Centuri Posts 76% Gross Profit Surge, Expands Backlog to Record $6.5B
Event summary
- Centuri reported Q1 2026 revenue of $723.2M, up 31% YoY, with gross profit growing 76% to $35.8M.
- Base revenue and base gross profit increased 29% and 96% YoY respectively, excluding storm restoration services.
- Backlog expanded to a record $6.5B, a 44% YoY increase, with $1.3B in new bookings.
- Net loss improved by $8.4M YoY to $9.5M, while adjusted EBITDA rose 34% to $32.6M.
- Company introduced long-term targets including 10-15% base revenue CAGR through 2029.
The big picture
Centuri's strong Q1 2026 results reflect its strategic focus on core utility services and geographic diversification. The company's record backlog and improved profitability highlight its position in durable end markets, though sustaining growth will depend on its ability to manage seasonality and execute on long-term targets. The $6.5B backlog represents significant revenue visibility, but integration of recent acquisitions like Connect Atlantic Utility Services will be critical.
What we're watching
- Growth Sustainability
- Whether Centuri can maintain its 31% revenue growth pace amid seasonality challenges.
- Margin Expansion
- The pace at which base gross profit margin improves toward the 8.7-9.7% 2029 target.
- Execution Risk
- How effectively Centuri integrates acquisitions and secures higher-margin work.
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