Centuri Reports Third Quarter 2026 Results, Achieves Record Quarterly Revenue & Gross Profit and Delivers Margin Expansion

PHOENIX--(BUSINESS WIRE)--Centuri Holdings, Inc. (NYSE: CTRI) ("Centuri" or the "Company") today announced financial and operating results for the third quarter ended September 27, 2026.

Third Quarter 2026 Results and Highlights

• Achieved company record quarterly Revenue of $1.2 billion, a 40% increase versus the third quarter of 2025
• Produced record quarterly Gross Profit of $113.4 million, a 45% increase from the same period last year
• Delivered a Gross Profit margin of 9.5%, up from 9.2% in the prior year period
• Generated incremental gross profit margin of 10.4% on a $342.0 million year-over-year revenue increase
• Reported Net Income of $26.9 million and Adjusted Net Income of $42.5 million, 1,174% and 155% higher than last year's same-period, respectively
• Recorded Adjusted EBIT of $73.0 million, a 79% increase year-over-year, and a 6.1% Adjusted EBIT margin
• Realized Adjusted EBITDA of $108.0 million, a 44% increase year-over-year, and a 9.1% Adjusted EBITDA margin
• Expanded opportunity pipeline to a record $19 billion, highlighting continued end-market strength

Year-to-date 2026 Results Summary

• Revenue of $2.9 billion, 35% higher than last year
• Gross Profit of $218.3 million and Adjusted Gross Profit of $227.2 million, 31% and 37% higher than last year, respectively

Preliminary 2027 Targets

• Initial 2027 targets of mid-teens Revenue percent growth and 8.5% to 9% Gross Profit Margin
• Current 2027 Revenue coverage of over $3.7 billion

"I am very pleased with our third quarter results that clearly demonstrate that investments made to build greater scale and capacity during the first half of the year, including our workforce additions, delivered the benefits we expected as productivity and efficiency improved across our operations," said Centuri President & CEO Christian Brown. "These investments have created a scalable and sustainable operating platform that positions us to support continued growth and profitability in the quarters ahead. In addition to delivering record quarterly revenue, this progress drove gross profit margin to 9.5%, up from 7.2% in the second quarter. In U.S. Gas, where our workforce expansion was most significant, we delivered particularly strong improvement with gross profit margin reaching 8.2%, up from 4.2% in the second quarter. These results reinforce our confidence in our ability to translate strong demand and revenue growth into improved profitability as we continue executing our Vision One Centuri strategy."

"Commercial momentum remains strong across our end markets, supported by robust customer demand and significant opportunities across our core and adjacent end markets. Through the first three quarters of the year, we have secured approximately $2.9 billion of bookings. With nearly $4.8 billion of outstanding bids, including $2 billion of MSA renewals expected by year-end, we anticipate a full-year book-to-bill ratio above our 1.2x target, providing strong future visibility."

"Looking ahead, we have approximately $3.7 billion of revenue coverage for 2027, supporting our early expectations of mid-teens percent revenue growth next year. Additionally, for 2027, we are targeting a gross profit margin range of 8.5% to 9.0%, supported by continued margin expansion through reduced seasonality, improved pricing, increased productivity and operating efficiencies, and the quality of our growing portfolio of bid opportunities."

Management Commentary

Third quarter 2026 revenue increased by $342.0 million, or 40%, to $1.2 billion, and Gross Profit was $113.4 million compared to $78.0 million in the prior year quarter. Gross Profit Margin was 9.5% in the third quarter, up from 9.2% in the same quarter last year and the incremental gross profit margin for the third quarter was 10.4%.

Revenue growth was broad-based across all segments, with Union Electric leading at 65%, followed by U.S. Gas at 40%, Canadian Operations at 33%, and Non-Union Electric at 18%. Revenue growth was primarily driven by new bid work and the inclusion of JJ White in the Union Electric segment, new bid and Master Service Agreement ("MSA") contracts in the U.S. Gas segment, the inclusion of Connect Utility Services in the Canadian Operations segment, and increased storm restoration services and volumes under new and existing MSAs in the Non-Union Electric segment.

