Centuri Reports Second Quarter 2026 Results and Raises Full Year 2026 Guidance

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Postmedia has not reviewed the content. by Business Wire Centuri Reports Second Quarter 2026 Results and Raises Full Year 2026 GuidanceAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.PHOENIX — Centuri Holdings, Inc. (NYSE: CTRI) (“Centuri” or the “Company”) today announced financial and operating results for the second quarter ended June 28, 2026.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountSecond Quarter 2026 Results and HighlightsAchieved company record quarterly Revenue of $962.0 million, a 33% increase versus the second quarter of 2025Produced Gross Profit of $69.1 million, a 2% increase from the same period last yearDelivered Base Revenue and Base Gross Profit of $959.5 million and $75.7 million, respectively, representing increases of 36% and 21% versus the second quarter of 2025Reported Net Income of $6.1 million and Adjusted Net Income of $24.4 million, 44% higher than last year’s same-period Adjusted Net IncomeRecorded Adjusted EBIT of $40.5 million, an 8% increase year-over-yearRealized Adjusted EBITDA of $75.7 million, a 5% increase year-over-yearSecured bookings of nearly $850 million, bringing year-to-date bookings to $2.2 billion and book-to-bill ratio to 1.3xExpanded opportunity pipeline by 23% to a record $16 billion, highlighting continued end-market strengthClosed the acquisition of JJ White, Inc (“JJ White”), adding scale and key capabilities to the Union Electric segmentFirst-Half 2026 Results SummaryGet the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againRevenue of $1.69 billion and Base Revenue of $1.65 billion, 32% and 33% higher than last year, respectivelyGross Profit of $104.9 million and Base Gross Profit of $103.8 million, 19% and 35% higher than last year, respectively“Our second quarter results reflect tremendous year-over-year growth, including record quarterly revenue and a 21% year-over-year increase in Base Gross Profit,” said Centuri President & CEO Christian Brown. “The business has delivered a trailing 12-month Base Gross Profit Margin of 7.8%, compared to 7.4% a year ago, underscoring sustained improvement in profitability. Notably, trailing 12-month margins expanded even as higher fuel prices created an estimated $6 million headwind in the second quarter, highlighting the strength and resilience of the underlying business. We are focused on driving higher-margin work into our backlog and delivering sustainable long-term growth. Our end-markets continue to display growth as evidenced by our $16 billion opportunity pipeline and approximately $2.5 billion of outstanding bids, which is up 15% from last quarter.”“In addition to our growing organic opportunities, we are excited about the recently announced acquisition of JJ White and want to welcome the team to Centuri. Consistent with our strategy laid out earlier this year, the acquisition adds scale in our Union Electric segment, strengthens our mechanical and electrical construction services, and adds in-plant construction services across several end-markets including data centers.”“During the first half of 2026, we organically increased our workforce by approximately 18%, or 1,700 employees, consistent with our backlog and Base Revenue growth. In addition, during the second quarter, and specifically aligned with our strategy to expand margins and mitigate seasonality within the U.S Gas business, we invested a further $3 million into resources, mobilization and ramp up. This planned investment into our U.S Gas business capacity is expected to deliver a meaningful impact to gross profit and margins in the third quarter and across subsequent quarters. For the second half of 2026, we forecast the overall Centuri Base Gross Profit Margin to be approximately 9.0%, which fully aligns with the expectations set within our Vision One Centuri strategy.”Second quarter 2026 revenue increased by $237.9 million, or 33%, to $962.0 million, and Gross Profit was $69.1 million compared to $67.8 million in the prior year quarter. Revenue growth was broad-based across all segments, with Canadian Operations leading at 48%, followed by U.S. Gas at 45%, Union Electric at 23%, and Non-Union Electric at 11%.Net Income Attributable to Common Stock in the second quarter was $6.1 million compared to $8.1 million in the prior year. Adjusted Net Income for the second quarter was $24.4 million, a 44% increase compared to the same quarter last year. Adjusted EBIT in the second quarter was $40.5 million compared to $37.6 million in the prior year quarter, an 8% year-over-year increase. Adjusted EBITDA in the second quarter was $75.7 million compared to $71.8 million in the prior year quarter, a 5% year-over-year