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Centuri Holdings, Inc. (CTRI)
:CTRI
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Centuri Holdings, Inc.
(NYSE:CTRI)
Rating:50Neutral
Price Target:
$18.50
▼( -0.48% Downside)
Positive Factors
Cost Savings
Cost saving initiatives on track, should improve FCF.
Leadership and Strategy
A CEO announcement establishes permanent leadership and cost/capex savings are supporting margins and improving FCF conversion.
Negative Factors
Earnings Performance
Centuri reported weaker than expected Q3 results, with revenue and Adj. EBITDA both falling below consensus estimates.
Management Changes
The unexpected departure of CTRI's CEO Bill Fehrman will catch investors off guard, given his short tenure.
Revenue Challenges
Gas demand remains muted, leading to a decline in gas revenue across segments.
Centuri Holdings, Inc. (CTRI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.65B
Dividend YieldN/A
Average Volume (3M)539.15K
Price to Earnings (P/E)1770.5
Beta (1Y)1.14
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees8,687
SectorGeneral
Sector StrengthN/A
IndustryRegulated Gas
Share Statistics
EPS (TTM)-0.12
Shares Outstanding88,649,040
10 Day Avg. Volume1,030,152
30 Day Avg. Volume539,153
Financial Highlights & Ratios
PEG Ratio-2.88
Price to Book (P/B)3.40
Price to Sales (P/S)0.00
P/FCF Ratio32.07
Enterprise Value/Market Cap1.73
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit14.36
Enterprise Value/Ebitda61.03
Forecast
1Y Price Target
$20.13Price Target Upside8.28% Upside
Rating ConsensusHold
Number of Analyst Covering5
Centuri Holdings, Inc. Business Overview & Revenue Model
Company DescriptionCenturi is a strategic infrastructure services company that partners with regulated utilities to build and maintain the energy network that powers millions of homes and businesses across the U.S. and Canada. Guided by our values and unwavering commitment to serve as long term partners to customers and communities, Centuri¿s more than 12,000 employees enable our customers to safely and reliably deliver electricity and natural gas as well as achieve their goals for environmental sustainability. Centuri is a subsidiary of Southwest Gas Holdings, Inc.
How the Company Makes Moneynull
Centuri Holdings, Inc. Financial Statement Overview
Summary
Centuri Holdings, Inc. faces financial difficulties with declining revenue, negative profitability, and a weakened balance sheet. The income statement shows declining revenues and a negative net profit margin, while the balance sheet reflects zero stockholders' equity and high leverage. However, the cash flow statement indicates some resilience with operating cash flow, despite negative net income.Income Statement
The income statement reflects a challenging period for Centuri Holdings, Inc. with declining revenues from $2.9 billion in 2023 to $2.5 billion in 2024. The gross profit margin decreased from 9.44% in 2023 to 8.72% in 2024, and the net profit margin remains negative, indicating profitability issues. EBIT margin improved from -2.68% in 2023 to 3.43% in 2024, but EBITDA margin showed slight improvement. Overall, the company faces growth and profitability challenges.42
Neutral
Balance Sheet
Centuri Holdings, Inc. shows a concerning balance sheet with zero stockholders' equity in 2024, indicating potential financial instability. The debt-to-equity ratio is undefined, reflecting high leverage, and the return on equity cannot be calculated due to the lack of equity. The company needs to address its balance sheet health to improve potential risks associated with high leverage.30
Negative
Cash Flow
Cash flow analysis reveals a resilient operating cash flow, which decreased slightly from $167 million in 2023 to $158 million in 2024. Free cash flow showed a minor decline, but the free cash flow to net income ratio improved due to lower negative net income. The operating cash flow to net income ratio indicates the company's ability to generate cash despite negative profits, but capital expenditures remain a significant outflow.56
Neutral
| Breakdown | |||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|
| Income Statement | Total Revenue | ||
| 2.64B | 2.90B | 2.76B | 2.16B | Gross Profit |
| 220.67M | 273.44M | 180.05M | 186.05M | EBIT |
| 86.78M | -77.56M | 81.71M | 99.53M | EBITDA |
| 241.46M | 85.32M | 67.50M | 229.05M | Net Income Common Stockholders |
| -6.72M | -186.18M | -168.15M | 40.51M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||
| 49.02M | 33.41M | 63.97M | 114.71M | Total Assets |
| 2.07B | 2.19B | 2.56B | 2.57B | Total Debt |
| 1.01B | 1.31B | 1.33B | 1.36B | Net Debt |
| 959.64M | 1.28B | 1.27B | 1.25B | Total Liabilities |
| 1.51B | 1.86B | 2.01B | 1.89B | Stockholders Equity |
| 555.55M | 225.99M | 386.75M | 479.61M |
| Cash Flow | Free Cash Flow | ||
| 58.90M | 60.81M | -34.96M | -937.00K | Operating Cash Flow |
| 158.23M | 167.47M | 94.63M | 109.48M | Investing Cash Flow |
| -89.38M | -94.85M | -156.71M | -916.58M | Financing Cash Flow |
| -52.62M | -103.45M | 12.20M | 883.54M |
Centuri Holdings, Inc. Technical Analysis
Negative
18.59
Price Trends
17.77
Positive
18.87
Negative
18.54
Positive
Market Momentum
0.37
Positive
48.22
Neutral
20.30
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRI, the sentiment is Negative. The current price of 18.59 is below the 20-day moving average (MA) of 19.34, above the 50-day MA of 17.77, and above the 200-day MA of 18.54, indicating a neutral trend. The MACD of 0.37 indicates Positive momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 20.30 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CTRI.
