Core Insights - Pilot Wave Holdings Management announced the sale of Connect Atlantic Utility Services to Centuri Holdings, enhancing Centuri's capabilities in utility infrastructure services across North America [1][5] - The acquisition of Connect Atlantic was aimed at strengthening operations and positioning the business for long-term growth in electric transmission and distribution markets [2] - A significant outcome of this partnership was the spin-off of Detect Technologies, an AI-powered inspection platform that enhances utility operations by identifying equipment defects [3][4] Company Overview - Pilot Wave Holdings focuses on growing small businesses by integrating modern technology and operational excellence [6] - Connect Atlantic Utility Services is a leading provider of utility services in Atlantic Canada, specializing in transmission, distribution, and storm-restoration services [6] - Detect Technologies, spun out from Connect Atlantic, provides AI-driven inspection solutions to mitigate risks and improve operational efficiency for utilities [7] - Centuri Holdings is a North American utility-infrastructure services company that modernizes energy networks across the U.S. and Canada [8] Strategic Developments - The partnership between Pilot Wave and Connect Atlantic led to operational improvements and strategic expansions, positioning CAUS for accelerated growth under Centuri [5] - The creation of Detect Technologies exemplifies how traditional service businesses can innovate through technology, highlighting Pilot Wave's commitment to value creation [4][5]

Core Insights - Beneficial owner Carl Icahn has made a significant investment in Centuri Holdings Inc. [1] Company Summary - Carl Icahn's recent investment indicates a strong belief in the potential of Centuri Holdings Inc. [1]

Core Points - Centuri Holdings, Inc. has appointed Dustin DeMaria to its Board of Directors as part of a cooperation agreement with Icahn Enterprises [1][2][3] - DeMaria will serve as an independent director and is set to stand for election at the 2026 Annual Meeting of Shareholders [2] - The Board of Directors now consists of eight members, with six being independent, including the Board Chair [4] Company Overview - Centuri Holdings, Inc. is a leading utility infrastructure services company in North America, partnering with regulated utilities to build and maintain energy networks [7] - The company aims to capitalize on the increasing demand for power infrastructure across North America [4] Leadership Background - Dustin DeMaria joined Icahn Enterprises in 2022 and has prior experience as a Director at Zipari and as an investment banking associate at Moelis & Company [6] - He has served as a director for CVR Energy, Inc. and Viskase Companies, Inc., both of which are controlled by Carl C. Icahn [6]

Financial Data and Key Metrics Changes - Centuri Holdings reported record revenue of $850 million for Q3 2025, an 18% increase from Q3 2024 [12] - Adjusted net income for the quarter was $16.7 million, up from $5.3 million in the prior year [13] - Base revenue increased by 25% and base gross profit rose by 28% compared to the previous year [4][12] - The gross profit margin for the third quarter was 9.2%, down from 10.5% in the prior year [12] Business Line Data and Key Metrics Changes - US Gas revenue was $412.4 million, a 13% increase year-over-year, with a gross profit margin of 7.7% [13][14] - Canadian Gas revenue surged nearly 40% to $74.2 million, with a gross profit margin of 21.9% [14][15] - Union Electric revenue increased by 25% to $214.5 million, with base revenue reflecting a 29% year-over-year increase [15] - Non-union electric revenue rose 16% to $149 million, with a base revenue increase of 58% [16] Market Data and Key Metrics Changes - Total bookings for the year reached $3.7 billion, significantly ahead of the targeted book-to-bill ratio of 1.1 times [5][6] - The backlog reached a record high of approximately $5.9 billion, up from $5.3 billion last quarter [8] - The overall opportunity pipeline remains robust at about $13 billion, with over 600 strategic bid opportunities [8] Company Strategy and Development Direction - The company aims to build a premier standalone utility services company focused on sustainable and profitable growth [20] - A strategic fleet optimization initiative is underway to improve cash generation and fleet efficiency [9] - The company is focused on eliminating seasonality in the gas business and enhancing operational efficiency [41][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth in 2026, supported by strong backlog visibility and near-term booking expectations [9][20] - The company anticipates generating meaningful free cash flow in Q4 2025, despite a negative free cash flow of $16.3 million in Q3 [18][19] - Management highlighted the importance of storm work but emphasized that future planning will focus on base business performance [35] Other Important Information - The company completed its separation from Southwest Gas Holdings and appointed new leadership to drive operational excellence [10] - Adjusted EBITDA for Q3 2025 was $75.2 million, down from $78.8 million in the prior year [13] Q&A Session Summary Question: Impact of storm activity on EBITDA guidance - Management confirmed that the $15 million decline in guidance is entirely related to storm activities, with a split of approximately 60% for Q3 and 40% for Q4 [23][24] Question: Utilization of MSA contract work in non-union electric - Management indicated that there would be a lag in achieving full utilization, but expected improvements in Q4 as operations mature [25][26] Question: Difference in margins between data center opportunities and other bid work - Management noted that margins for data center-related work are generally higher than for MSAs, and they are now in a position to increase margins on new bids [28][30] Question: Strength of base revenue growth compared to expectations - Management stated that the base revenue growth exceeded internal expectations, driven by strong customer service and backlog management [37][39] Question: Focus on U.S. gas business and operational execution - Management highlighted improvements in the gas business and emphasized the need to address seasonality while maintaining strong margins [45][50] Question: Strategic bids and project mix - Management detailed that the $3 billion in strategic bids consists of 60% electrical work and 40% gas-related projects, with a focus on accretive bid work [52][53]

