Centuri (CTRI) Q2 2025 earnings summary

Executive summary

• Revenue grew 7.7% year-over-year to $724.1 million in Q2 2025, driven by strong electric segment performance and robust bookings, while net income attributable to common stock was $8.1 million, down from $11.7 million in Q2 2024; adjusted net income was $16.9 million, nearly flat year-over-year.

• Book-to-bill ratio reached 2.3x in the first half, with $1.8 billion in new bookings in Q2 and backlog rising to $5.3 billion, 92% of which is related to master service agreements.

• Completed IPO in April 2024 and subsequent secondary offerings, with Southwest Gas Holdings reducing its ownership to 52% by July 2025.

• Strategic business development review completed, with new growth strategies and leadership realignment implemented.

• Capital structure was strengthened post-quarter by expanding the credit facility and extending debt maturities.

Financial highlights

• Q2 2025 revenue was $724.1 million, up 7.7% year-over-year, with gross profit of $67.8 million (9.4% margin), and adjusted EBITDA of $71.8 million (9.9% margin).

• Net income was $8.1 million (EPS $0.09), down from $11.7 million (EPS $0.14) in Q2 2024; adjusted net income was $16.9 million (Adj. EPS $0.19), nearly flat year-over-year.

• Free cash flow improved by $27.1 million year-over-year in Q2, and net cash used in operating activities for the first half of 2025 was $11.0 million, a significant improvement from $83.0 million used in the prior year.

• Net debt to Adjusted EBITDA ratio was 3.7x at June 29, 2025, up from 3.5x at March 30, 2025.

• Backlog increased to $5.3 billion from $4.5 billion sequentially.

Outlook and guidance

• Full-year 2025 revenue guidance raised to $2.7–$2.85 billion (from $2.6–$2.8 billion), and adjusted EBITDA guidance narrowed to $250–$270 million (from $240–$275 million).

• Net capital expenditures outlook increased to $75–$90 million, reflecting growth in the electric business.

• Expect improved margins in the second half of 2025 across all segments due to higher-margin backlog and increased project mobilization.

• Book-to-bill ratio expected to exceed 1.1x for 2025.

• Management expects capital resources, including cash, operating cash flows, and credit facilities, to be sufficient for obligations over the next 12 months and foreseeable future.