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Centuri Holdings, Inc. (CTRI)
NYSE:CTRI
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Centuri Holdings, Inc.
(NYSE:CTRI)
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Rating:61Neutral
Price Target:
$32.00
▲(4.34% Upside)
Action:ReiteratedDate:02/26/26
The score is driven by improved financial performance (notably deleveraging) and supportive technical momentum, reinforced by constructive 2026 guidance and backlog strength. These positives are tempered by expensive valuation (very high P/E) and weaker cash conversion/negative free cash flow in 2025.
Positive Factors
Backlog & Opportunity Pipeline
A backlog covering >85% of 2026 base revenue and a $13B pipeline provide durable revenue visibility across project cycles. This high book-to-bill and broad opportunity set reduces near-term bid risk, supports multi-quarter revenue planning, and underpins steadier utilization of crews and fleet.
Deleveraging and Balance Sheet Repair
Marked debt reduction and equity expansion materially improve capital cushion and financial flexibility. With management targeting ~2.0x net debt/EBITDA and ~30% lower interest expense in 2026, the company can better fund bids, fleet investment, and absorb project timing without immediate refinancing pressure.
Diversified segment growth and margin expansion
Broad-based growth across nonunion, union electric and Canadian operations increases addressable market and reduces single-market exposure. Higher Canadian margins and improving electric segment profitability support a more resilient operating model less tied to any single utility program or seasonal gas activity.
Negative Factors
Inconsistent Free Cash Flow / Cash Conversion
Uneven free cash flow history limits sustainable internal funding for fleet and bid-backed working capital. Despite positive operating cash flow, recurring negative FCF years force reliance on equity raises, leases or external financing, which can dilute returns and slow targeted deleveraging progress.
High capital intensity & fleet requirements
Sustained heavy fleet spend drives ongoing cash demand and operational complexity. Meeting fleet-efficiency and 20% improvement goals requires execution risk; funding via leases/sale-leasebacks may preserve liquidity short term but can raise long-term cash obligations and compress returns.
Thin margins and seasonality risk in gas business
Low net margins and historical volatility reduce earnings resilience to cost inflation or contract mix shifts. Pronounced Q1 gas seasonality complicates cash flow timing and forecasting, keeping working-capital and DSO improvements material to sustainable margin conversion and credit metrics.
Centuri Holdings, Inc. (CTRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.08B
Dividend YieldN/A
Average Volume (3M)2.25M
Price to Earnings (P/E)133.2
Beta (1Y)1.19
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees8,687
SectorUtilities
Sector Strength65
IndustryRegulated Gas
Share Statistics
EPS (TTM)0.17
Shares Outstanding99,579,384
10 Day Avg. Volume1,714,615
30 Day Avg. Volume2,253,280
Financial Highlights & Ratios
PEG Ratio-0.25
Price to Book (P/B)2.65
Price to Sales (P/S)0.80
P/FCF Ratio-281.50
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit13.18
Enterprise Value/Ebitda15.40
Forecast
1Y Price Target
$30.60Price Target Upside-0.23% Downside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.73
Revenue Forecast (FY)$3.30B
Centuri Holdings, Inc. Business Overview & Revenue Model
Company DescriptionCenturi Holdings, Inc. operates as a utility infrastructure services company in North America. The company operates through four segments: U.S. Gas Utility Services; Canadian Gas Utility Services; Union Electric Utility Services; and Non-Union Electric Utility Services. It offers gas utility services, including maintenance, replacement, repair, and installation for local natural gas distribution utilities focused on the modernization of customers' infrastructure. The company also provides electric utility services encompassing maintenance, replacement, repair, upgrade, and expansion services for urban transmission and local distribution infrastructure. Its customers include electric, gas, and combination utility providers, as well as serves end markets, such as renewable energy, data centers, and 5G datacom. The company was founded in 1909 and is headquartered in Phoenix, Arizona. Centuri Holdings, Inc. is a subsidiary of Southwest Gas Holdings, Inc.