3 rd Quarter 2025 Earnings Presentation November 5th, 2025 Centuri.com 1 Forward Looking Statements Disclaimer Unless the context otherwise requires, in this presentation, references to "we," "us," and "our" are to Centuri Holdings, Inc. (NYSE: CTRI) ("Centuri" or the "Company"), together with its consolidated subsidiaries, which include, among others, Centuri Group, Inc. This presentation contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Se ...

Core Viewpoint - Centuri Holdings (CTRI) reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.32 per share, representing an earnings surprise of -40.63% [1][6] Financial Performance - The company posted revenues of $825.23 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 10.54%, compared to year-ago revenues of $692.82 million [2] - Over the last four quarters, Centuri has exceeded consensus revenue estimates four times [2] Stock Performance - Centuri shares have increased by approximately 2% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The current Zacks Rank for Centuri is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the coming quarter is $0.17 on revenues of $709.47 million, and $0.61 on revenues of $2.73 billion for the current fiscal year [7] - The trend of estimate revisions for Centuri was unfavorable prior to the earnings release, which may impact future stock movements [5][6]

Financial Performance - Achieved record quarterly revenue of $850.0 million, an 18.1% increase from $720.1 million in Q3 2024[4] - Base Revenue and Base Gross Profit were $848.6 million and $77.6 million, representing increases of 25% and 28% year-over-year, respectively[6] - Adjusted EBITDA for Q3 2025 was $75.2 million, compared to $78.8 million in Q3 2024[4] - Net income attributable to common stock was $2.1 million, compared to a net loss of $(3.7) million in Q3 2024[4] - Total revenue for the fiscal three months ended September 28, 2025, was $850,044,000, a 18.1% increase from $720,053,000 for the same period in 2024[35] - Adjusted Net Income for the fiscal nine months ended September 28, 2025, was $23,066, compared to $7,859 for the same period in 2024[29] - Adjusted Diluted Earnings per Share for the fiscal three months ended September 28, 2025, was $0.19, compared to $0.06 in the same period last year[31] - Net income for the fiscal three months ended September 28, 2025, was $2,114, compared to a loss of $3,617 for the same period in 2024[29] Bookings and Backlog - Secured bookings of $815 million in Q3 2025, resulting in a book-to-bill ratio of 1.8x for the first three quarters of 2025[7] - Reached a record high backlog of $5.9 billion, a 59% increase from year-end 2024[4] Guidance and Projections - Updated 2025 revenue guidance to $2.8 to $2.9 billion, up from previous guidance of $2.70 to $2.85 billion[11] Segment Performance - Canadian Gas segment revenue grew by 38.7%, leading all segments in growth for Q3 2025[12] Debt and Liabilities - Net Debt to Adjusted EBITDA Ratio was 3.8x as of September 28, 2025, slightly up from 3.7x as of June 29, 2025[8] - Total debt as of September 28, 2025, was $944,612, with net debt amounting to $928,479 after accounting for cash and cash equivalents[32] - The Net Debt to Adjusted EBITDA Ratio as of September 28, 2025, was 3.8, slightly up from 3.7 in the previous quarter[32] - Total liabilities rose to $1,587,273,000 as of September 28, 2025, from $1,514,169,000 at December 29, 2024[39] Cash Flow and Expenditures - Cash and cash equivalents decreased to $16,133,000 as of September 28, 2025, from $49,019,000 at the beginning of the period[39] - Net cash used in operating activities for the fiscal nine months ended September 28, 2025, was $(5,769,000), a significant decrease from $97,232,000 in the prior year[41] - Capital expenditures for the fiscal nine months ended September 28, 2025, were $(68,738,000), compared to $(66,093,000) in the same period of 2024[41] Company Developments - The company completed its separation from Southwest Gas Holdings, becoming a fully independent public company[9] - Separation-related costs for the fiscal three months ended September 28, 2025, were $2,343, reflecting expenses incurred post-IPO[29] Profitability Metrics - Adjusted EBITDA for the fiscal three months ended September 28, 2025, was $75,213, with an Adjusted EBITDA Margin of 8.8%, down from 10.9% in the prior year[29] - Base gross profit for the fiscal nine months ended September 28, 2025, was $154,744,000, up 29.0% from $119,936,000 in the prior year[35] - Base gross profit margin improved to 9.1% for the fiscal three months ended September 28, 2025, compared to 8.9% in the same period last year[35] - Operating income for the fiscal nine months ended September 28, 2025, was $55,761,000, an increase from $53,124,000 in the prior year[37] Non-Cash Items - Non-cash stock-based compensation for the fiscal three months ended September 28, 2025, was $2,143, compared to $1,318 in the same period in 2024[29] - The company incurred $8,240 in loss on debt modification and extinguishment during the fiscal three months ended September 28, 2025[31] Revenue Adjustments - Revenue derived from storm restoration services is excluded from Base Revenue, which is adjusted to provide a clearer view of ongoing operations[24]

