On this page of StockholderLetter.com we present the latest annual shareholder letter from Centuri Holdings, Inc. — ticker symbol CTRI. Reading current and past CTRI letters to shareholders can bring important insights into the investment thesis.

 •  3/5/2025 Letter Continued (Full PDF)
 •  More "Gas Utilities" Category Stockholder Letters
 •  CTRI Benford's Law Stock Score = 79

CTRI Shareholder/Stockholder Letter Transcript:

2024
ANNUAL REPORT
Earning Trust,
Delivering on our Promises

Our Business
We operate in 45 U.S. States and 2 Canadian provinces where our 8,600
employees are working on behalf of our utility and energy customers to build
the infrastructure needed to power North America.
Our portfolio includes electric, natural gas, renewables, and next generation
technology infrastructure solutions required to support ever-increasing energy
demands. Our operating history extends more than 115 years, and we continue
to serve our customers with quality, safety, and integrity at the forefront of every
decision we make.
45
Centuri Holdings, Inc.
2024 by the Numbers
115+
45/2
Years operating
legacy
States/Provinces
2
100+

MIllion customers
served by our clients
ENR Top 600
utility category
U.S. States
2
Canadian Provinces
8,600
90%
3.7B

Backlog related to
Master Service Agreements
Total work backlog
Employees
2.64B

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238M / 9%

Annual revenue
Adjusted EBITDA / Margin
-43%
-67%
BLS industry comparison (TRIR)*
BLS industry comparison (DART)*
19,500,400+
97,443,350+
Hours worked by our crews
Miles driven by our crews
For the year ended December 29, as applicable.
* Based on 2023 BLS data.
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Earning
Your Trust
Dear Shareholders,
2024 was a transformative year for Centuri headlined by our
successful completion of an Initial Public Offering (IPO) on
April 22, 2024. We are proud of our accomplishment to bring to
market a leading North American utility infrastructure services
company now trading on the New York Stock Exchange (NYSE:
CTRI).
As anyone who has gone through this public process can
attest, the fanfare of the pivotal moment   the preparation,
the ceremonial bell ringing, the celebration   quickly falls into
the rear view and the imperative as a now-public company
becomes clearer than ever:
Trust is earned on a daily basis by
delivering on our promises to all our
stakeholders, which now includes you,
our investors.
As Centuri   s President & CEO, a role I assumed in
December 2024, it is an honor to take up this charge
during an exciting time in the life of our company
and the industry. Our entire organization is acutely
aware of the responsibility and privilege before us
as we strive to operate with excellence and deliver
value to our stockholders.
In our earliest public communications, we signaled
the Company   s strategic focus on cost discipline,
profitable growth, and balance sheet strength. We
made tangible progress on each of these fronts in
2024. In the first half of the year our internal teams
performed a top-to-bottom review of the business
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Centuri Holdings, Inc.
with an eye to operating efficiency and capital discipline.
Ultimately, we identified $29 million in annualized cost savings,
which were implemented in the back half of the year. These
cost efforts were especially important as we experienced
a notable pull back in customer spend in the first half of the
year driven in large part by unfavorable regulatory decisions in
multiple, key customer jurisdictions.
Persevering through these challenges, we saw normalization
in our gas business and growth in our electric crew counts in
the second half of the year. This positive performance paired
with a significant deployment of crews for storm response
delivered a strong fourth quarter close and ultimately allowed
us to achieve year-end financial performance in line with our
provided guidance. As we continued to focus on free cash
flow, we also ended the year at our target reduced net debt to
Adjusted EBITDA ratio.
Our proven success in storm response continues to be a value
driver in the business. Hurricanes Beryl, Francine, Helene,
Milton, and others caused outages throughout the east coast
in late summer and throughout the fall. Centuri operating
company crews responded to support our customers, restoring
power in challenging conditions and re-energizing the affected
communities. I   m extremely proud of our continued record
of safety, particularly throughout a busy storm season, as we
anticipated and responded to our customers    needs.
extremely optimistic about the opportunities I see for Centuri   s
future. With our resources, capabilities, and focus we are well
equipped to meet the demands of our existing markets for
energy, gas, and electric power while unlocking new customer
opportunities across the U.S. and Canada. Our business model,
which leverages the capabilities of complementary offerings
across geographies, positions the company well to pursue
and win many opportunities across North America   s utility and
energy value chain.
Centuri is a great business, with exceptional people delivering
safe, high-quality services to a long-standing, blue-chip
customer base. This is a strong foundation from which to build.
I look forward to applying my past experiences leading solid
companies to new heights in their growth journey to help
Centuri chart a bright future. Together with our employees
across the U.S. and Canada, we are committed to delivering on
our promises and working to earn your trust each day.
Sincerely,
Christian Brown
President & CEO
Centuri Holdings, Inc.
At the end of the year, and coinciding with my start as President
& CEO, we initiated a company-wide sales pipeline review and
process enhancement that will empower real-time, data-driven
decisions in the pursuit of attractive growth opportunities. I
view this as a first critical step in activating our growth potential
in the coming year.
Through due diligence prior to joining the organization, and
now having completed more than three months in the role, I am
2024 Annual Report
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Financial