How the Company Makes MoneyCenturi Holdings generates revenue through multiple channels within the utility and energy sectors. The core revenue streams include utility construction services, where the company partners with utility providers to build and maintain infrastructure such as power lines, pipelines, and water systems. Additionally, Centuri earns money through maintenance services that ensure the reliability and safety of existing systems. Significant partnerships with major utility companies enhance its project pipeline and provide steady contracts, contributing to a stable revenue base. The company's focus on expanding its service offerings and geographic reach also plays a crucial role in driving growth and increasing earnings.
Centuri Holdings, Inc. Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call presented a strong set of operational and financial accomplishments—record revenue, robust bookings and backlog growth, meaningful base revenue and base gross profit expansion, segment-level outperformance (notably in nonunion electric and Canada), and improved leverage and cash generation initiatives. Management acknowledged near-term challenges including Q1 seasonality in the gas business, working-capital and DSO improvement needs, persistent fleet and CapEx demands, and some slower-than-expected early data-center wins. On balance, positive momentum, conservative guidance, and concrete initiatives to address weaknesses suggest the company is positioned for continued progress into 2026.Q4-2025 Updates
Positive Updates
Record Full-Year Revenue
Centuri delivered record 2025 revenue of $3.0 billion, a 13% increase versus 2024, and Q4 revenue of $859 million, up 20% year over year.
Strong Base Revenue and Gross Profit Growth
Base revenue for 2025 was $2.9 billion (up 18% YoY) and base gross profit was $234 million (up 35% YoY). Base gross margin improved to 8.0% in 2025 from 6.9% in 2024 (≈100 basis points increase).
Robust Bookings, Backlog and Opportunity Pipeline
Bookings exceeded $4.5 billion for 2025 with a 1.5x book-to-bill ratio (vs 1.1x target). Year-end backlog was ~$5.9 billion, up $2.2 billion (59%) YoY and forecast to cover >85% of 2026 base revenue guidance. Total opportunity pipeline stands at $13.0 billion with 580 bid opportunities (~$6.7 billion) and $2.8 billion of near-term active proposals.
Segment Outperformance — Nonunion & Union Electric, Canada
Nonunion Electric base revenue rose to $569 million (+51% YoY) with base gross margin improving to 8.5% (from 5.9%). Union Electric base revenue was $800 million (+21% YoY) with base gross margin 8.7% (+110 bps). Canadian operations revenue grew 25% to $247 million with gross margin improving to 18.6% from 15.9%.
Improved Profitability and Adjusted Results
Adjusted net income for 2025 was $39 million (a 49% increase over 2024 per management commentary). Adjusted EBITDA for the year was $249 million (up from $238 million in 2024). Q4 adjusted EBITDA was $78 million versus $71 million prior-year quarter.
Deleveraging and Balance Sheet Strength
Net debt to adjusted EBITDA improved to 2.5x at year-end 2025 from 3.6x at year-end 2024. Company completed equity raises (~$251 million net proceeds) and used proceeds for the Connect Atlantic acquisition and net debt reduction. Targeting ~2.0x net debt/EBITDA by year-end 2026.
Cash Generation and CapEx Funding Strategy
Q4 operating cash flow was $84 million and free cash flow was $106 million. In 2025 Centuri invested $135 million in fleet assets using a mix of operating leases, sale-leasebacks and net CapEx; 2026 fleet investment forecast is $150–$180 million with ~50/50 buy vs lease to improve capital efficiency. Net CapEx guidance for 2026 is $75–$90 million.
Data Center Opportunity
Data center pipeline highlighted with >20 opportunities totaling ~$1.4 billion (management notes upside to ~$2.0 billion including early-stage prospects). Management expects meaningful near-term bidding activity and ~$1.3 billion of funded data-center projects currently tendering with anticipated bookings in the first half of 2026.
2026 Financial Guidance
Company initiated 2026 guidance: base revenue $3.15–3.45 billion; base gross profit $255–285 million; total revenue (incl. storm) $3.24–3.54 billion; adjusted EBITDA $280–310 million; adjusted net income $55–75 million; expected ~30% lower interest expense in 2026 vs 2025.
Negative Updates
Q4 Adjusted Net Income Slight Decline
Q4 2025 adjusted net income was $16 million (or $0.17 per share) down from $18 million (or $0.21 per share) in Q4 2024, reflecting some near-term margin and timing differences despite higher revenue.
