Centuri Group, Inc. (CTRI, Financial) has revealed that its U.S. Gas business division has been awarded contracts valued at nearly $400 million. These awards encompass new bookings and options primarily through the renewal of multiple master service agreements.
The contracts facilitate Centuri's expansion into fresh operating territories, specifically targeting a significant gas utility customer located in the Northeast region of the United States. This strategic move aims to further strengthen Centuri's presence and operations in the area.
The latest developments underscore Centuri's commitment to broadening its market reach and enhancing service capabilities in the gas utility sector. The company continues to leverage its expertise to secure substantial contracts, contributing to its growth trajectory and financial stability.
CTRI Key Business Developments
Release Date: February 26, 2025
- Consolidated Revenue: Increased by 7.8% in Q4 2024.
- Gross Profit Margin: 9.9% in Q4 2024, up from 8.1% in Q4 2023.
- Full Year Revenue: $2.64 billion for 2024, within the guidance range of $2.5 billion to $2.7 billion.
- Net Income: $10.3 million in Q4 2024, compared to a net loss of $210.7 million in Q4 2023.
- Adjusted EBITDA: $70.7 million in Q4 2024, a 22.9% increase from $57.5 million in Q4 2023.
- Adjusted EBITDA Margin: 9.9% in Q4 2024, up from 8.6% in Q4 2023.
- Adjusted Net Income: $18.4 million in Q4 2024, up from $4.9 million in Q4 2023.
- US Gas Segment Revenue: $327.2 million in Q4 2024, a 5.4% increase year over year.
- Union Electric Segment Revenue: $193.8 million in Q4 2024, a 5.5% decline year over year.
- Non-Union Electric Segment Revenue: $139.3 million in Q4 2024, a 49.7% increase year over year.
- Storm Restoration Revenue: $137 million for 2024, above the prior three-year average of $75 million.
- Net CapEx: $89.4 million for 2024, down from $94.9 million in 2023.
- Free Cash Flow: $69 million for 2024, slightly down from $73 million in 2023.
- Net Debt to Adjusted EBITDA Ratio: Improved to 3.6 times in December 2024 from 4 times in December 2023.
- 2025 Revenue Outlook: Expected between $2.6 billion and $2.8 billion.
- 2025 Adjusted EBITDA Outlook: Expected between $240 million and $275 million.
- 2025 Capital Expenditures Outlook: Forecasted net spend between $65 million and $80 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Centuri Holdings Inc (CTRI, Financial) reported a 7.8% increase in consolidated revenues for the fourth quarter of 2024.
- The company achieved a 32% increase in consolidated gross profit compared to the prior year period.
- Centuri Holdings Inc (CTRI) secured $221 million in new awards during the quarter, indicating strong business development efforts.
- The company experienced a record year for storm restoration work, with revenues significantly exceeding historical averages.
- Centuri Holdings Inc (CTRI) anticipates double-digit EBITDA growth in its core business for 2025.
Negative Points
- Gas margins during 2024 were below expectations due to rate case approvals and competitive forces.
- The company faced challenges in optimizing crew counts and resource utilization in response to customer slowdowns.
- Offshore wind revenues were down 75% year over year due to the expected wind down of project work.
- Gross profit margins in the US gas segment decreased to 6.2% in the fourth quarter of 2024 from 7.8% in the prior year period.
- Centuri Holdings Inc (CTRI) is not currently focusing on offshore wind projects due to unpredictability and lack of capital allocation.
