Centuri (NYSE:CTRI) Posts Earnings Results, Beats Estimates By $0.19 EPS

Key Points

• Centuri reported Q3 EPS of $0.42, beating estimates of $0.23, while revenue rose 40.2% year over year to $1.19 billion, above the $1.04 billion forecast.
• The company raised its 2026 outlook to $3.8–$3.9 billion in revenue and projected 2027 revenue above $4.4 billion, citing stronger demand and improving gross margins.
• Free cash flow was negative $30 million in Q3, prompting Centuri to lower its full-year free-cash-flow expectation to $25–$50 million as growth increases working-capital needs.

Centuri (NYSE:CTRI - Get Free Report) released its earnings results on Thursday. The company reported $0.42 EPS for the quarter, topping analysts' consensus estimates of $0.23 by $0.19, FiscalAI reports. Centuri had a net margin of 0.86% and a return on equity of 5.85%. The company had revenue of $1.19 billion for the quarter, compared to analysts' expectations of $1.04 billion. During the same quarter last year, the business earned $0.19 EPS. The firm's revenue was up 40.2% compared to the same quarter last year.

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

• Centuri reported record Q3 revenue of $1.2 billion, up 40% year over year, and record gross profit of $113 million. Gross margin rose to 9.5% from 7.2% in Q2, with management citing improved productivity from earlier capacity investments and initial benefits from repricing contracts.
• Demand and visibility strengthened, with a $19 billion opportunity pipeline, $4.8 billion in outstanding bids, and $6.2 billion of backlog. Management sees mid-teens revenue growth in 2027, to more than $4.4 billion, and targets gross margins of 8.5%–9% as it pursues higher-margin bid work and continued pricing improvements.
• Centuri raised its full-year 2026 outlook to revenue of $3.8–$3.9 billion, adjusted EBITDA of $290–$300 million, and adjusted net income of $80–$90 million. The outlook assumes no Q4 storm work; management said early-October storm work would be additive.
• Q3 free cash flow was negative $30 million, and the full-year expectation was reduced to $25–$50 million because revenue growth is driving higher working-capital needs. Management characterized the shortfall as timing-related and expects year-end net leverage in the low-2x range, down from 2.6x at quarter-end.
• Management said data centers remain a selective, limited opportunity: Centuri has booked about $370 million of work, with roughly $200 million remaining in backlog, and expects the segment to stay below 10% of annual revenue. It will pursue projects only when scope, funding, permitting, and execution plans are sufficiently clear.

Centuri Trading Up 8.8%

Shares of CTRI traded up $1.64 during midday trading on Friday, hitting $20.29. 2,988,507 shares of the stock were exchanged, compared to its average volume of 2,240,270. The stock has a fifty day simple moving average of $20.31 and a 200 day simple moving average of $27.10. The firm has a market cap of $2.05 billion, a P/E ratio of 42.56, a P/E/G ratio of 0.70 and a beta of 0.94. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.82 and a current ratio of 1.82. Centuri has a 52-week low of $18.50 and a 52-week high of $42.99.

Centuri News Roundup

Here are the key news stories impacting Centuri this week:

• Positive Sentiment: Centuri reported third-quarter EPS of $0.42, above analysts’ estimates of $0.23, and revenue of $1.19 billion versus expectations of $1.04 billion. Revenue rose 40.2% year over year, and EPS more than doubled from $0.19 a year earlier. Article: Centuri Holdings Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: The company’s FY 2026 revenue guidance of $3.8 billion–$3.9 billion is above the $3.7 billion consensus estimate. Centuri also outlined 2027 revenue above $4.4 billion and a target gross margin of 8.5%–9%, signaling continued growth potential. Article: Centuri Outlines 2027 Revenue and Gross-Margin Targets
• Neutral Sentiment: Wells Fargo lowered its price target from $28 to $24 but maintained an “overweight” rating. The new target still implies 18.3% upside from the cited share price, though the reduction suggests a more cautious valuation view.

Insider Activity at Centuri

In other news, Director Dustin DeMaria acquired 5,200 shares of Centuri stock in a transaction dated Friday, September 18th. The shares were acquired at an average cost of $19.27 per share, for a total transaction of $100,204.00. Following the acquisition, the director owned 12,936 shares of the company's stock, valued at $249,276.72. This trade represents a 67.22% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 0.33% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on CTRI shares. JPMorgan Chase & Co. reduced their target price on shares of Centuri from $23.00 to $22.00 and set an "underweight" rating on the stock in a research note on Monday, October 19th. Robert W. Baird reduced their price target on Centuri from $33.00 to $26.00 and set an "outperform" rating on the stock in a report on Tuesday, September 29th. Weiss Ratings lowered Centuri from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. Bank of America cut their price objective on Centuri from $33.50 to $21.00 and set an "underperform" rating on the stock in a research report on Friday, September 4th. Finally, Wells Fargo & Company decreased their target price on Centuri from $28.00 to $24.00 and set an "overweight" rating for the company in a research report on Friday. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $27.50.

Centuri Company Profile

Centuri Holdings, Inc is a strategic infrastructure services company that supports the development, maintenance and modernization of energy and utility systems. The company provides construction and related services for natural gas and electric distribution infrastructure, including pipelines, utility networks and other assets used to deliver energy to homes, businesses and communities.

Centuri also serves customers in areas such as electric transmission, renewable energy and broader utility infrastructure.

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