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Centuri Holdings, Inc. (CTRI)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered a revenue beat and improved year-over-year profitability metrics, supported by record bookings ($1.20B+), backlog expansion to $4.5B, and stronger Electric segments; guidance for FY 2025 was affirmed, with management signaling trajectory toward the upper end of revenue range .
  • Revenue was $550.1M vs $528.0M in Q1 2024 and above consensus ($537.6M*); adjusted diluted EPS of $(0.12) beat consensus ($(0.15)), while adjusted EBITDA of $24.2M came in below consensus ($29.2M) .
  • U.S. Gas was pressured by harsher winter and mix, yielding negative gross margin (−7.5%), offset by strong Non-union Electric (gross margin 11.9%) and improving Union Electric; Canadian Gas margins were robust (17.8%) .
  • Management emphasized record awards, a ~$12B opportunity pipeline, minimal expected tariff impact, and capital efficiency progress (net debt/adj EBITDA 3.5x; FCF improvement $44.6M vs prior year); catalysts include momentum in data center-related infrastructure and grid resiliency programs .

What Went Well and What Went Wrong

What Went Well

  • Record bookings of over $1.2B drove a 2.2x book-to-bill and backlog growth to $4.5B; “Awards have been very strong and diverse…on track to deliver revenue at the upper end of the guidance range for the year” (CEO) .
  • Non-union Electric revenue up 41.9% YoY to $137.1M with gross margin rising to 11.9% on higher crew counts, hours worked, and resiliency/storm work efficiency .
  • Canadian Gas delivered 17.8% gross margin (vs 7.5% LY) despite modest revenue decline; management highlighted stronger contract structures and execution .

What Went Wrong

  • U.S. Gas revenue fell 12.7% YoY to $197.7M; gross margin declined to −7.5% on weather-related inefficiencies and a slower start across certain customers .
  • Offshore wind revenue declined $22.3M YoY within Union Electric as projects wound down; segment gross margin remained modest at 6.7% .
  • Adjusted EBITDA of $24.2M missed consensus ($29.2M*), reflecting seasonal weakness and segment mix even as revenue and adjusted EPS beat .

Financial Results

Consolidated Performance (trend across prior two quarters to current)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$720.1 $717.1 $550.1
GAAP Diluted EPS ($USD)$(0.04) $0.12 $(0.20)
Adjusted Diluted EPS ($USD)$0.06 $0.21 $(0.12)
Adjusted EBITDA ($USD Millions)$78.8 $70.7 $24.2
Adjusted EBITDA Margin (%)10.9% 9.9% 4.4%
Gross Profit Margin (%)10.5% 9.9% 3.7%

Results vs Wall Street Consensus (S&P Global)

MetricQ1 2025 ActualQ1 2025 ConsensusNotes
Revenue ($USD Millions)$550.1 $537.6*Beat on topline
Adjusted Diluted EPS ($USD)$(0.12) $(0.15)*Beat on EPS
Adjusted EBITDA ($USD Millions)$24.2 $29.2*Miss on EBITDA

Values marked with an asterisk (*) retrieved from S&P Global.

Segment Breakdown (Q1 2025 vs Q1 2024)

SegmentRevenue Q1 2025 ($000s)Mix Q1 2025 (%)Revenue Q1 2024 ($000s)Mix Q1 2024 (%)YoY Change ($000s)YoY Change (%)
U.S. Gas$197,694 35.9% $226,578 42.9% $(28,884) (12.7%)
Canadian Gas$39,784 7.2% $40,979 7.8% $(1,195) (2.9%)
Union Electric$175,468 31.9% $163,851 31.0% $11,617 7.1%
Non-union Electric$137,135 25.0% $96,615 18.3% $40,520 41.9%
Total$550,081 100.0% $528,023 100.0% $22,058 4.2%
SegmentGross Profit Q1 2025 ($000s)GP Margin Q1 2025 (%)Gross Profit Q1 2024 ($000s)GP Margin Q1 2024 (%)
U.S. Gas$(14,856) (7.5%) $(3,976) (1.8%)
Canadian Gas$7,079 17.8% $3,086 7.5%
Union Electric$11,813 6.7% $11,369 6.9%
Non-union Electric$16,292 11.9% $2,800 2.9%
Total$20,328 3.7% $13,279 2.5%

KPIs and Balance Sheet/Cash Flow Highlights

KPIQ1 2025Prior Period
Bookings$1.20B+ (record) $221M in Q4 2024
Book-to-bill2.2x N/A
Backlog$4.5B (as of Mar 30, 2025) $3.7B (YE 2024)
Net Debt / Adjusted EBITDA3.5x 3.6x (Dec 29, 2024)
Net cash from operating activities$16.7M $(26.5)M in Q1 2024
Net CapEx$23.2M improvement of $44.6M in FCF vs Q1 2024 (management) $24.6M in Q1 2024 (management context)
Cash & Equivalents$15.3M $49.0M (Dec 29, 2024)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$2.60B–$2.80B $2.60B–$2.80B Maintained
Adjusted EBITDAFY 2025$240M–$275M $240M–$275M Maintained
Net Capital ExpendituresFY 2025$65M–$80M $65M–$80M Maintained

