Centuri Holdings, Inc. Reports Third Quarter Results
PHOENIX--Centuri Holdings, Inc. (NYSE: CTRI) has recently announced its financial outcomes for the third quarter that ended on September 29, 2024. The company has reiterated its guidance for the full year financial performance, providing insight into its operational trajectory during this period.
Third Quarter Key Highlights
Significant Customer Awards
Centuri secured several customer agreements, reflecting a significant revenue potential estimated at approximately $350 million. This achievement is composed of a combination of new and renewed Master Service Agreements (MSA) as well as strategic bid work. As a result, the company ended the third quarter with a robust backlog nearing $4.3 billion, with 87% of that anticipated revenue coming from MSA agreements.
Financial Results Overview
The revenue for the third quarter of 2024 reached $720.1 million. However, the company reported a net loss attributable to common stock owners of $3.7 million, equating to a diluted loss per share of $0.04. Nonetheless, adjusted net income stood at $5.3 million, leading to an adjusted diluted earnings per share of $0.06. The adjusted EBITDA for the quarter was marked at $78.8 million, reflecting an adjusted EBITDA margin of 10.9%.
Strategic Financial Maneuvers and Sustainability Efforts
Recently, Centuri entered into a three-year accounts receivable securitization facility worth $125 million, primarily aimed at repaying outstanding amounts under the company's existing term loan. Further enhancing its commitment to sustainability, the company released an annual Sustainability Report in October that aligns with crucial UN Sustainable Development Goals and integrates key performance indicators.
Management Insights
Paul Caudill, Interim President & CEO, stated that the third quarter experienced improvement in its core electric business operations and a notable increase in storm restoration services. This success, largely driven by the impacts of Hurricanes Helene and Milton, gives the company confidence in sustaining its full-year outlook for 2024.
Future Growth Strategies
Looking forward, Centuri aims to diversify its customer and business mix by pursuing strategic bid opportunities that align with its risk profile and core competencies. The management believes that their extensive capabilities and insights gained over decades in the energy sector will enable them to capitalize on emerging opportunities.
2024 Outlook and Guidance
- Projected revenue in the range of $2.5 to $2.7 billion
- Expectation of adjusted EBITDA margin percentages between 9.0% and 9.6%
- Capital expenditure projections are estimated at $90 to $99 million
Conference Call Invitation
Centuri will host a conference call to discuss its financial results and business highlights on a specified date. Interested parties can join via the company's investor relations website or by phone, ensuring an easy avenue for stakeholders and analysts to gain valuable insights.
Company Profile
Centuri Holdings, Inc. is a prominent utility infrastructure services provider that collaborates with regulated utilities to build and maintain energy networks across North America.
Frequently Asked Questions
What were Centuri's total revenues for Q3 2024?
Centuri reported total revenues of $720.1 million for the third quarter of 2024.
What was the net loss recorded by Centuri in Q3 2024?
The net loss attributable to common stock was $3.7 million, or a diluted loss per share of $0.04.
How much new business did Centuri secure in Q3 2024?
Centuri secured contracts estimated to generate approximately $350 million in future revenue from various customers.
What is Centuri's outlook for the entire year of 2024?
Centuri projects revenues between $2.5 billion and $2.7 billion, with an adjusted EBITDA margin expected to range from 9.0% to 9.6%.
How does Centuri focus on sustainability?
Centuri published its annual Sustainability Report that tracks key performance indicators aligned with UN Sustainable Development Goals.
