PHOENIX--(BUSINESS WIRE)--May 06, 2026--
Centuri Holdings, Inc. $(CTRI)$ ("Centuri" or the "Company") today announced financial and operating results for the first quarter ended March 29, 2026. The Company also made available on its website a supplemental strategy presentation, Vision One Centuri, and introduced long-term financial targets, which it will discuss during tomorrow's conference call.
First Quarter 2026 Results and Highlights
-- Achieved quarterly Revenue of $723.2 million, a 31% increase versus the
first quarter of 2025
-- Produced Gross Profit of $35.8 million, a 76% increase from the same
period last year
-- Delivered Base Revenue and Base Gross Profit of $688.7 million and
$28.0 million, respectively, representing increases of 29% and 96% versus
the first quarter of 2025
-- Reported Net Loss of $9.5 million, an $8.4 million improvement from the
same period last year
-- Reported Adjusted Net Loss of $2.0 million, an $8.6 million improvement
from the same period last year
-- Realized Adjusted EBITDA of $32.6 million, a 34% increase
year-over-year
-- Secured bookings of $1.3 billion, a mix of 33% new awards and 67%
Master Service Agreement $(MSA)$ renewals
-- Expanded backlog to a record $6.5 billion, a 44% increase
year-over-year
"Our first quarter results reflect tremendous year-over-year growth, meaningful progress mitigating winter seasonality, and continued commercial momentum," said Centuri President & CEO Christian Brown. "We are committed to delivering consistent, predictable results, with safety and high quality customer service remaining paramount. The year is off to a strong start, supported by excellent 2026 revenue coverage, with business development efforts now focused on securing higher margin work and growing the backlog for 2027.
"Today we introduced several long-term financial targets, including a Base Revenue compound annual growth rate of 10% to 15% through 2029 and a Base Gross Profit Margin target of 8.7% to 9.7% by 2029. Centuri is exceptionally well positioned in durable end markets that we expect will provide a long-term tailwind. Our strategy is focused on staying true to our core capabilities and long-standing customer relationships, leveraging well-defined adjacent markets, and selectively pursuing growth initiatives and tuck-in acquisitions. We are also committed to developing a world-class resource delivery program and strengthening our operating and support functions to enable sustainable and profitable growth. We believe Centuri has an attractive growth trajectory and risk profile with a differentiated position in the market, and we look forward to executing on our strategy and delivering value to our stakeholders."
Management Commentary
First quarter 2026 revenue increased by $173.1 million, or 31%, to $723.2 million, and Gross Profit was $35.8 million compared to $20.3 million in the prior year quarter. Revenue growth was broad-based across all segments, with Canadian Operations leading at 51%, followed by U.S. Gas at 44%, Non-Union Electric at 27%, and Union Electric at 16%. Net loss attributable to common stock in the first quarter was $9.5 million compared to a loss of $17.9 million in the prior year. Adjusted Net Loss for the first quarter was $2.0 million, an improvement of $8.6 million, or 81%, compared to the same quarter last year. Adjusted EBITDA in the first quarter was $32.6 million compared to $24.2 million in the prior year quarter, a 34% year-over-year increase.
Base Revenue, Base Gross Profit, and Base Gross Profit Margin are non-GAAP measures that exclude the impact of storm restoration services, which are highly unpredictable. Base Revenue in the first quarter was $688.7 million versus $531.9 million in the prior year quarter, a 29% increase. Base Revenue growth was primarily driven by increased bid work in the U.S. Gas and Union Electric segments, the inclusion of recently acquired Connect Atlantic Utility Services in the Canadian Operations segment, and increased work hours under MSA in the Non-Union Electric segment. Base Gross Profit was $28.0 million in the first quarter, a 96% increase from $14.3 million reported in the same quarter last year. The improvement in Base Gross Profit was primarily driven by actions taken by the Company to geographically diversify and reduce seasonality in the U.S. Gas segment and increased bid work in the Union Electric segment. Gross Profit Margin was 4.9% in the first quarter, while Base Gross Profit Margin increased to 4.1% in the first quarter from 2.7% in the year prior, driven primarily by strong performance in the U.S. Gas and Union Electric segments.
