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- **Revenue Growth**: Q3 revenue of $850 million (+18% YoY), with base business up 25% YoY.
- **New Metrics Introduced**: Base revenue and gross profit metrics exclude volatile storm services.
- **Booking Strength**: $3.7 billion year-to-date bookings, 80% new revenue opportunities.
- **Backlog Expansion**: Record $5.9 billion backlog, up 10% QoQ.
- **Storm Impact**: $15 million EBITDA decline in guidance due to no storm activity; Q3/Q4 storm impact split ~60/40 YoY.
- **Margin Recovery**: Non-Union Electric margins improving in October after Q3 crew ramp-up costs.
- **Strategic Bids**: $1.7 billion strategic bids (60% electric, 40% gas) vs. $1.3 billion MSA renewals.
- **Gas Business Focus**: Reducing Q1 cyclicality through new customer wins and 24/7 service expansion.


**【CEO Summary Section】**
- **Record Revenue Growth**: Delivered $850 million in Q3 revenue, up 18% YoY, with base revenue increasing 25% and base gross profit up 28%.
- **New Non-GAAP Metrics Introduced**: Excluding storm restoration services, base revenue and gross profit provide clearer period-over-period comparisons.
- **Booking Momentum**: Q3 bookings of $815 million (1.0x book-to-bill) and $3.7 billion year-to-date, with 80% new revenue opportunities.
- **Backlog Expansion**: Record backlog of $5.9 billion, up 10% QoQ, driven by MSAs and strategic bids.
- **Pipeline Strength**: $13 billion opportunity pipeline, including $1.3 billion in strategic bids expected to close by Q1 2026.
- **Strategic Initiatives**: Fleet optimization targeting 50-50 owned/leased mix and 20%+ efficiency gains; leadership additions to enhance operational excellence.

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted EBITDA of $75.2 million (down 4.6% YoY due to storm absence), adjusted net income of $16.7 million, and free cash flow of -$16.3 million (seasonal timing impact).
- **Segment Performance**: 
  - **U.S. Gas**: $412.4 million revenue (+13% YoY), 7.7% gross margin.
  - **Canadian Gas**: $74.2 million revenue (+40% YoY), 21.9% gross margin.
  - **Non-Union Electric**: $149 million base revenue (+58% YoY), 7.1% gross margin (impacted by crew ramp-up).
- **Leverage Management**: Net debt/EBITDA ratio of 3.8x (up from 3.7x Q2), targeting 3.3-3.4x by year-end.
- **Guidance Update**: Full-year revenue raised to $2.8-2.9 billion (up from prior $2.6-2.7 billion), adjusted EBITDA of $240-250 million.

**【Q&A Key Highlights】**
- **Storm Impact Clarification**: $15 million EBITDA decline in guidance fully attributable to storm absence; Q3/Q4 storm impact split ~60/40 YoY.
- **Non-Union Electric Margin Recovery**: October margins improved after Q3 crew ramp-up costs; expects full utilization by year-end.
- **Bid Work vs. MSA Mix**: $1.7 billion strategic bids (60% electric, 40% gas) vs. $1.3 billion MSA renewals/new contracts.
- **Gas Business Seasonality**: Focus on reducing Q1 cyclicality through new customer wins and 24/7 service expansion.
- **Data Center vs. PHMSA Margins**: Project-based work (e.g., data centers) commands higher margins than MSA renewals.


Centuri Holdings, Inc. (CTRI) Q3 2025 Earnings Call Transcript

- **Revenue Growth Accelerates**: Q2 revenue up 7.7% YoY to $724.1M, with all segments contributing. Full-year guidance raised to $2.7B-$2.85B.
- **Booking Dominance**: $3B H1 bookings (2.3x book-to-bill), with $14B pipeline and $2B pending bids. 20 underserved customers identified for $200B+ opportunity.
- **Margin Improvement**: Q2 gross profit +12.1% YoY to $67.8M. Expect sequential margin expansion in Q3/Q4, driven by higher-margin backlog.
- **Strategic Fleet Optimization**: Hybrid asset financing model and 15-25% efficiency gains targeted. CapEx increased to $75M-$90M for fleet expansion.
- **Segment Strength**: Canadian Gas revenue +18.1% YoY, Union Electric +11% YoY. Nonunion Electric volume up 50% YoY despite margin headwinds.


