Core Insights - Centuri Holdings, Inc. (NYSE:CTRI) is recognized as one of the 10 Best Performing Utility Stocks in 2025 [1] - The company specializes in infrastructure services, collaborating with regulated utilities and energy providers to maintain energy networks across the US and Canada [2] Financial Performance - On January 7, Wells Fargo analyst Joseph O'Dea increased the price target for Centuri Holdings from $25 to $30, indicating an upside potential of nearly 8% from the current share price [3] - Centuri Holdings secured $870 million in new bookings for energy infrastructure services, with $178 million of these bookings obtained before year-end, bringing the total awards for the previous year to $4.5 billion [4] Business Strategy and Outlook - Approximately 80% of the new bookings are renewals of existing customer Master Service Agreements (MSAs), while the remainder includes new work and strategic bid awards [4] - CEO Christian Brown emphasized that the substantial value of bookings reflects strong customer trust and operational consistency, positioning the company for robust revenue and earnings growth in 2026 and beyond [5]

Core Viewpoint - Centuri Holdings Inc. is identified as a promising investment opportunity, with a price target increase from Wells Fargo, despite anticipated sector slowdowns [1][3]. Financial Performance - In Q3 2025, Centuri Holdings reported revenue of $850 million, marking an 18% year-over-year increase, driven by a 25% rise in base revenue and a 28% increase in base gross profit [2]. - The company's backlog grew to $5.9 billion from $5.3 billion in the previous quarter, supported by $815 million in new bookings during Q3 [2]. Strategic Focus - Centuri Holdings is prioritizing higher-margin opportunities, particularly in data center projects, which offer better margins compared to traditional Master Service Agreements (MSAs) [3]. - The company has a $3 billion pipeline of strategic bids, consisting of $1.7 billion in new bid work and $1.3 billion in renewals, with a project distribution of 60% electrical and 40% gas [3]. Company Overview - Centuri Holdings operates as a utility infrastructure services company in North America, divided into four segments: US Gas Utility Services, Canadian Gas Utility Services, Union Electric Utility Services, and Non-Union Electric Utility Services [4].

Core Insights - Centuri Holdings, Inc. has released its 2025 Sustainability Report titled "Building Trust, Powering the Future," which outlines the company's sustainability efforts and progress on key non-financial performance indicators [1][2] Sustainability Strategies - The report emphasizes Centuri's commitment to earning trust and building credibility through effective communication of its sustainability strategies amid complex energy challenges [2] - It includes technical sustainability frameworks and quantifiable metrics, detailing performance against 15 Key Performance Indicators and six United Nations Sustainable Development Goals (UNSDGs) [2] Operational Highlights - Centuri's sustainability approach is structured around four core Program Pillars: World-Class Safety, Clean Energy, Empowered Communities, and Inclusion For All [3] - The company has achieved a 14% reduction in Scope 1 emissions from the 2019 baseline and is actively delivering renewable energy projects across North America [4] Community Engagement - Centuri has contributed over one million dollars in philanthropic giving to support communities [5] - The company has established a signature lineman apprenticeship program, along with mentorship and development opportunities to create meaningful employment [5] Company Overview - Centuri Holdings, Inc. is a strategic utility infrastructure services company that collaborates with regulated utilities and energy providers to build and maintain the energy network serving millions of homes and businesses in the United States and Canada [6]

Core Insights - Centuri Holdings, Inc. (NYSE:CTRI) experienced a share price increase of 3.91% from December 5 to December 12, 2025, ranking among the top energy stocks for the week [1] - The company reached a 52-week high on December 11 after securing new customer awards totaling $500 million, bringing year-to-date bookings to approximately $4.3 billion [3] Company Overview - Centuri Holdings is a strategic infrastructure services company that collaborates with regulated utilities and energy providers to construct and maintain the energy network serving millions of homes and businesses in the US and Canada [2] Recent Developments - The new contracts consist of 84% for new work and 16% for renewals, leveraging the company's core electric and gas capabilities for utility and telecommunications clients in both Canada and the US [3] - Christian Brown, President and CEO, emphasized the growth in end markets and customer confidence in the company's ability to deliver complex projects safely and on schedule [3] Future Outlook - The company has over 90% of its 2026 plan under contract, indicating a strong pipeline of future opportunities [3] - Wells Fargo has reiterated a 'Buy' rating for Centuri Holdings, setting a price target of $25 [3]

