AI-extracted from the 10-Q filed 2026-08-04 — Q2 FY2026 (quarter ended June 28, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Centuri delivered $962M in Q2 revenue (+32.9% YoY), but gross margin compressed to 7.2% from 9.4% due to a $9M City of Chicago contract reversal, elevated fuel costs, and workforce scaling expenses.
Biggest Revenue Drivers
U.S. Gas$489.5M+45.3% YoY
Driven by new bid and MSA contracts and increased volumes on existing MSAs.
Union Electric$224.2M+23.0% YoY
Increase driven primarily by new bid projects.
Biggest Revenue Drivers
Total revenue: $962.0M+32.9% YoY
U.S. Gas$489.5M+45.3% YoY
Driven by new bid and MSA contracts and increased volumes on existing MSAs.
Union Electric$224.2M+23.0% YoY
Increase driven primarily by new bid projects.
Non-Union Electric$166.9M+11.3% YoY
Due primarily to higher volumes on new and existing MSAs.
Canadian Operations$81.4M+47.8% YoY
Driven by the acquisition of Connect, which contributed approximately $22.3M in revenue.
Largest Expense Items
Cost of revenue$892.8M+36.1% YoY
Increased in line with revenue growth; margin pressure from elevated fuel costs and workforce scaling expenses.
Selling, general and administrative expenses$37.2M+28.6% YoY
Increased by $1.7M in One Centuri strategy implementation costs and $1.4M in acquisition costs; also higher bonus and stock-based compensation.
Amortization of intangible assets$7.8M+16.1% YoY
Interest expense, net$12.1M-33.6% YoY
Decrease due to reduction in average debt balance and lower interest rates on variable-rate borrowings.
Margins: Gross margin declined to 7.2% from 9.4% YoY, driven by a $9M City of Chicago contract revenue reversal (non-recurring), elevated fuel costs impacting particularly U.S. Gas and Non-Union Electric segments, and costs to scale up workforce for new contracts. Excluding the reversal, adjusted gross margin would have been approximately 8.1%.
Watch Items from the Filing
City of Chicago contract dispute: $9M revenue reversal in Q2 due to court order requiring reassessment of variable consideration; remaining outstanding balances not billable until further developments; material exposure on legacy contract remains uncertain.
One Non-Union Electric customer represented 11% of total revenue ($187.4M) in H1 2026 and 20% of combined accounts receivable and contract assets ($150.6M) as of June 28, 2026; significant concentration risk.
Operating cash flow negative $15.0M in H1 2026 vs. negative $11.0M in H1 2025; working capital challenges from milestone-based bid project billings and customer approval delays offsetting $40M securitization benefit.
Backlog of $6.4B as of June 28, 2026 (83% from MSAs) provides revenue visibility; however, MSAs lack contractual volume commitments and are terminable on notice, creating execution risk.
Connect acquisition (Nov 2025) contributed $22.3M revenue in Q2 but carries lower margins (16.0%) than legacy gas operations; integration underway with $1.7M post-closing working capital adjustment paid in Q2.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Krummel Christopher ADirectorGrant or award · May 19, 2026
Patton Charles R.DirectorGrant or award · May 19, 2026
Mariucci Anne LDirectorGrant or award · May 19, 2026
About Centuri Holdings, Inc. (CTRI): stock profile, AI score and financials
Centuri Holdings, Inc. (CTRI) stock profile, AI quality score, and SEC EDGAR financial data, a Energy sector company. 13F Pro's AI-powered ranking engine scores CTRI at 52.1/100 on a composite quality score built from its SEC filings, placing it at rank #1,494 of 2,925 stocks — the bottom half of the AI-ranked universe. Areas of concern include institutional flow (18.0) and free cash flow (26.6), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q2 2026), Centuri Holdings, Inc. reports quarterly revenue of $962.0M, net income of $6.1M, an operating margin of 2.5%. Top institutional holders of CTRI by reported 13-F value include ICAHN CARL C, BlackRock, CARRONADE CAPITAL MANAGEMENT, based on the most recent SEC filings. CTRI trades on the NYSE exchange and files with the SEC under CIK 1981599. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CTRI daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Centuri Holdings, Inc. directly from SEC EDGAR.