One-Time Tax Benefit Distorts Comparisons
Q4 net income of $30 million was materially impacted by a $23.7 million income tax benefit related to deferred tax asset allocations from the former parent, which can distort quarterly comparatives.
Seasonality and Q1 Gas Business Weakness
Management highlighted pronounced Q1 seasonality in the U.S. gas segment and historical Q1 weakness; a three-year program was initiated to address seasonality (targeting elimination over three years), indicating ongoing near-term risk to quarterly margin consistency.
Working Capital / Cash Conversion Still Improving
Management identified DSO and billing/collection timing as limiting cash-from-operations conversion today and is actively working to improve collections; longer-term target is ~50% free cash flow conversion of adjusted EBITDA, implying room for improvement from current levels.
Data Center Wins Slower Than Expected
Management noted data-center wins early in the year were 'a little slower than expected' despite a sizable pipeline; some awards remain in negotiation and timing is uncertain, presenting near-term upside risk to revenue realization from that segment.
Sustained Fleet & CapEx Requirements
Fleet investments remain significant (2026 forecast $150–180 million), and while funding is being optimized via leases and sale-leasebacks, continued high capital intensity and fleet management execution are needed to realize targeted 20% fleet-efficiency improvements.
Guidance Includes Storm Revenue Assumption
2026 guidance includes a three-year average storm revenue assumption (~$88 million revenue and ~$28 million gross profit). Actual storm activity is unpredictable and could materially affect results versus guidance.
Company Guidance
Centuri initiated full‑year 2026 guidance calling for base revenue of $3.15–$3.45 billion and base gross profit of $255–$285 million (base gross margin midpoint ~8.2%; including the assumed three‑year average storm contribution of $88M revenue and $28M gross profit lifts the midpoint to about 8.8%), total revenue of $3.24–$3.54 billion, adjusted EBITDA of $280–$310 million, adjusted net income of $55–$75 million, and net CapEx of $75–$90 million. Management also forecasted fleet investments of $150–$180 million (targeting ~50/50 buy vs. lease and at least 20% fleet efficiency improvement), expects net debt/adjusted EBITDA to fall to ~2.0x by year‑end 2026 (from 2.5x at year‑end 2025) with interest expense roughly 30% lower versus 2025, and reiterated a longer‑term free cash flow conversion target of about 50% of adjusted EBITDA. The guidance is underpinned by a year‑end backlog of ~$5.9 billion (up $2.2B, +59% YoY) that should cover >85% of 2026 base revenue, bookings YTD of ~ $1.1 billion, a $13.0 billion opportunity pipeline (580 bid opportunities totaling ~$6.7B, $2.8B of near‑term active proposals, and near‑term opportunity around $1.3B), and a data‑center pipeline of ~20+ opportunities (~$1.4B, with prospects up to ~$2.0B).Centuri Holdings, Inc. Financial Statement Overview
Summary
Financials show meaningful improvement in 2025 earnings and major balance-sheet de-risking (lower debt, higher equity). Offsetting this, profitability remains thin/volatile and cash generation is uneven, with free cash flow turning negative in 2025 despite positive operating cash flow.Income Statement
Revenue rebounded in 2025 (up materially vs. 2024) after a 2024 decline, showing improving top-line momentum. Profitability also improved: 2025 returned to positive net income after losses in 2022–2024, and operating profitability is positive in 2024–2025 versus negative EBIT in 2022–2023. Offsetting this, margins remain thin (very low net margin in 2025) and results have been volatile over the last five years, with large losses in 2022–2023 and a meaningful drop in EBITDA margin in 2025 versus 2024.54
Neutral
Balance Sheet
