Centuri (NYSE:CTRI) reported record revenue in 2025 and said it entered 2026 with a significantly larger backlog, improving base profitability, and newly issued financial guidance that incorporates a historical average for storm restoration work.
2025 results: record revenue and higher base profitability
President and CEO Chris Brown said Centuri delivered $3.0 billion of revenue in 2025, calling it a company record. He also said Centuri improved its “base” profitability—metrics that exclude storm restoration services—and produced adjusted net income of $39 million, which he said was a 49% increase over the prior year.
Net income attributable to common stock for 2025 was $23 million, or $0.25 per share, compared with a loss of $7 million in 2024. Adjusted net income was $39 million, or $0.43 per share, versus $26 million, or $0.32 per share, in 2024. Adjusted EBITDA was $249 million, up from $238 million.
Fourth-quarter performance included tax benefit
For the fourth quarter, Izenstark said revenue was $859 million, up 20% from the same period a year earlier. Base revenue was $855 million, up 28%. Gross profit totaled $80 million, with a gross margin of 9.4%; base gross profit was also $80 million, up 50% year over year.
Quarterly net income attributable to common stock was $30 million, or $0.32 per share, compared with $10 million, or $0.12 per share, a year ago. Izenstark said fourth-quarter net income was impacted by a $23.7 million income tax benefit related to deferred tax asset allocations from Centuri’s former parent. Adjusted net income was $16 million, or $0.17 per share, compared with $18 million, or $0.21 per share, in the prior-year quarter. Adjusted EBITDA was $78 million versus $71 million last year.
Centuri reported $84 million of operating cash flow and $106 million of free cash flow in the quarter.
Bookings, backlog, and pipeline: strong momentum into 2026
Brown said Centuri posted a 1.5x book-to-bill ratio for 2025, exceeding its stated target of 1.1x. Total bookings surpassed $4.5 billion, with the mix described as 34% bid work, 21% new or expanded scopes on MSAs, and 45% MSA renewals. He added Centuri maintained a 100% MSA renewal rate and added new MSAs across multiple states including Texas, Oklahoma, Arizona, Georgia, Indiana, and Wisconsin.
Centuri ended 2025 with backlog of approximately $5.9 billion, an increase of $2.2 billion, or 59%, from the prior year. Brown said the year-end backlog is expected to provide over 85% of 2026 base revenue guidance.
Through Feb. 20, management said Centuri had booked approximately $1.1 billion in 2026, including about $800 million of MSA renewals, nearly $150 million of new MSAs, and more than $150 million of bid work. For 2026, the company is targeting a 1.1x to 1.2x book-to-bill ratio.
Brown said Centuri’s opportunity pipeline totals $13 billion, including roughly 590 bid opportunities amounting to $6.7 billion. Near-term opportunities at year-end were $2.8 billion (active proposals with award decisions expected by the end of the second quarter), and management said that after year-to-date bookings and other activity, the current near-term opportunity sits around $1.3 billion.
Margins and operational initiatives
Centuri reported a 2025 base gross margin of 8%, up about 100 basis points from 2024, and Brown outlined several initiatives aimed at further improvement:
- Addressing first-quarter seasonality in the gas business by expanding work in warmer geographies and securing more indoor work, with a stated goal to “fully address” seasonality over three years (2026 as year one). In response to questions, Brown said the objective is to deliver 7%+ gross profit margin in the gas business for four quarters.
- Improving fleet efficiency through supplier pricing, utilization, and allocation, targeting at least a 20% improvement in efficiency.
- Improving crew efficiency in the Non-Union Electric segment as jobs mature and crews gain experience.
- Expecting higher average weighted bid margins over the near term, alongside continued emphasis on operational execution.
During Q&A, management said storm activity early in 2026 had been “pretty minor” and largely in line with last year. Executives also addressed questions about base gross margin implied in 2026 guidance, saying the base gross margin would be “largely in line” with 2025 and “up a little bit” on an annualized basis.
Balance sheet, fleet funding shift, and 2026 guidance
Brown highlighted that Centuri completed its full separation from its former parent in September after four follow-on offerings. He also noted the November acquisition of Connect Atlantic Utility Services, which management said provides a Canadian electric service platform.
Izenstark said Centuri raised net proceeds of approximately $251 million in an underwritten equity offering and concurrent private placement, using $58 million to fund the Connect acquisition and the remainder for net debt reduction. Net debt to adjusted EBITDA ended 2025 at 2.5x, down from 3.6x at year-end 2024. For 2026, the company forecasts net debt to adjusted EBITDA of around 2x by year-end. Izenstark also said Centuri repriced its Term Loan B, securing a 25 basis point rate reduction, and expects 2026 interest expense to be about 30% lower than in 2025.
On fleet spending, Izenstark said Centuri is shifting from purchasing all fleet equipment to a targeted 50/50 buy versus lease approach. In 2025, fleet investments totaled $135 million, funded through $55 million of operating leases, $38 million of sale leasebacks, and $42 million of net CapEx. For 2026, fleet investments are forecast at $150 million to $180 million, again funded approximately 50/50 buy versus lease.
Centuri initiated 2026 guidance, using a three-year average assumption for storm restoration services of $88 million in revenue and $28 million in gross profit. The company’s 2026 outlook includes:
- Base revenue: $3.15 billion to $3.45 billion
- Base gross profit: $255 million to $285 million
- Total revenue: $3.24 billion to $3.54 billion
- Adjusted EBITDA: $280 million to $310 million
- Adjusted net income: $55 million to $75 million
- Net CapEx: $75 million to $90 million
In Q&A, management indicated that including the storm assumption would lift the midpoint gross margin above the base midpoint, with executives later stating the midpoint would be about 8.8%.
Brown also discussed capacity and hiring, saying headcount increased nearly 15% over the past 13 months and that the company’s focus for additional capacity is “mainly on the people side.” On free cash flow, management said a key 2026 focus is reducing DSO and improving billing and collections, and said it targets 50% free cash flow conversion of adjusted EBITDA over the longer term.
About Centuri (NYSE:CTRI)
Centuri Construction Group, Inc (NYSE: CTRI) is a heavy civil contractor specializing in water and wastewater infrastructure projects. The company delivers end-to-end services encompassing design-build, engineering, procurement and construction for water transmission mains, wastewater force mains, treatment facilities, pump and lift stations, and stormwater management systems.
Centuri’s core offerings include pipeline installation and rehabilitation, civil sitework, earthwork, structural concrete and slope protection.