increase.Base Revenue, Base Gross Profit, and Base Gross Profit Margin are non-GAAP measures that exclude the impact of storm restoration services, which are highly unpredictable, and the City of Chicago reversal, as described below. Base Revenue in the second quarter was $959.5 million versus $707.0 million in the prior year quarter, a 36% increase. Base Revenue growth was primarily driven by new bid and Master Service Agreement (“MSA”) contracts in the U.S. Gas segment, new bid work in the Union Electric segment, the inclusion of Connect Utility Services in the Canadian Operations segment, and increased volumes under new and existing MSA in the Non-Union Electric segment. Base Gross Profit was $75.7 million in the second quarter, a 21% increase from $62.8 million reported in the same quarter last year. Gross Profit Margin was 7.2% in the second quarter, while Base Gross Profit Margin declined to 7.9% in the second quarter from 8.9% in the year prior, driven primarily by increased fuel costs and labor mobilization costs associated with the increase in headcount during the first half of 2026.The Company estimates that second quarter results were negatively impacted by approximately $6 million due to higher fuel prices across its business and approximately $3 million due to investment in resources, mobilization, and ramp up associated with increased headcount in the U.S Gas segment. Together, these items had approximately 95 basis point impact on Base Gross Profit Margin.In the second quarter of 2026, the Company wrote down all remaining accounts receivables and contract assets related to work completed for the City of Chicago prior to 2020 (the “City of Chicago reversal”). The determination was made following an opinion and order issued on April 20, 2026 by the Circuit Court of Cook County, Illinois. The write-down reduced second quarter U.S. Gas revenue by $9.0 million and the Company no longer has any amounts recorded as receivables or contract assets related to this matter. The Company has excluded this one-time item from certain of its Non-GAAP financial measures. See “Non-GAAP Financial Measures” below.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Centuri’s Net Debt to Adjusted EBITDA Ratio was 2.6x as of June 28, 2026, which compares to 3.7x as of June 29, 2025.During the second quarter of 2026, Centuri secured nearly $850 million in total bookings, representing a book-to-bill ratio of 0.9x. Bookings for the quarter included nearly $400 million of new bid awards, including a $125 million data center award, approximately $200 million of new or expanded MSA awards and approximately $250 million of MSA renewals.Total bookings year-to-date reached approximately $2.2 billion, representing a book-to-bill ratio of 1.3x. For full year 2026, the Company is targeting a book-to-bill ratio of approximately 1.2x.As of quarter-end, Centuri had a backlog of approximately $6.4 billion, an 8% increase from year-end 2025 and a 21% increase from the second quarter last year. The opportunity pipeline expanded to $16 billion at quarter-end, up 23% from the first quarter 2026, driven by continued end-market strength.As previously announced, on July 20, 2026 the Company completed the acquisition of JJ White, a leading provider of union industrial, mechanical and electrical maintenance and construction services. Total cash consideration paid was approximately $62 million, subject to customary post-closing adjustments. With nearly 1,000 employees, JJ White brings expertise across power generation, industrial, data centers, and other industrial end markets. At closing, JJ White had approximately $315 million of backlog and an opportunity pipeline of approximately $2.8 billion. The Company expects the annual gross profit contribution to be more than $20 million, with gross profit margins consistent with Centuri’s business. The Company expects the acquisition to be immediately accretive to Adjusted Net Income.Full Year 2026 Financial GuidanceThe Company has updated full year 2026 guidance, which includes anticipated contributions from JJ White and approximately $5 million of incremental expense associated with elevated fuel prices, assuming current fuel price levels persist through the third quarter.Base Revenue and Base Gross Profit do not include contributions from storm restoration services, which are highly unpredictable. While storm restoration services remain a key capability of the Company management believes these non-GAAP measures are more suitable for evaluating fundamental business performance and for comparison purposes.Base Revenue of $3.5 to $3.7 billionBase Gross Profit of $270 to $290 millionAdjusted EBITDA and Adjusted Net Income are non-GAAP measures that include contributions from storm restoration services. Guidance for these measures