Centuri Reports Third Quarter 2025 Results, Achieves Record Quarterly Revenue

Centuri Holdings, Inc. (NYSE:CTRI) ("Centuri" or the "Company") today announced financial and operating results for the third quarter, ended September 28, 2025, and updated its full year 2025 outlook.

Third Quarter 2025 Financial and Other Business Highlights

• Achieved company record quarterly revenue of $850.0 million, an 18.1% increase versus $720.1 million in the third quarter of 2024
• Gross Profit for the third quarter was $78.0 million, a 2.9% increase versus the same quarter last year
• Net Income (loss) attributable to common stock of $2.1 million (Diluted Earnings per Share of $0.02) versus $(3.7) million (Diluted Loss per Share of $0.04) in the third quarter of 2024
• Introduced non-GAAP measures Base Revenue, Base Gross Profit, and Base Gross Profit Margin that exclude the impact of storm restoration services and provide more relevant measures of the fundamental business performance
• Base Revenue and Base Gross Profit were $848.6 million and $77.6 million, respectively, representing increases of 25% and 28% versus the third quarter of 2024
• Adjusted Net Income of $16.7 million (Adjusted Diluted Earnings per Share of $0.19) versus $5.3 million (Adjusted Diluted Earnings per Share of $0.06) in the third quarter of 2024
• Adjusted EBITDA of $75.2 million versus $78.8 million in the third quarter of 2024
• Secured bookings of $815 million in the third quarter of 2025, delivering a book to bill of 1.8x in the first three quarters of 2025 driven by new project bid work
• Reached record high backlog of $5.9 billion, a 59% increase from year-end 2024
• Updated 2025 revenue guidance to $2.8 to $2.9 billion and Adjusted EBITDA guidance to $240 to $250 million

"We delivered strong year-over-year revenue expansion in our base operations alongside meaningful profitability improvements," said Centuri President & CEO Christian Brown. "Our commercial achievements underscore the underlying strength of our market position, while we continue to execute improvements in operational efficiency. Our booking activity of $815 million during the quarter brought our year-to-date awards to over $3.7 billion with nearly 80% of new awards secured in the third quarter representing new opportunities. This commercial momentum, combined with our robust sales pipeline of $13 billion, including near-term MSA renewals and strategic bids of $3.0 billion, provides clear visibility into sustained growth trajectory and positions us well to achieve double-digit base revenue and base gross profit growth in 2026.

"We're making strides in optimizing our operational foundation through our strategic fleet initiative, where we've lined up several leasing partners and remain on track to achieve our balanced capital expenditure funding mix goal over the next couple of quarters. Concurrently, our comprehensive multi-year strategic planning process is underway, focused on establishing Centuri as a top-tier standalone infrastructure services provider. This framework emphasizes sustainable earnings growth, enhanced organizational integration under our 'One Centuri' vision, and world-class resource delivery capabilities. These initiatives collectively position us to capitalize on the substantial opportunities within North America's expanding energy infrastructure landscape, and we look forward to elaborating on these various facets of our strategy in the months ahead."

Management Commentary

Third quarter 2025 consolidated revenue increased by $130.0 million, or 18.1%, to $850.0 million, with Gross Profit of $78.0 million compared to $75.8 million in the prior year quarter. Revenue growth was broad-based across all segments, with Canadian Gas leading at nearly 40% growth, followed by Union Electric at 25%, Non-Union Electric at 16%, and U.S. Gas at 13%. Net income (loss) attributable to common stock in the third quarter was $2.1 million compared to $(3.7) million in the prior year. Adjusted EBITDA in the third quarter was $75.2 million compared to $78.8 million in the prior year quarter.

Base Revenue, Base Gross Profit, and Base Gross Profit Margin are new non-GAAP measures that exclude the impact of storm restoration services, which are highly unpredictable. While storm restoration services remain a key capability of the Company, management believes these non-GAAP measures are more suitable disclosures for evaluating fundamental business performance and for comparison purposes. Base Revenue in the third quarter 2025 was $848.6 million versus $678.7 million in the prior year quarter, a 25% increase. Base Revenue growth was driven by expansion of crew counts and work hours under MSA across segments and a market for bid project activity that remains highly active, especially in the industrial and electrical substation infrastructure end-markets. Base Gross Profit was $77.6 million in the third quarter, a 28% increase from $60.5 million reported in the same quarter last year. Base Gross Profit Margin increased to 9.1% in the third quarter from 8.9% in the year prior, driven primarily by improved performance in the Union Electric segment and the Gas segments.