Net Income Attributable to Common Stock in the third quarter was $26.9 million compared to $2.1 million in the prior year. Adjusted Net Income for the third quarter was $42.5 million, a 155% increase compared to the same quarter last year. Adjusted EBIT in the third quarter was $73.0 million compared to $40.7 million in the prior year quarter, a 79% year-over-year increase. Adjusted EBITDA in the third quarter was $108.0 million compared to $75.2 million in the prior year quarter, a 44% year-over-year increase.

In the third quarter 2026, revenue and gross profit from storm restoration services totaled $21.3 million and $6.1 million, respectively.

Centuri's Net Debt to Adjusted EBITDA Ratio was 2.6x as of September 27, 2026, which compares to 3.8x as of September 28, 2025.

Commercial Update

During the third quarter of 2026, Centuri secured approximately $730 million in total bookings, including nearly $445 million of new bid awards, approximately $185 million of new or expanded MSA awards and approximately $100 million of MSA renewals.

Total bookings year-to-date reached approximately $2.9 billion, representing a book-to-bill ratio of 1.01x. The Company estimates that approximately $2 billion of MSA contract value will be renewed by year-end and forecasts that the full year book-to-bill will exceed its 1.2x target.

As of quarter-end, Centuri had a backlog of approximately $6.2 billion. The quarter-end opportunity pipeline expanded to $19 billion, up 46% from the third quarter last year, driven by continued end-market strength.

Full Year 2026 Financial Guidance

The Company has updated full-year 2026 guidance. The financial guidance assumes no contributions from storm restoration services during the fourth quarter of 2026.

• Revenue of $3.8 to $3.9 billion
• Adjusted Gross Profit of $305 to $315 million
• Adjusted EBITDA of $290 to $300 million
• Adjusted Net Income of $80 to $90 million
• Net Capital Expenditures of $60 to $70 million

Centuri Holdings, Inc.
Supplemental Segment Data
(In thousands, except percentages)
(Unaudited)

Segment Results

The following table summarizes our revenue and gross profit for the periods indicated by segment, as well as the dollar and percentage change from the prior year period. Gross profit margins are calculated by dividing gross profit by revenue.

Fiscal three months ended September 27, 2026 compared to the fiscal three months ended September 28, 2025

Fiscal nine months ended September 27, 2026 compared to the fiscal nine months ended September 28, 2025

Conference Call Information

Centuri will conduct a conference call today, Thursday, November 5, 2026 at 10:00 AM ET / 7:00 AM PT to discuss its third quarter 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 (585) 542-9983 or (833) 461-5787. The meeting ID is 566 638 535. An investor presentation is also available on Centuri's IR website. A replay of the earnings call will be available on Centuri’s IR website approximately two hours after the call’s conclusion and will be active for one year.

About Centuri

Centuri Holdings, Inc. is a strategic utility and energy 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.

Investors should note that we announce material financial information in Securities and Exchange Commission ("SEC") filings, press releases and public conference calls. Based on guidance from the SEC, we may use the IR section of our website to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on our website is not part of, and is not incorporated into, this press release.

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 ability to support continued growth and profitability and to translate demand and revenue growth into improved profitability; our ability to continue executing our Vision One Centuri strategy; additional MSA renewals expected by year-end; anticipated full-year 2026 bookings and related book-to-bill ratio; the statements presented under “Full Year 2026 Financial Guidance”; our expected revenue coverage for 2027; and expectations regarding 2027 revenue growth and a range for gross profit margin, including the factors supporting the same. A number of important risks, uncertainties and other factors affecting the business and financial results of Centuri could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, capital market risks and the impact of general economic, political, regulatory, weather-related, or industry conditions and those detailed from time to time in Centuri’s reports filed with the SEC, including Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025. The statements in this press release are (i) made as of the date of this press release, even if subsequently made available by Centuri on its website or otherwise, and (ii) based on assumptions and assessments made by our management in light of their experience and perceptions of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Except to the extent required by applicable law, Centuri does not assume any obligation to update or revise 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. You are cautioned not to place undue reliance on these forward-looking statements.

