Centuri (CTRI 3.72%), a major North American utility infrastructure services provider, reported its fiscal second quarter 2025 results on August 6, 2025. The headline news was strong revenue, which rose to $724.1 million (GAAP) for Q2 FY2025—beating the $702.3 million GAAP consensus estimate—with significant gains in commercial bookings and backlog. However, the company missed profitability expectations on a non-GAAP basis. Adjusted earnings per share came in at $0.19, lower than the $0.225 analyst estimate (non-GAAP) and down from $0.20 in Q2 FY2024 (Adjusted Diluted Earnings per Share). The quarter reflected robust top-line growth and commercial execution, but was offset by higher costs and margin pressure, resulting in non-GAAP earnings below consensus.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $0.19 | $0.23 | $0.20 | (5.0%) |
| Revenue (GAAP) | $724.1 million | $702.3 million | $672.1 million | 7.7% |
| Adjusted EBITDA | $71.8 million | $68.6 million | N/A | |
| Net Income (GAAP) | $8.1 million (or $8.1M) | $11.7 million | (30.8%) | |
| Book-to-Bill Ratio | 2.3x (first half 2025) | N/A | N/A |
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Centuri’s Core Business and Key Priorities
Centuri operates as a strategic partner for regulated utilities, delivering vital gas and electric utility infrastructure services across North America. It serves over 400 customers, primarily through long-term master service agreements—these contracts provide revenue stability and constitute about 80% of total sales for FY2024.
A major focus for Centuri revolves around infrastructure modernization, sustainability initiatives, and workforce development. Its core offerings include gas line maintenance, electric grid expansion, and linking renewable energy to existing systems. Industry position as one of the top five utility service providers in North America gives it strong relationships with utility partners, widespread geographic reach, and broad service capabilities. Safety standards and employee training are foundational for project delivery.
Quarter Highlights: Growth and Margins Diverge
The quarter saw Centuri deliver significant top-line growth. Revenue (GAAP) grew to $724.1 million in Q2 FY2025, up 7.7% over the prior-year period and $21.8 million (GAAP) above analyst expectations. Total bookings reached a company record at $1.8 billion in Q2 FY2025, with $1.2 billion of this from master service agreement renewals and the remainder from new awards. The book-to-bill ratio—a measure of new contracts signed divided by revenue recognized—stood at 2.3x for the first half of FY2025, emphasizing strong pipeline momentum and robust backlog, which grew to $5.3 billion as of June 29, 2025.
Consolidated gross profit (GAAP) also improved in Q2 FY2025, with $88.1 million gross profit (GAAP) for the first half of FY2025, up 19.4% compared to the first half of 2024. However, profitability fell short in some key metrics. Adjusted EBITDA was $71.8 million, an increase of 4.7% in Adjusted EBITDA, but the adjusted EBITDA margin slipped from 10.2% to 9.9%. Net income (GAAP) declined sharply to $8.1 million, down from $11.7 million in Q2 FY2024.
Segment-level shifts highlight trends within Centuri’s portfolio. In the electric business, Union Electric operations delivered strong project activity—revenue increased 11.0% to $182.2 million in Q2 FY2025, and gross profit rose 27.1% to $15.4 million for the fiscal second quarter of 2025. Non-Union Electric also saw substantial growth, with revenue up 24.4% to $149.9 million. Gas segment performance varied (GAAP): U.S. Gas revenue dipped slightly and Canadian Gas improved sharply, with revenue up 18.1% and gross profit margin reaching 17.2%.
The company also took steps to enhance its capital structure and future operational flexibility. After quarter-end, it raised its revolving credit facility from $400 million to $450 million and extended key debt maturities. Net debt increased to $909.6 million as of June 29, 2025, in line with seasonal working capital needs. Management outlined ongoing investments in fleet management and operational efficiency initiatives, including hiring a new head of fleet to drive improvements.
The company’s focus on safety and employee development, vital for operational efficiency, continues as a foundation for execution.
Look Ahead: Guidance and Key Risks
Looking to fiscal 2025, management raised its full-year revenue guidance to a range of $2.70 billion to $2.85 billion for FY2025, compared to the prior outlook of $2.60 billion to $2.80 billion. Adjusted EBITDA guidance for FY2025 narrowed to $250 million to $270 million. Capital expenditures are now forecast at $75 million to $90 million for FY2025, an increase from the previous outlook of $65 million to $80 million, suggesting continued investment in equipment and capacity.
Management did not provide updated earnings per share guidance. Operational leverage and margin performance remain areas for close attention, as Recent revenue gains have not fully translated into bottom-line growth. Leverage remains elevated, and The company used $11.0 million in cash from operations during the first half of fiscal year 2025, compared to $83.0 million used in the first half of 2024. Investors should monitor profitability trends, free cash flow, and cash conversion as Centuri seeks to balance growth investments with the need to reduce debt over coming quarters.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
