Executive Summary

Q4 2024 revenue rose 7.8% year over year to $717.1M, GAAP diluted EPS was $0.12, and adjusted diluted EPS was $0.21; adjusted EBITDA was $70.7M (9.9% margin), with net debt/TTM adjusted EBITDA improving to 3.6x .
Segment mix: Non-Union Electric surged on storm work (+49.7% revenue YoY), Union Electric profitability improved despite offshore wind wind-down; U.S. Gas margins compressed on unfavorable mix .
Backlog exited Q4 at $3.7B (≈90% MSA), and management initiated FY2025 outlook: revenue $2.60–$2.80B, adjusted EBITDA $240–$275M, net capex $65–$80M .
Narrative catalysts: record storm restoration levels, rising crew counts in core non-union electric, CEO-led sales/process overhaul, and expected book-to-bill >1.1x in the next 12 months; offshore wind de-emphasized near term .
Comparison to Street estimates was unavailable at time of request; S&P Global consensus could not be retrieved due to system limits.

What Went Well and What Went Wrong

What Went Well

Strong storm restoration contributed $40.4M in Non-Union Electric revenue in the quarter (none prior year), lifting segment margins to 15.3%; Union Electric storm revenue increased to $9.3M vs $3.0M YoY .
Adjusted EBITDA margin improved to 9.9% (+130 bps YoY), supported by higher-margin storm work and improved project mix in Union Electric .
Pipeline and go-to-market sharpened under new CEO: “implemented a company-wide review of business development… structured approach to market positioning, cross selling… building our sales pipeline” . Management expects “book to bill in excess of 1.1x” over the next 12 months .

What Went Wrong

U.S. Gas gross margin fell to 6.2% (from 7.8%), driven by unfavorable work mix and lower-margin Northeast work; management aims to normalize gas gross margins to 7–7.5% in 2025 after renegotiations/exits of underperforming contracts .
Offshore wind revenue declined $43.0M YoY within Union Electric as projects wind down; management removed offshore wind from near-term pipeline assumptions .
Quarter-over-quarter adjusted EBITDA declined to $70.7M from $78.8M in Q3 as storm normalization and mix offset core improvements .

Financial Results

Consolidated P&L vs prior year and prior quarter

Metric	Q4 2023	Q3 2024	Q4 2024
Total Revenue ($USD Millions)	$665.3	$720.1	$717.1
GAAP Diluted EPS ($)	($2.94)	($0.04)	$0.12
Adjusted Diluted EPS ($)	$0.07	$0.06	$0.21
Gross Profit Margin (%)	8.1%	10.5%	9.9%
Adjusted EBITDA ($USD Millions)	$57.5	$78.8	$70.7
Adjusted EBITDA Margin (%)	8.6%	10.9%	9.9%

Segment revenue and gross profit (Q4 2024 vs Q4 2023)

Segment	Revenue Q4 2023 ($M)	Revenue Q4 2024 ($M)	Gross Profit Q4 2023 ($M)	Gross Profit Q4 2024 ($M)
U.S. Gas	$310.5	$327.2	$24.1	$20.4
Canadian Gas	$56.7	$56.8	$9.7	$10.2
Union Electric	$205.1	$193.8	$13.7	$19.1
Non-Union Electric	$93.1	$139.3	$6.4	$21.4
Consolidated	$665.3	$717.1	$53.9	$71.1

KPIs and balance sheet

KPI	Dec 2023	Dec 2024
Net Debt / TTM Adjusted EBITDA (x)	4.0	3.6
Backlog ($B)	—	$3.7
% Backlog MSA	—	~90%
Cash & Cash Equivalents ($M)	$33.4	$49.0
Total Debt ($M)	$1,186.6	$898.2

Notes: Backlog detail provided only for Q4; debt and cash are year-end figures from the 8-K tables .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue ($B)	FY 2025	—	$2.60–$2.80	Initiated
Adjusted EBITDA ($M)	FY 2025	—	$240–$275	Initiated
Net Capital Expenditures ($M)	FY 2025	—	$65–$80	Initiated

