Centuri Holdings, Inc.

What they do

Centuri provides infrastructure services to regulated electric, gas and combination utilities, primarily replacing, maintaining, retrofitting and installing electric and natural gas distribution and utility-scale transmission networks. It operates through four reportable segments: U.S. Gas Utility Services, Canadian Utility Services, Union Electric Utility Services and Non-Union Electric Utility Services. It serves over 400 customers across 97 locations in 46 U.S. states and six Canadian provinces with more than 9,600 employees.

Revenue drivers

• U.S. Gas Utility Services — Largest segment; revenue grew 45% year-over-year in Q2 2026, driven by gas distribution modernization and maintenance work under master service agreements.
• Canadian Utility Services — Fastest-growing segment in Q2 2026, up 48% year-over-year; includes Connect Utility Services Corporation, acquired in November 2025.
• Union Electric Utility Services — Revenue rose 23% year-over-year in Q2 2026; scale and capabilities expanded with the acquisition of JJ White, Inc.
• Non-Union Electric Utility Services — Revenue increased 11% year-over-year in Q2 2026, serving electric utility transmission and distribution work.

Recent performance

Second quarter 2026 revenue reached a company record $962.0 million, up 33% year-over-year, with broad-based growth across all segments. Gross profit was $69.1 million, up 2% from the prior-year quarter, while Base Gross Profit rose 21% to $75.7 million. Net income was $6.1 million versus $8.1 million a year earlier, and Adjusted Net Income was $24.4 million, up 44%. Adjusted EBIT was $40.5 million, up 8%, and Adjusted EBITDA was $75.7 million, up 5% year-over-year.

Strategy

Centuri is focused on growing services to existing customers through master service agreements and bid work while expanding into the Southeastern and Midwestern United States and Canada. It aims to drive higher-margin work into backlog, having secured nearly $850 million of bookings in Q2 2026 for a year-to-date book-to-bill ratio of 1.3x. The company closed the acquisition of JJ White, Inc. to add scale and capabilities in the Union Electric segment, including data center and in-plant construction services. It also invested $3 million in the U.S. Gas business for resources, mobilization and ramp-up to improve margins and mitigate seasonality.

Risks

• Customer concentration — The top 20 customers, almost exclusively investment-grade utilities, represented 65% of fiscal 2025 revenue, so loss of or reduced business from significant customers could materially hurt results.
• Contract cancellation risk — Approximately 78% of fiscal 2025 revenue came from long-term MSAs that may be cancelled by customers on short notice or may not be renewed on favorable terms.
• Fixed-price contract exposure — Fixed-price contracts represented 21% of fiscal 2025 revenue and are subject to potential losses if actual costs exceed expectations.
• Quarterly variability — Operating results may vary significantly from quarter-to-quarter and year-to-year due to project timing, weather, supply chain and other factors.

Outlook

Management raised full-year 2026 guidance and forecasts second-half 2026 Base Gross Profit Margin of approximately 9.0%, aligning with its Vision One Centuri strategy. The opportunity pipeline expanded 23% to a record $16 billion, with approximately $2.5 billion of outstanding bids, up 15% from the prior quarter. The Q2 2026 $3 million investment in U.S. Gas capacity is expected to meaningfully benefit gross profit and margins in the third quarter and subsequent periods. Trailing 12-month Base Gross Profit Margin improved to 7.8% from 7.4% a year ago, despite an estimated $6 million fuel price headwind in Q2.