Centuri Holdings, Inc.(CTRI) - 2025 Q2 - Quarterly Results

Executive Summary & Outlook This section summarizes Centuri's Q2 2025 financial highlights, management's strategic commentary, and the updated full-year 2025 outlook Second Quarter 2025 Financial and Other Business Highlights Centuri reported solid Q2 2025 performance with revenue growth, strong electric operations, significant new awards, and increased full-year guidance - Centuri's Q2 2025 performance showed solid execution across all business segments, with electric operations being particularly strong, and meaningful progress made in its U.S. Gas segment through margin-enhancing initiatives[3] - Strong commercial momentum led to approximately $1.8 billion in new awards during the quarter and a nearly $14 billion sales pipeline, positioning the company for maximized revenue potential and strategic expansion[3] Q2 2025 Key Financial Highlights (YoY) | Metric | Q2 2025 ($M) | Q2 2024 ($M) | Change ($M) | Change (%) | | :--------------------------------- | :-------- | :-------- | :--------- | :--------- | | Revenue | $724.1 | $672.1 | $52.0 | 7.7% | | Net Income Attributable to Common Stock | $8.1 | $11.7 | ($3.6) | -30.8% | | Diluted EPS | $0.09 | $0.14 | ($0.05) | -35.7% | | Adjusted Net Income | $16.9 | $17.0 | ($0.1) | -0.6% | | Adjusted Diluted EPS | $0.19 | $0.20 | ($0.01) | -5.0% | | Adjusted EBITDA | $71.8 | $68.6 | $3.2 | 4.7% | - The company achieved a book-to-bill ratio of 2.3x in the first half of 2025, including a new bookings record of approximately $1.8 billion in Q2, contributing to a cumulative $3.0 billion in awards for the first half of the year[4] Management Commentary Management highlighted Q2 2025 financial improvements from strong revenue growth, improved segment profit, substantial bookings, and debt refinancing - Q2 2025 revenue increased by $52.0 million (7.7%) and Adjusted EBITDA improved by $3.2 million (4.7%) year-over-year, reflecting growth across Canadian Gas, Non-Union Electric, and Union Electric segments, and improved profit across all four reportable segments[5] - Core Union Electric revenue grew by $33.4 million (26.4%) and Non-Union Electric by $46.1 million (51.1%) year-over-year, driven by robust bid project activity in industrial and electrical substation infrastructure, and increasing crew counts and work hours under MSAs, respectively[5] - Centuri booked approximately $1.8 billion in Q2 2025, comprising over $600 million in new customer contracts and MSAs (34%) and nearly $1.2 billion in MSA renewals (66%), leading to a 2.3x book-to-bill ratio in H1 2025 and an increase in backlog to $5.3 billion[6] - Subsequent to Q2-end, Centuri refinanced existing debt, extending the revolver maturity to July 9, 2030, increasing its size to $450 million, and extending Term Loan B maturity to 2032 at improved interest rates, enhancing financial flexibility[7] Full Year 2025 Outlook Centuri updated its full-year 2025 outlook, increasing revenue guidance and narrowing the Adjusted EBITDA outlook, while also increasing projected net capital expenditures Full Year 2025 Outlook Updates | Metric | Previous Outlook | Updated Outlook | Change | | :-------------------------- | :----------------- | :---------------- | :----- | | Revenue | $2.60 to $2.80 billion | $2.70 to $2.85 billion | Increased | | Adjusted EBITDA | $240 to $275 million | $250 to $270 million | Narrowed | | Net Capital Expenditures | $65 to $80 million | $75 to $90 million | Increased | Segment Performance This section details Centuri's financial performance across its U.S. Gas, Canadian Gas, Union Electric, and Non-Union Electric segments for Q2 and H1 2025 Q2 2025 Segment Results In Q2 2025, Centuri's consolidated revenue increased by 7.7% year-over-year, driven primarily by strong growth in the Non-Union Electric and Union Electric segments, with consolidated gross profit also seeing a significant increase of 12.1% Q2 2025 Segment Revenue (YoY) | Segment | Q2 2025 Revenue ($K) | Q2 2024 Revenue ($K) | Change ($K) | Change (%) | | :---------------- | :------------------- | :------------------- | :---------- | :--------- | | U.S. Gas | 336,834 | 340,686 | (3,852) | (1.1%) | | Canadian Gas | 55,111 | 46,666 | 8,445 | 18.1% | | Union Electric | 182,239 | 164,211 | 18,028 | 11.0% | | Non-Union Electric | 149,868 | 120,512 | 29,356 | 24.4% | | Consolidated | 724,052 | 672,075 | 51,977 | 7.7% | Q2 2025 Segment Gross Profit (YoY) | Segment | Q2 2025 Gross Profit ($K) | Q2 2024 Gross Profit ($K) | Change ($K) | Change (%) | | :---------------- | :------------------------ | :------------------------ | :---------- | :--------- | | U.S. Gas | 26,424 | 25,156 | 1,268 | 5.0% | | Canadian Gas | 9,485 | 7,032 | 2,453 | 34.9% | | Union Electric | 15,355 | 12,079 | 3,276 | 27.1% | | Non-Union Electric | 16,537 | 16,237 | 300 | 1.8% | | Consolidated | 67,801 | 60,504 | 7,297 | 12.1% | H1 2025 Segment Results For the first six months of 2025, Centuri's consolidated revenue increased by 6.2% year-over-year, primarily driven by substantial growth in the Non-Union Electric and Union Electric segments, with consolidated gross profit seeing an even stronger increase of 19.4%, despite a decline in U.S. Gas gross profit H1 2025 Segment Revenue (YoY) | Segment | H1 2025 Revenue ($K) | H1 2024 Revenue ($K) | Change ($K) | Change (%) | | :---------------- | :------------------- | :------------------- | :---------- | :--------- | | U.S. Gas | 534,528 | 567,264 | (32,736) | (5.8%) | | Canadian Gas | 94,895 | 87,645 | 7,250 | 8.3% | | Union Electric | 357,707 | 328,062 | 29,645 | 9.0% | | Non-Union Electric | 287,003 | 217,127 | 69,876 | 32.2% | | Consolidated | 1,274,133 | 1,200,098 | 74,035 | 6.2% | H1 2025 Segment Gross Profit (YoY) | Segment | H1 2025 Gross Profit ($K) | H1 2024 Gross Profit ($K) | Change ($K) | Change (%) | | :---------------- | :------------------------ | :------------------------ | :---------- | :--------- | | U.S. Gas | 11,568 | 21,180 | (9,612) | (45.4%) | | Canadian Gas | 16,564 | 10,118 | 6,446 | 63.7% | | Union Electric | 27,168 | 23,448 | 3,720 | 15.9% | | Non-Union Electric | 32,829 | 19,037 | 13,792 | 72.4% | | Consolidated | 88,129 | 73,783 | 14,346 | 19.4% | Financial Position & Capital Structure This section outlines Centuri's commercial momentum through bookings and backlog, alongside its debt structure and efforts to enhance financial flexibility Bookings, Backlog, and Sales Pipeline Centuri achieved record bookings in Q2 2025, contributing to a strong book-to-bill ratio for the first half of the year and a significant increase in backlog, indicating robust future revenue potential - Centuri booked approximately **$1