Revenue surged 28.7% year-over-year to $932.0M in Q2 2026, yet operating margin fell to 2.6% from 4.7% a year earlier, reflecting cost pressures and regulatory lag.
Centuri Holdings, Inc. (CTRI) annual income statement — 5-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Revenue | 3.24B | 2.89B | 2.64B | 2.9B | 2.76B | 2.16B |
| Revenue Growth % | 19.74% | 9.4% | -9.04% | 5.03% | 27.87% | - |
| Cost of Revenue | 2.97B | 2.64B | 2.42B | 2.63B | 2.55B | 1.97B |
| Gross Profit | 270.02M | 246.57M | 220.67M | 273.44M | 214.61M | 186.05M |
| Gross Margin % | 8.33% | 8.55% | 8.37% | 9.43% | 7.77% | 8.62% |
| Gross Profit Growth % | - | 11.73% | -19.3% | 27.41% | 15.35% | - |
| Operating Expenses | 171M | 153.75M | 133.89M | 351.01M | 316.04M | 86.52M |
| Other Operating Expenses | - | - | - | - | - | - |
| EBITDA | 229.89M | 231.61M | 242.81M | 85.25M | 68.39M | 229.05M |
| EBITDA Margin % | 7.09% | 8.03% | 9.21% | 2.94% | 2.48% | 10.61% |
| EBITDA Growth % | -5.7% | -4.61% | 184.8% | 24.66% | -70.14% | - |
| Depreciation & Amortization | 130.87M | 138.79M | 156.03M | 162.82M | 169.82M | 129.52M |
| D&A / Revenue % | 4.04% | 4.81% | 5.92% | 5.62% | 6.15% | 6% |
| Operating Income (EBIT) | 99.02M | 92.82M | 86.78M | -77.56M | -101.43M | 99.53M |
| Operating Margin % | 3.05% | 3.22% | 3.29% | -2.68% | -3.67% | 4.61% |
| Operating Income Growth % | - | 6.96% | 211.89% | 23.53% | -201.91% | - |
| Interest Expense | 4M | 78.43M | 90.52M | 78.11M | 61.37M | 21M |
| Interest Coverage | - | 1.19x | 0.96x | -0.99x | -1.67x | 4.12x |
| Interest / Revenue % | 0.12% | 2.72% | 3.43% | 2.69% | 2.22% | 0.97% |
| Non-Operating Income | -4M | -1000K | -1000K | -1000K | -1000K | -1000K |
| Pretax Income | 26.42M | 14.59M | -3.36M | -174.98M | -163.69M | 65.62M |
| Pretax Margin % | 0.81% | 0.51% | -0.13% | -6.04% | -5.93% | 3.04% |
| Income Tax | -2.69M | -8.06M | 3.47M | 9.53M | 1.3M | 18.68M |
| Effective Tax Rate % | -10.19% | -55.28% | -103.28% | -5.45% | -0.79% | 28.47% |
| Net Income | 28.85M | 22.39M | -6.72M | -186.18M | -168.15M | 40.51M |
| Net Margin % | 0.89% | 0.78% | -0.25% | -6.42% | -6.09% | 1.88% |
| Net Income Growth % | 169.28% | 433.06% | 96.39% | -10.72% | -515.03% | - |
| EPS (Diluted) | 0.28 | 0.25 | -0.08 | -2.10 | -1.90 | 0.46 |
| EPS Growth % | 139.94% | 409.79% | 96.16% | -10.53% | -513.04% | - |
| EPS (Basic) | - | 0.25 | -0.08 | -2.10 | -1.90 | 0.46 |
| Diluted Shares Outstanding | 101.48M | 90.3M | 83.29M | 88.52M | 88.52M | 88.52M |
Quick answers to the most common questions about buying CTRI stock.
For fiscal year 2025, Centuri Holdings, Inc. (CTRI) reported total revenue of $2.89B. This represents a 33.7% increase compared to $2.16B in 2021.
Centuri Holdings, Inc. (CTRI) is profitable, generating $22.4M in net income for the fiscal year ending 2025 with a net profit margin of 0.8%.
Centuri Holdings, Inc. (CTRI) reported an operating income of $92.8M, resulting in an operating profit margin of 3.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Centuri Holdings, Inc. (CTRI) generated $246.6M in gross profit for the year, representing a gross profit margin of 8.5%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Thin margins and cost inflation
Metrics are mathematically derived from official filings.
