Centuri sees FY25 revenue $2.6B- $2.8B, consensus $2.59B

Sees FY25 adjusted EBITDA of $240 to $275M;Net capital expenditures of $65 to $80M…During the quarter Centuri (CTRI) booked $221 million in new awards of which 45% was MSA renewals and 55% was new contract awards. Looking ahead, we have grown the sales opportunity pipeline by a third which includes $1.5 billion of late stage bids and approximately 40 MSA renewals expected in the next 12 months. We anticipate we will secure new awards in the next twelve months that will deliver a book to bill in excess of 1.1x. Our priority is to continue driving sales growth and increasing both MSA and new contract awards. Centuri experienced a transformative year in 2024, highlighted by the completion of an initial public offering in April. Despite facing headwinds from reduced customer spending under MSAs, particularly in the first half of the year, Centuri achieved full-year revenue of $2.64 billion, surpassing the $2.6 billion midpoint of guidance provided in July. Additionally, Adjusted EBITDA for the year totaled $238.2 million, reflecting an Adjusted EBITDA Margin of 9.0% that was just within the guidance range of 9.0% to 9.6%. Centuri’s net debt to adjusted EBITDA ratio improved to 3.6x in December 2024 from 4.0x in December 2023, which was in line with expectations. The Company will continue to focus on improving free cash flow and strengthening the balance sheet throughout 2025.