Centuri's Net Debt to Adjusted EBITDA Ratio was 2.7x as of March 29, 2026, which compares to 3.5x as of March 30, 2025.
Commercial Update
During the first quarter of 2026, Centuri secured approximately $1.3 billion in total bookings, representing a book-to-bill ratio of 1.8x. Bookings for the quarter included more than $250 million of new bid awards, approximately $180 million of new or expanded MSA awards and nearly $900 million of MSA renewals. For 2026, the Company is targeting a book-to-bill ratio of 1.1x to 1.2x.
As of quarter-end, Centuri had a backlog of approximately $6.5 billion, a 10% increase from year-end 2025 and a 44% increase from the first quarter last year. The opportunity pipeline remained $13 billion at quarter end.
Full Year 2026 Financial Guidance
The Company reiterates its full year 2026 guidance.
Base Revenue and Base Gross Profit do not include contributions from storm restoration services, which are unpredictable. While storm restoration services remain a key capability of the Company, management believes these non-GAAP measures are more suitable for evaluating fundamental business performance and for comparison purposes.
-- Base Revenue of $3.15 to $3.45 billion -- Base Gross Profit of $255 to $285 million
Adjusted EBITDA and Adjusted Net Income are non-GAAP measures that include contributions from storm restoration services. Guidance for these measures and Revenue include estimated contributions from storm restoration services based on three-year (2023-2025) averages of $88 million of storm restoration services revenue and $28 million of storm restoration services gross profit.
-- Revenue of $3.24 to $3.54 billion -- Adjusted EBITDA of $280 to $310 million -- Adjusted Net Income of $55 to $75 million
The Company also expects Net Capital Expenditures of $75 to $90 million in 2026.
Please review the year-end investor presentation for more information related to our full year 2026 Guidance and historical storm restoration services contributions.
Long-term Financial Targets
Today, the Company introduced several long-term financial targets and made available on its website a supplemental strategy presentation, Vision One Centuri, that will be discussed on the May 7, 2026 earnings call.
The long-term financial targets include the following 2025-2029 Compound Annual Growth Rates (CAGR):
-- Base Revenue: 10% - 15% -- Base Gross Profit: 12% - 19% -- Adjusted EBITDA: 9% - 17% -- Adjusted EPS: 30% - 45%
The Company also provided the following 2029 targets:
-- Base Gross Profit Margin: 8.7% - 9.7%
-- Net Debt to Adjusted EBITDA Ratio: 1.0x - 2.0x
-- Free Cash Flow conversion from Adjusted EBITDA: 40% - 50%
Centuri Holdings, Inc.
Supplemental Segment Data
(In thousands, except percentages)
(Unaudited)
Segment Results
Fiscal three months ended March 29, 2026 compared to the fiscal three months ended March
30, 2025
Fiscal Three Months Ended Change
------------------------------------------ -------------------
(dollars in thousands) March 29, 2026 March 30, 2025 $ %
-------------------- -------------------- --------- --------
Revenue:
U.S. Gas $284,499 39.3% $197,694 35.9% $ 86,805 43.9%
Canadian Operations 60,028 8.4% 39,784 7.2% 20,244 50.9%
Union Electric 204,069 28.2% 175,468 31.9% 28,601 16.3%
Non-Union Electric 174,578 24.1% 137,135 25.0% 37,443 27.3%
------- ----- ------- ----- -------
Consolidated
revenue $723,174 100.0% $550,081 100.0% $173,093 31.5%
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Gross profit (loss):
U.S. Gas $ (6,335) (2.2%) $(14,856) (7.5%) $ 8,521 NM
Canadian Operations 9,100 15.2% 7,079 17.8% 2,021 28.5%
Union Electric 18,234 8.9% 11,813 6.7% 6,421 54.4%
Non-Union Electric 14,759 8.5% 16,292 11.9% (1,533) (9.4%)
------- ------- -------
Consolidated
gross profit $ 35,758 4.9% $ 20,328 3.7% $ 15,430 75.9%
======= ======= =======
NM -- Percentage is not meaningful
Conference Call Information
(MORE TO FOLLOW) Dow Jones Newswires
May 06, 2026 16:15 ET (20:15 GMT)
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