Gordon Reid Dycom Industries DY-N BUY Jun 17, 2025

Their earnings are lumpy with revenues coming from a limited number of clients. Beware. They are a big player in rewiring North America in 5G, which is a plus. Comcast, Google and others are big customers. The risk is, if one of these clients delays a project, then DY gets his for a quarter or so. Long term, this will do well and benefit from the long-term 5G theme.

Building rural communications infrastructure.
Massive recipient of Federal government spending.
Backlog of $6 billion in projects.
Expect high volatility in stock price.
Very good long term hold with strong management team.

Fibre cable throughout NA. 5 customers make up 66% of revenues, which can mean lumpy results, so you have to be comfortable with that prospect if you're going to buy this one. Weather can also push things off. Highly volatile, but trajectory is up and to the right. $6B backlog (or about 18 months of revenue), pushing to $7B by year's end, on the back of a $40B US infrastructure bill. Multiple is not extreme. No dividend.

Has a big piece of bringing the internet to rural America. Backlog represents about 18 months of revenue. Inexpensive at 15x.

Likes it. They've been laying fibre across the rural U.S. to upgrade the internet, and they receive Washington's subsidies to do this. They're successful, and shares have risen. He'd still buy at this level.

Numbers are lumpy, as 8-10 customers make up 80% of revenue. If you buy, be patient with it. High beta stock, but great opportunity. Order backlog of ~1.5 years. 

It's rewiring North American for 1-Gig technology, but it's lumpy because it relies on only 8-9 major clients that comprise their revenues. So, if one client defers a project for a quarter or two, Dycom will take a big hit.