Mon, May 12, 12:38 PM (35 days ago)
**Centuri Holdings, Inc. (CTRI) Q1 2025 Financial Summary** Centuri Holdings, Inc. (CTRI) reported a mixed Q1 2025 performance, with revenue increasing by 4.2% to $550.1 million, driven by growth in the Union Electric and Non-Union Electric segments. However, the company reported a net loss of $17.9 million, an improvement from the $25.2 million loss in Q1 2024. Gross profit increased by 53.1% to $20.3 million, but operating loss narrowed by 42.1% to $12.7 million. The company's cash position decreased to $15.3 million, down from $49.0 million in Q4 2024, due to increased repayments and decreased borrowings on the line of credit. **Key Financial Metrics:** - **Revenue:** $550.1 million (up 4.2% YoY) - **Gross Profit:** $20.3 million (up 53.1% YoY) - **Operating Loss:** $12.7 million (narrowed by 42.1% YoY) - **Net Loss:** $17.9 million (improved by 29.0% YoY) - **Cash Position:** $15.3 million (down from $49.0 million in Q4 2024) **Segment Performance:** - **U.S. Gas:** Revenue decreased by 12.7% due to adverse weather and customer budgetary constraints. Gross profit margin turned negative. - **Canadian Gas:** Revenue decreased by 2.9%, but gross profit margin improved significantly. - **Union Electric:** Revenue increased by 7.1%, driven by incremental bid work. Gross profit margin slightly decreased. - **Non-Union Electric:** Revenue increased by 41.9%, driven by increased volumes on existing MSAs and emergency restoration services. Gross profit margin improved significantly. **Liquidity and Capital Resources:** - Centuri believes its capital resources, including existing cash balances, operating cash flows, and borrowings under its credit facilities, are sufficient to meet financial obligations for at least the next 12 months. - The company expects to continue incurring capital expenditures to meet anticipated needs for its services. - Centuri intends to refinance or extend its revolving credit facility in the coming quarters. **Uncertainties and Future Operations:** - Centuri faces uncertainties related to economic conditions, regulatory influences, rising interest rates, labor markets, and the availability of resources. - The company is monitoring the impacts of tariffs on equipment prices and project scheduling but does not expect a material effect on its results of operations. - Centuri's backlog as of March 30, 2025, was approximately $4.5 billion, with 89% related to Master Services Agreements (MSAs). **Legal and Regulatory Matters:** - Centuri is a named party in various legal proceedings arising from the normal course of business. The company does not believe any liabilities resulting from these known matters will have a material effect on its financial position, results of operations, or cash flows. - Centuri is subject to concentrations of credit risk related to its revenue and accounts receivable positions with customers. One Non-Union Electric segment customer accounted for 10% of revenue during Q1 2025.