Centuri Holdings, Inc. (CTRI) SEC Filings & Earnings Calls

Fuel cost margin pressure

“Our results of operations in the second fiscal quarter of 2026 were impacted by increased fuel costs, particularly in our U.S. Gas and Non-Union Electric segments.” · word for word

Legacy contract dispute

“During the second fiscal quarter of 2026, we reversed $9.0 million in revenue related to a legacy contract with the City of Chicago... This reversal decreased gross profit by the same amount.” · word for word

Labor cost and scaling risk

“During the first fiscal six months of 2026, we incurred increased costs to scale up our workforce in response to increased demand.” · word for word

Fuel cost headwind of ~$6M in Q2 2026, impacting Base Gross Profit Margin by ~95bps. If fuel prices remain elevated, margin recovery may be delayed.

“The Company estimates that second quarter results were negatively impacted by approximately $6 million due to higher fuel prices across its business” · word for word

Labor mobilization costs of ~$3M in Q2 2026 as the company ramps up headcount. While expected to generate future returns, near-term margins are pressured.

“approximately $3 million due to investment in resources, mobilization, and ramp up associated with increased headcount in the U.S Gas segment” · word for word

City of Chicago reversal of $9M in Q2 2026, a one-time item but highlights legal/contractual risk with municipal clients.

“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.” · word for word

Non-Union Electric segment gross profit declined 7.7% YoY despite revenue growth, indicating potential margin pressure in that segment.

“Non-Union Electric gross profit $15,258 vs $16,537, a 7.7% decline”

Seasonality and storm restoration unpredictability remain risks, but mitigated by geographic diversification.

“Base Revenue excludes storm restoration services; management notes seasonality mitigation.”

Inflation and cost pass-through risk

“Rising fuel, labor and material costs have in the past had, and could in the future have, a negative effect on our results of operations, to the extent we cannot pass these costs through to our customers.” · word for word

Seasonality and weather risk

“Generally, our revenue is lowest during the first fiscal quarter of the year due to less favorable winter weather and related working conditions in many of the areas where we perform work.” · word for word

Customer concentration risk

“Work awarded, or failing to be awarded, by individual large customers can impact our results of operations.” · word for word

Customer Concentration Risk

“Approximately $97.6 million of our revenue for the fiscal year ended December 28, 2025 was related to contracts with Southwest Gas Corporation.” · word for word

Key Person Dependency

“Ms. Haller has announced that she will be retiring from her positions as the President and Chief Executive Officer of Southwest Gas Holdings and Chief Executive Officer of Southwest Gas Corporation, effective May 8, 2026.” · word for word

Customer Concentration Risk

“During the fiscal year ended December 28, 2025, approximately 48% of our revenues were generated collectively from our top ten customers and approximately 65% of our revenues were generated collectively from our top 20 customers.” · word for word

MSA Cancellation Risk

“The majority of these contracts may be cancelled by our customers for convenience upon minimal notice (typically 30 days), regardless of whether we are in default.” · word for word

Supply Chain Disruption Risk

“Challenges relating to supply chain constraints have negatively affected, and may in the future negatively affect, our work mix and volumes, which could materially and adversely affect our results of operations overall.” · word for word

Activist Investor Risk

“On November 10, 2025, the Company entered into a Director Appointment and Nomination Agreement (the 'Cooperation Agreement') with Carl C. Icahn and the persons and entities listed therein (the 'Icahn Group'), pursuant to which they have appointed a director to the Board.” · word for word

Weather and Seasonality Risk

“Generally, our revenues are lowest during the first quarter of the year due to less favorable winter weather and related working conditions in various geographies within which we work.” · word for word

Storm restoration services are highly unpredictable and excluded from base metrics; could cause volatility.

“Base Revenue and Base Gross Profit exclude storm restoration services, which are highly unpredictable.”

Loss of a senior executive may impact strategy execution.

“Resignation of Chief Commercial and Strategy Officer.”

Dilution risk from equity offerings; involvement of activist investor Icahn may signal strategic pressure.

“Icahn Partners LP and Icahn Partners Master Fund LP are counterparties in the private placement.” · word for word

Adjusted EBITDA declined 4.6% YoY despite revenue growth, indicating margin pressure from storm restoration services and operational costs.

“Adjusted EBITDA of $75.2 million compared to $78.8 million in prior year quarter.”

Net Debt to Adjusted EBITDA ratio of 3.8x, impacted by timing of accounts receivable collections.

“Net Debt to Adjusted EBITDA Ratio was 3.8x as of September 28, 2025.” · word for word

Gross margin compression from mix shift

“As a percentage of revenue, gross profit decreased to 7.1% in the current period compared to 16.6% in the prior year period. Profitability was negatively affected primarily due to the lack of storm restoration services work.” · word for word

Customer concentration and MSA termination risk

“Generally, customers are not contractually committed to specific volumes of work under MSAs, and MSAs may be terminated by either party upon notice.” · word for word

High leverage and interest rate exposure

“Rising interest rates on our variable-rate debt could have a negative effect on our business, financial condition and results of operations.” · word for word