Highlights

  • Second fiscal quarter revenue rose 32.9% to $962 million, while gross margin narrowed to 7.2% from 9.4%.
  • Net income was $6.1 million versus $8.1 million, including a $9.0 million City of Chicago contract revenue reversal.
  • Backlog reached about $6.4 billion on June 28, 2026, with roughly 83% tied to master service agreements.
  • On July 20, 2026, Centuri bought JJ White for about $62 million in cash, adding mechanical and electrical capabilities.

Centuri Holdings (NYSE:CTRI) shares were trading near their 52-week low at USD 19.82 on October 21, 2026, down 1.05%. The utility and energy infrastructure services company filed its second fiscal quarter 2026 report on August 4 and completed the purchase of JJ White on July 20.

Based in Phoenix, Arizona, Centuri is a Delaware holding company that completed its initial public offering in April 2024. It describes itself as a leading North American utility and energy infrastructure services provider, working for electric, gas and combination utilities. It reports four segments: U.S. Gas Utility Services, Canadian Utility Services, Union Electric Utility Services and Non-Union Electric Utility Services. The company uses a 52/53-week fiscal year ending on the Sunday closest to December 31.

Revenue Growth, Thinner Margins

For the second fiscal quarter ended June 28, 2026, revenue was $962.0 million, up from $724.1 million. U.S. Gas revenue climbed 45.3% to $489.5 million on new bid and master service agreement work, Canadian Operations rose 47.8% to $81.4 million with help from the Connect acquisition, Union Electric rose 23.0% to $224.2 million and Non-Union Electric rose 11.3% to $166.9 million.

Profit did not keep pace. Gross profit edged up 2.0% to $69.1 million, but gross margin fell to 7.2% from 9.4%. U.S. Gas margin dropped to 4.2% from 7.8%, which the company attributed to the $9.0 million City of Chicago revenue reversal, higher fuel costs worth about 75 basis points and about 60 basis points of costs to scale up new work. Excluding the reversal, a non-GAAP view, the segment margin was 5.9%. Non-Union Electric margin slipped to 9.1% from 11.0%, while Union Electric improved to 9.0% from 8.4%.

Selling, general and administrative expenses rose 28.6% to $37.2 million, so operating income fell 24.9% to $24.1 million. Lower net interest expense of $12.1 million, versus $18.2 million, partly offset that. Net income was $6.1 million attributable to common stock, or $0.06 per diluted share, compared with $8.1 million, or $0.09. Adjusted EBITDA, a non-GAAP measure, rose to $75.7 million from $71.8 million. For the first fiscal six months, revenue grew 32.3% to $1.69 billion and the net loss attributable to common stock narrowed to $3.4 million from $9.9 million.

City of Chicago Dispute, Cash and Debt

The reversal stems from a legacy contract claim that Centuri's NPL Construction unit has pursued against the City of Chicago since 2019. After an agency denied the claim in 2024, NPL sought court review, and a court issued an interlocutory order on some claims on April 20, 2026. Centuri disagrees with the order and intends to keep pursuing the matter, but reassessed its estimate and reversed $9.0 million of revenue. It has no receivable, contract asset or accrued liability left for the matter, and it may recognize more revenue if the claims succeed.

Cash and equivalents were $40.5 million on June 28, 2026, down from $126.6 million at the prior year end. Operating activities used $15.0 million over six months, versus $11.0 million a year earlier, as receivables grew with revenue.

Long-term debt, including the revolver, totaled about $727.7 million, with $616.0 million on the term loan and $85.9 million drawn on the revolving credit facility. About $307.7 million of revolver capacity was unused. Securitization capacity was raised to $165.0 million in May and was fully used. The company said it was in compliance with its financial covenants, which include a maximum leverage ratio.

Backlog, JJ White and Outlook

Backlog was approximately $6.4 billion, about 83% of it under master service agreements. The company notes that customers are generally not committed to specific volumes under those agreements and that projects can be delayed or canceled. JJ White, a provider of mechanical and electrical construction for power generation, data centers and industrial markets, joins the Union Electric segment, and the purchase accounting remains preliminary.

The filing contains no numerical guidance. Management's focus is on growing services for existing utility customers through master service agreements and bid work, winning new customers, expanding in the Southeastern and Midwestern United States and Canada, and diversifying its work. It also says elevated fuel costs will continue to be monitored.