Centuri Holdings, Inc.

Centuri reported first-quarter revenue of $723 million, base revenue of $689 million, gross profit of $36 million, base gross profit of $28 million, and base gross profit margin of 4.1%, versus 2.7% a year ago. Net loss attributable to common stock was $9 million, or $0.09 per share, compared with a $18 million loss, or $0.20 per share, last year; adjusted net loss was $2 million, or $0.02 per share, versus a $11 million loss, or $0.12 per share, and adjusted EBITDA was $33 million, up 35% year over year. Bookings were $1.3 billion, or 1.8x book-to-bill, and net debt to adjusted EBITDA was 2.7x, down from 3.5x a year ago. For 2026, the company reiterated base revenue guidance of $3.15 billion to $3.45 billion, base gross profit of $255 million to $285 million, revenue of $3.24 billion to $3.54 billion, adjusted EBITDA of $280 million to $310 million, adjusted net income of $55 million to $75 million, free cash flow above $60 million, SG&A around 4% of revenue, and net CapEx of $75 million to $90 million.

Chris Brown framed the quarter as evidence that the company’s “One Centuri” strategy is taking hold, calling 2025 an inflection year and emphasizing a shift away from legacy utility-parent priorities toward a unified, growth-oriented organization. He said the business does not need a strategic pivot; instead, it should deepen its core MSA business, expand into adjacent markets like data centers and transmission, and use acquisitions selectively. His tone was confident and constructive, but repeatedly conservative on guidance, saying the company prefers to underpromise and maintain a low-risk profile.

Greg Izenstark highlighted strong year-over-year operating improvements: revenue up 31%, base gross profit up 76%, base gross profit margin at 4.1% versus 2.7% last year, and adjusted EBITDA up 35% to $33 million. He said cash usage was driven mainly by working-capital timing, with net cash used in operations of $35 million and free cash flow of negative $54 million, but reaffirmed full-year free cash flow should exceed $60 million. He also noted SG&A was $33 million, up about $6 million year over year but down 25 basis points as a percent of revenue, and said leverage was 2.7x at quarter-end with a forecast of around 2x by year-end.

Analysts pressed management on why full-year revenue guidance was unchanged despite 31% Q1 growth and a 1.8x book-to-bill; Brown said the company was simply being conservative and that first-quarter strength, backlog coverage, and pending bids support the range. Questions also focused on the long-term model, including why EBITDA CAGR trails gross profit CAGR; Izenstark said the 50/50 buy-versus-lease fleet plan creates some EBITDA headwind even as it improves free cash flow, partially offset by G&A leverage. Analysts asked about data center pipeline visibility, pipeline mix, and 2027 visibility; management said about $300 million of data center work is currently being negotiated, the pipeline quality is strong, and coverage for 2027 is trending better than a year ago.