During the third quarter of 2025, Centuri secured approximately $815 million in total bookings, comprised of approximately $645 million of new customer contracts and MSA awards (79% of total) and $170 million of MSA renewals (21% of total). These bookings drove a book-to-bill ratio of 1.8x through the first three quarters of 2025, with the Company now having already significantly exceeded its full-year 2025 book-to-bill target of at least 1.1x. The Company has a current backlog of approximately $5.9 billion, compared to $5.3 billion last quarter. The increase in backlog reflects growing customer relationships and incremental expected volume of work under existing MSAs.

Centuri's Net Debt to Adjusted EBITDA Ratio was 3.8x as of September 28, 2025, which compares to 3.7x as of June 29, 2025. The leverage ratio was impacted primarily by the timing of accounts receivable collections, which is expected to normalize prior to the end of the fourth quarter. During the third quarter, Centuri successfully completed a refinancing of its existing debt arrangements. The refinancing 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.

The Company completed its separation from Southwest Gas Holdings on September 5, 2025, resulting in a fully independent public company, and appointed Christopher Krummel, who brings over 30 years of executive experience, as Chair of Centuri's Board of Directors.

Full Year 2025 Outlook

• Increased consolidated revenue outlook to $2.8 to 2.9 billion from $2.70 to $2.85 billion previously, driven by base business growth, which is expected to more than offset lower forecasted storm restoration services
• Revised consolidated Adjusted EBITDA outlook to $240 to 250 million from $250 to $270 million previously, consistent with lower expected storm restoration services
• Maintained net capital expenditures outlook of $75 to 90 million

Please review the third quarter earnings slides for more information related to our Full Year 2025 Outlook.

Conference Call Information

Centuri will conduct a conference call today, Wednesday, November 5th, 2025 at 10:00 AM ET / 8:00 AM MT to discuss its third 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 77965 #. The replay dial-in feature will be made available one hour after the call's conclusion and will be active for one month.

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 sustaining our growth trajectory and achieving double-digit base business revenue expansion in 2026; our ability to execute a more balanced funding mix; our ability to achieve sustainable earnings growth and enhance organization integration; our expectations around the North American energy infrastructure industry and the market for bid project activity; our estimation of the value of our sales pipeline; 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 risks, uncertainties and other factors affecting the business and financial results of Centuri could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, capital market risks and the impact of general economic or industry conditions and those detailed from time to time in Centuri's reports filed with the U.S. Securities and Exchange Commission, including Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 29, 2024. The statements in this press release are (i) made as of the date of this press release, even if subsequently made available by Centuri on its website or otherwise, and (ii) based on assumptions and assessments made by our management in light of their experience and perceptions of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Except to the extent required by applicable law, Centuri does not assume any obligation to update or revise 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. You are cautioned not to place undue reliance on these forward-looking statements.

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, Net Debt to Adjusted EBITDA Ratio, Base Revenue, Base Gross Profit, and Base Gross Profit Margin, 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 of results. Management also believes that providing these non-GAAP measures helps investors evaluate the Company's operating performance, profitability and business trends in a way that is consistent with how management evaluates such matters. 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. We are unable to provide reconciliations for forward-looking non-GAAP metrics without unreasonable efforts due to our inability to project non-recurring expenses and events.

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.

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) securitization facility transaction fees, (vi) other professional fees, (vii) CEO transition costs, (viii) loss on debt modification and extinguishment, (ix) non-cash stock-based compensation, and (x) 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.

Base Revenue is defined as revenue, net adjusted to exclude revenue and attributable to storm restoration services. Base Gross Profit is defined as gross profit adjusted to exclude gross profit attributable to storm restoration services. Base Gross Profit Margin is calculated by dividing Base Gross Profit by Base Revenue. Revenue derived from storm restoration services varies from period to period due to the unpredictable nature of weather-related events, and when this type of work is performed, it typically generates a higher profit margin than base infrastructure services projects due to higher contractual hourly rates given the nature of services provided and improved operating efficiencies related to equipment utilization and absorption of fixed costs.

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 Settlement 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) CEO transition costs represent incremental costs incurred to find and hire a replacement CEO; (vii) other professional fees are non-recurring costs associated with certain one-time events; and (viii) loss on debt modification and extinguishment represents non-recurring professional fees expensed as part of our credit facility refinance as well as the non-cash write-off of unamortized debt issuance costs associated with debt extinguishments.

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For Centuri investors, contact:

Nate Tetlow

(480) 851-8426

[email protected]

For Centuri media information, contact:

Jennifer Russo

(602) 781-6958

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