Centuri Holdings — 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 $850.0 million in Q3 2025.
• Year-to-date 2026 revenue totaled $2.9 billion, up 35% from the prior year.
• Third quarter gross profit hit a record $113.4 million, a 45% increase year-over-year, with a gross profit margin of 9.5% 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 from $2.1 million in the prior year.
• Adjusted net income for the third quarter 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 in the prior year.
• Cash and cash equivalents were $42.0 million as of September 27, 2026, compared to $126.6 million as of December 28, 2025.

Guidance and Future Outlook

• Preliminary 2027 targets include mid-teens percent revenue 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 anticipates a full-year 2026 book-to-bill ratio exceeding 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, the highest growth rate among segments.
• U.S. Gas segment revenue grew 40% year-over-year, with gross profit margin reaching 8.2% in the third quarter, up from 4.2% in the second quarter.
• Canadian Operations segment revenue grew 33% year-over-year.
• Non-Union Electric segment revenue grew 18% year-over-year.
• Storm restoration services contributed $21.3 million in revenue and $6.1 million in gross profit during the third quarter.
• Revenue growth was driven by the inclusion of JJ White in the Union Electric segment and Connect Utility Services in the Canadian Operations segment.
• Growth was also driven by new bid work, Master Service Agreement (MSA) contracts, and increased storm restoration volumes.

Market and Competitive Landscape

• The opportunity pipeline expanded to a record $19 billion, up 46% from the third quarter of the prior year.
• Total bookings for the third quarter were 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.
• Backlog as of quarter-end was approximately $6.2 billion.
• Approximately $4.8 billion of outstanding bids were noted, including $2 billion of MSA renewals expected by year-end.
• Commercial momentum remains strong across core and adjacent end markets with robust customer demand.

Risks and Challenges

• Forward-looking statements note risks including capital market conditions, general economic, political, regulatory, and weather-related conditions.
• The 2026 full-year financial guidance assumes no contributions from storm restoration services during the fourth quarter.
• A $9.0 million City of Chicago revenue reversal impacted the U.S. Gas segment gross profit in the first nine months of 2026.
• Non-GAAP measures exclude certain non-recurring items such as separation-related costs, strategy implementation costs, severance costs, and acquisition costs.

Management Commentary and Tone

• President & CEO Christian Brown expressed strong satisfaction with the results, citing that investments in scale and capacity during the first half of the year improved productivity and efficiency.
• Management highlighted the creation of a "scalable and sustainable operating platform" to support continued growth and profitability.
• Management stated confidence in translating strong demand and revenue growth into improved profitability while executing the "Vision One Centuri" strategy.
• Management noted that U.S. Gas saw particularly strong improvement in gross profit margin due to significant workforce expansion.

Other Key Points

• The company acquired business activities resulting in $52.989 million in cash used for acquisitions in the first nine months of 2026.
• Capital expenditures for the first nine months of 2026 were $70.773 million.
• 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.
• The conference call for Q3 2026 results was held on November 5, 2026.
• The company is a strategic utility and energy infrastructure services company partnering with regulated utilities in the U.S. and Canada.