Overview

• US utility infrastructure firm's fiscal Q1 revenue grew 31% yr/yr, beating analyst expectations

• Company expanded backlog to record $6.5 bln, up 44% yr/yr

Outlook

• Centuri reiterates 2026 guidance: revenue of $3.24-$3.54 bln, adjusted EBITDA of $280-$310 mln

• Company targets 2026 base revenue of $3.15-$3.45 bln and base gross profit of $255-$285 mln

• Centuri sets 2029 base gross profit margin target at 8.7%-9.7% and net debt/EBITDA ratio at 1.0x-2.0x

Result Drivers

• SEGMENT GROWTH - Revenue growth was broad-based, led by Canadian Operations (up 51%) and U.S. Gas (up 44%), with all segments contributing to the increase

• BID WORK & ACQUISITION - Increased bid work in U.S. Gas and Union Electric, and the inclusion of recently acquired Connect Atlantic Utility Services in Canadian Operations, drove base revenue growth

• REDUCED SEASONALITY - Actions to geographically diversify and reduce winter seasonality in U.S. Gas and increased bid work in Union Electric improved base gross profit

Company press release: ID:nBw2cRPdpa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$723.20 mln	$616.22 mln (7 Analysts)
Q1 Adjusted Net Income	Beat	-$2 mln	-$5.93 mln (6 Analysts)
Q1 Adjusted EBITDA	Miss	$32.60 mln	$33.75 mln (7 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the construction & engineering peer group is "buy"

• Wall Street's median 12-month price target for Centuri Holdings Inc is $32.50, about 21.8% below its May 5 closing price of $41.58

• The stock recently traded at 54 times the next 12-month earnings vs. a P/E of 36 three months ago

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