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PRESS RELEASE
Contacts:For Centuri investors, contact:For Centuri media information, contact:
(623) 879-3700Jennifer Russo
Investors@Centuri.com(602) 781-6958
JRusso@Centuri.com
FOR IMMEDIATE RELEASE
May 12, 2025
CENTURI REPORTS FIRST QUARTER 2025 RESULTS, AFFIRMS 2025 OUTLOOK

PHOENIX, AZ – May 12, 2025 - Centuri Holdings, Inc. (NYSE: CTRI) ("Centuri" or the "Company") today announced financial and operating results for the first quarter, ended March 30, 2025, and affirms full year 2025 outlook.

First Quarter 2025 Financial and Other Business Highlights
•Secured record customer awards in excess of $1.2 billion
•Revenue of $550.1 million versus $528.0 million in the first quarter of 2024
•Net loss attributable to common stock of $17.9 million (diluted loss per share of $0.20) versus $25.1 million (diluted loss per share of $0.35) in the first quarter of 2024
•Adjusted Net Loss of $10.5 million (adjusted diluted loss per share of $0.12) versus $14.4 million (adjusted diluted loss per share of $0.20) in the first quarter of 2024
•Adjusted EBITDA of $24.2 million, a 20% improvement above the $20.2 million achieved in the first quarter of 2024
•Completed comprehensive review to optimize opportunity pipeline, business development, and sales functions

“Our financial performance and commercial activity in the first quarter exceeded our expectations, driven by strong customer service delivery and new contract awards. These results reflect the hard work of our team to take action early in the year to focus on our growth priorities," said Centuri President & CEO Christian Brown.

“Since year end, we've made substantial progress on driving greater organizational accountability into each of our operating segments and identifying, developing, and securing new growth opportunities. Specifically, we have been focused on invigorating our sales process and procedures and institutionalizing a growth culture across the company. Our efforts are showing results, as evidenced by our growing opportunities, which are now approaching a total of $12 billion in revenue across both our Gas and Electric end markets. Based on this strong pipeline and recent customer engagements, we expect continued strength in capital spending by our customers despite recent macro uncertainty. Leveraging the strength of our entire platform is already yielding results in our ability to expand our core customer base and identify new opportunities for growth. As of March 30, 2025, our backlog and revenue coverage for fiscal year 2025 increased significantly from the prior period, which enables us to affirm our 2025 outlook while continuing to build momentum and deliver on expectations.”

Management Commentary

Financial results during the first quarter of 2025 increased year-over-year, with revenue increasing by $22.1 million, or 4.2%, and Adjusted EBITDA improving by $4.1 million, or 20.1%, driven by improvement in both Non-union and Union Electric segments. Non-union Electric delivered $40.5 million, or 41.9%, year-over-year revenue growth driven by higher crew counts and work hours in the core electric business. Core Union Electric revenues grew by $39.8 million year-over-year primarily due to increased bid project activity, particularly in industrial and electrical substation infrastructure. Partially offsetting these contributions were expected reductions in offshore wind revenues, which declined by $22.3 million year-over-year, and a year-over-year reduction in the U.S. Gas segment revenue. Additionally, winter weather disruptions had a more pronounced impact on our U.S. Gas business early in the quarter which impacted revenue and
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profitability. However, performance returned to expected levels of revenue and profitability in March. Our Canadian Gas segment continued to exceed expectations delivering solid margins for the period.

During the first quarter of 2025, Centuri booked over $1.2 billion in new awards, comprised of $505 million of new customer contracts and MSA awards (42% of total) and over $700 million of MSA renewals (58% of total). This represented a significant sequential increase compared to the $221 million booked in the fourth quarter of 2024 and was a record quarter for commercial bookings. These bookings drove a book-to-bill ratio of 2.2x, and an increase in backlog to $4.5 billion as of March 30, 2025 from $3.7 billion as of year-end 2024. The Company continues to believe that it can achieve a book-to-bill ratio that is in excess of 1.1x in 2025.

Centuri's net debt to adjusted EBITDA ratio was 3.5x as of March 30, 2025, which improved from 3.6x as of December 29, 2024 and is in line with expectations.


