Centuri's Q1 2025 Earnings Call: Analyzing Key Contradictions in Strategy, Revenue Guidance, and Gas Performance

Strategic review findings and implementation, 2025 revenue guidance and achievability, U.S. gas segment performance, and strategic bid work risk profile are the key contradictions discussed in Centuri's latest 2025Q1 earnings call.



Revenue and Bookings:
- Centuri reported first quarter 2025 revenues totaling $550.1 million, a 4.2% increase from the previous year's first quarter.
- The company achieved a record $1.2 billion in new bookings in Q1 2025, up from $221 million in Q4 2024.
- The significant increase in bookings was driven by strong commercial momentum and successful execution of the company's business development strategy.

Gas Segment Performance:
- The U.S. Gas segment revenue was $197.7 million, a year-over-year decrease of 12.7%.
- The decline was due to inefficiencies caused by adverse weather conditions and a sluggish start to the year across certain customers.
- Despite the challenges, improvements in March and April led to expectations of better performance in subsequent quarters.

Electric Segment Strength:
- The Non-union Electric segment revenue increased by 41.9% year-over-year, reaching $137.1 million.
- The growth was supported by an increase in volumes on MSAs, deployment of additional crews, and higher work hours.
- The improvement in this segment reflects increased demand for grid resiliency and infrastructure investments.

Capital Efficiency and Financial Health:
- Net CapEx was reduced to $23.2 million, down from $24.6 million in the prior year period.
- Total company adjusted EBITDA improved by 20% to $24.2 million, up from $20.2 million last year.
- These improvements are attributed to the company's capital efficiency program and reduced working capital levels.