Management reiterated that FY2024 results met mid-year outlook (revenue ~$2.64B; adjusted EBITDA margin ~9.0%) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
Gas MSA spending/margins	Subdued MSA spend; cost/program savings initiatives; working to diversify and use scale	Gas margins pressured by mix, equipment/insurance issues; YoY U.S. Gas margin dropped; actions under way	Expect margin normalization to 7–7.5% in 2025; exiting/renegotiating underperforming contracts	Improving into 2025
Storm restoration	Strong H1 storms; third-quarter storms drove ~$50M entering Q4	$41.4M Q3 storm; record year-to-date storm; benefits open doors with customers	$46.7M YoY increase in emergency restoration revenues; cautious budgeting to avoid reliance on storm	Elevated 2024; conservatively assumed in 2025
Offshore wind	Vineyard/ Sunrise activity; first-mover narrative	Lower offshore wind revenue YoY; backlog ~$100M	De-emphasized; ~$40M 2025, ~$25M 2026; not in near-term pipeline	Wind-down
Sales pipeline & awards	Growth/ diversification focus; cost controls	$347M awards in Q3 (MSA + bid); backlog $4.3B	$221M awards in Q4; pipeline +30%; ~40 MSA renewals in next 12 months; book-to-bill >1.1x targeted	Building momentum
Capital efficiency	Fleet/supply chain savings; SG&A actions	AR securitization; debt paydown; leverage down to 3.9x TTM	Focus on fleet financing mix, working capital; net leverage 3.6x; continued FCF improvement	Strengthening balance sheet

Management Commentary

“Centuri experienced higher-than-average emergency restoration services and saw continued improvement in crew counts in its core Non-Union Electric business, while MSA volumes benefited from customers spending budgeted capital late in the period.” — Chris Brown, CEO .
“We have implemented a company-wide review of our business development activities to institutionalize a more structured approach to market positioning, cross selling, and further focus on building our sales pipeline and the awarding of new business.” — Chris Brown .
“We anticipate we will secure new awards in the next twelve months that will deliver a book to bill in excess of 1.1x.” — Management Commentary .
“Gas margins during 2024 were below our expectations… The work to exit underperforming contracts and restructure the gas group has largely been completed and we anticipate gross margins to normalize during 2025 to their historical averages of between 7% and 7.5%.” — Chris Brown .
“Our guidance… assumes revenue from storm restoration services of recent historical levels, which is approximately $60 million less than we secured and delivered in 2024.” — CFO Greg Izenstark .

Q&A Highlights

Guidance range drivers: Upside from crew growth/onboarding and bid activity; downside risks include project delays/cancellations and storm variability .
Gas MSAs renegotiation: Near-100% renewal rates historically, repricing to improve volumes and price beyond annual escalators; optimism into 2025 .
Seasonality and offshore wind: Q1 expected similar to last year; ~$40M offshore wind in 2025 and ~$25M in 2026; offshore wind removed from near-term focus .
Storm budgeting discipline: Organization is focused on growth in core services, not predicated on storm events; conservative use of trailing 3-year average in 2025 plan .
Pipeline composition: Late-stage bids ~$1.5B and potential >$2B in MSA renewals in 12 months; business development is a central focus .

Estimates Context

Comparison to Wall Street consensus: S&P Global consensus for Q4 2024 EPS and revenue was unavailable due to system limits at time of request, so we cannot quantify beat/miss versus estimates. Values would typically be sourced from S&P Global; please note the absence of consensus prevents a formal beat/miss assessment.

Key Takeaways for Investors

Storm-aided quarter but core electric momentum appears sustainable, with rising crew counts and improved bid/project mix; 2025 outlook embeds storm normalization and offshore wind wind-down .
U.S. Gas is in margin repair: renegotiations/exits largely done, with explicit 7–7.5% gross margin normalization target for 2025; watch contract renewals and productivity trends for confirmation .
Balance sheet materially improved (net leverage 3.6x; total debt down), enhancing flexibility to pursue growth while funding fleet more efficiently; continued focus on FCF and working capital .
Sales engine reset under new CEO: pipeline up ~30%, ~40 MSAs renewing in 12 months, and book-to-bill targeted >1.1x; monitor conversion of late-stage bids and incremental scope on renewals as catalysts .
Offshore wind de-risked near term; exposure minimal and removed from pipeline assumptions, reducing project volatility risk .
Near-term trading lens: lack of Street estimate comparison limits beat/miss framing, but investors should focus on storm normalization assumptions, cadence of gas margin recovery, and evidence of book-to-bill >1.0x through 2025 .
Medium-term thesis: diversified utility services platform with structurally improving margins (gas), core electric growth tailwinds (grid upgrades, industrial/substations), and disciplined capital efficiency supports earnings compounding beyond 2025 .

Appendix: Additional Disclosures

Full-year 2024 achieved the mid-year outlook: revenue $2.64B and adjusted EBITDA margin 9.0% .
Quarter-level financial statements and reconciliations, including revenue, EPS, adjusted net income/EBITDA, debt and cash, are provided within the 8-K press release (Exhibit 99.1) .
Prior quarter context (Q3 2024): consolidated revenue $720.1M, GAAP diluted loss per share ($0.04), adjusted EBITDA $78.8M (10.9% margin) .
No additional standalone press releases for Q4 2024 were found beyond the 8-K press release exhibit .

Centuri Holdings, Inc. (CTRI)·Q4 2024 Earnings Summary