Affirming Full Year 2025 Outlook
•Revenue outlook of $2.60 to $2.80 billion
•Adjusted EBITDA of $240 to $275 million
•Net capital expenditures of $65 to $80 million

See the first quarter earnings release slides for details on certain key assumptions associated with our Full Year 2025 Outlook.
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Centuri Holdings, Inc.
Supplemental Segment Data
(In thousands, except percentages)
(Unaudited)
Segment Results

Fiscal three months ended March 30, 2025 compared to the fiscal three months ended March 31, 2024

Fiscal Three Months EndedChange
(dollars in thousands)March 30, 2025March 31, 2024$%
Revenue:  
U.S. Gas$197,694 35.9 %$226,578 42.9 %$(28,884)(12.7 %)
Canadian Gas39,784 7.2 %40,979 7.8 %(1,195)(2.9 %)
Union Electric175,468 31.9 %163,851 31.0 %11,617 7.1 %
Non-Union Electric137,135 25.0 %96,615 18.3 %40,520 41.9 %
Consolidated revenue$550,081 100.0 %$528,023 100.0 %$22,058 4.2 %
Gross profit:  
U.S. Gas$(14,856)(7.5 %)$(3,976)(1.8 %)$(10,880)273.6 %
Canadian Gas7,079 17.8 %3,086 7.5 %3,993 129.4 %
Union Electric11,813 6.7 %11,369 6.9 %444 3.9 %
Non-Union Electric16,292 11.9 %2,800 2.9 %13,492 481.9 %
Consolidated gross profit$20,328 3.7 %$13,279 2.5 %$7,049 53.1 %


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Conference Call Information

Centuri will conduct a conference call today, Monday, May 12, 2025 at 10:00 AM ET / 7:00 AM PT to discuss its first quarter 2025 financial results and other business highlights. The conference call will be webcast live on the Company's investor relations (IR) website at https://investor.centuri.com. The conference call can also be accessed via phone by dialing (800) 549-8228, or for international callers, (289) 819-1520. A supplemental investor presentation will also be available on the IR website prior to the start of the conference call. The earnings call will also be archived on the IR website and a replay of the call will be available by dialing (888) 660-6264 in the U.S., or (289) 819-1325 internationally and entering passcode 29379 #. The replay dial-in feature will be made available one hour after the call’s conclusion and will be active for 12 months.

About Centuri

Centuri Holdings, Inc. is a strategic utility infrastructure services company that partners with regulated utilities to build and maintain the energy network that powers millions of homes and businesses across the United States and Canada.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can often be identified by the use of words such as “will,” “predict,” “continue,” “forecast,” “expect,” “believe,” “anticipate,” “outlook,” “could,” “target,” “project,” “intend,” “plan,” “seek,” “estimate,” “should,” “may” and “assume,” as well as variations of such words and similar expressions referring to the future. The specific forward-looking statements made herein include (without limitation) statements regarding our belief that, in the near term, the Company is well positioned to pursue its strategic priorities, inclusive of increasing MSA and new contract awards; our estimation that awards secured in the most recent quarter represent more than $1.2 billion in potential revenue; our estimation of the value of our backlog; our expectation that there will be continued strength in capital spending by our customers despite recent macro uncertainty; our expectation that we will deliver a book-to-bill ratio in excess of 1.1x in 2025; our belief that today's energy markets offer tremendous growth potential for Centuri with both existing and new customers; and the number ranges presented in our Full Year 2025 Outlook. A number of important factors affecting the business and financial results of Centuri could cause actual results to differ materially from those stated in the forward-looking statements. These factors include, but are not limited to, capital market risks and the impact of general economic or industry conditions. Factors that could cause actual results to differ also include (without limitation) those discussed in Centuri’s filings filed from time to time with the U.S. Securities and Exchange Commission. The statements in this press release are made as of the date of this press release, even if subsequently made available by Centuri on its website or otherwise. Centuri does not assume any obligation to update the forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.

