Centuri 2025 Q3 Earnings Profitability Returns with 158.4% Net Income Surge

Centuri (CTRI) reported fiscal 2025 Q3 earnings on Nov 6, 2025, showcasing a significant turnaround in profitability despite mixed earnings guidance and price action. The company delivered an 18.1% year-over-year revenue increase and raised its full-year revenue forecast, though earnings per share (EPS) fell short of consensus estimates.

Revenue

Centuri’s total revenue surged to $850.04 million in Q3 2025, a 18.1% increase from $720.05 million in Q3 2024. This growth was driven by robust performance across core segments, with master services agreements (MSAs) contributing $653.20 million and bid contracts adding $196.84 million. The company’s ability to secure long-term MSAs and expand its bid contract portfolio underscored its strategic focus on stable, recurring revenue streams.

Earnings/Net Income

Centuri returned to profitability with a net income of $2.11 million in Q3 2025, a 158.4% improvement from a net loss of $3.62 million in the prior-year period. Adjusted earnings per share (EPS) of $0.19 marked a significant rebound from a loss of $0.04 in 2024 Q3, reflecting cost management and operational efficiency gains. While this turnaround is commendable, the reported EPS of $0.02 missed the Zacks Consensus Estimate of $0.32, highlighting ongoing challenges in aligning with investor expectations.

Price Action

The stock experienced a 14.17% surge on the day of the earnings release, with 8.25% weekly and 9.60% month-to-date gains. However, the positive momentum may face headwinds as the stock’s near-term trajectory hinges on management’s commentary during the earnings call. Analysts remain cautious, with a “hold” rating reflecting divergent views on the company’s ability to sustain profitability amid margin pressures.

Post-Earnings Price Action Review

The strategy of buying Centuri Holdings (CTRI) when revenues beat expectations and holding for 30 days has shown mixed results based on the available data. Recent performance revealed a significant earnings miss, with quarterly EPS of $0.19 falling short of the Zacks Consensus Estimate of $0.32 by 40.63%. Despite four consecutive quarters of revenue beats, the stock is expected to underperform in the near term. Market expectations for Q3 2025 results anticipate a year-over-year earnings increase on higher revenues, with revenue projected at $6.35 billion, a 3.2% rise from the prior year. Short-term price action will depend heavily on management’s outlook during the earnings call, as the recent earnings miss and underperformance could pressure the stock. Long-term sustainability, however, may improve if the consensus EPS estimate—revised 3.3% higher over 30 days—signals a shift in investor sentiment. Analysts remain divided, with three “buy” ratings and two “sell” recommendations, underscoring the need for investors to closely monitor future earnings and guidance.

CEO Commentary

### Christian Brown, President & CEO

“Centuri delivered strong year-over-year revenue expansion in our base operations alongside meaningful profitability improvements,” said CEO Christian Brown. He emphasized the company’s commercial achievements, including a record backlog of $5.9 billion and a book-to-bill ratio of 1.8x, as indicators of robust future growth. Brown also highlighted strategic initiatives to enhance capital efficiency, including a shift toward a 50/50 lease-to-buy equipment model, which is expected to reduce leverage and improve free cash flow.

Guidance

Centuri raised its full-year 2025 revenue guidance to $2.8–$2.9 billion, up from the prior range of $2.7–$2.85 billion, while narrowing adjusted EBITDA guidance to $240–$250 million from $250–$270 million. The company expects to achieve double-digit base revenue and gross profit growth in 2026, supported by its strong backlog and operational efficiencies.

Additional News

Recent developments include Centuri securing $400 million in new contracts during Q3, reflecting its competitive positioning in utility infrastructure. The company also completed a secondary equity offering, with Southwest Gas serving as a seller, to strengthen its balance sheet. Additionally, Centuri introduced non-GAAP metrics, including Base Revenue and Base Gross Profit, to better reflect core operational performance by excluding storm restoration services. These strategic moves align with the company’s focus on long-term growth and transparency.