One-glance verdict
Overvalued
$7.55 our estimate vs market $20.34
Wall Street consensus: $29.67 (292.9% higher than our fair-value estimate)
169% above our estimate, beyond the bull case
Fundamentals snapshot
Centuri Holdings, Inc.
CTRI · NYQ · Utilities · Utilities - Regulated Gas
Current price
$20.34
52-week range
$19.03 - $42.98
Market cap
$2.05B
Balance sheet
Stretched
1.18x Concerning
Net debt $906.75M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 13.8% last year.
- Reward Returns 4.0% on equity, ahead of 16% of its peers.
- Reward Free cash flow was positive in 2/10 years.
- Risk Insider ownership is only 0.6% (peer median: 1.9%).
What this company does
Centuri Holdings, Inc.
Centuri Holdings acts as a specialized construction and repair crew for the utility companies that provide your gas and electricity, working on the essential pipes and wires across North America. The company primarily makes money from long-term contracts with these utility providers to maintain, repair, and upgrade their systems. This is significant because the constant need to keep the power grid safe and modern creates a steady demand for Centuri's services.
How the company got here
Centuri has a long history, with roots going back to 1909, but it became the company it is today more recently. For many years, it was a part of a larger energy company, Southwest Gas Holdings. In 2024, after encouragement from an activist investor (an individual or group that buys a lot of a company's stock to influence how it's run), Centuri was separated from its parent and became its own publicly traded company through an Initial Public Offering (IPO), which is the first time a company sells its shares to the public. This move transformed it from a subsidiary into an independent company focused purely on infrastructure services.
What it actually does
Think of Centuri as a highly specialized construction and maintenance crew for the energy grid. The company doesn't sell gas or electricity to homes; instead, it partners with the big utility companies that do. Centuri's crews are the ones who install, repair, and replace the vast network of natural gas pipelines and electrical wires that power communities across the United States and Canada. Their work is essential for keeping the energy network safe and reliable, especially as much of this infrastructure is aging and needs to be modernized.
U.S. Gas Utility Services
This is Centuri's largest business segment, making up nearly half of its business. It focuses entirely on the natural gas pipeline network in the United States. Utility companies hire this division to perform crucial maintenance, repair, and replacement of the local pipelines that deliver gas to homes and businesses. A lot of this work is driven by new safety regulations and the need to upgrade older pipes to prevent leaks and ensure safety.
Union Electric Utility Services
This segment provides construction and maintenance services for the electrical grid, specifically using a workforce that belongs to labor unions. It is the company's second-largest division. These crews work on everything from the local distribution wires that run down your street to the larger transmission lines that move power over long distances. Their services include upgrading equipment, repairing storm damage, and expanding the grid to handle more power.
Non-Union Electric Utility Services
Just like the Union Electric segment, this part of the company also works on the electrical grid, performing similar maintenance, repair, and expansion services. The key difference is that it operates with a workforce that is not affiliated with labor unions. This allows the company to work in different labor environments and on various types of projects. This segment serves the same types of customers—electric utility providers—but represents a smaller portion of the company's overall business than its union counterpart.
Canadian Operations
This is the company's smallest, but growing, business line, and it provides a mix of both gas and electric infrastructure services across Canada. Similar to its U.S. operations, this segment partners with Canadian utility companies to build, maintain, and upgrade their energy networks. By having a dedicated Canadian division, Centuri can tailor its services to the specific regulations and market needs of that country.
What management is betting on now
The company's current strategy, called “Vision One Centuri,” focuses on steady, long-term growth. Management is aiming to deepen its relationships with its core utility customers to secure ongoing, predictable work. They are also looking to expand into related areas that might offer higher margins (the profit made on each dollar of sales), such as work for renewable energy projects and data centers. A key goal is to achieve at least 10% organic growth (growth generated from its own business activities, not from buying other companies) each year while improving its free cash flow (the cash left over after paying for operating expenses and capital expenditures like new equipment).
