8-K: Centuri Q2 Revenue Up 7.7%, Raises Full-Year Outlook

Centuri Holdings, Inc. reported a 7.7% increase in second-quarter 2025 revenue to $724.1 million and raised its full-year revenue guidance, driven by strong electric operations and record new bookings.

Summary

• Second quarter 2025 revenue increased by 7.7% to $724.1 million, up from $672.1 million in the second quarter of 2024.
• Net income attributable to common stock for Q2 2025 was $8.1 million (diluted earnings per share of $0.09), down from $11.7 million (diluted earnings per share of $0.14) in Q2 2024.
• Adjusted Net Income for Q2 2025 was $16.9 million (Adjusted Diluted Earnings per Share of $0.19), slightly down from $17.0 million (Adjusted Diluted Earnings per Share of $0.20) in Q2 2024.
• Adjusted EBITDA for Q2 2025 improved by 4.7% to $71.8 million, from $68.6 million in the second quarter of 2024.
• Full-year 2025 revenue outlook was increased to $2.70 billion to $2.85 billion, up from the previous range of $2.60 billion to $2.80 billion.
• Full-year 2025 Adjusted EBITDA outlook was narrowed to $250 million to $270 million, from the previous range of $240 million to $275 million.
• 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 the second quarter, for a cumulative $3.0 billion in awards during the first half of the year.
• Backlog increased to $5.3 billion as of June 29, 2025, from $4.5 billion as of March 30, 2025.
• Net Debt to Adjusted EBITDA Ratio was 3.7x as of June 29, 2025, compared to 3.5x as of March 30, 2025.
• Full-year 2025 net capital expenditures outlook was increased to $75 million to $90 million, up from $65 million to $80 million.

Sentiment

Score: 8

Explanation: The company reported strong revenue growth and improved Adjusted EBITDA, coupled with record bookings and an increased full-year revenue outlook, indicating robust operational performance. The successful debt refinancing also significantly strengthens the capital structure. While GAAP net income declined and the leverage ratio slightly increased, the overall strategic and operational momentum is positive.

Positives

• Consolidated revenue increased by 7.7% year-over-year, driven by strong performance in electric operations.
• Adjusted EBITDA improved by 4.7% year-over-year.
• Achieved a record $1.8 billion in new bookings in the second quarter, contributing to a strong book-to-bill ratio of 2.3x in the first half of 2025, exceeding the full-year target of 1.1x.
• Increased full-year 2025 revenue guidance, demonstrating underlying business strength despite not expecting a repeat of elevated 2024 storm restoration activity.
• Strengthened capital structure and enhanced financial flexibility post-quarter end by expanding the credit facility and extending debt maturities at improved interest rates.
• Improved profit across all four reportable segments (U.S. Gas, Canadian Gas, Union Electric, Non-Union Electric).
• Union Electric segment revenue grew by 11.0% and Non-Union Electric segment revenue grew by 24.4% in Q2 2025.
• Reported a nearly $14 billion sales pipeline, indicating strong future growth potential.

Negatives

• Net income attributable to common stock decreased to $8.1 million in Q2 2025 from $11.7 million in Q2 2024.
• Adjusted Net Income slightly decreased to $16.9 million in Q2 2025 from $17.0 million in Q2 2024.
• U.S. Gas segment revenue decreased by 1.1% in Q2 2025.
• Non-Union Electric gross profit margin decreased to 11.0% in Q2 2025 from 13.5% in Q2 2024.
• Net Debt to Adjusted EBITDA Ratio increased to 3.7x from 3.5x due to a typical seasonal uptick in working capital.
• Anticipated a $12.8 million decrease in offshore wind revenue.

Risks

• Capital market risks can affect the business and financial results.
• General economic or industry conditions could impact performance.
• Forward-looking statements are subject to important factors that could cause actual results to differ materially.
• No obligation to publicly release updates or changes in expectations for forward-looking statements.

Future Outlook

The company increased its full-year 2025 revenue guidance to $2.70 billion to $2.85 billion and narrowed its Adjusted EBITDA outlook to $250 million to $270 million. It expects to exceed its book-to-bill ratio target of 1.1x for 2025 and anticipates its leverage ratio will improve year-over-year from the end of 2024 to the end of 2025. Strategic investments are planned to capitalize on expected growth from contract awards and robust pipeline opportunities.