Performance
Centuri exceeded the mid-point of guidance provided in July
for revenue, earning $2.64 billion, and delivered Adjusted
EBITDA of $238 million, a 9% margin. Adjusted net income was
$26.2 million with adjusted diluted earnings per share of $0.32.
World-Class Safety
A testament to our long-standing customer relationships, we
secured $1.11 billion in customer awards in the year and exited
the fourth quarter of 2024 with a backlog totaling $3.7 billion,
of which 90% is related to Master Service Agreement (MSA)
revenue.
A key priority for us in the year was to reduce our debt position.
By focusing on free cash flow generation and capital discipline,
we reduced our net debt to Adjusted EBITDA ratio from 4x at
the start of the year to 3.6x by the end of December. We will
continue to prioritize debt reduction in the year ahead.
Financial
Discipline
We are committed to delivering on our growth agenda and to
strengthening our balance sheet through rigorous capital and
cost discipline. This includes leveraging our size, scale, and
buying power, as well as finding efficiencies within the business.
In 2024, Centuri advanced several efforts to drive a more
capital e   cient and people effective organization with an
aim to improve bottom-line results. This included a reduction
in overhead that resulted in approximately $29 million in
annualized savings.
In addition, we prioritized optimization of our fleet and supply
chain systems. In 2024, Centuri renegotiated a total of 19 supply
chain contracts, representing 21% of the spend among our top
100 vendors contracted. These initiatives, along with our focus
on asset deployment and utilization, remain top priorities in
2025.
A testament to our long-standing
customer relationships, we
secured $1.11 billion in customer
awards in 2024
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Centuri Holdings, Inc.
We place the safety of our employees, contractors, and
communities above all else and at the core of every decision
we make. Through behavior-based observation programs,
interactive campaigns, custom dashboards, dedicated summits,
and focused communications, we ensure Centuri employees
have the tools and resources they need to work safely.
average. In 2024, Centuri achieved 43% and 67% below our
industry classification for Total Recordable Injury Rate (TRIR)
and Days, Away, Restricted or Transfer Rate (DART), respectively.
We also made continuous improvement over the prior year
across three key performance indicators, namely TRIR, DART,
and Preventable Vehicle Accident Rate (PVAR).
In addition to self-performed audits, we benchmark our safety
performance using the relevant Bureau of Labor Statistics (BLS)
classification system, consistently outperforming the industry
Delivering for
the Future
Our ability to pursue and win identified opportunities and deliver
predictable financial results is key to earning shareholder trust. To
enhance our internal processes, we kicked off a CEO-led sales pipeline
review at the end of the year.
The aim is to ensure we have maximum visibility into our opportunities
and forecasted work and can make data-informed, real-time decisions
to ensure we meet our targets and deliver on our promises. This
is a critical first step in our strategy process, which will comprise
identification of new opportunities within existing markets as well as
opportunities in emerging markets to both strengthen and diversify the
business.
2024 Annual Report
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Market
Outlook
Customer Relationships
Built on Trust
Grid capacity and reliability continue to take center stage
as aging energy infrastructure struggles to meet modern
demands. Significant investment in transmission & distribution
infrastructure is required to meet fast growing power needs for
mega users such as data centers, with a projection that U.S data
center power demand will increase at 12% per year until the
end of 2030.*
Centuri has fostered long-term relationships with our blue-chip utility
customers, with an average tenure of 24 years. We have earned their
trust and their work by performing to the highest standards of quality
and safety, and with operational excellence. These factors have
been instrumental in our ability to continuously earn Master Service
Agreement (MSA) extensions and greater revenue visibility, which is
the core of our business model, including early renewals.
Global demand for electricity is set to grow at 4 percent per
year through 2027 on the back of the increased use for industry,
air conditioning, electric vehicles, and data centers.** Added
to this are an increased focus on national energy security and
a mix of clean energy projects, all of which require resilient,
reliable infrastructure. These strong market demands, coupled
with Centuri   s full suite of capabilities and broad geographic
reach, create continuous opportunity for the Company.
Based on the timing of contract expirations, 2024 was not an especially
active year for MSA renewals. Looking out over the course of 2025, we
see the opportunity to secure additional MSA renewals that have a
multi-year revenue potential of approximately $2 billion.
24
Years Average
Relationship Tenure
The Company continues to evaluate strategic bid awards, with
numerous outstanding and expected tenders across notable growth
markets that include, among others, data centers, renewable natural
gas, and liquified natural gas. This work will be complemented by
the need to continuously upgrade an aging electric grid and gas
distribution pipeline system.
Centuri is poised to play a significant role in delivering the
required mix of energy solutions, from traditional to clean
energy alternatives. We will do so while helping our customers
realize their goals and driving increased value for all our
stakeholders.
U.S. data center power demand is
expected to increase at 12% per
year until the end of 2030.
*Source: S&P Global Ratings   
**Source: International Energy Agency
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Centuri Holdings, Inc.
2024 Annual Report
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 3/5/2025 Letter Continued (Full PDF)