Centuri Holdings, Inc. Risk Analysis
Centuri Holdings, Inc. disclosed 71 risk factors in its most recent earnings report. Centuri Holdings, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Centuri Holdings, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.63B | 16.05 | 7.36% | 4.78% | 3.88% | 11.80% | |
68 Neutral | $219.53M | 16.54 | 11.60% | 3.88% | 9.74% | -1.29% | |
67 Neutral | $2.82B | 22.40 | 9.04% | 2.09% | 20.41% | 13.64% | |
63 Neutral | $1.23B | 13.08 | 14.42% | 6.85% | 4.02% | -14.66% | |
57 Neutral | $4.81B | 19.87 | -17.81% | 5.21% | 13.60% | -27.95% | |
54 Neutral | $769.08M | 11.07 | -28.47% | 15.32% | -15.03% | -201.87% | |
50 Neutral | $1.65B | 1,770.48 | 0.11% | ― | ― | ― |
* General Sector Average
Performance Comparison
CTRI
Centuri Holdings, Inc.
18.64
-7.76
-29.39%
CPK
Chesapeake Utilities
121.03
14.96
14.10%
NWN
Northwest Gas
40.45
5.91
17.11%
RGCO
Rgc Resources
20.85
1.42
7.31%
SPH
Suburban Propane
19.16
1.29
7.22%
NFE
New Fortress Energy
2.78
-22.00
-88.78%
Centuri Holdings, Inc. Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q3-2024)
| % Change Since: -12.89%|
Next Earnings Date:Aug 04, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with significant achievements in strategic awards and cost savings, offset by revenue declines and challenges in key segments such as U.S. Gas and Union Electric. Despite some positive developments, including strong storm restoration performance and leadership changes, the financial setbacks and reduction in backlog temper the overall outlook.Q3-2024 Updates
Positive Updates
CEO Appointment
Chris Brown appointed as CEO, bringing significant experience in leading large organizations in the energy sector.
Strategic Bid Awards
Secured $347 million in new awards, including $206 million in MSA awards and $140 million in strategic bid awards.
Growth in Non-Union Electric Segment
Non-union Electric segment revenue increased by 16.4% year-over-year, driven by improved productivity and higher storm revenues.
Strong Performance in Storm Restoration Services
Generated $87 million in revenues from storm restoration services in the first three quarters of 2024, about 4% higher than the same period in 2023.
SG&A Cost Reduction
Expected annualized savings of $29 million by 2025 from cost reduction initiatives, benefiting Q3 results by approximately $6.4 million.
Accounts Receivable Securitization
Entered a $125 million accounts receivable securitization facility, helping to lower interest expenses.
Negative Updates
Revenue and Profit Decline
Consolidated revenues declined 7.1% and consolidated gross profit was 13.5% lower compared to the same period last year.
U.S. Gas Segment Challenges
U.S. Gas segment revenue decreased by 7.5% and gross profit margin dropped from 13.2% to 7.6% due to subdued MSA spending and equipment issues.
Union Electric Segment Decline
Union Electric revenues declined 15.9% year-over-year, primarily due to the cancellation of offshore wind projects.
Backlog Decrease
Backlog decreased from $4.7 billion at the end of Q2 to $4.3 billion at the end of Q3 due to timing of MSA renewals.
Net Loss in Q3
Reported a net loss of $3.7 million or a diluted loss per share of $0.04, compared to a net income of $16.2 million in the prior year period.
Company Guidance
During Centuri's third quarter earnings call for 2024, the company provided several key metrics and guidance that reflect its current operational and financial strategies. The call highlighted a decline in consolidated revenues by 7.1% year-over-year, with a 13.5% decrease in gross profit and a decline in the gross profit margin to 10.5% from 11.3% in the prior year. The company outlined cost-saving initiatives, expecting annualized savings of $29 million in 2025, with $6.4 million already benefiting the third quarter results. Notably, Centuri secured $347 million in new awards during the quarter, comprising $206 million in master service agreements (MSAs) and $140 million in strategic bid awards. Additionally, storm restoration services generated $41.4 million in revenue in Q3, contributing to a total of $87 million for the first three quarters. Despite challenges in the gas segment due to subdued MSA spending, the company reiterated its full-year guidance, maintaining a focus on diversified growth in electric infrastructure services and cost control. Centuri ended the quarter with a backlog of $4.3 billion and a net debt to adjusted EBITDA ratio of 3.9x, showing progress in de-levering its balance sheet.Centuri Holdings, Inc. Corporate Events
Private Placements and FinancingRegulatory Filings and Compliance
Centuri Holdings Underwriting Agreement with J.P. Morgan
Neutral
May 22, 2025
On May 19, 2025, Centuri Holdings, Inc. entered into a Registration Rights Letter Agreement with Icahn Investors, granting them certain resale registration rights related to a Concurrent Private Placement. The company agreed to register the resale of shares sold to Icahn Investors within 181 days of the placement’s completion. Additionally, on May 20, 2025, Centuri Holdings entered into an Underwriting Agreement with J.P. Morgan Securities LLC and other underwriters for an offering. The agreement includes a 45-day lock-up period for selling or transferring Centuri Common Stock, with customary representations and indemnification obligations.
The most recent analyst rating on (CTRI) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Centuri Holdings, Inc. stock, see the CTRI Stock Forecast page.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.