Core Insights - Tensile Capital Management initiated a new stake in Centuri Holdings, acquiring 812,088 shares valued at approximately $17.2 million, indicating institutional confidence in the company [1][2] - Centuri Holdings has shown strong financial performance with record quarterly revenue and a significant backlog, suggesting robust growth potential [10][11] Company Overview - Centuri Holdings is a leading utility infrastructure services provider with a diversified portfolio across gas and electric segments in the U.S. and Canada, focusing on modernization and reliability initiatives for utility clients [6][8] - The company reported a total revenue of $2.8 billion and a net income of $2.5 million, with a market capitalization of $2.5 billion [4] Financial Performance - In the third quarter, Centuri's revenue rose 18% to a record $850 million, while base revenue increased by 25% year over year, and base gross profit climbed 28% [10] - The firm's backlog reached a record $5.9 billion, up 59% from year-end 2024, providing promising visibility into future growth [10] Market Position - Centuri shares are currently priced at $25.58, reflecting an 18% increase over the past year, slightly outperforming the S&P 500, which is up 13% in the same period [3] - The new position by Tensile Capital represents about 2.2% of the fund's reportable U.S. equity AUM as of September 30 [3]

Group 1 - Centuri Holdings Inc. has completed the acquisition of Connect Atlantic Utility Services Corporation, enhancing its position as a dual electric and gas services provider in Canada [1][2] - The acquisition supports Centuri's growth strategy by expanding its presence in the Canadian market, particularly in the Atlantic provinces [2][3] - Canada is projected to invest approximately $2 trillion by 2050 for electricity-grid modernization and clean energy initiatives, which aligns with Centuri's operational focus [3] Group 2 - Centuri operates primarily in North America through four segments: US Gas Utility Services, Canadian Gas Utility Services, Union Electric Utility Services, and Non-Union Electric Utility Services [4]

Core Insights - Pilot Wave Holdings Management announced the sale of Connect Atlantic Utility Services to Centuri Holdings, enhancing Centuri's capabilities in utility infrastructure services across North America [1][5] - The acquisition of Connect Atlantic was aimed at strengthening operations and positioning the business for long-term growth in electric transmission and distribution markets [2] - A significant outcome of this partnership was the spin-off of Detect Technologies, an AI-powered inspection platform that enhances utility operations by identifying equipment defects [3][4] Company Overview - Pilot Wave Holdings focuses on growing small businesses by integrating modern technology and operational excellence [6] - Connect Atlantic Utility Services is a leading provider of utility services in Atlantic Canada, specializing in transmission, distribution, and storm-restoration services [6] - Detect Technologies, spun out from Connect Atlantic, provides AI-driven inspection solutions to mitigate risks and improve operational efficiency for utilities [7] - Centuri Holdings is a North American utility-infrastructure services company that modernizes energy networks across the U.S. and Canada [8] Strategic Developments - The partnership between Pilot Wave and Connect Atlantic led to operational improvements and strategic expansions, positioning CAUS for accelerated growth under Centuri [5] - The creation of Detect Technologies exemplifies how traditional service businesses can innovate through technology, highlighting Pilot Wave's commitment to value creation [4][5]

Core Insights - Beneficial owner Carl Icahn has made a significant investment in Centuri Holdings Inc. [1] Company Summary - Carl Icahn's recent investment indicates a strong belief in the potential of Centuri Holdings Inc. [1]

