Centuri 2025 Q1 Earnings Narrowed Losses with Record Bookings

Centuri (CTRI) reported its fiscal 2025 Q1 earnings on May 12th, 2025. The company saw increased revenue and improved earnings per share compared to the previous year. Centuri's revenue rose by 4.2% to $550.08 million from $528.02 million in Q1 2024, indicating a positive trend. The company maintained its full-year guidance, expecting revenue between $2.6 billion and $2.8 billion, with adjusted EBITDA projected between $240 million and $275 million. Despite ongoing challenges, Centuri's strategic initiatives and strong bookings position it well for growth in 2025.

Revenue

Centuri Holdings reported a total revenue of $550.08 million for Q1 2025, reflecting a 4.2% increase from the previous year. The company's master services agreements generated $419.25 million, while bid contracts contributed $130.83 million. This diverse revenue stream highlights Centuri's strategic focus on utility infrastructure services, with a strong emphasis on regulatory-approved utility programs.

Earnings/Net Income

Centuri narrowed its losses in Q1 2025, reporting a net loss of $0.20 per share, an improvement from the $0.35 loss per share in Q1 2024, representing a 42.9% enhancement. The company's net loss also reduced to $17.92 million, compared to $25.23 million the previous year, marking a 29.0% improvement. Despite the narrowed losses, the EPS indicates ongoing challenges in achieving profitability.

Price Action

The stock price of Centuri edged down 1.01% during the latest trading day. However, the stock has climbed 6.08% over the most recent full trading week and has experienced a 10.09% jump month-to-date, reflecting positive investor sentiment following the Q1 earnings announcement.

Post-Earnings Price Action Review

The strategy of acquiring CTRI shares following a revenue miss and holding for 30 days has historically resulted in underperformance. This approach yielded a negative return of -9.66%, compared to a benchmark return of 10.65%, resulting in an excess return of -20.31%. The Sharpe ratio stood at -0.17, indicating significant risk exposure, with a maximum drawdown of -43.88% and volatility reaching 55.25%. These results underscore the challenges of this strategy, emphasizing the importance of considering market conditions and company-specific factors before investing.

CEO Commentary

Christian Brown, CEO of Centuri, expressed optimism about the company's future, highlighting a record booking quarter with $1.2 billion in new awards, leading to a backlog of $4.5 billion. Brown emphasized Centuri's resilience amid macroeconomic uncertainties and noted the company's diversified portfolio focused on regulatory-approved utility programs. He pointed to a unified business development strategy and proactive growth mindset as key drivers for future success, positioning Centuri to capitalize on emerging opportunities.

Guidance

For 2025, Centuri has maintained its revenue guidance between $2.6 billion and $2.8 billion, with adjusted EBITDA expected to range from $240 million to $275 million. The company anticipates net capital expenditures between $65 million and $80 million. CEO Christian Brown affirmed expectations of reaching the upper end of revenue guidance, supported by a robust sales pipeline and ongoing projects.

Additional News

In recent weeks, Centuri Holdings has been active in securing new contracts and expanding its business operations. The company announced nearly $400 million in new customer awards for its U.S. Gas business segment, including master service agreement renewals and territory expansions with a key Northeast utility client. Additionally, Centuri continues to enhance its infrastructure capabilities, securing over $360 million in new project awards across utility, energy, and data center markets in the U.S. and Canada. These strategic moves demonstrate Centuri's commitment to broadening its market reach and strengthening its position in the utility infrastructure services sector.