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]

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 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]

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]

Financial Performance - Centuri's Q2 2025 revenue reached $724.1 million [23], compared to $672.1 million in Q2 2024 [30], representing an increase of approximately $52 million [38] - The adjusted EBITDA for Q2 2025 was $71.8 million [30], compared to $68.6 million in Q2 2024 [30] - The adjusted EBITDA margin was 9.9% [23] for Q2 2025 - The company is raising its revenue guidance for FY 2025 to $2.7 billion - $2.85 billion [46] from a previous range of $2.6 billion - $2.8 billion [47] - FY 2025 Adjusted EBITDA is projected to be between $250 million and $270 million [46] Commercial Achievements - Total bookings for the quarter amounted to $1.8 billion [3] - New awards totaled $619 million [26], including $244 million in new MSAs [27] - MSA renewals reached $1.2 billion [25, 27] - The book-to-bill ratio is 2.3x [25] for the six-month period ended June 29, 2025 [29] Segment Performance - Non-Union Electric revenues increased by 24% year-over-year [24], with core electric revenues up by 51% [24] - Union Electric revenues increased by 11% year-over-year [24], with core electric revenues up by 26% [24] - Canadian Gas revenue increased by 18% year-over-year [24], and segment gross margins increased by 210 bps [24]

Core Insights - The company reported a trailing 12-month utility return on equity (ROE) of 8.3% as of June 30, 2025, reflecting improvements in regulatory progress and cost management [6][29] - The Arizona Corporation Commission approved a capital tracker program, and Nevada enacted Senate Bill 417, allowing for alternative ratemaking for natural gas utilities, which is expected to enhance price stability and consumer protection [2][6] - The company successfully reduced its debt by over $470 million through follow-on offerings of Centuri Holdings, strengthening its balance sheet and moving towards a pure-play regulated natural gas business [2][6] Financial Performance - For the second quarter ended June 30, 2025, the company reported a net loss of $12.9 million, a decline of $31.2 million compared to the same period in 2024, primarily due to tax impacts from the sale of Centuri stock [8][9] - Adjusted net income for the second quarter was $38.6 million, representing a 71% increase compared to the same quarter in 2024 [8][29] - Year-to-date net income for 2025 was $100.987 million, a decrease of $5.1 million compared to the previous year, while adjusted net income was $37 million higher than the same period in 2024 [9][29] Operational Highlights - The company added approximately 40,000 new meter sets over the 12 months ending June 30, 2025, resulting in a customer growth rate of 1.8% [6] - The Great Basin Gas Transmission Company's 2028 Expansion Project saw increased capacity demand, rising to about 1.76 billion cubic feet per day from 1.25 billion cubic feet previously announced [3][6] - The company had $356 million in cash and over $1 billion in available liquidity as of June 30, 2025 [6] Segment Performance - The natural gas distribution segment contributed $33.677 million to net income in Q2 2025, up from $27.594 million in Q2 2024, while utility infrastructure services contributed $5.771 million [4][6] - Corporate and administrative net loss increased to $52.331 million in Q2 2025, impacted by tax expenses related to the Centuri stock sale [15][16] - Centuri's net loss improved by $17 million year-to-date, driven by higher work volume under master services agreements [13][16] Future Outlook - The company reaffirmed its 2025 net income guidance of $265 million to $275 million and capital expenditures of approximately $880 million to support customer growth and system improvements [17][19] - The company anticipates a compound annual growth rate (CAGR) of 6.0% to 8.0% for adjusted net income from 2025 to 2029 [19]

Core Viewpoint - Centuri Holdings (CTRI) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Centuri reflects an optimistic earnings outlook, likely leading to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in a company's future earnings potential, as shown through earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - Institutional investors often adjust their valuations based on earnings estimates, which can lead to significant stock price movements due to large share transactions [5]. Centuri's Earnings Outlook - Centuri is projected to earn $0.60 per share for the fiscal year ending December 2025, with no year-over-year change expected [9]. - Over the past three months, the Zacks Consensus Estimate for Centuri has increased by 4.5%, indicating a positive trend in earnings estimates [9]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [8]. - Centuri's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10][11].

Core Viewpoint - Southwest Gas Holdings, Inc. is initiating a secondary public offering of 9,000,000 shares of Centuri Holdings, Inc. common stock, with an option for underwriters to purchase an additional 1,350,000 shares [1][2] Group 1: Offering Details - The offering includes 9,000,000 existing shares of Centuri's common stock, with a potential additional purchase option for underwriters [1] - Icahn Partners and Icahn Partners Master Fund LP will concurrently purchase $50 million in shares from Southwest Gas Holdings at the offering price [2] - The shares are being offered under an effective shelf registration statement filed with the SEC, and a preliminary prospectus supplement will be available [3] Group 2: Company Background - Southwest Gas Holdings operates through its subsidiary, Southwest Gas Corporation, providing natural gas services to over 2 million customers in Arizona, Nevada, and California [5] - Centuri Holdings, Inc. is a utility infrastructure services company that collaborates with regulated utilities to maintain energy networks across the U.S. and Canada [6]

Financial Performance - GAAP net income was approximately $143 million, a $7.1 million increase quarter-over-quarter[21] - Adjusted diluted earnings per share increased from $1.37 in Q1 2024 to $1.65 in Q1 2025[48] - Southwest Gas expects to issue less than $100 million of equity in 2025 through the existing ATM program, pending Centuri exit path[56] - Southwest Gas reaffirmed its 2025 net income guidance of $265 - $275 million and CapEx of ~$880 million[19, 61] - The company is targeting a 6.0% to 8.0% net income growth and 6.0% to 8.0% rate base growth from 2025-2029[19] Regulatory Updates - Arizona general rate case approved, resulting in ~$80.2 million revenue increase, a 9.84% allowed return on equity, and a 48.5% allowed equity capitalization[21, 25] - GBGTC rate case approved, leading to a revenue increase of ~$9.6 million[25] - California rate case filed in September 2024, requesting a revenue increase of ~$44 million, with rates anticipated to become effective January 2026[25, 37] Growth and Operations - Approximately 40,000 new meter sets were added during the last 12 months, resulting in a 1.8% customer growth rate[21] - Operations and maintenance expense decreased by 1.1% over the first three months of 2025 compared with the same period in 2024[21] - The company projects a population growth of 4.40% in Arizona and 3.42% in Nevada from 2025 to 2030[42]