Centuri (CTRI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $720.1 million, down 7.1% year-over-year, with a net loss attributable to common stock of $3.7 million and adjusted net income of $5.3 million; storm restoration services delivered the strongest quarter since 2021, contributing $41.4 million.

• CEO transition announced, with Chris Brown appointed as President and CEO effective December 3, 2024, supported by the outgoing interim CEO and board.

• Backlog at quarter-end totaled $4.3 billion, with 87% related to MSA revenue; $347 million in new and renewed awards secured.

• Cost savings initiatives in 1H24 yielded a $6.4 million benefit year-over-year, with $29 million in annualized savings identified and $12 million expected from fleet and supply chain initiatives by 2025.

• IPO completed in April 2024, raising $328 million in net proceeds, used to pay down $316 million in debt.

Financial highlights

• Q3 2024 consolidated revenues declined 7.1% year-over-year to $720.1 million; gross profit down 13.5% to $75.8 million; gross margin at 10.5% vs. 11.3% last year.

• GAAP net loss attributable to common stock was $3.7 million (diluted loss per share $0.04), down from net income of $16.2 million (EPS $0.23) in Q3 2023.

• Adjusted EBITDA was $78.8 million, down from $91.5 million year-over-year; adjusted EBITDA margin 10.9% for the quarter.

• Adjusted net income was $5.3 million (adjusted EPS $0.06), down from $23.6 million (adjusted EPS $0.33) last year.

• Cash and cash equivalents at quarter-end were $52.5 million, up from $33.4 million at year-end 2023.

Outlook and guidance

• Full-year 2024 revenue guidance reiterated at $2.5 to $2.7 billion; adjusted EBITDA margin expected between 9.0% and 9.6%; net capital expenditures projected at $90–$99 million.

• Year-end leverage expected in the mid-threes; capital resources and liquidity deemed sufficient for at least the next 12 months.

• Management expects separation-related costs to continue through at least fiscal year 2025.