Backlog

Backlog represents contracted revenue on existing bid agreements as well as estimates of revenue to be realized over the contractual life of existing long-term MSAs. The contractual life of an MSA is defined as the stated length of the contract including any renewal options stated in the contract that we believe our customers are reasonably certain to execute.

Book-to-bill

Book-to-bill represents the ratio of total awards won in a period to total revenue recognized in the same period.
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Non-GAAP Financial Measures

We prepare and present our financial statements in accordance with GAAP. However, management believes that EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Loss, Adjusted Diluted Loss per Share, and Net Debt to Adjusted EBITDA Ratio, all of which are measures not presented in accordance with GAAP, provide investors with additional useful information in evaluating our performance. We use these non-GAAP measures internally to evaluate performance and to make financial, investment and operational decisions. We believe that presentation of these non-GAAP measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparisons of results. Management also believes that providing these non-GAAP measures helps investors evaluate the Company’s operating performance, profitability and business trends in a way that is consistent with how management evaluates such matters.

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for (i) non-cash stock-based compensation expense, (ii) separation-related costs, (iii) strategic review costs, (iv) severance costs, (v) securitization facility transaction fees, and (vi) CEO transition costs. Adjusted EBITDA Margin is defined as the percentage derived from dividing Adjusted EBITDA by revenue. Management believes that EBITDA helps investors gain an understanding of the factors affecting our ongoing cash earnings from which capital investments are made and debt is serviced, and that Adjusted EBITDA provides additional insight by removing certain expenses that are non-recurring and/or non-operational in nature. Management believes that Adjusted EBITDA Margin is useful for the same reason as Adjusted EBITDA, and also provides an additional understanding of how Adjusted EBITDA is impacted by factors other than changes in revenue. Because these non-GAAP metrics, as defined, exclude some, but not all, items that affect comparable GAAP financial measures, these non-GAAP metrics may not be comparable to similarly titled measures of other companies.

Net Debt to Adjusted EBITDA Ratio is calculated by dividing net debt as of the latest balance sheet date by the trailing twelve months of Adjusted EBITDA. Net debt is defined as the sum of all bank debt on the balance sheet and finance lease liabilities, net of cash. Management believes this ratio helps investors understand the extent to which our business is leveraged.

Adjusted Net Loss is defined as net loss adjusted for (i) separation-related costs, (ii) strategic review costs, (iii) severance costs, (iv) amortization of intangible assets, (v) non-cash stock-based compensation expense, and (vi) the income tax impact of adjustments that are subject to tax, which is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods. Management believes that Adjusted Net Loss helps investors understand the profitability of our business when excluding certain expenses that are non-recurring and/or non-operational in nature. Adjusted Dilutive Loss per Share is defined as Adjusted Net Loss divided by weighted average diluted shares outstanding.

Using EBITDA as a performance measure has material limitations as compared to net loss, or other financial measures as defined under GAAP, as it excludes certain recurring items, which may be meaningful to investors. EBITDA excludes interest expense net of interest income; however, as we have borrowed money to finance transactions and operations, or invested available cash to generate interest income, interest expense and interest income are elements of our cost structure and can affect our ability to generate revenue and returns for our stockholders. Further, EBITDA excludes depreciation and amortization; however, as we use capital and intangible assets to generate revenue, depreciation and amortization are necessary elements of our costs and ability to generate revenue. Finally, EBITDA excludes income taxes; however, as we are organized as a corporation, the payment of taxes is a necessary element of our operations. As a result of these exclusions from EBITDA, any measure that excludes interest expense net of interest income, depreciation and amortization and income taxes has material limitations as compared to net loss. When using EBITDA as a performance measure, management compensates for these limitations by comparing EBITDA to net loss in each period, to allow for the comparison of the performance of the underlying core operations with the overall performance of the Company on a full-cost, after-tax basis.