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$160.70M
FY2024 Q4
$27.76M
FY2025 Q1
$-7.69M
FY2025 Q2
$-48.46M
FY2025 Q3
$-18.36M
FY2025 Q4
$66.30M
FY2026 Q1
$-55.27M
FY2026 Q2
$-7.89M
Revenue
$961.99M
Net income
$6.10M
Diluted EPS
0.06
Operating cash flow
$20.03M
Free cash flow
$-7.89M
Fetching…
Sources
Revenue
$723.17M
Net income
$-9.53M
Diluted EPS
-0.09
Operating cash flow
$-35.04M
Free cash flow
$-55.27M
Fetching…
Sources
Revenue
$858.60M
Net income
$30.18M
Diluted EPS
0.34
Operating cash flow
$83.89M
Free cash flow
$66.30M
Fetching…
Sources
Revenue
$850.04M
Net income
$2.10M
Diluted EPS
0.02
Operating cash flow
$5.21M
Free cash flow
$-18.36M
Fetching…
Sources
Revenue
$724.05M
Net income
$8.05M
Diluted EPS
0.09
Operating cash flow
$-27.66M
Free cash flow
$-48.46M
Fetching…
Sources
Revenue
$550.08M
Net income
$-17.94M
Diluted EPS
-0.20
Operating cash flow
$16.68M
Free cash flow
$-7.69M
Fetching…
Sources
Revenue
$717.08M
Net income
$10.30M
Diluted EPS
242,059.82
Operating cash flow
$61.00M
Free cash flow
$27.76M
Fetching…
Sources
Revenue
$720.05M
Net income
$-3.65M
Diluted EPS
-0.04
Operating cash flow
$173.64M
Free cash flow
$160.70M
Fetching…
Sources
Is it cheap or expensive?
Fair value $7.55 vs current price $20.34
Wall Street consensus is the average analyst price target: $29.67 (292.9% higher than our fair-value estimate).
Our most-likely fair value is $7.55 a share — about 62.9% below today's price of $20.34, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $906.8M. Interest coverage 1.2x.
Net debt
$906.75M
Interest coverage
1.18x
Centuri Holdings, Inc.'s profit covers its interest bill about 1.2 times over. and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Stretched
Worse cushion
Baseline
Better cushion
CTRI
BASELINE
Centuri Holdings, Inc.
Total debt $947.21M Interest coverage 1.18x This is the baseline the peer rows are being compared against.
Total debt $1.28B Interest coverage 14.42x +1,119% vs CTRI Carries about 12.2x more debt cushion than CTRI.
Total debt $67.10M Interest coverage 28.79x +2,333% vs CTRI Carries about 24.3x more debt cushion than CTRI.
Total debt $364.15M Interest coverage 12.34x +943% vs CTRI Carries about 10.4x more debt cushion than CTRI.
Total debt $19.46M Interest coverage 0.79x -33% vs CTRI Carries about 1.5x less debt cushion than CTRI.
What you should know
The case for and against CTRI
3 Rewards
1 Risk
Rewards
-
Revenue grew 13.8% last year.
-
Returns 4.0% on equity, ahead of 16% of its peers.
-
Free cash flow was positive in 2/10 years.
Risks
-
Insider ownership is only 0.6% (peer median: 1.9%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
61.64x
Forward P/E
21.54x
P/B
2.36x
P/S
0.61x
EV/EBITDA
12.24x
PEG ratio
1.01x
Profitability
How much profit each dollar creates
Gross margin
7.8%
Operating margin
2.8%
Net margin
0.9%
ROE
4.0%
ROA
2.8%
Health
Liquidity and balance-sheet strength
Debt / equity
1.08x
Current ratio
1.82x
Quick ratio
1.66x
Total debt
$947.21M
Total cash
$40.46M
Growth
How the business has been compounding
Revenue TTM
$3.39B
Revenue 5Y CAGR
1.4%
EPS TTM
0.33
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$74.09M
Free CF TTM
$-8.20M
FCF margin
-0.2%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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