Leverage improved sharply: total debt fell significantly from 2023–2024 levels, driving debt-to-equity down to a much healthier level in 2025. Equity has also expanded meaningfully since 2023, improving the capital cushion. The key weakness is the track record of pressure in prior years, when debt-to-equity was very high (especially 2023) and returns on equity were deeply negative, indicating the balance sheet has improved recently but has not been consistently strong.72
Positive
Cash Flow
Operating cash flow remained positive across all years, supporting core business durability. However, free cash flow swung negative in 2025 and also in 2022 and 2021, highlighting inconsistent cash generation after investment needs. In 2025, operating cash flow covers only a small portion of total debt and free cash flow was negative despite positive earnings, which reduces financial flexibility compared with 2023–2024 when free cash flow was solidly positive.46
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.89B | 2.64B | 2.90B | 2.76B | 2.16B |
| Gross Profit | 246.57M | 220.67M | 273.44M | 214.61M | 186.05M |
| EBITDA | 93.02M | 243.19M | 85.32M | 67.50M | 229.05M |
| Net Income | 22.39M | -6.72M | -186.18M | -168.15M | 40.51M |
Balance Sheet | |||||
| Total Assets | 2.41B | 2.07B | 2.19B | 2.45B | 2.57B |
| Cash, Cash Equivalents and Short-Term Investments | 126.63M | 49.02M | 33.41M | 63.97M | 114.71M |
| Total Debt | 321.24M | 1.01B | 1.31B | 1.33B | 1.36B |
| Total Liabilities | 1.53B | 1.51B | 1.86B | 1.91B | 1.89B |
| Stockholders Equity | 872.97M | 555.55M | 225.99M | 386.75M | 479.61M |
Cash Flow | |||||
| Free Cash Flow | -8.20M | 58.90M | 60.81M | -34.96M | -937.00K |
| Operating Cash Flow | 78.12M | 158.23M | 167.47M | 94.63M | 109.48M |
| Investing Cash Flow | -88.20M | -89.38M | -94.85M | -117.06M | -916.58M |
| Financing Cash Flow | 88.76M | -52.62M | -103.45M | -27.45M | 883.54M |
Centuri Holdings, Inc. Technical Analysis
Positive
30.67
Price Trends
27.94
Positive
24.70
Positive
22.92
Positive
Market Momentum
1.07
Positive
59.80
Neutral
44.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRI, the sentiment is Positive. The current price of 30.67 is above the 20-day moving average (MA) of 29.84, above the 50-day MA of 27.94, and above the 200-day MA of 22.92, indicating a bullish trend. The MACD of 1.07 indicates Positive momentum. The RSI at 59.80 is Neutral, neither overbought nor oversold. The STOCH value of 44.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTRI.
Centuri Holdings, Inc. Risk Analysis
Centuri Holdings, Inc. disclosed 71 risk factors in its most recent earnings report. Centuri Holdings, Inc. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Centuri Holdings, Inc. Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.08B | 19.95 | 7.20% | 4.18% | 11.27% | 20.04% | |
71 Outperform | $5.35B | 19.56 | 8.51% | 3.45% | 15.06% | 12.27% | |
70 Outperform | $6.35B | 13.71 | 5.42% | 3.07% | -23.15% | 157.45% | |
68 Neutral | $3.19B | 23.90 | 9.13% | 2.15% | 17.15% | 15.00% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $5.35B | 19.66 | 8.46% | 3.82% | -4.50% | 2.49% | |
61 Neutral | $3.08B | 133.17 | 0.45% | ― | ― | ― |
* Utilities Sector Average
CTRI
Centuri Holdings, Inc.
30.67
13.21
75.66%
CPK
Chesapeake Utilities
134.24
10.38
8.38%
SR
Spire
90.76
17.47
23.84%
NWN
Northwest Gas
49.99
10.05
25.17%
SWX
Southwest Gas
87.07
14.06
19.26%
OGS
ONE Gas
85.77
13.48
18.65%
Centuri Holdings, Inc. Corporate Events
Executive/Board Changes
Centuri Holdings announces executive leadership transition plans
Neutral
Dec 23, 2025
On December 18, 2025, Centuri Holdings, Inc. announced that Executive Vice President and Chief Commercial and Strategy Officer James W. Connell, Jr. has decided to resign from his roles, effective January 31, 2026. The company stated that Connell’s departure is based on his personal decision to pursue another opportunity and does not stem from any disagreement with the company, suggesting a stable leadership transition with limited immediate implications for corporate strategy or stakeholder confidence.
The most recent analyst rating on (CTRI) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Centuri Holdings, Inc. stock, see the CTRI Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.