CTRI earnings analysis
What we found in CTRI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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%).
- 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.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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%.
- 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%.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.06
- Gross margin
- 7.2%
- Operating margin
- 2.5%
- Segment
- U.S. Gas: revenue $489.520 million; gross profit $20.647 million (4.2% margin).
- Segment
- Canadian Operations: revenue $81.438 million; gross profit $13.042 million (16.0% margin).
- Segment
- Union Electric: revenue $224.167 million; gross profit $20.195 million (9.0% margin).
- Segment
- Non-Union Electric: revenue $166.861 million; gross profit $15.258 million (9.1% margin).
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing CTRI makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever