Centuri Holdings Inc (NYSE:CTRI) reported financial results for the fourth quarter and full fiscal year 2025, delivering record annual revenue that surpassed the $3 billion mark. The company's performance against analyst expectations and its forward-looking guidance are shaping the market's early reaction to the report.
Earnings and Revenue Versus Estimates
The utility infrastructure services provider posted a mixed performance relative to Wall Street forecasts for the final quarter of 2025. While the company's top-line growth was robust, its bottom-line profitability came in below expectations.
- Revenue: Centuri reported Q4 revenue of $858.6 million, a significant 19.7% increase year-over-year. This figure comfortably exceeded the analyst consensus estimate of approximately $755.4 million.
- Earnings Per Share: The company reported Adjusted Net Income of $15.9 million for the quarter, translating to an Adjusted EPS of $0.17. This result fell short of the analyst estimate of $0.20 per share.
The divergence between strong revenue growth and a miss on EPS suggests factors such as operational costs, investments, or mix of business impacted profitability in the quarter more than analysts had modeled. Management highlighted that Adjusted Net Income for Q4 decreased 13.2% from the prior year, while Adjusted EBITDA of $77.7 million showed a more modest increase.
Market Reaction and Price Action
The immediate market reaction to the earnings release appears cautiously positive, focusing on the revenue beat and strong forward guidance. In pre-market trading following the report, Centuri's stock showed an increase of approximately 5.2%. This initial uptick suggests investors are rewarding the company's record sales performance and its optimistic outlook for 2026, potentially viewing the EPS miss as a temporary item outweighed by longer-term growth prospects.
This pre-market move contrasts with the stock's performance over recent weeks, which had been relatively muted. The positive reaction indicates the report contained enough new, favorable information to shift near-term sentiment.
Key Highlights from the 2025 Report
Centuri's full-year results and operational milestones paint a picture of a company in a strong growth phase, successfully executing its strategy following its separation from its former parent company.
- Record Annual Scale: The company achieved record annual revenue of $2.98 billion, a 13% increase over 2024. More importantly, "Base Revenue," which excludes unpredictable storm restoration work, grew 18% to $2.94 billion.
- Improving Profitability: Base Gross Profit Margin expanded to 8.0% for the full year, up from 6.9% in 2024, indicating improved efficiency in its core operations.
- Robust Backlog and Bookings: The company secured $4.5 billion in new bookings during 2025, leading to a year-end backlog of $5.9 billion—a substantial 59% increase year-over-year. This provides significant visibility into future revenue.
- Strengthened Balance Sheet: Net Debt to Adjusted EBITDA was reduced to 2.5x at year-end, down from 3.6x a year ago, following a capital raise and debt paydown.
Outlook for 2026
Management provided detailed guidance for the 2026 fiscal year, which appears to align closely with or potentially exceed current analyst expectations, lending credibility to the growth narrative.
The company issued the following Base guidance (excluding storm work):
- Base Revenue: $3.15 to $3.45 billion.
- Base Gross Profit: $255 to $285 million.
Including estimated contributions from storm restoration, the company forecasts:
- Revenue: $3.24 to $3.54 billion.
- Adjusted EBITDA: $280 to $310 million.
- Adjusted Net Income: $55 to $75 million.
The midpoint of the revenue guidance range ($3.39 billion) sits above the current analyst consensus estimate of $3.20 billion for 2026 sales. Similarly, the outlook suggests a year of significant profit growth, with the midpoint of the Adjusted Net Income guidance at $65 million, representing a substantial increase from the $39 million reported for 2025.
For more detailed historical data, future estimates, and analyst projections, you can review Centuri's earnings and estimates information here.
Disclaimer: This article is for informational purposes only and does not constitute investment advice, financial analysis, or a recommendation to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
