Centuri (NYSE:CTRI) Releases Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Centuri beat earnings expectations: Second-quarter EPS was $0.24, topping the $0.21 consensus, while revenue rose 32.9% year over year to about $960 million. Adjusted net income increased 44% to $24.4 million, and management raised 2026 financial guidance.
• Demand and growth prospects remain strong: Year-to-date bookings exceeded $2.2 billion, backlog grew 21% to approximately $6.4 billion, and the opportunity pipeline reached $16 billion. The $62 million JJ White acquisition adds roughly 1,000 employees and expands industrial, electrical and data-center capabilities.
• Margins and shares came under pressure: Fuel, hiring and mobilization costs weighed on gross profit, pushing base gross margin down to 7.9% from 8.9% a year earlier. Shares fell 15.3% to $23.61, despite analysts’ average price target of $37.80.

Centuri (NYSE:CTRI - Get Free Report) announced its earnings results on Tuesday. The company reported $0.24 EPS for the quarter, beating the consensus estimate of $0.21 by $0.03, FiscalAI reports. Centuri had a return on equity of 5.64% and a net margin of 0.98%.The business had revenue of $959.53 million during the quarter, compared to the consensus estimate of $835.99 million. During the same period in the prior year, the business posted $0.19 earnings per share. Centuri's revenue was up 32.9% compared to the same quarter last year.

Here are the key takeaways from Centuri's conference call:

• Record quarterly revenue and higher adjusted earnings: Second-quarter revenue reached $962 million, up 33% year over year, while adjusted net income rose 44% to $24.4 million. Management raised 2026 guidance to $3.59–$3.79 billion of revenue, $285–$310 million of adjusted EBITDA, and $60–$75 million of adjusted net income.
• Strong demand and growing visibility: Year-to-date bookings exceeded $2.2 billion with a 1.3x book-to-bill ratio, while backlog increased 21% year over year to approximately $6.4 billion and the opportunity pipeline reached $16 billion. Data centers, electric transmission, utility infrastructure, and expanded MSA scopes remain key sources of demand.
• JJ White acquisition expands capacity: Centuri acquired JJ White for approximately $62 million, adding about 1,000 employees and industrial, mechanical, and electrical capabilities, particularly in the Northeast, Midwest, and data-center markets. The company expects more than $20 million of annualized gross profit from the acquisition and maintained its year-end leverage target of roughly 2.0x.
• Near-term margins face cost pressure: Higher fuel prices reduced second-quarter gross profit by approximately $6 million, while hiring and mobilization costs for 1,700 new employees reduced gross profit by another $3 million. Base gross margin fell to 7.9% from 8.9% a year ago, although management expects second-half margins to improve as new capacity becomes productive.

Centuri Stock Down 15.3%

Shares of CTRI stock traded down $4.25 on Tuesday, reaching $23.61. 1,708,764 shares of the company's stock traded hands, compared to its average volume of 1,434,478. Centuri has a 12-month low of $19.04 and a 12-month high of $42.99. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.88 and a current ratio of 1.88. The company has a market capitalization of $2.38 billion, a P/E ratio of 70.32, a price-to-earnings-growth ratio of 0.92 and a beta of 1.10. The business's 50 day moving average price is $28.83 and its two-hundred day moving average price is $30.18.

Institutional Investors Weigh In On Centuri

Several hedge funds have recently bought and sold shares of CTRI. Goldman Sachs Group Inc. grew its stake in Centuri by 164.9% during the 1st quarter. Goldman Sachs Group Inc. now owns 153,549 shares of the company's stock valued at $2,517,000 after acquiring an additional 95,585 shares in the last quarter. JPMorgan Chase & Co. lifted its position in shares of Centuri by 6.5% in the second quarter. JPMorgan Chase & Co. now owns 14,673 shares of the company's stock worth $329,000 after purchasing an additional 890 shares in the last quarter. Legal & General Group Plc boosted its holdings in shares of Centuri by 126.8% during the second quarter. Legal & General Group Plc now owns 29,723 shares of the company's stock worth $667,000 after purchasing an additional 16,618 shares during the period. Rhumbline Advisers boosted its holdings in shares of Centuri by 10.1% during the second quarter. Rhumbline Advisers now owns 24,188 shares of the company's stock worth $543,000 after purchasing an additional 2,228 shares during the period. Finally, American Century Companies Inc. grew its position in Centuri by 51.4% during the second quarter. American Century Companies Inc. now owns 47,447 shares of the company's stock valued at $1,065,000 after purchasing an additional 16,115 shares in the last quarter.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on CTRI. JPMorgan Chase & Co. boosted their price objective on Centuri from $26.00 to $29.00 and gave the stock an "underweight" rating in a report on Friday, May 8th. UBS Group raised their target price on shares of Centuri from $33.00 to $36.00 and gave the stock a "neutral" rating in a report on Monday, May 11th. Wells Fargo & Company lifted their target price on shares of Centuri from $32.00 to $37.00 and gave the stock an "overweight" rating in a research report on Friday, May 8th. Cantor Fitzgerald boosted their price target on shares of Centuri from $37.40 to $46.00 and gave the company an "overweight" rating in a report on Monday, May 11th. Finally, Robert W. Baird set a $41.00 price target on shares of Centuri in a research report on Friday, May 8th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $37.80.

About Centuri

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.

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