8-K: Centuri Holdings Achieves Record $3 Billion Annual Revenue

Centuri Holdings, Inc. reported record annual revenue of $3 billion for fiscal year 2025, alongside strong fourth-quarter growth and a significantly expanded backlog.

Summary

• Achieved company record quarterly Revenue of $858.6 million in Q4 2025, a 20% increase versus the fourth quarter of 2024.
• Produced Gross Profit of $80.5 million in Q4 2025, a 13.2% increase from the same period last year.
• Reported Net Income of $30.4 million in Q4 2025, and Adjusted Net Income of $15.9 million.
• Generated $83.9 million of Cash Flow from Operations and $105.7 million of Free Cash Flow in Q4 2025.
• Achieved company record annual Revenue of $2,983 million for fiscal year 2025, a 13% increase versus 2024.
• Produced Gross Profit of $247 million for fiscal year 2025, a 12% increase over 2024.
• Reported Net Income of $22.7 million for fiscal year 2025, compared to a loss of $6.7 million in 2024.
• Adjusted EBITDA for fiscal year 2025 was $249.0 million, up from $238.2 million in 2024.
• Increased Base Gross Profit Margin to 8.0% in 2025, compared to 6.9% in 2024.
• Recorded annual bookings of $4.5 billion, resulting in a book-to-bill ratio of 1.5x, exceeding the 1.1x target.
• Expanded backlog to $5.9 billion as of year-end 2025, a 59% increase year-over-year.
• Reduced Net Debt to Adjusted EBITDA to 2.5x as of year-end 2025 from 3.6x at year-end 2024.
• Completed full separation from former parent company and acquired Connect Atlantic Utility Services, adding electric services to Canadian operations.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive report, driven by record revenue, significant backlog growth, improved profitability from a prior-year loss, and substantial debt reduction, positioning the company well for future growth despite a slight dip in Q4 Adjusted Net Income.

Positives

• Achieved company record quarterly Revenue of $858.6 million in Q4 2025, a 20% increase versus Q4 2024.
• Achieved company record annual Revenue of $2,983 million for fiscal year 2025, a 13% increase versus 2024.
• Net Income improved significantly to $22.7 million in 2025 from a loss of $6.7 million in 2024.
• Base Gross Profit Margin increased to 8.0% in 2025, up from 6.9% in 2024, driven by strong performance in Electric segments and U.S. Gas.
• Backlog expanded by 59% year-over-year to $5.9 billion, providing strong revenue visibility.
• Net Debt to Adjusted EBITDA ratio reduced to 2.5x from 3.6x at year-end 2024, indicating improved financial leverage.
• Annual bookings of $4.5 billion resulted in a book-to-bill ratio of 1.5x, significantly exceeding the 1.1x target.
• Successfully completed the acquisition of Connect Atlantic Utility Services, expanding capabilities in Canadian electric services.
• Completed full separation from former parent company, establishing greater independence.
• Generated strong Free Cash Flow of $105.7 million in Q4 2025.

Negatives

• Adjusted Net Income for Q4 2025 decreased by 13.2% to $15.9 million compared to the same quarter last year.
• Non-Union Electric segment's Gross Profit decreased by 29.5% in Q4 2025 and 5.4% for the full year 2025.
• Consolidated Gross Profit Margin slightly decreased from 9.9% in Q4 2024 to 9.4% in Q4 2025.
• Adjusted EBITDA Margin decreased from 9.9% in Q4 2024 to 9.1% in Q4 2025, and from 9.0% in FY 2024 to 8.3% in FY 2025.

Risks

• Capital market risks and the impact of general economic or industry conditions could cause actual results to differ materially from forward-looking statements.
• Storm restoration services revenue and gross profit are unpredictable and vary from period to period due to the nature of weather-related events.
• Forward-looking statements are subject to important risks, uncertainties, and other factors detailed in Centuri's reports filed with the U.S. Securities and Exchange Commission, including Item 1A. Risk Factors in the Annual Report on Form 10-K for the fiscal year ended December 28, 2025.

Future Outlook

Centuri Holdings, Inc. provides full year 2026 financial guidance, expecting Base Revenue between $3.15 billion and $3.45 billion, Base Gross Profit between $255 million and $285 million, Revenue between $3.24 billion and $3.54 billion, Adjusted EBITDA between $280 million and $310 million, and Adjusted Net Income between $55 million and $75 million. The company also anticipates Net Capital Expenditures of $75 million to $90 million in 2026 and targets a book-to-bill ratio of 1.1x to 1.2x.

