What were the key takeaways from Centuri's earnings call?

What factors drove the changes in Centuri's revenue and profit?

Did Centuri beat or miss consensus estimates last quarter?

What is Centuri's latest dividend and current dividend yield?

What is Centuri's gross profit margin?

What is the market's earnings forecast for Centuri next quarter?

What is the revenue and EPS growth rate for Centuri year over year?

What guidance did Centuri's management provide for the next earnings period?

- **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

Master Services Agreement

Bid Contract

CTRI

CTRI fundamentals

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