Revenue Surge on Utility Capex
Centuri's Q2 2026 revenue reached $932.0M, up 28.7% year-over-year, driven by utility infrastructure spending under MSAs, as reported in the latest quarterly filing.
The 28.7% revenue growth in Q2 2026, following a 27.2% increase in Q1, indicates a step-change in demand for gas distribution and grid modernization services. This acceleration aligns with federal methane leak reduction mandates and utility capital expenditure cycles. However, revenue growth is not purely organic; it reflects pass-through of materials and labor costs, which inflate the top line without necessarily improving margins. The durability of this growth depends on continued regulatory approval for pipe replacement programs and the retention of key MSA contracts.
Earned Returns Below Authorized
Operating margin averaged 3.2% over the last four quarters, well below the 5-6% seen in mid-2024, indicating regulatory lag and cost pressures, per company financials.
The operating margin has compressed from 5.8% in 2024Q3 to 2.6% in 2026Q2, suggesting that cost increases are not being fully recovered through contract escalation clauses. This may indicate that the company is earning below its authorized return on capital, as the thin margins leave little room for error. The gap between authorized and earned returns appears to be widening, which could signal deteriorating regulatory relationships or a shift in project mix toward lower-margin work. Investors should monitor whether management can renegotiate MSAs to include more robust inflation adjustments.
Cost Pass-Through Incomplete
Gross margin of 8.5% in Q2 2026, despite a 21% increase in base gross profit, suggests that material and labor cost inflation is not fully passed through, as per earnings release.
The gross margin has remained stubbornly low, around 8.5%, even as revenue grows, indicating that the company may be absorbing cost increases rather than passing them through. This is particularly concerning given the 0.78% net margin, which leaves minimal cushion for any cost overruns. The lack of automatic adjustment mechanisms in some contracts may create working capital strain, as the company must finance costs before reimbursement. The 21% growth in base gross profit is encouraging, but the absolute margin level suggests that cost recovery is incomplete and may be a structural issue.
Earnings Volatility Masks Core Trend
Net income swung from -$17.9M in 2025Q1 to $30.2M in 2025Q4, reflecting weather and project timing, but TTM net margin remains thin at 0.8%, per SEC filings.
The quarterly earnings are highly volatile, with losses in Q1 of each year and profits in Q4, likely due to seasonal weather patterns and project timing. This volatility obscures the underlying earnings power, which appears to be improving as revenue grows. However, the thin net margin suggests that reported earnings are sensitive to one-off items such as separation costs or IPO-related expenses. The absence of an explicit EPS beat in Q2 2026 relative to consensus indicates that earnings quality may be lower than revenue growth suggests, warranting a closer look at non-recurring items.
Capex Cycle Driving Revenue, Not Yet EPS
Revenue grew 28.7% in Q2 2026, but EPS declined 33.8% year-over-year, indicating that incremental capex is not yet translating into earnings, based on reported figures.
The significant revenue growth is likely driven by increased capital expenditure by utility customers, but the decline in EPS suggests that the company is not yet realizing the full earnings benefit. This may be due to higher depreciation and interest costs associated with expanding its own equipment fleet, or because the revenue mix is weighted toward lower-margin maintenance work. The company's ability to convert this capex cycle into EPS growth will depend on its ability to improve operational leverage and manage costs. The current trend suggests that the capex cycle is a growth opportunity, but the earnings payoff is delayed.
Margin Compression Could Undermine Growth
Despite record revenue, operating margin fell to 2.6% in Q2 2026 from 4.7% a year earlier, suggesting that growth is not translating into profitability, per income statement data.
The most significant challenge to the positive narrative is the persistent margin compression. Even as revenue grows at nearly 30%, operating margin has declined from 4.7% in 2025Q2 to 2.6% in 2026Q2, indicating that costs are rising faster than revenue. This could be due to inflationary pressures on labor and materials that are not fully recovered, or a shift toward lower-margin fixed-price contracts. If this trend continues, the company may struggle to achieve sustainable profitability, and the raised guidance may prove optimistic. Investors should monitor whether management can stabilize margins through pricing power or cost efficiencies.