and Revenue include estimated contributions from storm restoration services based on three-year (2023-2025) averages of $88 million of storm restoration services revenue and $28 million of storm restoration services gross profit.Revenue of $3.59 to $3.79 billionAdjusted EBITDA of $285 to $310 millionAdjusted Net Income of $60 to $75 millionThe Company also expects Net Capital Expenditures of $60 to $75 million in 2026.Please review the second quarter investor presentation for more information related to our full year 2026 Guidance and historical storm restoration services contributions.Centuri Holdings, Inc.Supplemental Segment Data(In thousands, except percentages)(Unaudited)The following table summarizes our revenue and gross profit for the periods indicated by segment, as well as the dollar and percentage change from the prior year period. Gross margins are calculated by dividing gross profit by revenue.Fiscal three months ended June 28, 2026 compared to the fiscal three months ended June 29, 2025Fiscal Three Months EndedChange(dollars in thousands)June 28, 2026June 29, 2025$%Revenue:U.S. Gas$489,52050.9%$336,83446.5%$152,68645.3%Canadian Operations81,4388.5%55,1117.6%26,32747.8%Union Electric224,16723.3%182,23925.2%41,92823.0%Non-Union Electric166,86117.3%149,86820.7%16,99311.3%Consolidated revenue$961,986100.0%$724,052100.0%$237,93432.9%Gross profit:U.S. Gas (1)$20,6474.2%$26,4247.8%$(5,777)(21.9%)Canadian Operations13,04216.0%9,48517.2%3,55737.5%Union Electric20,1959.0%15,3558.4%4,84031.5%Non-Union Electric15,2589.1%16,53711.0%(1,279)(7.7%)Consolidated gross profit$69,1427.2%$67,8019.4%$1,3412.0%(1)This includes the impact of the $9.0 million City of Chicago reversal. Base gross profit margin excluding the impacts of the reversal was 5.9%.Fiscal six months ended June 28, 2026 compared to the fiscal six months ended June 29, 2025Fiscal Six Months EndedChange(dollars in thousands)June 28, 2026June 29, 2025$%Revenue:U.S. Gas$774,01945.9%$534,52842.0%$239,49144.8%Canadian Operations141,4668.4%94,8957.4%46,57149.1%Union Electric428,23625.4%357,70728.1%70,52919.7%Non-Union Electric341,43920.3%287,00322.5%54,43619.0%Consolidated revenue$1,685,160100.0%$1,274,133100.0%$411,02732.3%Gross profit:U.S. Gas (1)$14,3121.8%$11,5682.2%$2,74423.7%Canadian Operations22,14215.7%16,56417.5%5,57833.7%Union Electric38,4299.0%27,1687.6%11,26141.4%Non-Union Electric30,0178.8%32,82911.4%(2,812)(8.6%)Consolidated gross profit$104,9006.2%$88,1296.9%$16,77119.0%(1)This includes the impact of the $9.0 million City of Chicago reversal. Base gross profit margin excluding the impacts of the reversal was 3.0%.Conference Call InformationCenturi will conduct a conference call today, Tuesday, August 4, 2026 at 10:00 AM ET / 7:00 AM PT to discuss its second quarter and other business highlights. The conference call will be webcast live on the Company’s investor relations (IR) website at https://investor.centuri.com. The conference call can also be accessed via phone by dialing (585) 542-9983 or (833) 461-5787. The meeting ID is 959 971 025. An investor presentation is also available on Centuri’s IR website. A replay of the earnings call will be available on Centuri’s IR website approximately two hours after the call’s conclusion and will be active for one year.Centuri Holdings, Inc. is a strategic utility and energy infrastructure services company that partners with regulated utilities to build and maintain the energy network that powers millions of homes and businesses across the United States and Canada.Investors should note that we announce material financial information in Securities and Exchange Commission (“SEC”) filings, press releases and public conference calls. Based on guidance from the SEC, we may use the IR section of our website to communicate with investors. It is possible that the financial and other information posted there could be deemed to be material information. The information on our website is not part of, and is not incorporated into, this press release.Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can often be identified by the use of words such as “will,” “predict,” “continue,” “forecast,” “expect,” “believe,” “anticipate,” “outlook,” “could,” “target,” “project,” “intend,” “plan,” “seek,” “estimate,” “should,” “may” and “assume,” as well as variations of such words and similar expressions referring to the future. The specific forward-looking statements made herein include (without limitation) statements regarding sustaining our growth trajectory in 2026; our ability to strengthen our operating and support functions, and to achieve sustainable growth; our expectations around the North American energy infrastructure industry and the market for bid project activity; our ability to achieve a book-to-bill ratio of approximately 