As to certain of the items related to these non-GAAP metrics: (i) non-cash stock-based compensation expense varies from period to period due to changes in the estimated fair value of performance-based awards, forfeitures and amounts granted; (ii) separation-related costs represent expenses incurred post-Centuri IPO in connection with the separation and stand up of Centuri as its own public company, including costs incurred in connection with the establishment of Centuri’s Unutilized Tax Assets Agreement with Southwest Gas Holdings and under other separation-related agreements, which are not reflective of our ongoing operations and will not recur following the full separation from Southwest Gas Holdings; (iii) strategic review costs represent costs incurred during the Centuri IPO and related costs incurred to establish Centuri as a public company leading up to the IPO; (iv) severance costs relate to non-recurring restructuring activities; (v) securitization facility transaction fees represent legal and other professional fees incurred to establish our Securitization Facility and (vi) CEO transition costs represent incremental costs incurred to find and hire a replacement CEO.
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Centuri Holdings, Inc.
Reconciliation of Non-GAAP Financial Measures
(In thousands unless otherwise noted)
(Unaudited)

The most comparable GAAP financial measure and information reconciling the GAAP and non-GAAP financial measures are set forth below.

Fiscal Three Months Ended
Fiscal Year Ended
(dollars in thousands)March 30, 2025March 31, 2024December 29, 2024
Net loss$(17,924)$(25,233)$(6,822)
Interest expense, net17,862 24,099 90,515 
Income tax (benefit) expense
(13,131)(20,773)3,466 
Depreciation expense27,557 27,651 108,703 
Amortization of intangible assets6,666 6,668 26,642 
EBITDA21,030 12,412 222,504 
Non-cash stock-based compensation1,587 (588)2,231 
Separation-related costs1,611 — — 
Strategic review costs— 3,877 2,010 
Severance costs— 4,471 8,028 
Securitization facility transaction fees— — 1,393 
CEO transition costs— — 2,060 
Adjusted EBITDA$24,228 $20,172 $238,226 
Adjusted EBITDA Margin (% of revenue)4.4 %3.8 %9.0 %


Fiscal Three Months Ended
(dollars in thousands)March 30, 2025March 31, 2024
Net loss$(17,924)$(25,233)
Separation-related costs1,611 — 
Strategic review costs— 3,877 
Severance costs— 4,471 
Amortization of intangible assets6,666 6,668 
Non-cash stock-based compensation1,587 (588)
Income tax impact of adjustments(1)
(2,466)(3,607)
Adjusted Net Loss$(10,526)$(14,412)
(1)Calculated based on a blended statutory tax rate of 25%.

















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Centuri Holdings, Inc.
Reconciliation of Non-GAAP Financial Measures
(In thousands unless otherwise noted)
(Unaudited)
Fiscal Three Months Ended
(dollars per share)March 30, 2025March 31, 2024
Diluted loss per share attributable to common stock (GAAP as reported)$(0.20)$(0.35)
Separation-related costs0.02 — 
Strategic review costs— 0.05 
Severance costs— 0.06 
Amortization of intangible assets0.07 0.10 
Non-cash stock-based compensation0.02 (0.01)
Income tax impact of adjustments
(0.03)(0.05)
Adjusted Diluted Loss per Share$(0.12)$(0.20)

(dollars in thousands, except Net Debt to Adjusted EBITDA ratio)March 30, 2025December 29, 2024
Debt
Current portion of long-term debt$28,932 $30,018 
Current portion of finance lease liabilities8,558 9,331 
Long-term debt, net of current portion724,723 730,330 
Line of credit97,820 113,533 
Finance lease liabilities, net of current portion13,135 15,009 
Total debt$873,168 $898,221 
Less: Cash and cash equivalents(15,255)(49,019)
Net debt$857,913 $849,202 
Trailing twelve month Adjusted EBITDA$242,282 $238,226 
Net Debt to Adjusted EBITDA ratio (1)
3.53.6
(1)This net debt to adjusted EBITDA ratio may differ slightly from the net leverage ratio calculated for the purposes of the revolving credit facility.