**【CEO Opening Remarks】**
- **Revenue Growth**: Q2 revenue of $724.1M (+7.7% YoY), driven by strong performance across all segments. Gross profit up 12.1% YoY to $67.8M.
- **Booking Momentum**: $3B in H1 bookings (2.3x book-to-bill), with $1.8B in Q2 alone. Full-year guidance raised to $2.7B-$2.85B.
- **Pipeline Expansion**: $14B pipeline (2/3 new projects, 1/3 MSA renewals), including $2B in pending bids and $600M-$700M in MSA renewals.
- **Strategic Initiatives**: One Centuri approach driving cross-selling, 20 underserved customers identified with $200B+ 5-year opportunity. Fleet optimization and hybrid asset financing model underway.

**【CFO Financial Commentary】**
- **GAAP Results**: Q2 net income $8.1M ($0.09 EPS) vs $11.7M ($0.14 EPS) YoY. Non-GAAP adj. EBITDA $71.8M (+5% YoY), margin 9.9%.
- **Segment Performance**:
  - **U.S. Gas**: Flat revenue but 7.8% margin (vs 7.4% YoY), improving through MSA renewals.
  - **Canadian Gas**: +18.1% revenue to $55.1M, margin 17.2% (vs 15.1% YoY).
  - **Union Electric**: +11% revenue to $182.2M, margin 8.4% (vs 7.4% YoY).
  - **Nonunion Electric**: +24.4% revenue to $149.9M, margin 11% (vs 13.5% YoY) due to higher volume.
- **Updated Guidance**: Adj. EBITDA narrowed to $250M-$270M. CapEx increased to $75M-$90M for fleet expansion.

**【Q&A Highlights】**
- **Margins & Execution**: Q2 backlog at higher margins than delivered; expect sequential margin improvement in Q3/Q4. U.S. Gas MSA renewals with 25% incremental volume.
- **Resource Allocation**: Sufficient near-term resources; long-term talent strategy in development. Fleet optimization targeting 15-25% efficiency gains.
- **Market Dynamics**: Seller's market with customers increasing capex, outsourcing needs. 20% of pipeline in distributed power/data centers.
- **Storm & Offshore**: Q2 storm margin decline offset by core electric growth. Offshore wind revenue down 41% as projects wind down.


Centuri (CTRI)-6 Aug 25-2025 Q2 Earnings call transcript

- **Record Q1 Bookings**: $1.2B (2.2x book-to-bill) driven by $700M MSA renewals and $505M new contracts
- **Adjusted EBITDA Growth**: +20% YoY to $24.2M, margin 4.4%
- **Segment Strength**: Non-union Electric revenue +41.9%, margin 11.9%
- **Full Year Guidance**: $2.6-2.8B revenue, $240-275M EBITDA
- **Weather Impact Mitigation**: Q1 U.S. Gas delay offset by March recovery, long-term shift to less seasonal markets
- **Cash Flow Improvement**: Free cash flow +$44.6M YoY

**【CEO Opening Remarks】**
- Q1 2025 results exceeded expectations, driven by strong commercial momentum and team performance.
- Business model resilience against macroeconomic uncertainty: 80%+ revenue from utility programs with regulatory approvals, reducing market volatility exposure.
- Strategic priorities: 
  1. Unified business development strategy with enhanced pipeline management
  2. Cross-selling across 5 operating companies
  3. Cultural shift to proactive growth mindset
  4. Profitability-focused KPIs
- Q1 bookings: $1.2B (2.2x book-to-bill ratio), including $700M from MSA renewals and $505M new MSAs/bid awards.
- Backlog grows to $4.5B (from $3.7B YoE), with $12B pipeline opportunities.

