Centuri (CTRI) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached $717.1 million, with net income of $10.3 million and adjusted EBITDA of $70.7 million, marking the strongest storm restoration quarter since 2021.

• Full-year 2024 revenue totaled $2.64 billion, with a net loss of $6.7 million and adjusted EBITDA of $238.2 million, achieving guidance targets.

• CEO transition completed in December 2024, with Chris Brown appointed and a company-wide review initiated to drive earnings growth.

• Completed initial public offering in April 2024, marking a transformative year.

• Realized $29 million in annualized cost savings from 1H24 initiatives.

Financial highlights

• Q4 2024 consolidated revenues rose 7.8% year-over-year to $717.1 million; gross profit up 32% with a margin of 9.9%.

• Q4 adjusted net income was $18.4 million (adjusted EPS $0.21); full year adjusted net income was $26.2 million (adjusted EPS $0.32).

• Q4 adjusted EBITDA was $70.7 million, up 22.9% year-over-year; full year adjusted EBITDA was $238.2 million.

• Free cash flow for FY24 was $68.9 million, compared to $72.6 million in FY23.

• Net capital expenditures for 2024 were $89.4 million.

Outlook and guidance

• 2025 revenue guidance: $2.6–$2.8 billion; adjusted EBITDA: $240–$275 million; net capex: $65–$80 million.

• Book-to-bill ratio expected to exceed 1.1 in 2025, supported by a 30% increase in pipeline and $1.5 billion in late-stage bids.

• Double-digit EBITDA growth expected in core business, with normalized storm restoration revenue and continued wind-down of offshore wind projects.

• Sales opportunity pipeline grew by a third, with about 40 MSA renewals expected in the next 12 months.

• Assumptions include modest gas growth, improved margins, and double-digit growth in Non-Union Electric.