Centuri Holdings Reports $724.1 Million Revenue, 7.7% Increase in Latest Quarter

Centuri Holdings, Inc. reported a total revenue of $724.1 million for the fiscal three months ended June 29, 2025, marking a 7.7% increase from $672.1 million in the same period last year. For the fiscal six months, revenue rose to $1.27 billion, up 6.2% from $1.20 billion. The company achieved a gross profit of $67.8 million for the quarter, a 12.1% increase compared to $60.5 million in the prior year, while the gross profit margin improved to 9.4%. However, net income for the quarter decreased by 30.9% to $8.1 million, down from $11.7 million, primarily due to increased selling, general, and administrative expenses, which rose by 39.9% to $29.0 million.

In terms of operational performance, Centuri's U.S. Gas segment experienced a slight revenue decline of 1.1% to $336.8 million, attributed to reduced bid revenue and project timing. Conversely, the Canadian Gas segment saw an 18.1% increase in revenue to $55.1 million, driven by higher master service agreement (MSA) volumes. The Union Electric segment's revenue increased by 11.0% to $182.2 million, while the Non-Union Electric segment reported a significant 24.4% rise to $149.9 million, reflecting increased volumes under existing MSAs.

The company has made strategic moves, including the completion of its initial public offering in April 2024, which raised $327.7 million. Following the IPO, Southwest Gas Holdings reduced its ownership stake in Centuri, which now stands at approximately 52%. This change in ownership has implications for tax reporting, as Centuri will no longer be included in Southwest Gas Holdings' federal tax returns, leading to adjustments in deferred tax assets. Additionally, Centuri has entered into a securitization facility to enhance liquidity, allowing it to sell accounts receivable to improve cash flow.

Looking ahead, Centuri Holdings anticipates continued demand for its services, particularly in light of regulatory requirements for infrastructure upgrades and environmental sustainability initiatives. The company reported a backlog of approximately $5.3 billion, with 92% related to MSAs, indicating a strong pipeline of future work. However, management acknowledged potential challenges, including rising costs for labor and materials, which could impact profitability if not passed on to customers. The company remains focused on maintaining financial flexibility and is well-positioned to navigate the evolving market landscape.