Centuri Reports Second Quarter 2025 Results, Updates Full Year 2025 Outlook

Centuri Holdings, Inc. (NYSE:CTRI) ("Centuri" or the "Company") today announced financial and operating results for the second quarter, ended June 29, 2025, and updated its full year 2025 outlook.

Second Quarter 2025 Financial and Other Business Highlights

• Revenue of $724.1 million, a 7.7% increase versus $672.1 million in the second quarter of 2024
• Net income attributable to common stock of $8.1 million (diluted earnings per share of $0.09) versus $11.7 million (diluted earnings per share of $0.14) in the second quarter of 2024
• Adjusted Net Income of $16.9 million (Adjusted Diluted Earnings per Share of $0.19) versus $17.0 million (Adjusted Diluted Earnings per Share of $0.20) in the second quarter of 2024
• Adjusted EBITDA of $71.8 million, a 4.7% improvement above the $68.6 million achieved in the second quarter of 2024
• Full year 2025 revenue outlook increased to $2.70 to $2.85 billion, up from $2.60 to $2.80 billion; Full year 2025 Adjusted EBITDA outlook narrowed to $250 to $270 million from $240 to $275 million
• Achieved a book-to-bill ratio of 2.3x in the first half of 2025, which included another new bookings record of approximately $1.8 billion in the second quarter for a cumulative $3.0 billion in awards during the first half of the year
• Strengthened capital structure and enhanced financial flexibility after second quarter-end by expanding credit facility and extending debt maturities

"Our second quarter performance reflected solid execution across all business segments, with particularly strong results in our electric operations, while we continued to see meaningful progress in our U.S. Gas segment through various initiatives aimed at enhancing overall margins," said Centuri President & CEO Christian Brown. "Strong momentum from our integrated commercial strategy resulted in approximately $1.8 billion in new awards during the quarter. In addition, our proactive One Centuri sales approach is positioning us to maximize revenue potential from existing customers while strategically expanding into new opportunities, as evidenced by our nearly $14 billion sales pipeline. Based on our strong commercial momentum, enhanced pipeline visibility, and operational execution through the first half of the year, we are increasing our full-year revenue guidance. Our ability to raise our revenue outlook demonstrates the underlying strength of our core business, particularly given that 2024 benefited from elevated storm restoration activity that we do not expect to repeat this year."

"We are strategically increasing investment in our business to capitalize on expected growth driven by our contract awards and robust near-term pipeline opportunities, while simultaneously advancing meaningful capital efficiency initiatives. In recent weeks, we executed several strategic agreements, including new master lease arrangements that provide enhanced fleet management flexibility while preserving our ability to optimally deploy resources across operations. Additionally, our recent appointment of an experienced head of fleet positions us to drive further operational improvements in the quarters ahead."

Management Commentary

Financial results during the second quarter of 2025 increased year-over-year, with revenue increasing by $52.0 million, or 7.7%, and Adjusted EBITDA improving by $3.2 million, or 4.7%. Results reflected revenue growth across Canadian Gas, Non-Union Electric, and Union Electric segments, and improved profit across all four of the Company's reportable segments. As with the first quarter of 2025, revenue growth remained particularly strong in both core Union and Non-Union Electric, with year-over-year increases of $33.4 million (26.4%) and $46.1 million (51.1%), respectively, more than offsetting the seasonal impact to emergency restoration services and an anticipated $12.8 million decrease in offshore wind. Core Union Electric growth continues to be underpinned by robust bid project activity, particularly in industrial and electrical substation infrastructure, while several quarters in a row of increasing crew counts and work hours under MSAs drove the substantial year-over-year improvement in the Non-Union Electric segment.

During the second quarter of 2025, Centuri booked approximately $1.8 billion in total bookings, comprised of more than $600 million of new customer contracts and MSA awards (34% of total) and nearly $1.2 billion of MSA renewals (66% of total). These bookings drove a book-to-bill ratio of 2.3x in the first half of 2025, and an increase in backlog to $5.3 billion as of June 29, 2025 from $4.5 billion as of March 30, 2025. Given the bookings secured in the first half of 2025, Centuri expects to exceed its book-to-bill ratio target of 1.1x for 2025.