Management Comments

• "Our second quarter performance reflected solid execution across all business segments, with particularly strong results in our electric operations, while we continued to see meaningful progress in our U.S. Gas segment through various initiatives aimed at enhancing overall margins."
• "Strong momentum from our integrated commercial strategy resulted in approximately $1.8 billion in new awards during the quarter."
• "Our proactive One Centuri sales approach is positioning us to maximize revenue potential from existing customers while strategically expanding into new opportunities, as evidenced by our nearly $14 billion sales pipeline."
• "Based on our strong commercial momentum, enhanced pipeline visibility, and operational execution through the first half of the year, we are increasing our full-year revenue guidance."
• "Our ability to raise our revenue outlook demonstrates the underlying strength of our core business, particularly given that 2024 benefited from elevated storm restoration activity that we do not expect to repeat this year."
• "We are strategically increasing investment in our business to capitalize on expected growth driven by our contract awards and robust near-term pipeline opportunities, while simultaneously advancing meaningful capital efficiency initiatives."
• "In recent weeks, we executed several strategic agreements, including new master lease arrangements that provide enhanced fleet management flexibility while preserving our ability to optimally deploy resources across operations."
• "Additionally, our recent appointment of an experienced head of fleet positions us to drive further operational improvements in the quarters ahead."

Industry Context

The company operates in the utility infrastructure services sector, which is critical for building and maintaining energy networks across the United States and Canada. The strong performance in electric operations and increased revenue outlook suggest a robust demand environment, likely driven by ongoing grid modernization, infrastructure upgrades, and potentially increased investment in renewable energy integration. The company's ability to raise guidance despite not expecting a repeat of the elevated storm restoration activity seen in 2024 indicates underlying strength in its core, non-cyclical business segments.

Management Changes

Corporate Governance

Related Party Transactions

• Revenue from related party parent was $26.1 million in Q2 2025 ($28.681 million in Q2 2024).
• Cost of revenue from related party parent was $23.212 million in Q2 2025 ($25.816 million in Q2 2024).
• Accounts receivable, related party parent, net was $5.877 million as of June 29, 2025 ($9.648 million as of December 29, 2024).
• Contract assets, related party parent, was $3.893 million as of June 29, 2025 ($2.623 million as of December 29, 2024).
• Separation-related costs include expenses incurred post-Centuri IPO in connection with the separation and stand-up of Centuri as its own public company, including costs associated with Southwest Gas Holdings' sale of its common stock holdings and establishment of the Unutilized Tax Assets Agreement with Southwest Gas Holdings.

Stakeholder Impact

• Shareholders: Strong revenue growth, increased full-year outlook, and record bookings could positively impact share price. Debt refinancing improves financial stability, though a decrease in GAAP net income might be noted.
• Employees: Continued business growth and strategic investments suggest job stability and potential for expansion.
• Customers: Strong operational execution, increased crew counts, and a large sales pipeline indicate enhanced capacity and reliability in service delivery.
• Creditors: Debt refinancing with extended maturities and improved interest rates reduces short-term financial risk and enhances the company's ability to service its debt.

Next Steps

• Conduct a conference call on August 6, 2025, to discuss second quarter 2025 financial results and business highlights.
• Strategically increase investment in the business to capitalize on expected growth from contract awards and pipeline opportunities.
• Advance meaningful capital efficiency initiatives.
• Drive further operational improvements in fleet management following the appointment of an experienced head of fleet.

Key Dates

Recommendation

The company demonstrated strong operational performance with significant revenue growth, particularly in its electric segments, and a substantial increase in new bookings and backlog. The raised full-year revenue guidance and narrowed Adjusted EBITDA outlook reflect management's confidence in continued momentum. Furthermore, the successful refinancing of debt post-quarter end significantly strengthens the capital structure by extending maturities and enhancing financial flexibility. While GAAP net income declined, the underlying business drivers and strategic financial moves suggest a positive trajectory for long-term investors.

Keywords

Utility infrastructure, Energy network, Gas operations, Electric operations, Financial results, Q2 2025, Revenue growth, Adjusted EBITDA, Book-to-bill, Backlog, Debt refinancing, Centuri Holdings