PHOENIX--(BUSINESS WIRE)--November 05, 2025--
Centuri Holdings, Inc. $(CTRI)$ ("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.
Centuri Holdings, Inc.
Supplemental Segment Data
(In thousands, except percentages)
(Unaudited)
Segment Results
Fiscal three months ended September 28, 2025 compared to the fiscal three months ended
September 29, 2024
Fiscal Three Months Ended Change
---------------------------------------- --------------------
(dollars in thousands) September 28, 2025 September 29, 2024 $ %
------------------- ------------------- --------- ---------
Revenue:
U.S. Gas $412,407 48.5% $366,070 50.8% $ 46,337 12.7%
Canadian Gas 74,153 8.8% 53,473 7.5% 20,680 38.7%
Union Electric 214,499 25.2% 171,666 23.8% 42,833 25.0%
Non-Union Electric 148,985 17.5% 128,844 17.9% 20,141 15.6%
------- ----- ------- ----- -------
Consolidated
revenue $850,044 100.0% $720,053 100.0% $129,991 18.1%
======= ===== ======= ===== =======
Gross profit:
U.S. Gas $ 31,650 7.7% $ 27,960 7.6% $ 3,690 13.2%
Canadian Gas 16,218 21.9% 10,969 20.5% 5,249 47.9%
Union Electric 19,490 9.1% 15,427 9.0% 4,063 26.3%
Non-Union Electric 10,602 7.1% 21,437 16.6% (10,835) (50.5%)
------- ------- -------
Consolidated
gross profit $ 77,960 9.2% $ 75,793 10.5% $ 2,167 2.9%
======= ======= =======
Fiscal nine months ended September 28, 2025 compared to the fiscal nine months ended
September 29, 2024
Fiscal Nine Months Ended Change
-------------------------------------------- --------------------
(dollars in thousands) September 28, 2025 September 29, 2024 $ %
--------------------- --------------------- --------- ---------
Revenue:
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