The raised guidance and record backlog signal accelerating end-market demand, but margin compression from fuel costs and labor ramp is a near-term headwind. Monitor Q3 for margin recovery to the ~9.0% Base Gross Profit Margin target and integration progress on JJ White. The stock may re-rate higher if the company demonstrates margin expansion in H2 2026.
Price Chart
Executive Summary
Centuri reported Q2 2026 revenue of $962.0M (+33% YoY) and GAAP EPS of $0.06, while Adjusted EPS was $0.24, beating the $0.20 consensus by 20.6%. The company raised full-year 2026 guidance for Base Revenue to $3.5-$3.7B (from $3.15-$3.45B) and Adjusted EBITDA to $285-$310M, reflecting strong demand and the accretive JJ White acquisition. However, GAAP net income declined to $6.1M from $8.1M a year ago, and gross margin compressed to 7.2% from 9.4% due to fuel cost headwinds and labor ramp-up costs, tempering the headline beat.
Key Financial Metrics
Key Facts
- Record quarterly revenue of $962.0M, up 33% YoY
- Adjusted EPS of $0.24 beat consensus of $0.20 by 20.6%
- Raised full-year 2026 Base Revenue guidance to $3.5-$3.7B (from $3.15-$3.45B)
- Raised full-year 2026 Adjusted EBITDA guidance to $285-$310M (from $280-$310M)
- Closed acquisition of JJ White for ~$62M, adding ~$315M backlog and expected >$20M annual gross profit
- GAAP net income fell to $6.1M from $8.1M YoY; GAAP EPS $0.06 vs $0.09
- Gross margin compressed to 7.2% from 9.4% due to ~$6M fuel cost headwind and ~$3M labor mobilization costs
- Backlog of $6.4B (+21% YoY); opportunity pipeline expanded to $16B (+23% QoQ)
- Net Debt to Adjusted EBITDA improved to 2.6x from 3.7x YoY
Financial Impact
Raised FY2026 Base Revenue guidance by ~$350M at midpoint to $3.5-$3.7B; Adjusted EBITDA guidance raised by $2.5M at midpoint to $285-$310M; JJ White acquisition adds ~$62M cash outlay with expected >$20M annual gross profit contribution
Risk Factors
- Fuel price headwinds persist, compressing margins
- Labor ramp costs in U.S. Gas segment may take longer to normalize
- Integration risk from JJ White acquisition
- GAAP net income declining YoY despite revenue growth
- City of Chicago reversal ($9.0M write-down) could signal further legacy contract issues
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001981599-26-000088 |
| Document: ctri-20260804.htm | 0001981599-26-000088 |
| Document: 0001981599-26-000088-index-headers.html | 0001981599-26-000088 |
| Document: 0001981599-26-000088-index.html | 0001981599-26-000088 |
| Document: 0001981599-26-000088.txt | 0001981599-26-000088 |
| 8-K Data (Synthetic) | 0001981599-26-000088 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 12, 2026 7w ago | 3 | $23.09 $20.16 | ▼ −12.69% | ▼ −10.94% | $20.91 (−9.44%) |
Aug 12, 2026 7w ago | 3 | $23.09 $20.16 | ▼ −12.69% | ▼ −10.94% | $20.91 (−9.44%) |
Aug 12, 2026 7w ago | 8-K | $23.09 $20.16 | ▼ −12.69% | ▼ −10.94% | $20.91 (−9.44%) |
Aug 4, 2026 8w ago | 8-K | $21.88 $20.49 | ▼ −6.35% | ▼ −5.11% | $20.91 (−4.43%) |
Jun 12, 2026 16w ago | Institutional Cluster | $30.35 $25.67 | ▼ −15.42% | ▼ −17.20% | $20.91 (−31.10%) |
Jun 11, 2026 16w ago | Institutional Cluster | $29.73 $26.28 | ▼ −11.60% | ▼ −13.50% | $20.91 (−29.67%) |
May 13, 2026 20w ago | S-3ASR | $32.46 $30.35 | ▼ −6.50% | ▼ −5.64% | $20.91 (−35.58%) |
May 6, 2026 21w ago | 8-K | $33.60 $30.39 | ▼ −9.55% | ▼ −12.69% | $20.91 (−37.77%) |
Feb 28, 2026 30w ago | Institutional Cluster | $30.94 $27.80 | ▼ −10.15% | ▼ −2.21% | $20.91 (−32.42%) |
Feb 25, 2026 31w ago | 8-K | $30.67 $30.45 | ▼ −0.72% | ▲ +4.52% | $20.91 (−31.82%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Try SecBot Free Coming soon: SecBot Pro with alerts, watchlists, and API access