Centuri raises 2026 revenue guidance to $3.59-$3.79 bln, including JJ White contribution
Company expects 2026 adjusted EBITDA of $285-$310 mln and adjusted net income of $60-$75 mln
Centuri forecasts second-half 2026 base gross profit margin of about 9.0%
Overview
US utility infrastructure firm's Q2 revenue rose 33%, beating analyst expectations
Adjusted net income for Q2 beat analyst expectations, rising 44% year-over-year
Adjusted EBITDA for Q2 missed analyst expectations
Result drivers
Broad-based revenue growth - Revenue growth was driven by new bid and Master Service Agreement contracts in U.S. Gas, new bid work in Union Electric, inclusion of Connect Utility Services in Canadian Operations, and increased volumes in Non-Union Electric
Higher costs - Gross profit margin declined due to increased fuel prices and labor mobilization costs from higher headcount
JJ White acquisition - Acquisition added scale and capabilities to Union Electric segment and is expected to be immediately accretive to adjusted net income
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the construction & engineering peer group is "buy"
Wall Street's median 12-month price target for Centuri Holdings Inc is $36.50, about 31% above its August 3 closing price of $27.86
The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 49 three months ago
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