Centuri Announces Nearly Half a Billion Dollars in Multi-Year Customer Awards

Rhea-AI Summary

Centuri Holdings (NYSE: CTRI) has secured customer awards exceeding $490 million for early 2025, marking significant expansion in its utility infrastructure services. The agreements include renewals of two multi-year contracts with existing utility customers in the Northeast and Midwest, plus two new Master Service Agreements (MSAs) in the Pacific Northwest, representing geographical expansion.

The contracted work encompasses maintenance, repair, expansion, and upgrade of electric and gas systems for investor-owned utilities across the U.S. The company highlights that their customer relationships average 24 years, demonstrating long-term collaborative partnerships.

Positive

• Secured contracts worth over $490 million
• Geographic expansion into Pacific Northwest market
• Renewal of existing long-term customer contracts
• Diversification of customer base with new utility clients

Negative

• None.

Insights

Infrastructure Services Analyst

Centuri's announcement of $490 million in multi-year customer awards represents a substantial business development that strengthens its position in the utility infrastructure services sector. The mixture of contract renewals and new customer acquisitions demonstrates a balanced approach to growth that both reinforces existing revenue streams and expands the company's market presence.

The geographic expansion into the Pacific Northwest is particularly significant as it gives Centuri coast-to-coast operational capabilities, reducing regional concentration risk while creating new growth opportunities. These Master Service Agreements (MSAs) for electric and gas system maintenance, repair, and upgrades typically provide more stable, predictable revenue compared to project-based work.

The company's mentioned 24-year average customer relationship tenure is exceptional in the contracting industry and suggests strong delivery capabilities and customer satisfaction. This metric is often correlated with lower customer acquisition costs and more favorable contract terms due to established trust.

The timing of these wins early in 2025 potentially positions Centuri for additional growth throughout the year as utilities continue to invest in infrastructure modernization. The ability to leverage both union and non-union workforces across various geographies provides operational flexibility that many competitors lack, allowing Centuri to adapt to different regulatory environments and labor markets.

Utility Sector Investment Analyst

The $490+ million in new bookings represents approximately 33.7% of Centuri's current market capitalization ($1.45 billion), making this announcement materially significant. While the precise duration of these multi-year contracts isn't specified, they establish a stronger revenue foundation and enhance business visibility going forward.

The dual approach of renewing existing customer contracts while securing new MSAs aligns with Centuri's stated strategy of delivering "long-term, profitable growth." The company's emphasis on long-duration master service agreements rather than one-off projects typically correlates with more consistent financial performance and reduced revenue volatility.

The geographic expansion into the Pacific Northwest diversifies Centuri's customer base and creates potential operational synergies across regions. This coast-to-coast coverage could make the company more attractive to national utilities seeking comprehensive service providers.

From a financial perspective, utility infrastructure services contracts typically generate steady cash flow with reasonable margins, though specific financial terms weren't disclosed. The combination of contract renewals and new customer wins suggests that Centuri maintains competitive positioning in both customer retention and new business development – two critical metrics in the infrastructure services sector that support sustainable growth.

Early Agreements in 2025 Underpin Commitment to Delivering on Long-Term, Profitable Growth

• Wins include renewal of two significant multi-year customer agreements and two new customer awards
• Awards expand Centuri’s geographic reach into new markets
• Bookings represent work in the Northeast, Midwest, and expansion into Pacific Northwest

PHOENIX--(BUSINESS WIRE)-- Centuri Holdings, Inc. (NYSE: CTRI) (“Centuri” or the "Company"), a leading, North American utility infrastructure services company, today announced several significant customer awards to begin 2025. The bookings plus options exceed $490 million and represent both existing customer contract renewals and new customer awards in new geographies, spanning both coasts.

As part of its growth strategy to secure Master Service Agreement (MSA) renewals and win new MSA contracts, Centuri successfully renewed two multi-year contracts with long-tenured utility customers in the Northeast and Midwest. In addition, the Company was awarded two new MSAs in a new utility client geography in the Pacific Northwest. Contracted work includes the maintenance, repair, expansion, and upgrade of electric and gas systems for investor-owned utilities across the U.S.

“These significant customer awards directly reflect the long-term, collaborative nature of our customer relationships that average 24 years, and are a testament to our dedicated teams working on behalf of our clients. These multi-year contracts also leverage the depth and expertise of our diversified, union and non-union workforces across the United States,” said Centuri President and CEO Christian Brown. “We are committed to delivering exceptional service and meeting the evolving needs of our utility and energy customers across North America. Equally, we are focused on growing our existing customer relationships and diversifying our customer base to deliver long-term, profitable growth.”

Learn more about Centuri’s capabilities at https://centuri.com

About Centuri

Centuri Holdings, Inc. is a strategic utility infrastructure services company that partners with regulated utilities to build and maintain the energy network that powers millions of homes and businesses across the United States and Canada.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can often be identified by the use of words such as “will,” “predict,” “continue,” “forecast,” “expect,” “believe,” “anticipate,” “outlook,” “could,” “target,” “project,” “intend,” “plan,” “seek,” “estimate,” “should,” “may” and “assume,” as well as variations of such words and similar expressions referring to the future. Forward-looking statements could include (without limitation) statements regarding our confidence in our prospects to deliver value for our stockholders as an independent standalone company and our expectation to continue to build on our track record of delivering consistent growth by serving our customers across the utility value chain. A number of important factors affecting the business and financial results of Centuri could cause actual results to differ materially from those stated in any forward-looking statements. These factors include, but are not limited to, capital market risks and the impact of general economic or industry conditions. Factors that could cause actual results to differ also include (without limitation) those discussed in Centuri’s filings filed from time to time with the SEC. The statements in this press release are made as of the date of this press release, even if subsequently made available by Centuri on its website or otherwise. Centuri does not assume any obligation to update any forward-looking statements, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250324532659/en/

For Centuri Shareholders, contact:

(623) 879-3700

Investors@Centuri.com

For Centuri media information, contact:

Jennifer Russo

(602) 781-6958

JRusso@Centuri.com

Source: Centuri Holdings, Inc.

FAQ

What is the total value of Centuri's (CTRI) new contract awards for 2025?

Centuri's new contract awards and options for 2025 exceed $490 million in total value.

Which regions are covered by Centuri's (CTRI) new 2025 contract awards?

The contracts cover the Northeast, Midwest, and expand into the Pacific Northwest regions of the United States.

What types of services will Centuri (CTRI) provide under these new contracts?

Centuri will provide maintenance, repair, expansion, and upgrade services for electric and gas systems to investor-owned utilities.

How many new versus renewed contracts did Centuri (CTRI) secure in this announcement?

Centuri secured two renewed multi-year contracts with existing customers and two new MSAs with a new utility client.