Centuri Holdings, Inc. (CTRI) | The Buildout — AI Infrastructure
The Verdict
Centuri Holdings is a North American utility and energy infrastructure services company. It provides the labor and project execution that regulated electric and gas utilities use to maintain, upgrade, and expand energy networks. In the AI buildout, that means substations, electric transmission and distribution, and site electrical and mechanical work for data centers. It is not a manufacturer and does not supply components; it builds and maintains the physical infrastructure.
| Market Cap | — |
| Revenue (TTM) | $3.0B |
| Revenue Growth | +14.1% |
| EBITDA Margin (TTM) | 8.0% |
| Net Debt | $869M |
| Earnings Beats | 3 of 7 |
| P/E (TTM) | — |
| EV/EBITDA (TTM) | — |
What We Like
- Q1 2026 gross profit up 76% YoY and base gross profit up 96% YoY.
- Record $6.5B backlog, up 44% YoY; Q1 bookings $1.3B at 1.8x book-to-bill.
- Disclosed data-center work: $170M secured since start of 2025 and approximately $300M selected/negotiating expected to book in Q2 2026.
- Leverage improving: net debt/adjusted EBITDA 2.7x, down from 3.5x year-over-year; target around 2x by year-end 2026.
- Management estimates a $150B four-year utility transmission market, while Centuri currently generates less than 10% of annual revenue from electric transmission.
What We’re Watching
- Backlog quality: approximately 85% of backlog is volume-uncommitted MSA; hard fixed-price RPO is only $444.7M.
- Q2 2026 gross profit grew only 2% against 33% revenue growth; full release needed to explain the gap.
- Unnamed Non-Union Electric customer is 13% of Q1 2026 revenue and 23% of consolidated receivables/contract assets.
- Legal dispute over withheld receivables has no reserves; potential significant loss is not currently estimable.
The demand side of the thesis is strengthening: bookings, backlog, and data-center negotiations all moved up. The margin side is less settled — Non-Union Electric base margin fell 240 bps year-over-year, and the Q2 release shows gross profit up only 2% on 33% revenue growth. The open question is whether the 2029 margin targets survive the shift toward bid work and larger single-customer exposure.
Earnings
Centuri reported Q1 FY2026 revenue of $699.9 million, gross margin of 5.1%, and EBITDA of $38.2 million. The company disclosed Q1 bookings of $1.3 billion at 1.8x book-to-bill and record backlog of $6.5 billion. Net loss attributable to common stock narrowed to $9.5 million from $17.9 million a year earlier.
| Metric | Q1 FY2026 | Q4 FY2025 | Q1 FY2025 | YoY |
|---|---|---|---|---|
| Revenue | $700M | $761M | $550M | +27.2% |
| Gross margin | 5.1% | 12.3% | 3.7% | +140bps |
| EBITDA | $38M | $54M | $27M | +43.6% |
| EPS | $-0.09 | $0.32 | $-0.20 | −53.4% |
| Backlog | $6.5B | $5.9B | n/a | +44% YoY |
The strength of the market is unlike anything I’ve seen in my career.— Christian Brown, President and CEO, May 7, 2026
Management tone: Management shifted from near-term execution to a formalized multiyear plan, introducing “Vision One Centuri” and 2029 targets. The CEO characterized the market as a durable tailwind and repeatedly described the company as conservative; the CFO detailed the lease-versus-buy fleet trade-off. The Q&A was direct on margin accounting, bid timing, and data-center conversion.
Management Guidance
Management introduced FY2026 guidance on February 25, 2026 and reiterated it unchanged on May 7, 2026. On the May call, the CEO said the reiteration reflected conservatism and that almost all midpoint revenue guidance was already under contract. The August 4, 2026 Q2 release says full-year guidance was raised, but the exact new ranges were not included in the supplied material. Storm restoration services were guided using a three-year average of $88 million revenue and $28 million gross profit.
Trajectory
Revenue is accelerating year-over-year, with Q1 FY2026 gross margin at 5.1% versus 3.7% a year earlier. Trailing margins are compressing: gross margin down 330 bps and EBITDA margin down 450 bps on the code-computed read. The Q1 seasonal trough improved over the prior year, but the Q2 2026 release showing revenue up 33% and gross profit up only 2% suggests margin expansion is not yet smooth.
The Model
The model projects FY+1 revenue of $3,540 million with EBITDA of $312 million, an 8.8% margin, and FY+2 revenue of $4,025 million with EBITDA of $358 million, an 8.9% margin. Near-term revenue sits inside management's FY2026 revenue-including-storm guidance of $3.24B–$3.54B, while FY+2 reflects continued utility and data-center build-out embedded in management's 2029 targets.
| Metric | FY2025 | Next FY (E) | Following FY (E) |
|---|---|---|---|
| Revenue | $2.9B | $3.5B | $4.0B |
| YoY Growth | — | +22.7% | +13.7% |
| EBITDA | $232M | $312M | $358M |
| EBITDA Margin | 8.0% | 8.8% | 8.9% |
Projections are the median of 5 independent model runs. The model’s revenue sits 5.4% above analyst consensus.
Management introduced FY2026 guidance on February 25, 2026 and reiterated it unchanged on May 7, 2026. On the May call, the CEO said the reiteration reflected conservatism and that almost all midpoint revenue guidance was already under contract. The August 4, 2026 Q2 release says full-year guidance was raised, but the exact new ranges were not included in the supplied material. Storm restoration services were guided using a three-year average of $88 million revenue and $28 million gross profit.