Core Thesis - Centuri Holdings, Inc. is positioned to capitalize on growing power demand in North America following its spin-off from Southwest Gas Holdings, with a current share price of $20.19 and a forward P/E of 20.49 [1][2] Company Overview - Centuri Holdings is an infrastructure services company that provides maintenance, upgrades, and buildouts for electric and gas utilities, servicing over 400 customers, including major utilities like American Electric Power and Entergy [2][3] - The company operates under long-term master service agreements (MSAs) that account for 80% of its revenue, supplemented by bid contracts, which provides substantial flexibility and reduces exposure to cost overruns [3][4] Market Position and Growth Drivers - Centuri operates through four segments: US Gas, Canadian Gas, Union Electric, and Non-Union Electric, with US Gas being the largest revenue contributor and Canadian Gas delivering the highest margins [3] - Growth is expected to be driven by grid modernization, electrification, renewable energy, and the expansion of data centers, with U.S. capacity projected to rise from 56GW in 2024 to 122GW by 2030 [3] - Reindustrialization under new trade agreements is projected to increase power demand by 2.5–3% annually through 2035, expanding Centuri's addressable market [3] Financial Metrics and Opportunities - As of Q2 2025, Centuri had a backlog of $5.3 billion, supported by strong new order flow and a book-to-bill ratio of 2.3x, indicating high-margin opportunities ahead [4] - The company has $14 billion in pipeline opportunities and $200 billion identified across 20 customers over five years, positioning it to optimize margins, particularly in US Gas [4] - Centuri's resilient MSA structure, diversified customer base, and favorable market trends make it a compelling investment with multiple catalysts for long-term upside [4]

Core Insights - Aemetis is advancing decarbonization at its Keyes, California ethanol plant through a $30 million energy efficiency upgrade that integrates a Mechanical Vapor Recompression (MVR) system supplied by Praj Industries [2][4] - The MVR system is expected to significantly reduce carbon intensity, enhance energy efficiency, and improve profitability for Aemetis [5][11] - The project has received approximately $19.7 million in grants and tax credits, supporting its financial viability and alignment with California's clean energy goals [4][11] Company Overview - Aemetis, Inc. is a renewable natural gas and biofuels company focused on innovative technologies that lower fuel costs and reduce emissions, operating a 65 million gallon per year ethanol production facility in California [7] - The company is also involved in a Dairy Renewable Natural Gas (RNG) program and is developing a carbon sequestration project and a renewable diesel fuel biorefinery [6][7] Project Details - The MVR system is projected to reduce natural gas usage at the Keyes plant by approximately 80% and generate an estimated $32 million of incremental annual cash flow from energy savings and increased revenues [11] - The project completion is scheduled for Q2 2026, and it aims to deliver a double-digit reduction in the carbon intensity of the plant's fuel ethanol, increasing LCFS credits [5][11] Strategic Partnerships - Praj Industries has been a technology partner to Aemetis for over a decade, contributing to the deployment of advanced low-carbon solutions [4] - Centuri Holdings is responsible for the project execution and implementation, aligning with sustainability goals [4][9]

Group 1 - Centuri Holdings, Inc. (CTRI) is positioned as a compelling investment opportunity due to improving end markets, accelerating fundamentals, and a resilient business model supported by long-term Master Service Agreements (MSAs) with blue-chip utility customers [2][3] - The company focuses on modernization, maintenance, and expansion of electric and natural gas distribution and transmission networks, with over 80% of revenue coming from long-term, high-visibility MSA relationships, resulting in stable cash flows and low project risk [3] - Centuri has historically achieved an 8.5% organic revenue CAGR through 2024, driven by factors such as aging infrastructure, increased utility capital expenditures, and additional demand from data center projects and storm restoration work [3] Group 2 - Following challenges post-IPO, including a CEO resignation, Chris Brown was appointed as CEO in December 2024, leading to accelerated growth initiatives and an expanded sales pipeline exceeding $12 billion [4] - Under new leadership, the company is transitioning from a maintenance-focused operation to a growth-oriented service provider, with significant bookings and a record backlog of $4.5 billion [4] - CTRI trades at approximately 10.5x 2025e EBITDA, which is a discount compared to peers, despite its lower risk profile and recurring revenue base, with expectations of reaching $300 million EBITDA in 2026, indicating nearly 50% upside from current prices [5] Group 3 - Key catalysts for CTRI include upcoming 2Q earnings, potential investor day guidance, and 2026 consensus-beating guidance, which could further enhance its growth outlook [6] - The company combines a resilient, recurring revenue model with strong growth potential under transformative leadership, making it an attractive opportunity in the utility services sector [6]