1.2x for the full year 2026; the number ranges, assumptions, targets and other statements presented in our Full Year 2026 Financial Guidance; expected margin improvements for the second half of 2026; and expectations regarding the acquisition of JJ White, including the accretive nature thereof. A number of important risks, uncertainties and other factors affecting the business and financial results of Centuri could cause actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, capital market risks and the impact of general economic, political, regulatory, weather-related, or industry conditions and those detailed from time to time in Centuri’s reports filed with the SEC, including Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025. The statements in this press release are (i) made as of the date of this press release, even if subsequently made available by Centuri on its website or otherwise, and (ii) based on assumptions and assessments made by our management in light of their experience and perceptions of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Except to the extent required by applicable law, Centuri does not assume any obligation to update or revise the forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise. You are cautioned not to place undue reliance on these forward-looking statements.Backlog represents contracted revenue on existing bid agreements as well as estimates of revenue to be realized over the contractual life of existing long-term MSAs. The contractual life of an MSA is defined as the stated length of the contract including any renewal options stated in the contract that we believe our customers are reasonably certain to execute.Book-to-bill ratio represents the ratio of total bookings in a period to total revenue recognized in the same period.Opportunity pipeline represents our current unweighted bids and opportunities tracked in our sales database.Centuri Holdings, Inc. Condensed Consolidated Statements of Operations (In thousands, except per share information) (Unaudited)Fiscal Three Months EndedFiscal Six Months EndedJune 28, 2026June 29, 2025June 28, 2026June 29, 2025Revenue$932,021$697,952$1,631,957$1,226,924Revenue, related party – former parent29,96526,10053,20347,209Total revenue, net961,986724,0521,685,1601,274,133Cost of revenue (including depreciation)863,791633,0391,529,0421,142,416Cost of revenue, related party – former parent (including depreciation)29,05323,21251,21843,588Total cost of revenue892,844656,2511,580,2601,186,004Gross profit69,14267,801104,90088,129Selling, general and administrative expenses37,23628,95969,93455,334Amortization of intangible assets7,7576,68315,55913,349Operating income24,14932,15919,40719,446Interest expense, net12,10718,24724,54236,109Other (income) expense, net(261)(353)(181)127Income (loss) before income taxes12,30314,265(4,954)(16,790)Income tax expense (benefit)6,1556,186(1,617)(6,945)Net income (loss)6,1488,079(3,337)(9,845)Net income attributable to noncontrolling interests49269139Net income (loss) attributable to common stock$6,099$8,053$(3,428)$(9,884)Earnings (loss) per share attributable to common stock:Basic$0.06$0.09$(0.03)$(0.11)Diluted$0.06$0.09$(0.03)$(0.11)Shares used in computing earnings (loss) per share:Weighted average basic shares outstanding100,93588,588100,86288,553Weighted average diluted shares outstanding101,47688,823100,86288,553Centuri Holdings, Inc. Condensed Consolidated Balance Sheets (In thousands, except share information) (Unaudited)June 28, 2026December 28, 2025ASSETSCurrent assets:Cash and cash equivalents$40,458$126,630Accounts receivable, net391,924314,665Contract assets379,564395,126Prepaid expenses and other current assets78,07344,954Total current assets890,019881,375Property and equipment, net465,370466,842Intangible assets, net326,256343,243Goodwill, net393,321395,671Right-of-use assets under finance leases22,14324,446Right-of-use assets under operating leases189,612176,449Other assets116,494119,680Total assets2,403,2152,407,706LIABILITIES, TEMPORARY EQUITY AND EQUITYCurrent liabilities:Current portion of long-term debt$22,915$29,543Current portion of finance lease liabilities7,1267,459Current portion of operating lease liabilities35,53030,345Accounts payable162,338193,572Accrued expenses and other current liabilities195,450184,964Contract liabilities66,79950,510Total current liabilities490,158496,393Long-term debt, net of current portion608,972616,871Line of credit85,85591,201Finance lease liabilities, net of current portion6,8739,150Operating lease liabilities, net of current portion161,949153,540Deferred income taxes79,21478,365Other long-term liabilities94,67083,793Total liabilities1,527,6911,529,313Temporary equity:Redeemable noncontrolling interests6,5785,424Equity:Common stock, $0.01 par value, 850,000,000 shares authorized, 100,956,691 and 100,724,862 shares issued and outstanding at June 28, 2026 and December 28, 2025, respectively.1,0101,007Additional paid-in capital1,012,2851,007,746Accumulated other comprehensive loss(12,510)(7,373)Accumulated deficit(131,839)(128,411)Total equity868,946872,969Total liabilities, temporary equity and equity$2,403,215$2,407,706Centuri Holdings, Inc. