10-Q · May 6, 2026
Centuri Holdings (CTRI) reported Q1 2026 revenue of $723.2 million, exceeding expectations of $615.2 million, representing a 31.5% increase from the prior year. The company reported a diluted EPS loss of $0.09, which…
Earnings analysis · 10-Q
CTRI earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Centuri produced strong Q2 revenue growth, with revenue of $961.986 million up 32.9% year over year, but GAAP profitability weakened: gross margin fell to 7.2% from 9.4%, operating margin fell to 2.5% from 4.4%, and…
Read full summary
Centuri produced strong Q2 revenue growth, with revenue of $961.986 million up 32.9% year over year, but GAAP profitability weakened: gross margin fell to 7.2% from 9.4%, operating margin fell to 2.5% from 4.4%, and diluted EPS was $0.06. The $9.0 million City of Chicago reversal, higher fuel costs and new-work ramp-up costs constrained margins, offsetting broad segment growth. Liquidity remains adequate per management, though cash declined to $40.5 million and six-month calculated free cash flow was negative $63.112 million.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.06
What stood out
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Revenue growth was broad-based
Q2 revenue rose $237.934 million, or 32.9%, year over year to $961.986 million. All four segments grew, led by U.S. Gas at $489.520 million, up $152.686 million (45.3%).
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Union Electric delivered margin expansion
Union Electric revenue increased $41.928 million (23.0%) to $224.167 million, while gross margin expanded 60 basis points to 9.0%, aided by a favorable estimated-cost-to-complete change on an offshore wind project.
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Lower interest burden supported earnings
Interest expense declined $6.140 million (33.6%) to $12.107 million, reflecting lower average debt and lower variable borrowing rates. Revolver borrowings fell to $85.9 million from $91.2 million at year-end.
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Backlog supports demand visibility
Backlog was approximately $6.4 billion at June 28, 2026, with approximately 83% tied to MSAs, supporting visibility into future utility-infrastructure activity.
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First-half loss narrowed sharply
On a six-month basis, revenue increased $411.027 million (32.3%) to $1.685 billion and the net loss narrowed to $3.337 million from $9.845 million.
What to watch
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Revenue growth did not translate to GAAP margin
Despite 32.9% revenue growth, Q2 gross margin declined 220 basis points year over year to 7.2% and operating margin declined 190 basis points to 2.5%; operating income fell $8.010 million (24.9%) to $24.149 million.
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Chicago contract reversal materially hit profit
A $9.0 million City of Chicago revenue reversal reduced Q2 gross profit by $9.0 million and net income by $6.7 million. U.S. Gas gross margin consequently fell to 4.2% from 7.8%.
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Fuel and storm mix pressured margins
Elevated fuel costs reduced U.S. Gas margin by approximately 75 basis points and Non-Union Electric margin by approximately 140 basis points. Non-Union Electric gross margin fell to 9.1% from 11.0%.
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Cash conversion and capex remain pressured
Six-month operating cash flow was negative $15.012 million, versus negative $10.983 million a year earlier, while capital expenditures were $48.1 million. Calculated six-month free cash flow was negative $63.112 million.
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Liquidity relies partly on receivables facility
Cash and equivalents declined $86.1 million from $126.6 million at December 28, 2025 to $40.5 million. The company had sold and derecognized $165.0 million of receivables under its securitization facility, leaving no unused capacity.
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No material risk-factor updates
The filing says there were no material changes to risk factors from the 2025 annual report; therefore, it identifies no newly added or materially revised risk factor.
Management's outlook
The 10-Q contains no explicit quantitative revenue or EPS outlook. Management states it expects to continue capital expenditures to meet anticipated service needs and believes cash, operating cash flow and credit-facility borrowing capacity are sufficient for the next 12 months and foreseeable future.
Earlier filings 4
10-Q · November 5, 2025
Centuri reported strong top-line growth in Q3 2025 with revenue of $850,044,000 (up $129,991,000 vs Q3 2024) but modest margin compression and a weak cash flow profile. Gross margin narrowed to 9.2% and operating margin…
10-Q · August 6, 2025
Centuri reported quarter revenue of $724.1M (total revenue, net 724,052) versus $672.1M a year earlier (672,075), driving gross profit of $67.8M and operating income of $32.2M. Diluted EPS was $0.09 compared with $0.14…
10-Q · May 12, 2025
Centuri reported revenue of $550,081,000 for the quarter ended March 30, 2025, up $22,058,000 versus the prior year quarter, with gross profit rising to $20,328,000 and an improved operating loss of $(12,713,000).…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.