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Centuri Holdings, Inc. (CTRI)
NYSE:CTRI
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Centuri Holdings, Inc.
(NYSE:CTRI)
42Neutral
Positive Factors
Cost Management
Cost-saving measures and operational improvements are expected to benefit the company, with potential for increased efficiency.
Leadership Stability
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.
Leadership Transition
The unexpected departure of CTRI's CEO Bill Fehrman will catch investors off guard, given his short tenure.
Market Conditions
Ongoing revenue pressures from reduced utility spending and challenging market conditions have impacted financial performance.
Centuri Holdings, Inc. (CTRI) vs. S&P 500 (SPY)
Market Cap
$1.40B
Dividend YieldN/A
Average Volume (3M)401.10K
Price to Earnings (P/E)―
Beta (1Y)1.87
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees8,687
SectorGeneral
Sector StrengthN/A
IndustryRegulated Gas
Share Statistics
EPS (TTM)-0.07
Shares Outstanding88,517,525
10 Day Avg. Volume388,589
30 Day Avg. Volume401,104
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.53
Price to Cash Flow (P/CF)5.70
P/FCF Ratio12.50
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$20.50Price Target Upside29.50% Upside
Rating ConsensusHold
Number of Analyst Covering4
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 MoneyCenturi Holdings, Inc. generates revenue through contracts with utility companies and municipalities for infrastructure services. Their key revenue streams include maintenance and repair services, infrastructure replacement projects, and new construction for energy and utility systems. The company benefits from long-term contracts and partnerships with major utility providers, which ensure a steady flow of projects and income. Additionally, Centuri Holdings capitalizes on regulatory requirements for infrastructure upgrades and safety compliance, which drive consistent demand for their services.
Centuri Holdings, Inc. Financial Statement Overview
Summary
Centuri Holdings, Inc. is facing financial difficulties with declining revenue, negative profitability, and a weakened balance sheet. Despite resilient operating cash flow, the company must enhance profitability and reduce leverage to stabilize its financial position.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 | ||
| 2.53B | 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 |
| 86.78M | 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 |
| 30.02M | 1.31B | 1.33B | 1.36B | Net Debt |
| 30.02M | 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
Neutral
15.83
Price Trends
19.44
Negative
19.83
Negative
19.27
Negative
Market Momentum
-0.80
Negative
47.77
Neutral
61.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CTRI, the sentiment is Neutral. The current price of 15.83 is below the 20-day moving average (MA) of 16.59, below the 50-day MA of 19.44, and below the 200-day MA of 19.27, indicating a neutral trend. The MACD of -0.80 indicates Negative momentum. The RSI at 47.77 is Neutral, neither overbought nor oversold. The STOCH value of 61.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CTRI.
Centuri Holdings, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $18.77B | 18.36 | 37.25% | 0.25% | 15.76% | 61.64% | |
72 Outperform | $10.44B | 64.08 | 5.80% | ― | 2.56% | ― | |
72 Outperform | $41.26B | 44.48 | 13.32% | 0.14% | 13.36% | 20.00% | |
71 Outperform | $12.52B | 24.11 | 35.03% | 0.34% | 34.97% | 62.08% | |
61 Neutral | $4.53B | 19.74 | 20.35% | ― | 12.61% | 7.43% | |
55 Neutral | $4.58B | -19.70 | -4.70% | 5.70% | 27.38% | -68.17% | |
42 Neutral | $1.40B | ― | -82.38% | ― | ― | ― |
* General Sector Average
Performance Comparison
CTRI
Centuri Holdings, Inc.
17.14
-6.81
-28.43%
FIX
Comfort Systems
379.24
62.21
19.62%
DY
Dycom
161.57
19.65
13.85%
EME
EMCOR Group
412.85
62.52
17.85%
MTZ
MasTec
131.68
40.11
43.80%
PWR
Quanta Services
278.40
19.56
7.56%
Centuri Holdings, Inc. Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -15.71% | Next Earnings Date: May 7, 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.Highlights
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.
Lowlights
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
Executive/Board Changes
Centuri Holdings Appoints Kendra Chilton as New Accounting Officer
Neutral
Nov 21, 2024
Kendra Chilton has been appointed as Centuri Holdings’ principal accounting officer, replacing Gregory A. Izenstark, who remains the company’s CFO. Chilton brings extensive experience from her previous roles at PricewaterhouseCoopers, enhancing her credentials with a strong educational background in accounting and finance. Her appointment is not accompanied by any new material contracts or personal connections within the company’s executive team.
Executive/Board ChangesBusiness Operations and Strategy
Centuri Holdings Welcomes New CEO Christian Brown
Positive
Nov 5, 2024
Christian Brown has been appointed as President and CEO of Centuri Holdings, bringing extensive experience in the energy and infrastructure sectors. His strategic leadership is expected to drive Centuri’s growth, leveraging his track record of enhancing financial performance through organic growth and acquisitions. Brown’s expertise is anticipated to strengthen Centuri’s role as a key player in the utility infrastructure market, as the company continues to support utilities in modernizing their networks.
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.