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)Fiscal Six Months EndedJune 28, 2026June 29, 2025Net cash used in operating activities$(15,012)$(10,983)Cash flows from investing activities:Capital expenditures(48,147)(45,162)Proceeds from sale of property and equipment2,6322,521Acquisition of business, net of cash acquired(1,362)—Purchase of equity method investment(2,000)—Net cash used in investing activities(48,877)(42,641)Cash flows from financing activities:Proceeds from line of credit borrowings16,436113,931Payment of line of credit borrowings(18,614)(59,317)Principal payments on long-term debt(15,205)(15,808)Principal payments on finance lease liabilities(3,861)(5,188)Other(685)(931)Net cash (used in) provided by financing activities(21,929)32,687Effects of foreign exchange translation(405)250Net decrease in cash and cash equivalents(86,223)(20,687)Cash, cash equivalents, and restricted cash, beginning of period128,05949,019Cash, cash equivalents, and restricted cash, end of period$41,836$28,332Non-GAAP Financial MeasuresWe prepare and present our financial statements in accordance with GAAP. However, management believes that EBIT, Adjusted EBIT, Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted Earnings per share (“Adjusted EPS”), Net Debt to Adjusted EBITDA Ratio, Base Revenue, Base Gross Profit, and Base Gross Profit Margin, all of which are measures not presented in accordance with GAAP, provide investors with additional useful information in evaluating our performance. We use these non-GAAP measures internally to evaluate performance and to make financial, investment and operational decisions. We believe that presentation of these non-GAAP measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparisons of results. Management also believes that providing these non-GAAP measures helps investors evaluate the Company’s operating performance, profitability and business trends in a way that is consistent with how management evaluates such matters. Because these non-GAAP measures, as defined, exclude some, but not all, items that affect comparable GAAP financial measures, these non-GAAP measures may not be comparable to similarly titled measures of other companies. Management believes that, due to the non-recurring nature of the City of Chicago reversal, its exclusion from certain non-GAAP financial measures provides investors with a better understanding of the current performance of the business.EBIT is defined as earnings before interest and taxes. Adjusted EBIT is defined as EBIT, adjusted for (i) non-cash stock-based compensation, (ii) acquisition costs, (iii) separation-related costs, (iv) strategy implementation costs, (v) other professional fees and (vi) the City of Chicago reversal. Adjusted EBITDA is defined as Adjusted EBIT, adjusted to remove depreciation and amortization. Adjusted EBITDA Margin is defined as the percentage derived from dividing Adjusted EBITDA by revenue.Management believes that EBIT, Adjusted EBIT, and Adjusted EBITDA help investors gain an understanding of the factors affecting our ongoing cash earnings from which capital investments are made and debt is serviced, and that Adjusted EBIT and Adjusted EBITDA provide additional insight by removing certain expenses that are non-recurring or non-operational in nature. Management believes that Adjusted EBITDA Margin is useful for the same reason as Adjusted EBITDA, and also provides an additional understanding of how Adjusted EBITDA is impacted by factors other than changes in revenue.Net Debt to Adjusted EBITDA Ratio is calculated by dividing net debt as of the latest balance sheet date by the trailing twelve months of Adjusted EBITDA. Management believes this ratio helps investors understand our leverage. Net debt is defined as the sum of all bank debt on the balance sheet and finance lease liabilities, net of cash.Adjusted Net Income is defined as net income (loss) adjusted for (i) separation-related costs, (ii) strategy implementation costs, (iii) amortization of intangible assets, (iv) other professional fees, (v) City of Chicago reversal, (vi) non-cash stock-based compensation, (vii) acquisition costs and (viii) the income tax impact of adjustments that are subject to tax, which is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods. Management believes that Adjusted Net Income helps investors understand the profitability of our business