Centuri's Net Debt to Adjusted EBITDA Ratio was 3.7x as of June 29, 2025, which compares to 3.5x as of March 30, 2025. This increase reflects the typical seasonal uptick in working capital that occurs in the second quarter due to significantly higher activity levels compared to the first quarter. Subsequent to second quarter-end, Centuri successfully completed a refinancing of its existing debt arrangements. This included extending the maturity date of the Company's revolver from August 27, 2026 to July 9, 2030 and increasing its size from $400 million to $450 million, extending the Term Loan B maturity to 2032 at improved interest rates, and eliminating legacy change in control provisions to enhance financial flexibility.

Full Year 2025 Outlook

• Increased revenue outlook to $2.70 to 2.85 billion from $2.60 to 2.80 billion previously announced
• Narrowed adjusted EBITDA outlook to $250 to 270 million from $240 to $275 million previously announced
• Increased net capital expenditures outlook to $75 to 90 million from $65 to $80 million previously announced

Please review the second quarter earnings slides for details on certain key assumptions associated with our Full Year 2025 Outlook.

Centuri Holdings, Inc.

Supplemental Segment Data

(In thousands, except percentages)

(Unaudited)

Segment Results

Fiscal three months ended June 29, 2025 compared to the fiscal three months ended June 30, 2024

Fiscal six months ended June 29, 2025 compared to the fiscal six months ended June 30, 2024

Conference Call Information

Centuri will conduct a conference call today, Wednesday, August 6th, 2025 at 10:00 AM ET / 7:00 AM PT to discuss its second quarter 2025 financial results and other business highlights. The conference call will be webcast live on the Company's investor relations (IR) website at https://investor.centuri.com. The conference call can also be accessed via phone by dialing (800) 549-8228, or for international callers, (289) 819-1520. A supplemental investor presentation will also be available on the IR website prior to the start of the conference call. The earnings call will also be archived on the IR website and a replay of the call will be available by dialing (888) 660-6264 in the U.S., or (289) 819-1325 internationally and entering passcode 29657 #. The replay dial-in feature will be made available one hour after the call's conclusion and will be active for 12 months.

About Centuri

Centuri Holdings, Inc. is a strategic utility infrastructure services company that partners with regulated utilities to build and maintain the energy network that powers millions of homes and businesses across the United States and Canada.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can often be identified by the use of words such as "will," "predict," "continue," "forecast," "expect," "believe," "anticipate," "outlook," "could," "target," "project," "intend," "plan," "seek," "estimate," "should," "may" and "assume," as well as variations of such words and similar expressions referring to the future. The specific forward-looking statements made herein include (without limitation) statements regarding our estimation that total bookings secured in the first six months of 2025 and most recent quarter represent more than $3.0 billion and $1.8 billion in potential revenue, respectively; our estimation of the value of our pipeline and backlog; our expectation that we will deliver a book-to-bill ratio in excess of 1.1x in 2025; our expectation that our leverage ratio will improve year-over-year from the end of 2024 to the end of 2025, and the number ranges presented in our Full Year 2025 Outlook. A number of important factors affecting the business and financial results of Centuri could cause actual results to differ materially from those stated in the forward-looking statements. These factors include, but are not limited to, capital market risks and the impact of general economic or industry conditions. Factors that could cause actual results to differ also include (without limitation) those discussed in Centuri's filings filed from time to time with the U.S. Securities and Exchange Commission. The statements in this press release are made as of the date of this press release, even if subsequently made available by Centuri on its website or otherwise. Centuri does not assume any obligation to update the forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.

Backlog

Backlog represents contracted revenue on existing bid agreements as well as estimates of revenue to be realized over the contractual life of existing long-term MSAs. The contractual life of an MSA is defined as the stated length of the contract including any renewal options stated in the contract that we believe our customers are reasonably certain to execute.

Book-to-bill Ratio

Book-to-bill ratio represents the ratio of total awards won in a period to total revenue recognized in the same period.

Sales Pipeline

Sales pipeline represents our current unweighted bids and opportunities tracked in our sales database.