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 Ratio
Book-to-bill ratio represents the ratio of total bookings in a period to total revenue recognized in the same period.

Incremental Gross Profit Margin
Incremental gross profit margin represents the change in gross profit from the prior year period divided by the change in revenue from the prior year period.

Opportunity Pipeline
Opportunity pipeline represents our current unweighted bids and opportunities tracked in our sales database.

Non-GAAP Financial Measures

We prepare and present our financial statements in accordance with GAAP. However, management believes that EBIT, Adjusted EBIT, Adjusted EBITDA, Adjusted EBIT Margin, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings per share ("Adjusted EPS"), Net Debt to Adjusted EBITDA Ratio, Adjusted Revenue, Adjusted Gross Profit, Adjusted Gross Profit Margin, U.S. Gas Adjusted Revenue, U.S. Gas Adjusted Gross Profit, and U.S. Gas Adjusted Gross Profit Margin, 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. Because these non-GAAP measures, as defined, exclude some, but not all, items that affect comparable GAAP financial measures, these non-GAAP measures may not be comparable to similarly titled measures of other companies. Management believes that, due to the non-recurring nature of the previously reported City of Chicago reversal, its exclusion from certain non-GAAP financial measures provides investors with a better understanding of the current performance of the business.

Beginning with this press release, the Company no longer presents Base Revenue, Base Gross Profit or Base Gross Profit Margin, which excluded storm restoration services as well as the City of Chicago reversal, and instead presents Adjusted Revenue, Adjusted Gross Profit and Adjusted Gross Profit Margin, which exclude only the City of Chicago reversal.

EBIT is defined as earnings before interest and taxes. Adjusted EBIT is defined as EBIT, adjusted for (i) non-cash stock-based compensation, (ii) acquisition costs, (iii) separation-related costs, (iv) strategy implementation costs, (v) severance costs, (vi) other professional fees and (vii) the City of Chicago reversal. Adjusted EBITDA is defined as Adjusted EBIT, adjusted to remove depreciation and amortization. Adjusted EBIT Margin is defined as the percentage derived from dividing Adjusted EBIT by revenue. Adjusted EBITDA Margin is defined as the percentage derived from dividing Adjusted EBITDA by revenue.

Management believes that EBIT, Adjusted EBIT, and Adjusted EBITDA help 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 EBIT and Adjusted EBITDA provide additional insight by removing certain expenses that are non-recurring or non-operational in nature. Management believes that Adjusted EBIT Margin and Adjusted EBITDA Margin are useful for the same reasons as Adjusted EBIT and Adjusted EBITDA, respectively, and also provide an additional understanding of how Adjusted EBIT and Adjusted EBITDA, respectively, are impacted by factors other than changes in revenue.

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. Management believes this ratio helps investors understand our leverage. Net debt is defined as the sum of all bank debt on the balance sheet and finance lease liabilities, net of cash.

Adjusted Net Income is defined as net income (loss) adjusted for (i) separation-related costs, (ii) strategy implementation costs, (iii) severance costs, (iv) amortization of intangible assets, (v) other professional fees, (vi) City of Chicago reversal, (vii) loss on debt modification and extinguishment, (viii) non-cash stock-based compensation, (ix) acquisition costs and (x) 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.

For Centuri investors, contact:
Nate Tetlow
(480) 851-8426
Ntetlow@centuri.com

For Centuri media information, contact:
Jennifer Russo
(602) 781-6958
JRusso@Centuri.com