Management indicated trajectory toward the upper end of revenue guidance on the back of backlog and high-probability work .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2: Q3 2024, Q-1: Q4 2024)Current Period (Q1 2025)Trend
Bookings/BacklogBacklog $4.3B; new awards ~$350M Record ~$1.2B bookings; backlog $4.5B; book-to-bill 2.2x Strengthening
Storm RestorationQ3: $41.4M storm revenue; Q4: emergency restoration drove $46.7M increase Storm ~10% of Non-union Electric revenue; margin lift from higher crew utilization Still supportive but less material vs Q4
U.S. Gas MarginQ3: cost pressures, lower utilization; regulatory-driven MSA volume reduction Weather disruptions → margin −7.5%; recovery from March onward Near-term challenged; improving sequentially
Supply Chain/Capital EfficiencyRenegotiated 14 contracts; 21% of top vendor spend contracted FCF +$44.6M YoY; net debt/adj EBITDA 3.5x; CapEx discipline Continued progress
Tariffs/MacroNot highlighted“Do not foresee material impact from tariffs in 2025” (CFO) Watchful but insulated
Data Centers/IndustrialNot highlightedIncreased bid activity in substation infrastructure incl. data centers Emerging demand driver
Offshore WindQ3: −$38.0M timing; 9M: −$71.4M −$22.3M YoY; wind-down as expected Ongoing headwind

Management Commentary

  • “Our financial performance and commercial activity in the first quarter exceeded our expectations…results…reflect the hard work of our team…focus on our growth priorities” (CEO) .
  • “Our sales pipeline…now approaching a total of $12 billion…we expect continued strength in capital spending by our customers despite recent macro uncertainty” (CEO) .
  • “Record booking quarter with new bookings totaling $1.2 billion…book-to-bill ratio of 2.2x…backlog to $4.5 billion” (CEO) .
  • “We do not foresee a material impact from tariffs on our business” (CFO) .
  • “We are on track to deliver revenue at the upper end of the guidance range for the year” (CEO) .

Q&A Highlights

  • Trajectory to upper end of revenue guidance despite weak U.S. Gas start: weather drove 8–9 lost days; recovery began in March/April; confidence across businesses to meet budgets (CEO) .
  • U.S. Gas profitability strategy: diversify footprint toward Sun Belt to mitigate winter impacts; Q1 seasonally slow but full-year expectations intact (CEO/CFO) .
  • Bookings cadence: continued strength into Q2; lumpiness expected with fewer MSA renewals in Q3; solid Q4 (CEO) .
  • New MSAs and strategic bids: “sticking to the knitting” — same services, risk profile unchanged; mix includes displacing incumbents and expanded scopes as utilities spend more (CEO) .
  • Non-union Electric storm mix: ~10% of segment revenue; margin gains largely from higher crews and hours, not solely storm work (CFO) .

Estimates Context

  • Q1 2025 revenue beat: $550.1M vs $537.6M consensus*; adjusted diluted EPS beat: $(0.12) vs $(0.15); adjusted EBITDA missed: $24.2M vs $29.2M .
  • FY 2025 revenue consensus $2.863B* sits slightly above the company’s $2.60–$2.80B guidance; management commentary biases expectations toward the upper end, suggesting consensus may converge toward ~$2.8B absent macro shock*.
  • Near-term estimate adjustments: Electric strength and backlog underpin revenue; U.S. Gas margin recovery expected from Q2; however, Q1 EBITDA miss may temper near-term EBITDA estimates even as management reaffirms the $240–$275M range .

Values marked with an asterisk (*) retrieved from S&P Global.

MetricQ1 2025Q2 2025Q3 2025Q4 2025FY 2025
Revenue Consensus Mean ($USD Millions)537.6*702.4*758.5*734.5*2,863.5*
Primary EPS Consensus Mean ($USD)$(0.15)*$0.24*$0.29*$0.20*$0.44*
EBITDA Consensus Mean ($USD Millions)29.2*73.9*85.2*72.5*243.8*
Primary EPS - # of Estimates5*6*7*6*6*
Revenue - # of Estimates6*7*6*5*6*

Key Takeaways for Investors

  • Revenue and adjusted EPS beats alongside record bookings/backlog support confidence in reaching the upper end of FY revenue guidance; stock narrative hinges on sustained award momentum and execution in Electric .
  • U.S. Gas weakness was weather-driven and transitory per management; monitor Q2/Q3 margin trajectory for confirmation of recovery .
  • Electric segments are the growth engine: Non-union Electric benefited from higher crews/hours and resiliency programs; Union Electric bidding strong in industrial/substation/data center infrastructure .
  • EBITDA miss vs consensus highlights sensitivity to mix and seasonality; watch capital efficiency initiatives (CapEx discipline, AR/DSO management) as levers to hit the $240–$275M adjusted EBITDA range .
  • Bookings cadence likely lumpy (lighter Q3 for renewals), but Q2 and Q4 expected solid per management; near-term trading catalysts include additional MSAs/new bid wins and backlog updates .
  • Limited tariff exposure and MSA-backed business model provide resilience amid macro uncertainty; supports medium-term thesis on regulated utility infrastructure spend .
  • Action: Position for award/backlog updates and segment margin recovery; consider upside skew if Electric strength persists and U.S. Gas normalizes as guided .