**【CFO Financial Highlights】**
- Q1 2025 Revenue: $550.1M (+4.2% YoY)
- Adjusted EBITDA: $24.2M (+20% YoY), Margin: 4.4% (vs 3.8% YoY)
- Key Segment Performance:
  - U.S. Gas: Revenue $197.7M (-12.7% YoY) due to harsh winter, but March recovery
  - Non-union Electric: Revenue $137.1M (+41.9% YoY), Margin 11.9% (vs 2.9% YoY)
- Free Cash Flow: Improved $44.6M YoY
- 2025 Guidance: Revenue $2.6-2.8B, Adjusted EBITDA $240-275M

**【Q&A Key Takeaways】**
1. U.S. Gas Segment:
- Q1 weather impact caused 8-9 lost days, but March rebound to expected margins
- Full year guidance remains intact with operational improvements
- Long-term strategy: Shift pipeline focus to less seasonal states (Southwest, Pacific NW)

2. Booking Visibility:
- Q2 bookings already strong, tracking for 1.1x+ annual book-to-bill
- Q3 may be quieter due to fewer MSA renewals, but Q4 expected to accelerate

3. Margin Dynamics:
- Non-union Electric margin expansion driven by fixed cost absorption (crew additions)
- U.S. Gas margin recovery expected in Q2+ with operational efficiency gains

4. Risk Management:
- 90%+ of materials procured by customers, limiting supply chain exposure
- Diversified $12B pipeline reduces concentration risk

Centuri (CTRI)-12 May 25-2025 Q1 Earnings call transcript

- **Revenue Growth**: Q4 2024 revenue up 7.8% YoY, driven by electric segment recovery and gas normalization. Full-year 2024 revenue exceeded guidance.
- **Electric Segment Strength**: Non-union electric revenue surged 49.7% YoY, boosted by storm restoration ($40.4M) and crew productivity. 2024 storm revenue exceeded $137M.
- **Gas Margin Recovery**: Gas margins expected to normalize to 7-7.5% in 2025 after 2024 underperformance due to rate cases.
- **2025 Outlook**: Double-digit EBITDA growth forecast, excluding offshore wind. Free cash flow target of $65-80M.
- **Strategic Focus**: Management prioritizing core utility growth, with $1.5B late-stage pipeline in gas and electric. Offshore wind projects deemed low priority.


**【CEO Opening Remarks】**
- **Revenue Growth**: Q4 2024 revenue increased 7.8% YoY, driven by gas segment normalization and electric business recovery. Full-year 2024 revenue of $2.64 billion exceeded guidance range.
- **Electric Segment Strength**: Electric segment saw 49.7% YoY growth in non-union revenue, boosted by storm restoration ($40.4M) and higher crew productivity. Storm restoration revenue for 2024 exceeded $137M, well above the 3-year average of $75M.
- **Gas Segment Challenges**: Gas margins were below expectations (7% target) due to rate case approvals and competitive pressures. Management expects gas margins to normalize to 7-7.5% in 2025.
- **2025 Outlook**: Anticipates double-digit EBITDA growth in core business, excluding offshore wind. Storm restoration revenue expected to return to normalized levels (~$60M below 2024 levels).

**【CFO Financial Highlights】**
- **Q4 2024 Financials**: GAAP net income of $10.3M (EPS $0.12), up from a loss of $210.7M (EPS -$2.94) in Q4 2023. Adjusted EBITDA of $70.7M (+22.9% YoY), margin 9.9%.
- **Full-Year 2024 Metrics**: Adjusted EBITDA margin of 9%, in line with guidance. Free cash flow of $69M, down slightly from 2023.
- **2025 Guidance**: Revenue $2.6-2.8B, adjusted EBITDA $240-275M, capex $65-80M. High end driven by crew growth, bid wins, and storm activity; low end risks include project delays.

**【Q&A Key Takeaways】**
- **Strategic Review**: CEO expects to conclude long-term strategy review by end-2025, focusing on core business growth before expanding into new markets.
- **Gas MSA Renewals**: 100% MSA renewal rate; renegotiations focused on improving pricing and scope. Late-stage pipeline includes $1.5B in bids and $2B in MSA renewals.
- **Offshore Wind**: $40M remaining in 2025 backlog, no further projects in pipeline. Management prioritizing core utility services over uncertain offshore wind projects.
- **Storm Restoration**: 2025 guidance assumes normalized storm revenue (~$75M 3-year average). Management cautious about relying on weather-related growth.


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