Centuri Q1 2026 Results: Gross Profit Up 76%, Backlog Reaches Record $6.5B
Centuri Holdings reported a strong start to 2026, delivering significant year-over-year growth in revenue, profitability, and backlog as the utility infrastructure services company continued to benefit from expanding demand across North America’s gas and electric utility markets. The company announced first-quarter financial and operational results for the period ended March 29, 2026, highlighting substantial gains in gross profit, improved operational efficiency, and record commercial momentum supported by a growing project pipeline and long-term customer agreements.
Centuri, which trades on the NYSE: CTRI, also introduced new long-term financial targets and released a strategic presentation titled “Vision One Centuri,” outlining its growth plans through 2029. Company executives said the strategy is designed to strengthen Centuri’s position in utility infrastructure services while driving sustainable and profitable expansion.
The company generated first-quarter revenue of $723.2 million, representing a 31% increase compared with the same period in 2025. Revenue growth was broad-based across all operating segments, including U.S. Gas, Canadian Operations, Union Electric, and Non-Union Electric. Gross profit rose sharply to $35.8 million, up 76% from the prior-year quarter, reflecting improved project mix, stronger operational execution, and actions taken to reduce seasonal impacts in key business lines.
President and Chief Executive Officer Christian Brown said the results demonstrate the company’s continued operational momentum and improving ability to deliver more predictable financial performance despite seasonal industry challenges.
According to Brown, Centuri’s first-quarter performance reflects meaningful progress in reducing winter seasonality while continuing to prioritize safety and customer service. He noted that the company entered 2026 with strong revenue visibility and is now increasingly focused on securing higher-margin work opportunities and expanding backlog for 2027 and beyond.
The company’s net loss attributable to common stockholders narrowed significantly during the quarter. Centuri reported a net loss of $9.5 million, compared with a loss of $17.9 million during the same period last year, representing an improvement of $8.4 million. Adjusted net loss improved even more sharply, declining to $2.0 million from $10.6 million in the prior-year quarter.
Adjusted EBITDA increased 34% year over year to $32.6 million, compared with $24.2 million during the first quarter of 2025. Management attributed the improvement to higher activity levels, better project execution, and stronger margins in several core business segments.
A major focus of Centuri’s reporting was its “Base” financial metrics, which exclude storm restoration services because of their unpredictable nature. Management believes these non-GAAP measures provide a clearer picture of the company’s core operating performance.
Base Revenue for the quarter totaled $688.7 million, increasing 29% from $531.9 million a year earlier. Base Gross Profit nearly doubled to $28.0 million, rising 96% from $14.3 million in the prior-year period. Base Gross Profit Margin improved to 4.1%, compared with 2.7% in the first quarter of 2025.
The improvements were driven largely by geographic diversification initiatives in the U.S. Gas segment and increased higher-value bid work within Union Electric operations. Centuri also benefited from contributions related to the acquisition of Connect Atlantic Utility Services within its Canadian Operations segment.
Revenue growth varied across operating divisions, with Canadian Operations posting the strongest increase. Revenue in the Canadian business climbed 51% year over year to $60.0 million. U.S. Gas revenue rose 44% to $284.5 million, while Non-Union Electric revenue increased 27% to $174.6 million. Union Electric revenue advanced 16% to $204.1 million.
Profitability trends also improved across several business segments. U.S. Gas significantly reduced its gross loss to $6.3 million from $14.9 million a year earlier, reflecting the benefits of efforts to better balance seasonal workloads and diversify geographic exposure. Union Electric posted gross profit growth of more than 54%, reaching $18.2 million compared with $11.8 million in the prior-year quarter.
Canadian Operations also delivered stronger profitability, with gross profit increasing 29% to $9.1 million. Non-Union Electric was the only segment to experience a decline in gross profit, slipping approximately 9% year over year to $14.8 million.
Commercial activity remained exceptionally strong during the quarter. Centuri secured approximately $1.3 billion in total bookings during the first quarter, producing a book-to-bill ratio of 1.8x. The company said bookings included more than $250 million in new bid awards, approximately $180 million in new or expanded Master Service Agreement awards, and nearly $900 million in MSA renewals.
The company’s backlog expanded to a record $6.5 billion at the end of the quarter, representing a 44% increase compared with the same period last year and a 10% increase from year-end 2025 levels. Meanwhile, Centuri’s opportunity pipeline remained robust at approximately $13 billion.
Management stated that the company expects continued healthy booking activity throughout the year and is targeting a full-year 2026 book-to-bill ratio between 1.1x and 1.2x.
Centuri also highlighted continued balance sheet improvement during the quarter. The company’s Net Debt to Adjusted EBITDA ratio improved to 2.7x as of March 29, 2026, compared with 3.5x one year earlier. The reduction reflects stronger earnings generation and ongoing efforts to improve financial flexibility.
Looking ahead, Centuri reaffirmed its previously issued full-year 2026 guidance. The company expects Base Revenue between $3.15 billion and $3.45 billion and Base Gross Profit ranging from $255 million to $285 million.
Including estimated storm restoration work based on historical averages, Centuri projects total 2026 revenue between $3.24 billion and $3.54 billion. The company also reaffirmed expectations for Adjusted EBITDA of $280 million to $310 million and Adjusted Net Income of $55 million to $75 million.
Net capital expenditures for 2026 are expected to range between $75 million and $90 million as the company continues investing in equipment, operational capabilities, and workforce expansion initiatives.
In addition to near-term guidance, Centuri introduced ambitious long-term growth targets extending through 2029. The company expects Base Revenue to grow at a compound annual rate between 10% and 15%, while Base Gross Profit is projected to expand at a compound annual growth rate between 12% and 19%.
Centuri also forecasts Adjusted EBITDA growth between 9% and 17% annually and Adjusted Earnings Per Share growth between 30% and 45% over the same period.
By 2029, the company aims to achieve a Base Gross Profit Margin between 8.7% and 9.7%, significantly above current levels. Additional long-term targets include reducing Net Debt to Adjusted EBITDA to between 1.0x and 2.0x and generating Free Cash Flow conversion from Adjusted EBITDA of 40% to 50%.
Management said the long-term strategy centers on leveraging Centuri’s established customer relationships and core utility infrastructure expertise while selectively expanding into adjacent markets and pursuing strategic acquisitions. The company also plans to strengthen workforce development programs and improve operational support systems to sustain long-term profitable growth.
Executives emphasized that demand fundamentals across utility infrastructure markets remain favorable, driven by aging infrastructure replacement, grid modernization initiatives, energy transition investments, and increasing electrification trends across North America.
Source Link: https://www.businesswire.com/
