deals, or financial updates. It matters because it helps investors stay informed about significant events that could affect the company's value or stock price.

AI-generated analysis. Not financial advice.

Acquisition Positions the Company for Accelerated Growth in Digital and Data Center Infrastructure Services

WEST PALM BEACH, Fla., Dec. 23, 2025 (GLOBE NEWSWIRE) -- Dycom Industries, Inc. (NYSE: DY), a leading provider of specialty contracting services to the telecommunications and digital infrastructure industries throughout the United States, today announced that it has completed its previously announced acquisition of Power Solutions, LLC (“Power Solutions”), one of the Mid-Atlantic’s largest electrical contractors serving data centers. The purchase price on a cash-free, debt-free basis was comprised of approximately $1.63 billion of cash, including an estimated working capital adjustment, and approximately 1.0 million shares of Dycom common stock.

“Today’s announcement represents a significant milestone for Dycom, reinforcing the Company’s position as a leader in the fast-growing digital infrastructure industry,” said Dan Peyovich, President and Chief Executive Officer of Dycom. “We are excited to officially welcome Power Solutions to the Dycom family and look forward to working together to realize the opportunities ahead.”

Power Solutions will continue to operate under its brand within Dycom. Power Solutions’ strong management team will remain in place, and the company will maintain its headquarters in Bowie, Maryland.

As previously announced, the transaction is expected to be immediately accretive to Dycom’s Adjusted EBITDA margin and Adjusted Diluted Earnings Per Share, excluding non-cash amortization of intangible assets. It is also projected to improve free cash flow for the combined company.

In connection with the transaction, the Company amended and restated its existing credit agreement to, among other things, (i) increase the existing revolving facility commitments to $800 million from $650 million, (ii) increase the existing term loan facility to $1.540 billion from $440 million, (iii) extend the maturity of the foregoing facilities to December 2030, and (iv) establish a $600 million senior secured 364-day bridge loan facility. The proceeds of the term loan facility and the bridge loan facility were used to (i) refinance the outstanding term loans and (ii) finance the cash consideration component of the acquisition. Further details regarding the credit agreement amendment will be available in a Current Report on Form 8-K.

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 electrical contracting services for data centers and other vital industries, 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 within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements related to the acquisition of Power Solutions by the Company, statements about the potential benefits of the acquisition, statements regarding estimates and forecasts of financial and performance metrics, revenue opportunities, anticipated future financial and operating performance and results, including estimates for growth, other performance metrics, projections of market opportunity, expected management and governance of the Company. 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 in government policies and laws affecting our business, including related to funding for infrastructure projects and tariff policies or changes to tax laws, 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 credit losses, 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, potential liabilities or other adverse effects arising from occupational health, safety, and other regulatory matters, 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. Risks and uncertainties relating to the Power Solutions acquisition include, but are not limited to, risks associated with acquisitions generally; the ability to identify and recognize the anticipated benefits of the acquisition, expectations and synergies; the amount of the costs, fees, expenses and charges related to the acquisition; and the ability of the Company and Power Solutions to successfully integrate their businesses and related operations. Forward-looking statements speak only as of the date they are made, and the Company does not undertake any obligation to update its forward-looking statements.

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

FAQ

What did Dycom (DY) pay to acquire Power Solutions on December 23, 2025?

Dycom paid approximately $1.63 billion cash (cash-free, debt-free basis, including an estimated working capital adjustment) plus about 1.0 million shares of Dycom common stock.

How will the Power Solutions acquisition affect Dycom's earnings per share (EPS)?

The company expects the transaction to be immediately accretive to Adjusted diluted EPS, excluding non-cash amortization of intangible assets.

What financing changes did Dycom make to fund the Power Solutions acquisition?

Dycom amended its credit agreement to increase revolving commitments to $800 million, raise the term loan to $1.540 billion, extend maturities to December 2030, and establish a $600 million 364-day bridge loan.

Will Power Solutions keep its management and headquarters after the acquisition?

Yes. Power Solutions will continue operating under its brand, with its existing management team and headquarters in Bowie, Maryland.

Does the acquisition affect Dycom's cash flow outlook?

The company projects the acquisition will improve free cash flow for the combined business.