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]

Group 1 - Centuri Holdings Inc. has announced customer awards totaling over $300 million, building on a previous $550 million in awards, indicating strong demand for its energy solutions [1][2] - The recent awards reflect a strategic focus on capturing end-market opportunities and delivering profitable growth, as stated by the company's President and CEO [2] - The awarded contracts include work to support data centers in Pennsylvania, a renewal with a utility customer in the Northeast, and new contracts for gas and electric utilities in the Midwest and Southeast [3] Group 2 - Centuri Holdings Inc. operates as a utility infrastructure services firm, providing essential services for building and maintaining energy networks in the U.S. and Canada [4]

Group 1 - Centuri Holdings (CTRI) is currently outperforming its peers in the Utilities sector, with a year-to-date return of approximately 12.3% compared to the sector average of 10.4% [4] - The Zacks Rank for Centuri Holdings is 2 (Buy), indicating a favorable outlook based on earnings estimate revisions and improving earnings outlooks [3] - The Zacks Consensus Estimate for CTRI's full-year earnings has increased by 11.1% over the past three months, reflecting positive analyst sentiment [4] Group 2 - Centuri Holdings is part of the Utility - Electric Power industry, which consists of 59 companies and currently ranks 87 in the Zacks Industry Rank, with an average gain of 9.5% this year [6] - Another outperforming stock in the Utilities sector is Consolidated Water (CWCO), which has seen a year-to-date increase of 29.5% and has a Zacks Rank of 2 (Buy) [5] - The Utility - Water Supply industry, where Consolidated Water belongs, has 11 stocks and is ranked 23, with an industry gain of 18.1% since the beginning of the year [7]

Core Viewpoint - Southwest Gas Holdings has successfully completed the public offering of Centuri Holdings, selling 27,362,210 shares at $19.60 per share, resulting in net proceeds of approximately $525 million, and has exited its investment in Centuri [1][2][3]. Group 1: Financial Impact - The company received net proceeds of approximately $525 million from the offering after deducting underwriter's discounts and commissions [2]. - Following the offering, Southwest Gas Holdings has no remaining shares of Centuri's common stock [2]. Group 2: Strategic Transformation - The exit from Centuri positions Southwest Gas Holdings as a fully regulated natural gas company, enhancing transparency and aligning with long-term value creation in the utility sector [3]. - The company has fully repaid all holding company debt, including a term loan, and has about $600 million in cash on hand, providing significant financial flexibility for future capital investments [3]. Group 3: Future Plans - The resources from the offering are expected to primarily support future capital investments at Southwest Gas Corporation, including a potential expansion of Great Basin Gas Transmission Company in 2028 [3].

Group 1 - Carl Icahn's equity book is valued at $7.89 billion, with top 10 holdings comprising 98.76% of assets as of June 30, 2025 [1] - Centuri Holdings Inc (CTRI) saw a significant increase in Icahn's stake by 157.55% to 6.4 million shares, valued at approximately $144 million, representing 1.82% of the portfolio [2] - Icahn has completely exited his position in Dana Inc (DAN) and sold off his stake in Illumina Inc (ILMN), indicating a strategic shift in his investment approach [2][3] Group 2 - The second-quarter changes reflect a focus on steady infrastructure and utility-linked earnings while maintaining positions in consumer and healthcare sectors [3] - International Flavors & Fragrances Inc (IFF) remains unchanged with 3.75 million shares valued at $276 million, indicating confidence in its turnaround potential [5] - Bausch Health Companies Inc (BHC) holds 34.7 million shares worth $231 million, representing a long-term bet on healthcare recovery [5]

Financial Data and Key Metrics Changes - Consolidated revenues for Q2 2025 totaled $724.1 million, a 7.7% increase from the prior year [19] - Consolidated gross profit was $67.8 million, which is 12.1% higher than the previous year, with a gross profit margin of 9.4% [19][20] - Net income attributable to common stock was $8.1 million or $0.09 per share, compared to $11.7 million or $0.14 per share in the same period last year [20] - Adjusted EBITDA for Q2 was $71.8 million, approximately 5% higher than the prior year [20] Business Segment Data and Key Metrics Changes - U.S. Gas segment revenue was $338.8 million, flat compared to the prior year, with a gross profit margin of 7.8%, up from 7.4% [21] - Canadian Gas segment revenues increased by 18.1% to $55.1 million, with a segment margin of 17.2%, improved by 210 basis points [22] - Union Electric revenue was $182.2 million, an 11% year-over-year improvement, with core operations growing by 26.4% [23] - Nonunion Electric segment revenue increased by 24.4% to $149.9 million, with a gross profit margin of 11% [25] Market Data and Key Metrics Changes - The company reported strong bookings performance with $3 billion in total bookings through the first half of the year, achieving a book-to-bill ratio of 2.3 times [7] - The near-term addressable market of differentiated opportunities has increased to nearly $14 billion, with approximately 20% related to distributed power and data centers [8][56] Company Strategy and Development Direction - The company is focused on improving capital efficiency and fleet management, with a new senior vice president hired to drive these initiatives [14] - The "One Century" approach aims to enhance customer engagement and align resources to capture a larger share of existing customer relationships [9] - The company anticipates a moderate booking trend for the remainder of 2025, while positioning for 2026 opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving improved margins in the second half of 2025, supported by a stronger backlog and better resource utilization [37][39] - The overall market environment is described as favorable, with customers increasing capital budgets and focusing on quality resource delivery [51] - The company has increased its full-year revenue guidance to between $2.7 billion and $2.85 billion, reflecting strong bookings [28] Other Important Information - The company initiated a refinancing of its debt arrangements, extending the maturity of its revolver to 2030 and increasing the facility size to $450 million [27] - Free cash flow improved significantly, and the company ended the quarter with $28.3 million in cash and cash equivalents [26] Q&A Session Summary Question: What are the margins embedded in the new backlog? - Management indicated that the backlog has higher margins than those delivered in the first half of the year, with expectations for improved margins across all businesses in the second half [35][37] Question: How much hiring is needed for upcoming projects? - Management stated that current resources are sufficient for the next 3 to 12 months, but strategic planning for future talent acquisition will be necessary [42][44] Question: What is the timeline for achieving targeted fleet management balance? - Significant progress has been made, with expectations for continued improvements in capital efficiency and fleet utilization [47][49] Question: How is the $14 billion pipeline split between MSAs and bid work? - Approximately two-thirds of the pipeline consists of new project work, while one-third is near-term MSA renewals [55][56] Question: What is the expected cadence for revenue growth in the back half of the year? - Management acknowledged headwinds from last year's storm revenues but expects improved performance in core business to offset these challenges [75][76]

分组1 - Centuri Holdings reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.21 per share, and showing a decrease from $0.20 per share a year ago, resulting in an earnings surprise of -9.52% [1] - The company posted revenues of $724.05 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.66%, and an increase from $672.08 million year-over-year [2] - Centuri has outperformed the market with a 13.2% increase in shares since the beginning of the year, compared to the S&P 500's gain of 7.1% [3] 分组2 - The current consensus EPS estimate for the coming quarter is $0.27 on revenues of $752.75 million, and for the current fiscal year, it is $0.60 on revenues of $2.71 billion [7] - The Zacks Industry Rank for Utility - Electric Power is in the top 35% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]