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Investing.com -- Centuri Holdings , Inc. (NYSE:CTRI) saw its shares fall 3.6% after reporting second-quarter earnings that significantly missed analyst expectations, despite posting revenue growth and raising its full-year outlook.
The infrastructure services provider reported adjusted earnings per share of $0.19 for the second quarter, falling well short of the $0.34 analysts had expected. Revenue came in at $724.1 million, representing a 7.7% increase from $672.1 million in the same period last year, as the company experienced strong growth in its electric operations segments.
"Our second quarter performance reflected solid execution across all business segments, with particularly strong results in our electric operations, while we continued to see meaningful progress in our U.S. Gas segment through various initiatives aimed at enhancing overall margins," said Centuri President & CEO Christian Brown.
The company’s electric segments showed robust growth, with Union Electric revenue increasing 11.0% YoY to $182.2 million and Non-Union Electric jumping 24.4% to $149.9 million. However, U.S. Gas revenue, which represents the largest segment at 46.5% of total revenue, declined slightly by 1.1% to $336.8 million.
Centuri raised its full-year 2025 revenue guidance to $2.70-2.85 billion from its previous range of $2.60-2.80 billion, while narrowing its adjusted EBITDA outlook to $250-270 million from $240-275 million previously. The updated revenue guidance aligns with analyst expectations of $2.74 billion.
The company reported strong commercial momentum with approximately $1.8 billion in new awards during the quarter, achieving a book-to-bill ratio of 2.3x for the first half of 2025. This increased the company’s backlog to $5.3 billion as of June 29, up from $4.5 billion at the end of the first quarter.
Adjusted EBITDA for the quarter improved 4.7% to $71.8 million compared to $68.6 million in the second quarter of 2024, reflecting improved profitability across all four of the company’s reportable segments.
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