Centuri Holdings, Inc. (CTRI)

Price$20.77Cached quoteAs of 2026-09-04 16:23 UTC

AI: Fair-priced

Price checkThe market discount looks meaningful, but current earnings quality keeps the valuation from looking plainly cheap.

Using the observed market price and June share count, equity value is about $2.08 billion and enterprise value—equity plus net debt—is about $2.77 billion. That is roughly 8.9-9.7 times 2026 adjusted EBITDA guidance, but about 28-35 times adjusted net-income guidance. Adjusted EBITDA is operating profit before interest, taxes, depreciation and amortization, plus company adjustments. Those signals are mixed: the cash-earnings multiple is reasonable for a growing infrastructure contractor, while the earnings multiple still assumes continued margin improvement.

Big pictureGrowth is strong, yet first-half cash use and leverage make execution more important than headline revenue.

Second-quarter revenue rose 33%, but first-half operating cash flow was negative $15.0 million as working capital absorbed cash, while capital expenditures were $48.1 million. At June end, cash was $40.5 million, total debt $731.7 million, and net debt was 2.6 times trailing adjusted EBITDA; lower is safer. Liquidity is still workable because Centuri had about $307.7 million of unused revolver capacity, meaning a reusable bank credit line. The balance sheet is improving year over year, but durable free cash flow—not revenue growth alone—must carry the investment case.

Business strengthLong utility relationships, growing backlog, and broader electric exposure support demand, though margins remain thin.

About 78% of 2025 revenue came through multi-year master service agreements, which usually provide recurring work, and second-quarter backlog was about $6.4 billion. Revenue grew across every segment, while the opportunity pipeline reached $16 billion. Still, backlog is not guaranteed revenue, customers can reduce agreement volumes, and the top ten customers generated 48% of 2025 revenue. Base gross margin over the trailing year was only 7.8%, so seasonality, labor, fuel, project timing, storms, and customer budgeting can move profits sharply.

What could change the storyThe upside needs margin conversion and deleveraging; the downside is renewed cash strain, dilution, or project slippage.

Bull case: Centuri delivers 10%-15% base-revenue annual growth through 2029, lifts base gross margin to 8.7%-9.7%, converts 40%-50% of adjusted EBITDA to free cash flow, and brings net debt to 1.0-2.0 times adjusted EBITDA without issuing equity. Bear case: margins stay near recent levels, working-capital needs keep cash conversion weak, fuel and labor costs remain elevated, or acquisitions consume more debt. Centuri issued 12.05 million shares in late 2025 to fund debt reduction and Connect, so another large equity raise would dilute each existing share's ownership.

AI: News

Guidance raised after Q2Record quarterly revenue drove higher full-year guidance, while fuel costs and thin margins remained visible.

On August 4, Centuri reported $962.0 million of second-quarter revenue, up 33% year over year, and raised 2026 revenue guidance to $3.59-$3.79 billion. Adjusted EBITDA guidance became $285-$310 million and adjusted net-income guidance $60-$75 million. The quarter also showed the tension in the story: gross profit rose only 2%, and management cited elevated fuel costs plus mobilization spending as near-term margin pressure.

CFO leadership changedKelly Youngblood became CFO, adding public-company finance experience during a balance-sheet and margin transition.

On August 12, the board appointed Kelly Youngblood executive vice president and chief financial officer, replacing Gregory Izenstark. Youngblood previously served as CFO of MRC Global and held senior finance roles at BJ Services, Diamond Offshore, and Halliburton. The change matters because Centuri is simultaneously integrating acquisitions, reducing leverage, improving cash conversion, and pursuing higher-margin work, making disciplined capital allocation and financial execution especially important.

New awards exceed $475 millionFresh gas, transmission, and data-center awards extended bookings and supported the push toward higher-margin work.

On August 17, Centuri announced more than $475 million of commercial awards spanning natural-gas infrastructure, electric transmission, and data-center work. New projects plus new or expanded master service agreements represented about 81% of the award value, with renewals making up the rest. The company said the awards brought 2026 commercial wins to roughly $2.6 billion. This supports future activity, but award value is not the same as guaranteed profit or cash flow.

