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Centuri Holdings, Inc. (CTRI)
NYSE:CTRI
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Centuri Holdings, Inc.
(NYSE:CTRI)
Rating:55Neutral
Price Target:
$23.50
▲(6.92%Upside)
Positive Factors
Cost Savings
Cost saving initiatives on track, should improve FCF.
Leadership and Strategy
A CEO announcement establishes permanent leadership and cost/capex savings are supporting margins and improving FCF conversion.
Negative Factors
Earnings Performance
Centuri reported weaker than expected Q3 results, with revenue and Adj. EBITDA both falling below consensus estimates.
Management Changes
The unexpected departure of CTRI's CEO Bill Fehrman will catch investors off guard, given his short tenure.
Revenue Challenges
Gas demand remains muted, leading to a decline in gas revenue across segments.
Centuri Holdings, Inc. (CTRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.97B
Dividend YieldN/A
Average Volume (3M)677.06K
Price to Earnings (P/E)2121.0
Beta (1Y)1.22
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees8,687
SectorGeneral
Sector StrengthN/A
IndustryRegulated Gas
Share Statistics
EPS (TTM)-0.12
Shares Outstanding88,649,040
10 Day Avg. Volume482,822
30 Day Avg. Volume677,060
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)5.29
Price to Sales (P/S)0.00
P/FCF Ratio-58.56
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price Target
$20.13Price Target Upside-8.42% Downside
Rating ConsensusHold
Number of Analyst Covering4
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 Moneynull
Centuri Holdings, Inc. Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q3-2024)
| % Change Since: 3.00%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with significant achievements in strategic awards and cost savings, offset by revenue declines and challenges in key segments such as U.S. Gas and Union Electric. Despite some positive developments, including strong storm restoration performance and leadership changes, the financial setbacks and reduction in backlog temper the overall outlook.Q3-2024 Updates
Positive Updates
CEO Appointment
Chris Brown appointed as CEO, bringing significant experience in leading large organizations in the energy sector.
Strategic Bid Awards
Secured $347 million in new awards, including $206 million in MSA awards and $140 million in strategic bid awards.
Growth in Non-Union Electric Segment
Non-union Electric segment revenue increased by 16.4% year-over-year, driven by improved productivity and higher storm revenues.
Strong Performance in Storm Restoration Services
Generated $87 million in revenues from storm restoration services in the first three quarters of 2024, about 4% higher than the same period in 2023.
SG&A Cost Reduction
Expected annualized savings of $29 million by 2025 from cost reduction initiatives, benefiting Q3 results by approximately $6.4 million.
Accounts Receivable Securitization
Entered a $125 million accounts receivable securitization facility, helping to lower interest expenses.
Negative Updates
Revenue and Profit Decline
Consolidated revenues declined 7.1% and consolidated gross profit was 13.5% lower compared to the same period last year.
U.S. Gas Segment Challenges
U.S. Gas segment revenue decreased by 7.5% and gross profit margin dropped from 13.2% to 7.6% due to subdued MSA spending and equipment issues.
Union Electric Segment Decline
Union Electric revenues declined 15.9% year-over-year, primarily due to the cancellation of offshore wind projects.
Backlog Decrease
Backlog decreased from $4.7 billion at the end of Q2 to $4.3 billion at the end of Q3 due to timing of MSA renewals.
Net Loss in Q3
Reported a net loss of $3.7 million or a diluted loss per share of $0.04, compared to a net income of $16.2 million in the prior year period.
Company Guidance
During Centuri's third quarter earnings call for 2024, the company provided several key metrics and guidance that reflect its current operational and financial strategies. The call highlighted a decline in consolidated revenues by 7.1% year-over-year, with a 13.5% decrease in gross profit and a decline in the gross profit margin to 10.5% from 11.3% in the prior year. The company outlined cost-saving initiatives, expecting annualized savings of $29 million in 2025, with $6.4 million already benefiting the third quarter results. Notably, Centuri secured $347 million in new awards during the quarter, comprising $206 million in master service agreements (MSAs) and $140 million in strategic bid awards. Additionally, storm restoration services generated $41.4 million in revenue in Q3, contributing to a total of $87 million for the first three quarters. Despite challenges in the gas segment due to subdued MSA spending, the company reiterated its full-year guidance, maintaining a focus on diversified growth in electric infrastructure services and cost control. Centuri ended the quarter with a backlog of $4.3 billion and a net debt to adjusted EBITDA ratio of 3.9x, showing progress in de-levering its balance sheet.Centuri Holdings, Inc. Financial Statement Overview