Core Points - Centuri Holdings, Inc. has appointed Dustin DeMaria to its Board of Directors as part of a cooperation agreement with Icahn Enterprises [1][2][3] - DeMaria will serve as an independent director and is set to stand for election at the 2026 Annual Meeting of Shareholders [2] - The Board of Directors now consists of eight members, with six being independent, including the Board Chair [4] Company Overview - Centuri Holdings, Inc. is a leading utility infrastructure services company in North America, partnering with regulated utilities to build and maintain energy networks [7] - The company aims to capitalize on the increasing demand for power infrastructure across North America [4] Leadership Background - Dustin DeMaria joined Icahn Enterprises in 2022 and has prior experience as a Director at Zipari and as an investment banking associate at Moelis & Company [6] - He has served as a director for CVR Energy, Inc. and Viskase Companies, Inc., both of which are controlled by Carl C. Icahn [6]

Financial Data and Key Metrics Changes - Centuri Holdings reported record revenue of $850 million for Q3 2025, an 18% increase from Q3 2024 [12] - Adjusted net income for the quarter was $16.7 million, up from $5.3 million in the prior year [13] - Base revenue increased by 25% and base gross profit rose by 28% compared to the previous year [4][12] - The gross profit margin for the third quarter was 9.2%, down from 10.5% in the prior year [12] Business Line Data and Key Metrics Changes - US Gas revenue was $412.4 million, a 13% increase year-over-year, with a gross profit margin of 7.7% [13][14] - Canadian Gas revenue surged nearly 40% to $74.2 million, with a gross profit margin of 21.9% [14][15] - Union Electric revenue increased by 25% to $214.5 million, with base revenue reflecting a 29% year-over-year increase [15] - Non-union electric revenue rose 16% to $149 million, with a base revenue increase of 58% [16] Market Data and Key Metrics Changes - Total bookings for the year reached $3.7 billion, significantly ahead of the targeted book-to-bill ratio of 1.1 times [5][6] - The backlog reached a record high of approximately $5.9 billion, up from $5.3 billion last quarter [8] - The overall opportunity pipeline remains robust at about $13 billion, with over 600 strategic bid opportunities [8] Company Strategy and Development Direction - The company aims to build a premier standalone utility services company focused on sustainable and profitable growth [20] - A strategic fleet optimization initiative is underway to improve cash generation and fleet efficiency [9] - The company is focused on eliminating seasonality in the gas business and enhancing operational efficiency [41][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit revenue growth in 2026, supported by strong backlog visibility and near-term booking expectations [9][20] - The company anticipates generating meaningful free cash flow in Q4 2025, despite a negative free cash flow of $16.3 million in Q3 [18][19] - Management highlighted the importance of storm work but emphasized that future planning will focus on base business performance [35] Other Important Information - The company completed its separation from Southwest Gas Holdings and appointed new leadership to drive operational excellence [10] - Adjusted EBITDA for Q3 2025 was $75.2 million, down from $78.8 million in the prior year [13] Q&A Session Summary Question: Impact of storm activity on EBITDA guidance - Management confirmed that the $15 million decline in guidance is entirely related to storm activities, with a split of approximately 60% for Q3 and 40% for Q4 [23][24] Question: Utilization of MSA contract work in non-union electric - Management indicated that there would be a lag in achieving full utilization, but expected improvements in Q4 as operations mature [25][26] Question: Difference in margins between data center opportunities and other bid work - Management noted that margins for data center-related work are generally higher than for MSAs, and they are now in a position to increase margins on new bids [28][30] Question: Strength of base revenue growth compared to expectations - Management stated that the base revenue growth exceeded internal expectations, driven by strong customer service and backlog management [37][39] Question: Focus on U.S. gas business and operational execution - Management highlighted improvements in the gas business and emphasized the need to address seasonality while maintaining strong margins [45][50] Question: Strategic bids and project mix - Management detailed that the $3 billion in strategic bids consists of 60% electrical work and 40% gas-related projects, with a focus on accretive bid work [52][53]