Centuri Holdings (CTRI): A Hidden Gem in the AI-Driven Energy Transition

The energy sector is undergoing a seismic shift, driven by the twin forces of infrastructure modernization and the AI-powered efficiency revolution. Among the companies positioned to capitalize on this transformation is Centuri Holdings (CTRI), a utility infrastructure specialist that has quietly secured contracts worth $350 million in 2025, yet trades at a valuation that belies its strategic importance. With a market cap of just $2.02 billion and a P/E ratio of 0.0 (due to recent losses), CTRI offers a rare opportunity to invest in a firm at the intersection of two megatrends: the clean energy transition and the digitization of critical infrastructure.

The Case for CTRI's Strategic Positioning

CTRI's recent contract wins underscore its role as a key player in the energy transition. The $350 million pipeline includes projects such as a $27 million RNG infrastructure deal with Aemetis for dairy digesters and a $400 million expansion of its U.S. Gas division, reflecting strong demand for modernizing gas distribution systems. Meanwhile, its partnership with Ørsted on the Sunrise Wind project—a 924 MW offshore wind farm—positions it to benefit from Biden's push for renewables. While the company's focus is on gas and renewables rather than nuclear energy, its work in grid modernization and water infrastructure aligns with broader infrastructure policies, including those advanced by the Trump administration, such as the $1.2 trillion Infrastructure Investment and Jobs Act.

The company's valuation appears deeply undervalued. Its trailing P/E of 0.0 is an artifact of recent net losses (a $0.12 EPS in Q2 2025), but its forward P/E of 30.3 assumes a rebound to $0.26 EPS in the next quarter. This forward-looking metric is still below the sector's median of 28.7, suggesting the market is underpricing its growth potential.

Ask Aime: Can Centuri Holdings capitalize on infrastructure modernization and the clean energy transition?

The AI-Energy Synergy: Why CTRI Is Undervalued

While CTRI has no explicit AI partnerships, its core business—modernizing grids, gas systems, and renewable energy projects—will increasingly rely on AI-driven efficiency. For example, AI can optimize the placement of solar panels or predict maintenance needs in gas pipelines, reducing costs for utilities. CTRI's recent $29 million annual cost-saving initiative hints at its early steps toward digitization, and its $1.2 billion backlog suggests it is well-positioned to scale these efficiencies.

The company's valuation contrast starkly with AI-infrastructure peers like C3.ai (AI) or WNS Holdings (WSO), which trade at much higher multiples. CTRI's stock trades at $22.82, near the upper end of its 52-week range but still far below its 2023 high of $27.46. This disconnect creates an asymmetric opportunity: if CTRI delivers on its backlog and cost-saving goals, its valuation could rise sharply.

Risks and Considerations

Bearish arguments center on CTRI's 24% short interest and past operational challenges, including project delays and reduced customer spending in 2024. However, Q1 2025 results showed a 4.2% revenue increase and a 20% jump in adjusted EBITDA, suggesting stabilization. Leadership changes—such as the appointment of CEO Christian Brown, who has a track record of growth—add further confidence.

Investment Thesis

CTRI is a buy for investors seeking exposure to the energy transition at a discounted price. Its backlog of $1.2 billion and strategic projects (e.g., Sunrise Wind) align with federal and state spending priorities. While risks like short interest persist, the stock's forward P/E and recent earnings momentum suggest a $19 price target is conservative—and upside could exceed $30 if AI-driven efficiencies materialize.

The stock's 22.75% gain over two weeks in June 2025 hints at renewed investor interest. For a cautious approach, consider averaging into the position ahead of its July 28 earnings report, where management may provide clarity on cost savings and backlog execution.

Conclusion

Centuri Holdings is a hidden infrastructure champion in an undervalued sector. With a backlog of critical energy projects, a cost-cutting blueprint, and tailwinds from policy and digitization, CTRI offers a compelling risk-reward profile. For investors willing to look beyond today's P/E, this could be a foundational holding in the AI-driven energy transition.

Recommendation: Buy CTRI with a price target of $25–$30, with a focus on long-term growth in clean energy infrastructure.