Centuri Holdings, Inc. (CTRI) AI Stock Analysis

• Market Cap: $2.60B
• Dividend Yield: N/A
• Average Volume (3M): 2.25M
• Price to Earnings (P/E): 933.2
• Beta (1Y): 1.26
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 8,687
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Gas
• EPS (TTM): 0.19
• Shares Outstanding: 99,579,384
• 10 Day Avg. Volume: 1,714,615
• 30 Day Avg. Volume: 2,253,280
• PEG Ratio: 2.50
• Price to Book (P/B): 2.89
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 27.31
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 13.38
• Enterprise Value/Ebitda: 12.21
• 1Y Price Target: $24.50
• Price Target Upside: -6.24% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $27.00 ▲(3.33% Upside)

Centuri Holdings, Inc. presents a mixed investment case. The most significant factor is the company's financial performance, which is currently challenged by high leverage and negative cash flow growth. Despite strong technical indicators and positive corporate events, the extremely high P/E ratio suggests overvaluation. The earnings call provided some optimism with record revenue and backlog, but profitability and cash flow issues remain concerns.

Positive Factors

Revenue Growth

The strong revenue growth indicates robust demand for Centuri's services and effective execution of its strategic initiatives, supporting long-term expansion.

Robust Backlog

A growing backlog suggests sustained future demand and provides revenue visibility, which is crucial for long-term planning and investment.

Strategic Fleet Optimization

Improving fleet efficiency will enhance operational effectiveness and cash generation, supporting Centuri's long-term profitability and competitiveness.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially during economic downturns, impacting long-term financial stability.

Negative Free Cash Flow

Negative free cash flow indicates cash management issues, potentially affecting Centuri's ability to invest in growth opportunities and service debt.

Decline in Gross Profit Margin

A declining gross profit margin suggests challenges in cost management or pricing power, which could pressure long-term profitability.

Centuri Holdings, Inc. Business Overview & Revenue Model

Company Description

Centuri 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 Money

Centuri 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. Financial Statement Overview

Summary

Centuri Holdings, Inc. faces several financial challenges, including negative profitability margins and high leverage. While there is some revenue growth, the company's ability to convert this into profit and cash flow is limited. The high debt levels and negative cash flow growth highlight potential financial risks that need to be addressed to improve financial health.

Income Statement

Centuri Holdings, Inc. shows a modest revenue growth rate of 4.79% TTM, indicating some positive momentum. However, the net profit margin is negative, reflecting ongoing profitability challenges. The gross profit margin is relatively low at 8.24%, suggesting limited pricing power or high cost of goods sold. EBIT and EBITDA margins are also modest, indicating operational efficiency issues.

Balance Sheet

The company has a high debt-to-equity ratio of 1.85 TTM, which could pose financial risk if not managed properly. Return on equity is negative, highlighting profitability challenges. The equity ratio is not provided, but the high leverage suggests a potential vulnerability to economic downturns.

Cash Flow

Free cash flow growth is significantly negative at -135.33% TTM, indicating cash management issues. The operating cash flow to net income ratio is below 1, suggesting that earnings are not fully translating into cash flow. Free cash flow to net income ratio is positive, but the overall cash flow situation is concerning.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.84B	2.64B	2.90B	2.76B	2.16B
Gross Profit	223.82M	220.67M	273.44M	214.61M	186.05M
EBITDA	245.20M	243.19M	85.32M	67.50M	229.05M
Net Income	2.51M	-6.72M	-186.18M	-168.15M	40.51M
Balance Sheet
Total Assets	2.18B	2.07B	2.19B	2.45B	2.57B
Cash, Cash Equivalents and Short-Term Investments	16.13M	49.02M	33.41M	63.97M	114.71M
Total Debt	1.06B	1.01B	1.31B	1.33B	1.36B
Total Liabilities	1.59B	1.51B	1.86B	1.91B	1.89B
Stockholders Equity	585.17M	555.55M	225.99M	386.75M	479.61M
Cash Flow
Free Cash Flow	-46.75M	58.90M	60.81M	-34.96M	-937.00K
Operating Cash Flow	55.23M	158.23M	167.47M	94.63M	109.48M
Investing Cash Flow	-94.25M	-89.38M	-94.85M	-117.06M	-916.58M
Financing Cash Flow	3.08M	-52.62M	-103.45M	-27.45M	883.54M

Centuri Holdings, Inc. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 26.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 26.13 is above the 20-day moving average (MA) of 24.45, above the 50-day MA of 22.14, and above the 200-day MA of 20.50, indicating a bullish trend. The MACD of 1.29 indicates Positive momentum. The RSI at 63.63 is Neutral, neither overbought nor oversold. The STOCH value of 28.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CTRI.

Centuri Holdings, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SWX	74 Outperform	$5.82B	12.57	5.42%	3.08%	-23.15%	157.45%
NWN	73 Outperform	$1.93B	18.51	7.20%	4.22%	11.27%	20.04%
SR	69 Neutral	$4.87B	18.89	8.20%	3.85%	-4.50%	2.49%
OGS	69 Neutral	$4.65B	18.07	8.51%	3.46%	15.06%	12.27%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
CPK	64 Neutral	$2.96B	22.14	9.13%	2.15%	17.15%	15.00%
CTRI	56 Neutral	$2.60B	933.21	0.45%	―	―	―

Centuri Holdings, Inc. Corporate Events

Centuri Holdings Announces Underwritten Offering to Raise Funds

Centuri Holdings, Inc. announced an underwritten offering on November 12, 2025, involving the sale of 7,441,860 shares of its common stock at $21.50 per share, with an option for underwriters to purchase additional shares. The offering is expected to close on November 14, 2025, and aims to raise funds for general corporate purposes, including acquisitions and debt repayment. Concurrently, the company entered a private placement agreement with Icahn Partners LP and Icahn Partners Master Fund LP on November 11, 2025, to sell approximately $75 million of common stock, with the transaction expected to close immediately after the offering. This strategic financial maneuver is designed to bolster Centuri Holdings’ capital structure and enhance its market position.

Centuri Holdings Appoints New Board Member Amid Icahn Deal

On November 10, 2025, Centuri Holdings, Inc. entered into a Director Appointment and Nomination Agreement with Carl C. Icahn’s group, leading to the appointment of Dustin DeMaria to its Board of Directors. This strategic move is part of Centuri’s efforts to enhance its board’s expertise and strengthen its market position in response to the growing demand for power infrastructure across North America. With DeMaria’s appointment, Centuri’s board expands to eight members, six of whom are independent, reflecting the company’s commitment to governance and shareholder value. The agreement includes customary standstill and voting commitments, ensuring a collaborative relationship with Icahn Enterprises.