Core Viewpoint - Centuri Holdings Inc. (NYSE:CTRI) is highlighted as a strong IPO stock to consider for investment, supported by a robust investment cycle in the Engineering & Construction sector [1][3]. Group 1: Investment Ratings and Price Targets - Cantor Fitzgerald initiated coverage on Centuri with an Overweight rating and a price target of $34, citing a strong multi-year investment cycle in the sector [1]. - Wells Fargo analyst Joseph O'Dea raised the price target for Centuri from $25 to $30, maintaining an Overweight rating, while noting a cautious approach in setting market expectations for 2026 [3]. Group 2: Growth Drivers - The growth of Centuri is driven by factors such as grid modernization, electrification, energy transition efforts, and increased power demand from data centers and reshoring, which contribute to record backlogs and long-term revenue visibility [2]. - Cantor Fitzgerald emphasized Centuri's highly recurring, MSA-driven utility revenue and accelerating electric growth, along with rapid post-spin deleveraging that supports significant valuation upside [2]. Group 3: Company Overview - Centuri Holdings Inc. operates as a utility infrastructure services company in North America, with four segments: US Gas Utility Services, Canadian Gas Utility Services, Union Electric Utility Services, and Non-Union Electric Utility Services [4].

Core Viewpoint - Centuri Holdings Inc. is identified as a promising investment opportunity, with a price target increase from Wells Fargo, despite anticipated sector slowdowns [1][3]. Financial Performance - In Q3 2025, Centuri Holdings reported revenue of $850 million, marking an 18% year-over-year increase, driven by a 25% rise in base revenue and a 28% increase in base gross profit [2]. - The company's backlog grew to $5.9 billion from $5.3 billion in the previous quarter, supported by $815 million in new bookings during Q3 [2]. Strategic Focus - Centuri Holdings is prioritizing higher-margin opportunities, particularly in data center projects, which offer better margins compared to traditional Master Service Agreements (MSAs) [3]. - The company has a $3 billion pipeline of strategic bids, consisting of $1.7 billion in new bid work and $1.3 billion in renewals, with a project distribution of 60% electrical and 40% gas [3]. Company Overview - Centuri Holdings operates as a utility infrastructure services company in North America, divided into four segments: US Gas Utility Services, Canadian Gas Utility Services, Union Electric Utility Services, and Non-Union Electric Utility Services [4].

Core Insights - Centuri Holdings, Inc. has released its 2025 Sustainability Report titled "Building Trust, Powering the Future," which outlines the company's sustainability efforts and progress on key non-financial performance indicators [1][2] Sustainability Strategies - The report emphasizes Centuri's commitment to earning trust and building credibility through effective communication of its sustainability strategies amid complex energy challenges [2] - It includes technical sustainability frameworks and quantifiable metrics, detailing performance against 15 Key Performance Indicators and six United Nations Sustainable Development Goals (UNSDGs) [2] Operational Highlights - Centuri's sustainability approach is structured around four core Program Pillars: World-Class Safety, Clean Energy, Empowered Communities, and Inclusion For All [3] - The company has achieved a 14% reduction in Scope 1 emissions from the 2019 baseline and is actively delivering renewable energy projects across North America [4] Community Engagement - Centuri has contributed over one million dollars in philanthropic giving to support communities [5] - The company has established a signature lineman apprenticeship program, along with mentorship and development opportunities to create meaningful employment [5] Company Overview - Centuri Holdings, Inc. is a strategic utility infrastructure services company that collaborates with regulated utilities and energy providers to build and maintain the energy network serving millions of homes and businesses in the United States and Canada [6]

Core Insights - Tensile Capital Management initiated a new stake in Centuri Holdings, acquiring 812,088 shares valued at approximately $17.2 million, indicating institutional confidence in the company [1][2] - Centuri Holdings has shown strong financial performance with record quarterly revenue and a significant backlog, suggesting robust growth potential [10][11] Company Overview - Centuri Holdings is a leading utility infrastructure services provider with a diversified portfolio across gas and electric segments in the U.S. and Canada, focusing on modernization and reliability initiatives for utility clients [6][8] - The company reported a total revenue of $2.8 billion and a net income of $2.5 million, with a market capitalization of $2.5 billion [4] Financial Performance - In the third quarter, Centuri's revenue rose 18% to a record $850 million, while base revenue increased by 25% year over year, and base gross profit climbed 28% [10] - The firm's backlog reached a record $5.9 billion, up 59% from year-end 2024, providing promising visibility into future growth [10] Market Position - Centuri shares are currently priced at $25.58, reflecting an 18% increase over the past year, slightly outperforming the S&P 500, which is up 13% in the same period [3] - The new position by Tensile Capital represents about 2.2% of the fund's reportable U.S. equity AUM as of September 30 [3]

Group 1: AI Spending Forecast - Global AI spending is projected to exceed $2 trillion by 2026, driven by the integration of AI into various products and infrastructure [2] - The increase in AI investment is expected to come from a broader base of enterprises, not just top tech giants [1][2] - Regional economic conditions, regulatory environments, and access to skilled talent will impact the pace at which companies scale their AI initiatives [2] Group 2: Market Trends and Insights - 2026 is anticipated to be a pivotal year for AI monetization, with a focus on turning existing capabilities into measurable business results rather than introducing new models [3][5] - Analysts from Wedbush Securities note a recent acceleration in AI-related business activities, suggesting that enterprises are fast-tracking their AI deployments [3] - Deloitte emphasizes the shift from experimentation to execution in AI spending, highlighting the importance of data hygiene, integration, and compliance [4] Group 3: Investment Activity - In November, E*TRADE reported that clients were net buyers in 10 of 11 S&P 500 sectors, particularly favoring technology stocks amid a market dip [11] - The consumer discretionary sector saw the highest net buying activity at +13.41%, followed by utilities at +7.35% and communication services at +4.9% [11]

Group 1 - Centuri Holdings Inc. has completed the acquisition of Connect Atlantic Utility Services Corporation, enhancing its position as a dual electric and gas services provider in Canada [1][2] - The acquisition supports Centuri's growth strategy by expanding its presence in the Canadian market, particularly in the Atlantic provinces [2][3] - Canada is projected to invest approximately $2 trillion by 2050 for electricity-grid modernization and clean energy initiatives, which aligns with Centuri's operational focus [3] Group 2 - Centuri operates primarily in North America through four segments: US Gas Utility Services, Canadian Gas Utility Services, Union Electric Utility Services, and Non-Union Electric Utility Services [4]

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 Performance - The company's total revenue for Q3 2025 was $850 million, compared to $720.1 million in Q3 2024, representing an increase of approximately $130 million[29] - Base revenue for Q3 2025 was $848.6 million, compared to $678.7 million in Q3 2024, an increase of $169.9 million[29] - Net income attributable to common stock was $2.1 million in Q3 2025, compared to a loss of $3.7 million in Q3 2024, an increase of $5.8 million[29] - Adjusted EBITDA for Q3 2025 was $75.2 million, compared to $78.8 million in Q3 2024, a decrease of $3.5 million[29] Bookings and Backlog - Total bookings for Q3 2025 were approximately $815 million[5] - The company's backlog at the end of the quarter was $5.9 billion[18] - Year-to-date book to bill ratio is 1.8x[18] Outlook - The company raised its full year 2025 revenue guidance to $2.80 - $2.90 billion[42] - The company expects year-end 2025 leverage ratio to be 3.3x to 3.4x[48] Strategic Initiatives - The company is targeting a 50/50 lease vs buy strategy for equipment and machinery[51] - The company anticipates $50 million of operating leases in 2025[51]

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]