when excluding certain expenses that are non-recurring and/or non-operational in nature. Adjusted EPS is defined as Adjusted Net Income divided by weighted average diluted shares outstanding.Base Revenue is defined as total revenue, net adjusted to exclude revenue attributable to storm restoration services and the impact of the City of Chicago reversal. Base Gross Profit is defined as gross profit adjusted to exclude gross profit attributable to storm restoration services and the City of Chicago reversal. Base Gross Profit Margin is calculated by dividing Base Gross Profit by Base Revenue. U.S. Gas Base Revenue is defined as U.S. Gas segment revenue, net adjusted to exclude the impact of the City of Chicago reversal. U.S. Gas Base Gross Profit is defined as U.S. Gas segment gross profit adjusted to exclude the City of Chicago reversal. U.S. Gas Base Gross Profit Margin is calculated by dividing U.S. Gas Base Gross Profit by U.S. Gas Base Revenue. Revenue derived from storm restoration services varies from period to period due to the unpredictable nature of weather-related events, and when this type of work is performed, it typically generates a higher profit margin than base infrastructure services projects due to higher contractual hourly rates given the nature of services provided and improved operating efficiencies related to equipment utilization and absorption of fixed costs. While storm restoration services remain a key capability of the Company, management believes its exclusion provides more suitable disclosures for evaluating fundamental business performance and for comparison purposes.Using EBIT, Adjusted EBIT, and Adjusted EBITDA as performance measures has material limitations as compared to net income (loss), or other financial measures as defined under GAAP, as they exclude certain recurring items, which may be meaningful to investors. These metrics all exclude interest expense net of interest income; however, as we have borrowed money to finance transactions and operations, or invested available cash to generate interest income, interest expense and interest income are elements of our cost structure and can affect our ability to generate revenue and returns for our stockholders. Further, these metrics exclude income taxes; however, as we are organized as a corporation, the payment of taxes is a necessary element of our operations. Adjusted EBITDA also excludes depreciation and amortization; however, as we use capital and intangible assets to generate revenue, depreciation and amortization are necessary elements of our costs and ability to generate revenue. As a result of these exclusions, the metrics from which they are excluded have material limitations compared to net income (loss). When using these metrics as a performance measure, management compensates for these limitations by comparing them to net income (loss) in each period, to allow for the comparison of the performance of the underlying core operations with the overall performance of the Company on a full-cost, after-tax basis.As to certain of the items related to these non-GAAP measures: (i) non-cash stock-based compensation varies from period to period due to changes in the estimated fair value of performance-based awards, forfeitures and amounts granted; (ii) acquisition costs vary from period to period depending on the level of our acquisition activity; (iii) separation-related costs represent expenses incurred post-IPO in connection with the separation and stand up of Centuri as its own public company, including costs incurred in association with Southwest Gas Holdings’ sale of its holdings of our common stock, which are not reflective of our ongoing operations and will not recur given that Centuri is fully separated from Southwest Gas Holdings; (iv) strategy implementation costs represent non-recurring consulting fees incurred in connection with implementing the Company’s new long-term strategy announced on May 6, 2026; (v) other professional fees are non-recurring costs associated with certain one-time events; and (vi) the City of Chicago reversal relates to a non-recurring reversal of revenue on a legacy contract.The most comparable GAAP financial measures and information reconciling the GAAP and non-GAAP financial measures are set forth below. We are unable to provide reconciliations for forward-looking non-GAAP measures without unreasonable efforts due to our inability to project non-recurring expenses and events. Such items could have a substantial impact on GAAP measures of the Company’s financial performance.Centuri Holdings, Inc.Reconciliation of Non-GAAP Financial Measures(In thousands unless otherwise noted)(Unaudited)The most comparable GAAP financial measure and information reconciling the GAAP and non-GAAP financial measures are set forth