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Centuri Holdings, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share information)
(Unaudited)
Fiscal Three Months Ended
March 30, 2025March 31, 2024
Revenue$528,972 $504,745 
Revenue, related party - parent 21,109 23,278 
Total revenue, net550,081 528,023 
Cost of revenue (including depreciation)509,377 492,853 
Cost of revenue, related party - parent (including depreciation)20,376 21,891 
Total cost of revenue529,753 514,744 
Gross profit20,328 13,279 
Selling, general and administrative expenses26,375 28,550 
Amortization of intangible assets6,666 6,668 
Operating loss(12,713)(21,939)
Interest expense, net17,862 24,099 
Other expense (income), net480 (32)
Loss before income taxes(31,055)(46,006)
Income tax benefit(13,131)(20,773)
Net loss(17,924)(25,233)
Net income (loss) attributable to noncontrolling interests13 (175)
Net loss attributable to common stock$(17,937)$(25,058)
    
Loss per share attributable to common stock:    
Basic$(0.20)$(0.35)
Diluted$(0.20)$(0.35)
Shares used in computing earnings per share:  
Weighted average basic shares outstanding88,51871,666
Weighted average diluted shares outstanding88,51871,666
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Centuri Holdings, Inc.
Condensed Consolidated Balance Sheets
(In thousands, except share information)
(Unaudited)
March 30,
2025		December 29,
2024
ASSETS
Current assets:
Cash and cash equivalents$15,255 $49,019 
Accounts receivable, net206,674 271,793 
Accounts receivable, related party - parent, net441 9,648 
Contract assets270,258 235,546 
Contract assets, related party - parent2,326 2,623 
Prepaid expenses and other current assets41,126 32,755 
Total current assets536,080 601,384 
Property and equipment, net501,053 511,314 
Intangible assets, net334,277 340,901 
Goodwill, net368,378 368,302 
Right-of-use assets under finance leases31,646 33,790 
Right-of-use assets under operating leases107,922 104,139 
Other assets113,261 114,560 
Total assets$1,992,617 $2,074,390 
LIABILITIES, TEMPORARY EQUITY AND EQUITY
Current liabilities:
Current portion of long-term debt$28,932 $30,018 
Current portion of finance lease liabilities8,558 9,331 
Current portion of operating lease liabilities19,543 18,695 
Accounts payable115,977 125,726 
Accrued expenses and other current liabilities142,105 173,584 
Contract liabilities25,364 24,975 
Total current liabilities340,479 382,329 
Long-term debt, net of current portion724,723 730,330 
Line of credit97,820 113,533 
Finance lease liabilities, net of current portion13,135 15,009 
Operating lease liabilities, net of current portion94,664 91,739 
Deferred income taxes115,117 115,114 
Other long-term liabilities65,448 66,115 
Total liabilities1,451,386 1,514,169 
Temporary equity:
Redeemable noncontrolling interests4,682 4,669 
Equity:
Common stock, $0.01 par value, 850,000,000 shares authorized, 88,517,521 shares issued and outstanding at March 30, 2025 and December 29, 2024
885 885 
Additional paid-in capital717,464 718,598 
Accumulated other comprehensive loss(13,116)(13,209)
Accumulated deficit(168,684)(150,722)
Total equity536,549 555,552 
Total liabilities, temporary equity and equity$1,992,617 $2,074,390 
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Centuri Holdings, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)

Fiscal Three Months Ended
March 30,
2025		March 31,
2024
Net cash provided by (used in) operating activities$16,676 $(26,451)
Cash flows from investing activities:
 
 
Capital expenditures(24,362)(26,261)
Proceeds from sale of property and equipment1,154 1,624 
Net cash used in investing activities(23,208)(24,637)
Cash flows from financing activities:
 
 
Proceeds from line of credit borrowings39,756 55,896 
Payment of line of credit borrowings(55,544)(5,931)
Principal payments on long-term debt(7,876)(10,557)
Principal payments on finance lease liabilities(2,648)(2,914)
Redemption of redeemable noncontrolling interest— (37)
Other(931)(173)
Net cash (used in) provided by financing activities(27,243)36,284 
Effects of foreign exchange translation11 (198)
Net decrease in cash and cash equivalents(33,764)(15,002)
Cash and cash equivalents, beginning of period49,019 33,407 
Cash and cash equivalents, end of period$15,255 $18,405 




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