Summary
Centuri Holdings, Inc. faces financial challenges with declining revenues, negative profitability, and a concerning balance sheet with zero stockholders' equity. The slight improvement in EBIT margin is overshadowed by high leverage and the need to improve financial stability.Income Statement
The income statement reflects a challenging period for Centuri Holdings, Inc. with declining revenues from $2.9 billion in 2023 to $2.5 billion in 2024. The gross profit margin decreased from 9.44% in 2023 to 8.72% in 2024, and the net profit margin remains negative, indicating profitability issues. EBIT margin improved from -2.68% in 2023 to 3.43% in 2024, but EBITDA margin showed slight improvement. Overall, the company faces growth and profitability challenges.42
Neutral
Balance Sheet
Centuri Holdings, Inc. shows a concerning balance sheet with zero stockholders' equity in 2024, indicating potential financial instability. The debt-to-equity ratio is undefined, reflecting high leverage, and the return on equity cannot be calculated due to the lack of equity. The company needs to address its balance sheet health to improve potential risks associated with high leverage.30
Negative
Cash Flow
Cash flow analysis reveals a resilient operating cash flow, which decreased slightly from $167 million in 2023 to $158 million in 2024. Free cash flow showed a minor decline, but the free cash flow to net income ratio improved due to lower negative net income. The operating cash flow to net income ratio indicates the company's ability to generate cash despite negative profits, but capital expenditures remain a significant outflow.56
Neutral
| Breakdown | ||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.64B | 2.64B | 2.90B | 2.76B | 2.16B |
| Gross Profit | ||||
| 213.18M | 220.67M | 273.44M | 180.05M | 186.05M |
| EBIT | ||||
| 102.99M | 86.78M | -77.56M | 81.71M | 99.53M |
| EBITDA | ||||
| 218.08M | 241.46M | 85.32M | 67.50M | 229.05M |
| Net Income Common Stockholders | ||||
| 397.00K | -6.72M | -186.18M | -168.15M | 40.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 15.26M | 49.02M | 33.41M | 63.97M | 114.71M |
| Total Assets | ||||
| 1.99B | 2.07B | 2.19B | 2.56B | 2.57B |
| Total Debt | ||||
| 262.65M | 1.01B | 1.31B | 1.33B | 1.36B |
| Net Debt | ||||
| 247.40M | 959.64M | 1.28B | 1.27B | 1.25B |
| Total Liabilities | ||||
| 1.45B | 1.51B | 1.86B | 2.01B | 1.89B |
| Stockholders Equity | ||||
| 536.55M | 555.55M | 225.99M | 386.75M | 479.61M |
| Cash Flow | Free Cash Flow | |||
| 103.92M | 58.90M | 60.81M | -34.96M | -937.00K |
| Operating Cash Flow | ||||
| 197.12M | 158.23M | 167.47M | 94.63M | 109.48M |
| Investing Cash Flow | ||||
| -176.51M | -89.38M | -94.85M | -156.71M | -916.58M |
| Financing Cash Flow | ||||
| -23.34M | -52.62M | -103.45M | 12.20M | 883.54M |
Centuri Holdings, Inc. Technical Analysis
Positive
21.98
Price Trends
19.34
Positive
19.03
Positive
18.98
Positive
Market Momentum
0.95
Negative
60.07
Neutral
59.09
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 21.98 is above the 20-day moving average (MA) of 20.98, above the 50-day MA of 19.34, and above the 200-day MA of 18.98, indicating a bullish trend. The MACD of 0.95 indicates Negative momentum. The RSI at 60.07 is Neutral, neither overbought nor oversold. The STOCH value of 59.09 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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.60B | 15.78 | 7.36% | 4.93% | 3.88% | 11.80% | |
69 Neutral | $213.04M | 16.05 | 11.60% | 4.09% | 9.74% | -1.29% | |
67 Neutral | $2.79B | 22.10 | 9.04% | 2.14% | 20.41% | 13.64% | |
67 Neutral | $1.18B | 12.60 | 14.42% | 7.15% | 4.02% | -14.66% | |
58 Neutral | $4.98B | 18.30 | -17.00% | 7.21% | 13.61% | -24.47% | |
57 Neutral | $721.09M | 11.07 | -28.47% | 14.60% | -15.03% | -201.87% | |
55 Neutral | $1.97B | 2,120.95 | 0.11% | ― | ― | ― |
* General Sector Average
Performance Comparison
CTRI
Centuri Holdings, Inc.
22.27
-4.08
-15.48%
CPK
Chesapeake Utilities
119.01
17.64
17.40%
NWN
Northwest Gas
39.75
6.37
19.08%
RGCO
Rgc Resources
20.66
1.03
5.25%
SPH
Suburban Propane
18.77
1.55
9.00%
NFE
New Fortress Energy
2.63
-18.39
-87.49%
Centuri Holdings, Inc. Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Centuri Holdings Underwriting Agreement with J.P. Morgan
Neutral
May 22, 2025
On May 19, 2025, Centuri Holdings, Inc. entered into a Registration Rights Letter Agreement with Icahn Investors, granting them certain resale registration rights related to a Concurrent Private Placement. The company agreed to register the resale of shares sold to Icahn Investors within 181 days of the placement’s completion. Additionally, on May 20, 2025, Centuri Holdings entered into an Underwriting Agreement with J.P. Morgan Securities LLC and other underwriters for an offering. The agreement includes a 45-day lock-up period for selling or transferring Centuri Common Stock, with customary representations and indemnification obligations.
The most recent analyst rating on (CTRI) stock is a Buy with a $19.00 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.