Management Comments

• "2025 was a remarkable year for Centuri and the achievements are a direct result of the dedication and commitment of our employees." Christian Brown, President & CEO.
• "We took significant steps forward which position us well for future growth and value creation." Christian Brown, President & CEO.
• "We proved our ability to identify and secure growth opportunities, expanded our footprint and capabilities in Canada, delivered predictable earnings growth, improved base margins, and strengthened the balance sheet." Christian Brown, President & CEO.
• "Capital deployment trends across our end markets remain strong, as reflected by our substantial $13 billion opportunity pipeline." Christian Brown, President & CEO.
• "Our business development efforts and One Centuri approach are gaining traction, with our $5.9 billion year-end backlog and approximately $1.1 billion of 2026 year-to-date bookings forecasted to provide over 85% of the 2026 Base Revenue guidance at the mid-point." Christian Brown, President & CEO.
• "We believe that we can deliver sustained growth, underpinned by strong end-market fundamentals and our solid positioning, One Centuri approach, and ability to execute." Christian Brown, President & CEO.
• "We've established a differentiated position as a top tier growth company while staying within our core competencies and maintaining a low-risk profile through long-term MSA contracts with high quality utility customers, complemented by a diverse portfolio of bid projects." Christian Brown, President & CEO.
• "We are very well positioned heading into 2026 and we look forward to delivering for our stakeholders." Christian Brown, President & CEO.

Industry Context

StockSavvy.ai notes that Centuri's strong performance, particularly in utility infrastructure services and expansion into Canadian electric services, aligns with broader industry trends of increased investment in grid modernization, renewable energy integration, and aging infrastructure replacement across North America. The substantial opportunity pipeline of $13 billion reflects sustained capital deployment in the utility sector, driven by regulatory mandates and growing energy demand.

Comparison to Industry Standards

• Centuri's 1.5x book-to-bill ratio for 2025 significantly exceeds its 1.1x target, indicating strong demand and competitive positioning within the utility infrastructure sector. This ratio is generally considered robust, as many industry players aim for a ratio of 1.0x or slightly above to maintain or grow their backlog.
• The reduction of Net Debt to Adjusted EBITDA from 3.6x to 2.5x demonstrates a stronger balance sheet. For capital-intensive infrastructure companies, a leverage ratio below 3.0x is often viewed favorably by analysts and lenders, suggesting improved financial health and lower risk profile compared to peers with higher debt burdens.
• The 59% year-over-year increase in backlog to $5.9 billion provides significant revenue visibility and stability, positioning Centuri favorably against competitors. A growing backlog is a key indicator of future revenue generation and market share gains in project-based industries.

Related Party Transactions

• Revenue from related party (former parent) was $25,563 thousand in Q4 2025 and $97,588 thousand for FY 2025.
• Cost of revenue from related party (former parent) was $24,225 thousand in Q4 2025 and $90,971 thousand for FY 2025.
• Accounts receivable, related party former parent, net was $11,852 thousand as of December 28, 2025.
• Contract assets, related party former parent was $657 thousand as of December 28, 2025.
• As of September 5, 2025, Southwest Gas Holdings, Inc. no longer holds any ownership interest in Centuri, and Centuri is no longer eligible for inclusion in their U.S. federal and state income tax returns.
• A $23.7 million income tax benefit was recognized in Q4 2025 related to deferred tax asset allocations from Centuri's former parent, due to a change in Southwest Gas Holdings' estimate of 2025 taxable income post-separation.

Stakeholder Impact

• Shareholders: Positive impact due to record revenue, improved profitability, strong backlog, reduced debt, and positive future outlook, despite potential dilution from the equity offering.
• Employees: Achievements are attributed to their dedication and commitment, suggesting a stable and valued workforce.
• Customers (Regulated Utilities): Continued partnership and expanded capabilities (e.g., Canadian electric services) suggest reliable and enhanced service delivery.
• Creditors: Reduced Net Debt to Adjusted EBITDA ratio (2.5x from 3.6x) indicates improved creditworthiness and lower risk profile.

Next Steps

• Deliver sustained growth, underpinned by strong end-market fundamentals and solid positioning.
• Execute the 'One Centuri approach' to enhance organizational integration and efficiency.
• Achieve a book-to-bill ratio of 1.1x to 1.2x in 2026.
• Deliver for stakeholders in 2026, leveraging strong end-market fundamentals and execution capabilities.
• Conduct a conference call on February 25, 2026, at 10:00 AM ET / 8:00 AM MT to discuss the fourth quarter and full year 2025 financial results and other business highlights.

Key Dates

Recommendation

The company delivered record annual revenue, significantly improved net income from a loss, and substantially reduced its leverage. The 59% increase in backlog and a book-to-bill ratio of 1.5x demonstrate robust future growth potential and strong market demand. The positive 2026 guidance further reinforces a strong outlook, making it an attractive investment.

Keywords

Centuri Holdings, CTRI, Utility Infrastructure, Financial Results, Earnings, Revenue Growth, Backlog, Debt Reduction, Acquisition, SEC Filing, Q4 2025, FY 2025, 2026 Guidance, Electric Services, Gas Services, Canada Operations, NYSE