What Could Go Right — and Wrong
- Data-center conversion: the approximately $300M selected/negotiating work books on schedule and the approximately $1.5B evaluation pipeline converts at attractive margins.
- Electric transmission break-in: Centuri wins meaningful projects under the $200M size band, shifting revenue mix above the current under-10% transmission share.
- Margins expand: U.S. Gas reaches Q1 profitability and segment base gross margin of 7%–8% by 2029; company base gross margin moves to 8.7%–9.7%.
- Full-year FY2026 revenue lands near the upper end of guidance as management indicated; FCF exceeds $60M and leverage reaches around 2x.
- Cross-selling continues: additional gas-to-electric and Canada-to-U.S. MSA expansions add revenue without equity issuance.
- MSA backlog softness: approximately 85% of backlog is volume-uncommitted MSA; utility deferrals could reduce realized revenue without a contract breach.
- Margin gap persists: Q2 gross profit grew only 2% on 33% revenue growth; if mix or ramp costs continue, the 2029 margin targets slip.
- Concentration risk: the unnamed Non-Union Electric customer grows beyond 13% of revenue and 23% of receivables; a slowdown there hits revenue, earnings, and cash.
- Legal loss: the unaccrued withheld-receivables dispute produces a significant loss that is not currently estimable.
- Competitor scale: Quanta, MasTec, and others expand capacity and backlog faster, pressuring win rates and margins.
Looking Ahead
The next 12 months are shaped by the Q2 2026 report and second-half award flow. Management expects Q2 award flow to be slower, with pickup at the end of Q3 and beginning of Q4, while it builds backlog for 2027. The data-center bucket, pending bid conversion, Connect Atlantic/Ontario expansion, and full-year guidance raise details are the key signposts.
- Aug 4, 2026Full Q2 2026 report — Tests raised guidance ranges, Q2 margin bridge, and data-center bookings.
- H2 2026Award flow pickup — Management sees slower Q2 awards, then pickup late Q3 and early Q4.
- 2026Workforce tool and PMO — Both expected operational during 2026, supporting labor and project controls.
- Year-end 2026FY2026 cash and leverage — Tests free cash flow above $60M and net leverage around 2x.
- Q1 2027U.S. Gas seasonality test — Can U.S. Gas reach Q1 profitability after narrowed losses in 2026?
- 2029Long-term margin targets — Base gross margin 8.7%–9.7%; U.S. Gas segment margin 7%–8%.
Financials
Annual Summary
| Metric | FY2024 | FY2025 | TTM | YoY |
|---|---|---|---|---|
| Revenue | $2.6B | $2.9B | $3.0B | +9.4% |
| Gross Margin | 8.0% | 8.2% | 8.6% | +23bps |
| EBITDA | $243M | $232M | $597M | -4.6% |
| EBITDA Margin | 9.2% | 8.0% | 8.0% | 118bps |
| Net Income | −$7M | $22M | $31M | +430.9% |
| Free Cash Flow | $59M | −$8M | $56M | — |
| Net Cash | — | — | — | — |
Key Ratios (Trailing)
- P/E TTM—
- EV/EBITDA TTM—
- EV/Revenue TTM—
- Price/FCF TTM—
- Gross Margin (TTM)8.6%
- EBITDA Margin (TTM)8.0%
- Net Margin (TTM)1.0%
- ROIC5.0%
- FCF Conversion-23.0%
- SBC / Revenue0.0%
The Company
Centuri Holdings, Inc. is a North American utility and energy infrastructure services company with more than 115 years of operating history. It replaces, maintains, retrofits, and installs electric and natural gas distribution infrastructure; builds utility-scale transmission; restores utility systems after storms; and works in adjacent end markets including distributed power and data centers. The business depends on regulated utilities' capital and maintenance cycles.
Centuri runs four reportable segments — U.S. Gas Utility Services, Canadian Utility Services, Union Electric Utility Services, and Non-Union Electric Utility Services — across 97 primary locations in 46 U.S. states and six Canadian provinces. Work is split between master services agreements, which were 78% of 2025 revenue, and bid work at 22%. Customers generally supply materials; Centuri provides labor and project execution.
Business Segments
Competitive Landscape
Centuri's 10-K names Quanta Services, MYR Group, MasTec, Primoris Services, and Everus Construction Group as competitors. The source describes Centuri as a meaningful but mid-tier player against several much larger infrastructure contractors, with integrated scope and a 100% MSA renewal rate as its differentiation claim.
- Quanta ServicesNamed in 10-K; read-through shows record backlog $48.5B, 1.6x book-to-bill, and investment to double transformer capacity.
- MYR GroupNamed in 10-K; read-through shows record backlog $2.84B and raised 2026 T&D margin target to 8%–11%.
- MasTecNamed in 10-K; read-through shows Q1 revenue $3.829B, up 34%, and record backlog $20.3B.
- Primoris ServicesNamed in 10-K; cut 2026 guidance after solar overruns, but booked over $400M of data-center enabling infrastructure in Q1 2026.
- Everus Construction GroupNamed in 10-K; read-through shows Q1 revenue $1.04B, up 25%, and T&D EBITDA margin 13.3%.
Supply Chain
Centuri sits between regulated utilities and the physical build-out of energy infrastructure. It provides construction and maintenance labor; customers generally supply materials. No neighbor transcript mentions Centuri by name.