Centuri Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Third quarter 2026 revenue reached a record $1.2 billion, a 40% increase year-over-year compared to Q3 2025.
• Year-to-date 2026 revenue was $2.9 billion, up 35% compared to the same period in 2025.
• Third quarter gross profit was $113.4 million, a 45% increase year-over-year, resulting in a 9.5% gross profit margin compared to 9.2% in the prior year period.
• Year-to-date 2026 gross profit was $218.3 million, a 31% increase year-over-year.
• Adjusted gross profit for the year-to-date period was $227.2 million, a 37% increase year-over-year.
• Net income for the third quarter was $26.9 million, a 1,174% increase year-over-year; adjusted net income was $42.5 million, a 155% increase year-over-year.
• Adjusted EBIT for the third quarter was $73.0 million, a 79% increase year-over-year, with a 6.1% margin.
• Adjusted EBITDA for the third quarter was $108.0 million, a 44% increase year-over-year, with a 9.1% margin.
• Net Debt to Adjusted EBITDA ratio improved to 2.6x as of September 27, 2026, down from 3.8x as of September 28, 2025.
• Cash and cash equivalents were $42.0 million as of September 27, 2026, compared to $126.6 million as of December 28, 2025.
• Total debt was $816.2 million as of September 27, 2026, compared to $944.6 million as of September 28, 2025.

Guidance and Future Outlook:

• Preliminary 2027 targets include mid-teens revenue percent growth and a gross profit margin range of 8.5% to 9.0%.
• Revenue coverage for 2027 stands at over $3.7 billion.
• Full-year 2026 revenue guidance is updated to $3.8 to $3.9 billion.
• Full-year 2026 adjusted gross profit guidance is $305 to $315 million.
• Full-year 2026 adjusted EBITDA guidance is $290 to $300 million.
• Full-year 2026 adjusted net income guidance is $80 to $90 million.
• Full-year 2026 net capital expenditures guidance is $60 to $70 million.
• The company forecasts a full-year 2026 book-to-bill ratio above its 1.2x target.
• Approximately $2 billion of MSA contract value is expected to be renewed by year-end 2026.

Business Segments and Product Lines:

• Union Electric segment revenue grew 65% year-over-year in the third quarter, driven by new bid work and the inclusion of JJ White.
• U.S. Gas segment revenue grew 40% year-over-year in the third quarter, driven by new bid and Master Service Agreement (MSA) contracts.
• Canadian Operations segment revenue grew 33% year-over-year in the third quarter, driven by the inclusion of Connect Utility Services.
• Non-Union Electric segment revenue grew 18% year-over-year in the third quarter, driven by increased storm restoration services and volumes under new and existing MSAs.
• Storm restoration services contributed $21.3 million in revenue and $6.1 million in gross profit during the third quarter 2026.
• Third quarter bookings totaled approximately $730 million, including $445 million in new bid awards, $185 million in new or expanded MSA awards, and $100 million in MSA renewals.
• Year-to-date bookings reached approximately $2.9 billion.
• The opportunity pipeline expanded to a record $19 billion as of quarter-end, up 46% from the third quarter of the prior year.
• Backlog stood at approximately $6.2 billion as of quarter-end.

Market and Competitive Landscape:

• End-market strength is highlighted by the record expansion of the opportunity pipeline.
• Commercial momentum remains strong across core and adjacent end markets with robust customer demand.
• The company secured approximately $2 billion of MSA renewals expected by year-end.

Risks and Challenges:

• The press release notes that actual results could differ materially from forward-looking statements due to risks including capital market risks, general economic conditions, regulatory changes, weather-related events, and industry conditions.
• Specific risks are detailed in the company's SEC filings, including Item 1A Risk Factors in the Annual Report on Form 10-K for the fiscal year ended December 28, 2025.

Management Commentary and Tone:

• CEO Christian Brown expressed strong satisfaction with the results, attributing success to investments in scale and capacity, specifically workforce additions, which improved productivity and efficiency.
• Management noted that U.S. Gas gross profit margin improved significantly to 8.2% in the third quarter from 4.2% in the second quarter.
• Management highlighted the creation of a scalable and sustainable operating platform to support continued growth and profitability.
• The tone was confident regarding the ability to translate strong demand and revenue growth into improved profitability while executing the "Vision One Centuri" strategy.

Other Key Points:

• The company excluded the $9.0 million City of Chicago reversal from certain non-GAAP financial measures, noting it as a non-recurring item.
• The company no longer presents Base Revenue, Base Gross Profit, or Base Gross Profit Margin, having replaced them with Adjusted Revenue, Adjusted Gross Profit, and Adjusted Gross Profit Margin which exclude only the City of Chicago reversal.
• A conference call was held on November 5, 2026, to discuss the results.
• The company acquired a business for $52.989 million during the first nine months of 2026.
• The company purchased an equity method investment for $2.0 million during the first nine months of 2026.
• Capital expenditures for the first nine months of 2026 were $70.8 million.
• Net cash used in operating activities for the first nine months of 2026 was $42.6 million.