J.J. White acquisition closedThe acquisition added union electrical capacity, industrial exposure, and a sizable backlog at a manageable purchase price.

On July 20, Centuri completed the J.J. White acquisition for about $62 million in cash. J.J. White brought nearly 1,000 employees, approximately $315 million of backlog, and exposure to power generation, industrial facilities, and data centers. Management expects more than $20 million of annual gross profit contribution and immediate accretion to adjusted net income. Strategically, it broadens Centuri’s union electric capabilities, but it also adds integration risk and uses liquidity that could otherwise reduce debt.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$2.98B	$2.64B	$2.90B	$2.76B
Gross profit	$246.6M	$220.7M	$273.4M	$214.6M
Gross margin	8.27%	8.37%	9.43%	7.77%
Operating expenses	$153.7M	$133.9M	$351.0M	$316.0M
Operating income	$92.8M	$86.8M	−$77.6M	−$101.4M
Operating margin	3.11%	3.29%	−2.68%	−3.67%
EBITDA	$231.6M	$222.1M	$67.9M	$53.9M
EBITDA margin	7.77%	8.42%	2.34%	1.95%
Net income	$22.4M	−$6.7M	−$186.2M	−$168.1M
Net profit margin	0.75%	−0.25%	−6.42%	−6.09%
Basic EPSper basic share	$0.25	-$0.08	-$2.60	-$2.35
Diluted EPSper diluted share	$0.25	-$0.08	-$2.60	-$2.35

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈14.20%of listed shares

ICAHN CARL C14.34M shares · Jun 30, 2026

View holders

Top 20 reported holders of CTRI
Holder	% owned
ICAHN CARL C	≈14.20%14.34M shares
BlackRock, Inc.	≈6.82%6.88M shares
CARRONADE CAPITAL MANAGEMENT, LP	≈5.46%5.52M shares
FMR LLC	≈5.33%5.38M shares
D. E. Shaw & Co., Inc.	≈4.89%4.94M shares
Hill City Capital, LP	≈3.99%4.03M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈3.81%3.84M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈3.75%3.79M shares
TWO SIGMA INVESTMENTS, LP	≈2.56%2.58M shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.41%2.44M shares
FEDERATED HERMES, INC.	≈2.33%2.35M shares
Verbena Value LP	≈2.18%2.2M shares
STATE STREET CORP	≈2.08%2.1M shares
NOMURA ASSET MANAGEMENT INTERNATIONAL INC.	≈1.77%1.79M shares
WELLINGTON MANAGEMENT GROUP LLP	≈1.64%1.66M shares
GOLDMAN SACHS GROUP INC	≈1.54%1.55M shares
Qube Research & Technologies Ltd	≈1.53%1.55M shares
Assenagon Asset Management S.A.	≈1.52%1.53M shares
DIMENSIONAL FUND ADVISORS LP	≈1.47%1.48M shares
MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd.	≈1.46%1.48M shares

Percentages use 100.96M shares of this listed class outstanding on Jun 28, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys4$75.35M disclosed value

Sells (SEC code S)6$1.39B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Dec 4, 2025Form 4	Brown ChristianChief Executive Officer	SellCommon Stock	7.1K	$24.51	$174.2K	22.1K
Nov 14, 2025Form 4	ICAHN CARL C +2TenPercentOwner	BuyCommon Stock, $0.01 par value per share · indirect	3.49M	$21.50	$75.00M	14.34M
Sep 5, 2025Form 4	Southwest Gas Holdings, Inc.TenPercentOwner	SellCommon Stock	27.36M	$19.60	$536.30M	0
Aug 11, 2025Form 4	Southwest Gas Holdings, Inc.TenPercentOwner	SellCommon Stock	18.82M	$19.50	$367.06M	27.36M
Jul 8, 2025Form 4	Southwest Gas Holdings, Inc.TenPercentOwner	SellCommon Stock	1.06M	$20.75	$22.00M	46.19M

Review ownership filings at SEC.gov ↗

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Centuri Holdings, Inc. (CTRI)

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