Centuri Holdings Reports 18.1% Revenue Growth to $850M in Latest Quarter

Centuri Holdings, Inc. reported significant financial performance in its latest quarterly filing, with total revenue reaching $850.0 million for the fiscal three months ended September 28, 2025, an increase of 18.1% from $720.1 million in the same period last year. For the nine-month period, revenue rose to $2.1 billion, up 10.6% from $1.9 billion. The company achieved a net income of $2.1 million, a notable recovery from a net loss of $3.6 million in the prior year quarter. This improvement reflects a strategic focus on enhancing operational efficiency and expanding service offerings.

The company experienced a 19.8% increase in the cost of revenue, which totaled $772.1 million for the quarter, leading to a gross profit of $78.0 million, slightly up from $75.8 million year-over-year. Selling, general, and administrative expenses also rose by 28.5% to $35.0 million, primarily due to increased stock-based compensation and costs associated with operating as a standalone public company. Despite these rising costs, Centuri's operating income was $36.3 million, although it represented a decline from $41.9 million in the previous year.

Strategically, Centuri has been active in expanding its market presence and service capabilities. The company reported a backlog of approximately $5.9 billion as of September 28, 2025, with 86% related to master service agreements (MSAs). This backlog indicates a strong pipeline of future revenue, driven by ongoing demand for utility infrastructure services. The company has also been focusing on enhancing its service offerings to meet environmental objectives, which aligns with increasing regulatory requirements for utility infrastructure.

Operationally, Centuri's U.S. Gas segment generated $412.4 million in revenue, marking a 12.7% increase, while the Canadian Gas segment saw a 38.7% rise to $74.2 million. The Union Electric and Non-Union Electric segments also reported revenue increases of 25.0% and 15.6%, respectively. The company noted that its Canadian operations accounted for approximately 8% of total revenue, reflecting its geographic diversification. Employee headcount has also increased as the company continues to expand its workforce to meet growing demand.

Looking ahead, Centuri Holdings anticipates continued growth driven by increased demand for utility infrastructure services, particularly in light of regulatory changes and the need for modernization of aging infrastructure. The company believes it is well-positioned to capitalize on these trends, although it acknowledges potential challenges such as rising material costs and labor market constraints. Management remains optimistic about the company's ability to navigate these challenges while delivering value to its customers and shareholders.