below.Fiscal Three Months EndedFiscal Six Months Ended(dollars in thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025Net income (loss)$6,148$8,079$(3,337)$(9,845)Interest expense, net12,10718,24724,54236,109Income tax expense (benefit)6,1556,186(1,617)(6,945)EBIT24,41032,51219,58819,319Non-cash stock-based compensation4,0802,1636,3113,750Acquisition costs1,396—1,396—Separation-related costs—1,564—3,175Strategy implementation costs1,676—1,676—Other professional fees—1,379—1,379City of Chicago reversal8,953—8,953—Adjusted EBIT40,51537,61837,92427,623Depreciation expense27,38827,53954,74755,096Amortization of intangible assets7,7576,68315,55913,349Adjusted EBITDA$75,660$71,840$108,230$96,068Adjusted EBITDA Margin (% of revenue)7.9%9.9%6.4%7.5%Fiscal Three Months EndedFiscal Six Months Ended(dollars in thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025Net income (loss)$6,148$8,079$(3,337)$(9,845)Separation-related costs—1,564—3,175Strategy implementation costs1,676—1,676—Amortization of intangible assets7,7576,68315,55913,349Other professional fees—1,379—1,379City of Chicago reversal8,953—8,953—Non-cash stock-based compensation4,0802,1636,3113,750Acquisition costs1,396—1,396—Income tax impact of adjustments(1)(5,617)(2,948)(8,126)(5,414)Adjusted Net Income$24,393$16,920$22,432$6,394(1)Calculated based on a blended statutory tax rate of 25%, except for acquisition costs which are not deductible.Centuri Holdings, Inc. Reconciliation of Non-GAAP Financial Measures (In thousands unless otherwise noted) (Unaudited)Fiscal Three Months EndedFiscal Six Months Ended(dollars per share)June 28, 2026June 29, 2025June 28, 2026June 29, 2025Diluted earnings (loss) per share attributable to common stock$0.06$0.09$(0.03)$(0.11)Separation-related costs—0.02—0.04Strategy implementation costs0.02—0.02—Other professional fees—0.02—0.02City of Chicago reversal0.09—0.09—Amortization of intangible assets0.080.070.150.14Non-cash stock-based compensation0.040.020.060.04Acquisition costs0.01—0.01—Income tax impact of adjustments(0.06)(0.03)(0.08)(0.06)Adjusted EPS$0.24$0.19$0.22$0.07(dollars in thousands, except Net Debt to Adjusted EBITDA Ratio)June 28, 2026June 29, 2025DebtCurrent portion of long-term debt$22,915$28,101Current portion of finance lease liabilities7,1267,923Long-term debt, net of current portion608,972718,400Line of credit85,855172,230Finance lease liabilities, net of current portion6,87311,265Total debt$731,741$937,919Less: Cash and cash equivalents(40,458)(28,332)Net debt$691,283$909,587Trailing twelve month Adjusted EBITDA$261,177$245,486Net Debt to Adjusted EBITDA Ratio (1)2.63.7(1)This Net Debt to Adjusted EBITDA Ratio may differ slightly from the net leverage ratio calculated for the purposes of the revolving credit facility.Fiscal Three Months EndedFiscal Six Months Ended(dollars in thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025Total revenue, net$961,986$724,052$1,685,160$1,274,133Less: Storm restoration services revenue(11,412)(17,017)(45,892)(35,169)Add: City of Chicago reversal8,953—8,953—Base Revenue$959,527$707,035$1,648,221$1,238,964Fiscal Three Months EndedFiscal Six Months Ended(dollars in thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025Gross profit$69,142$67,801$104,900$88,129Less: Storm restoration services gross profit(2,387)(4,978)(10,098)(10,992)Add: City of Chicago reversal8,953—8,953—Base Gross Profit$75,708$62,823$103,755$77,137Base Gross Profit Margin7.9%8.9%6.3%6.2%Centuri Holdings, Inc. Reconciliation of Non-GAAP Financial Measures (In thousands unless otherwise noted) (Unaudited)Fiscal Three Months EndedFiscal Six Months Ended(dollars in thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025U.S. Gas revenue, net$489,520$336,834$774,019$534,528Add: City of Chicago reversal8,953—8,953—U.S. Gas Base Revenue$498,473$336,834$782,972$534,528Fiscal Three Months EndedFiscal Six Months Ended(dollars in thousands)June 28, 2026June 29, 2025June 28, 2026June 29, 2025U.S. Gas Gross profit$20,647$26,424$14,312$11,568Add: City of Chicago reversal8,953—8,953—U.S. Gas Base Gross Profit$29,600$26,424$23,265$11,568U.S. Gas Base Gross Profit Margin5.9%7.8%3.0%2.2%Fiscal Twelve Months Ended(dollars in thousands)June 28, 2026June 29, 2025Total revenue, net$3,393,808$2,711,264Less: Storm restoration services revenue(50,920)(126,263)Add: City of Chicago reversal8,953—Base Revenue$3,351,841$2,585,001Fiscal Twelve Months Ended(dollars in thousands)June 28, 2026June 29, 2025Gross profit$263,337$235,018Less: Storm restoration services gross profit(11,358)(44,130)Add: City of Chicago reversal8,953—Base Gross Profit$260,932$190,888Base Gross Profit Margin7.8%7.4%View source version on businesswire.com: Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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