8-K: Centuri Holdings Reports Strong Q1 2025 Results, Affirms Full Year Outlook

Centuri Holdings announces positive Q1 2025 results with increased revenue and adjusted EBITDA, driven by strong customer service and new contract awards, while affirming its full-year 2025 outlook.

Summary

• Centuri Holdings, Inc. reported its first quarter 2025 financial results, showing revenue of $550.1 million compared to $528.0 million in the first quarter of 2024.
• The company's net loss attributable to common stock was $17.9 million (diluted loss per share of $0.20), an improvement from the $25.1 million (diluted loss per share of $0.35) in the first quarter of 2024.
• Adjusted Net Loss was $10.5 million (adjusted diluted loss per share of $0.12) versus $14.4 million (adjusted diluted loss per share of $0.20) in the first quarter of 2024.
• Adjusted EBITDA increased by 20% to $24.2 million, compared to $20.2 million in the first quarter of 2024.
• Centuri secured record customer awards exceeding $1.2 billion during the quarter.
• The company's backlog increased to $4.5 billion as of March 30, 2025, from $3.7 billion at the end of 2024.
• Centuri affirms its full year 2025 outlook, with revenue expected to be between $2.60 and $2.80 billion and Adjusted EBITDA between $240 and $275 million.
• Net capital expenditures are projected to be $65 to $80 million for the full year 2025.
• The company's net debt to adjusted EBITDA ratio was 3.5x as of March 30, 2025, improving from 3.6x as of December 29, 2024.

Sentiment

Score: 8

Explanation: The document presents a positive outlook with strong financial results, record customer awards, and an affirmed full-year outlook; however, the net loss and acknowledgment of potential risks temper the overall sentiment.

Positives

• Revenue increased by 4.2% year-over-year, driven by improvements in both Non-union and Union Electric segments.
• Adjusted EBITDA improved by 20.1% year-over-year.
• Non-union Electric revenue grew by 41.9% year-over-year.
• Core Union Electric revenues grew by $39.8 million year-over-year.
• The company booked over $1.2 billion in new awards, a record quarter for commercial bookings.
• Backlog increased significantly to $4.5 billion.
• The company's net debt to adjusted EBITDA ratio improved to 3.5x.
• Canadian Gas segment continued to exceed expectations delivering solid margins for the period.

Negatives

• The company experienced a net loss attributable to common stock of $17.9 million.
• Offshore wind revenues declined by $22.3 million year-over-year.
• U.S. Gas segment revenue experienced a year-over-year reduction.
• Winter weather disruptions had a pronounced impact on the U.S. Gas business early in the quarter.

Risks

• The company acknowledges potential impacts from capital market risks and general economic or industry conditions.
• The company's forward-looking statements are subject to factors that could cause actual results to differ materially.
• The company mentions macro uncertainty that could impact customer capital spending.

Future Outlook

Centuri affirms its full year 2025 outlook, projecting revenue between $2.60 and $2.80 billion and Adjusted EBITDA between $240 and $275 million.

Management Comments

• Centuri President & CEO Christian Brown stated that the company's financial performance and commercial activity in the first quarter exceeded expectations.
• Christian Brown noted the company's focus on invigorating the sales process and procedures and institutionalizing a growth culture across the company.
• Management believes that they can achieve a book-to-bill ratio that is in excess of 1.1x in 2025.

Industry Context

Centuri operates in the utility infrastructure services sector, partnering with regulated utilities in the United States and Canada to build and maintain energy networks; the company's performance is influenced by capital spending trends in the gas and electric utility industries.

Comparison to Industry Standards

• Without specific competitor data in this document, a comparison to industry standards is difficult.
• However, companies like Quanta Services and MasTec are key players in the infrastructure services sector and could be used as benchmarks for comparison in terms of revenue growth, EBITDA margins, and backlog.

Related Party Transactions

• The document mentions revenue and cost of revenue related to transactions with the parent company.

Stakeholder Impact

• Shareholders: Positive results and affirmed outlook could increase investor confidence.
• Employees: Strong performance and new awards may lead to job security and growth opportunities.
• Customers: Continued investment in infrastructure should improve service reliability.
• Suppliers: Increased activity and backlog could lead to higher demand for materials and services.

Next Steps

• Centuri will conduct a conference call on May 12, 2025, to discuss the first quarter 2025 financial results and other business highlights.
• The company will continue to focus on driving greater organizational accountability and securing new growth opportunities.
• Centuri expects continued strength in capital spending by its customers.

Key Dates

Keywords

Centuri, Holdings, Financial Results, Q1 2025, EBITDA, Revenue, Backlog, Outlook, Infrastructure, Utilities