Non-GAAP Financial Measures

We prepare and present our financial statements in accordance with GAAP. However, management believes that EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings per Share, and Net Debt to Adjusted EBITDA Ratio, all of which are measures not presented in accordance with GAAP, provide investors with additional useful information in evaluating our performance. We use these non-GAAP measures internally to evaluate performance and to make financial, investment and operational decisions. We believe that presentation of these non-GAAP measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparisons. Management also believes that providing these non-GAAP measures helps investors evaluate the Company's operating results in a way consistent with how management evaluates such matters.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for (i) non-cash stock-based compensation, (ii) separation-related costs, (iii) strategic review costs, (iv) severance costs, (v) securitization facility transaction fees, (vi) other professional fees, and (vii) CEO transition costs. Adjusted EBITDA Margin is defined as the percentage derived from dividing Adjusted EBITDA by revenue. Management believes that EBITDA helps investors gain an understanding of the factors affecting our ongoing cash earnings from which capital investments are made and debt is serviced, and that Adjusted EBITDA provides additional insight by removing certain expenses that are non-recurring and/or non-operational in nature. Management believes that Adjusted EBITDA Margin is useful for the same reason as Adjusted EBITDA, and also provides an additional understanding of how Adjusted EBITDA is impacted by factors other than changes in revenue. Because these non-GAAP metrics, as defined, exclude some, but not all, items that affect comparable GAAP financial measures, these non-GAAP metrics may not be comparable to similarly titled measures of other companies.

Net Debt to Adjusted EBITDA Ratio is calculated by dividing net debt as of the latest balance sheet date by the trailing twelve months of Adjusted EBITDA. Net debt is defined as the sum of all bank debt on the balance sheet and finance lease liabilities, net of cash. Management believes this ratio helps investors understand our leverage.

Adjusted Net Income is defined as net income (loss) adjusted for (i) separation-related costs, (ii) strategic review costs, (iii) severance costs, (iv) amortization of intangible assets, (v) other professional fees, (vi) non-cash stock-based compensation, and (vii) the income tax impact of adjustments that are subject to tax, which is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods. Management believes that Adjusted Net Income helps investors understand the profitability of our business when excluding certain expenses that are non-recurring and/or non-operational in nature. Adjusted Diluted Earnings per Share is defined as Adjusted Net Income divided by weighted average diluted shares outstanding.

Using EBITDA as a performance measure has material limitations as compared to net income (loss), or other financial measures as defined under GAAP, as it excludes certain recurring items, which may be meaningful to investors. EBITDA excludes interest expense net of interest income; however, as we have borrowed money to finance transactions and operations, or invested available cash to generate interest income, interest expense and interest income are elements of our cost structure and can affect our ability to generate revenue and returns for our stockholders. Further, EBITDA excludes depreciation and amortization; however, as we use capital and intangible assets to generate revenue, depreciation and amortization are necessary elements of our costs and ability to generate revenue. Finally, EBITDA excludes income taxes; however, as we are organized as a corporation, the payment of taxes is a necessary element of our operations. As a result of these exclusions from EBITDA, any measure that excludes interest expense net of interest income, depreciation and amortization and income taxes has material limitations as compared to net income (loss). When using EBITDA as a performance measure, management compensates for these limitations by comparing EBITDA to net income (loss) in each period, to allow for the comparison of the performance of the underlying core operations with the overall performance of the Company on a full-cost, after-tax basis.

As to certain of the items related to these non-GAAP metrics: (i) non-cash stock-based compensation varies from period to period due to changes in the estimated fair value of performance-based awards, forfeitures and amounts granted; (ii) separation-related costs represent expenses incurred post-Centuri IPO in connection with the separation and stand up of Centuri as its own public company, including costs incurred in association with Southwest Gas Holdings' sale of its holdings of our common stock and costs incurred in connection with the establishment of Centuri's Unutilized Tax Assets Agreement with Southwest Gas Holdings and under other separation-related agreements, which are not reflective of our ongoing operations and will not recur following the full separation from Southwest Gas Holdings; (iii) strategic review costs represent expenses incurred during the Centuri IPO and related costs incurred to establish Centuri as a public company leading up to the IPO; (iv) severance costs relate to non-recurring restructuring activities; (v) securitization facility transaction fees represent legal and other professional fees incurred to establish our accounts receivable securitization facility; (vi) other professional fees are non-recurring costs associated with certain one-time events; and (vii) CEO transition costs represent incremental costs incurred to find and hire a replacement CEO. 

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For Centuri investors, contact:

(623) 879-3700

[email protected]

For Centuri media information, contact:

Jennifer Russo

(602) 781-6958

[email protected]