Research · Sep 3, 2026
[CTRI] Centuri Holdings Thesis 2026: A Natural-Gas-Distribution-Infrastructure Compounder Rides LDC-Modernization
Centuri Holdings, Inc. (NYSE: CTRI), headquartered in Phoenix, Arizona, is a natural-gas-distribution-infrastructure + utility-services + emerging-gas-LDC-modernization specialty-utility-services-contractor providing distinctive multi-cycle Centuri-Holdings-utility-services services to US + Canada + emerging-multi-jurisdiction natural-gas + electric + telecommunications + renewables customer base. Distinctive multi-cycle Southwest-Gas-Holdings-and-Centuri-Holdings heritage: founded 1881 in Southwest-Gas-Holdings + 1928 Las-Vegas-NV Southwest-Gas + multi-cycle-Southwest-Gas; 2014 Centuri-Construction-Group establishment within Southwest-Gas-Holdings + multi-cycle-disciplined-bolt-on-and-strategic-M&A; April 2024 substantial Centuri-Holdings-IPO-Southwest-Gas-spin providing distinctive Centuri-Holdings (~80%-Southwest-Gas-Holdings-retained-stake). Multi-decade strategic-evolution: 1881-2014 Southwest-Gas-Holdings + multi-cycle-Southwest-Gas platform; 2014 Centuri-Construction-Group establishment + multi-cycle-disciplined-bolt-on-and-strategic-M&A (multi-cycle-Linetec + NPL + Neuco + Drum-Industries + Riggs-Distler-acquisitions); April 2024 substantial Centuri-Holdings-IPO-Southwest-Gas-spin; 2024 Christian Brown CEO + multi-cycle-deleveraging-post-IPO. Under CEO Christian Brown (since 2024, ~2+ year longtime National-Grid + multi-cycle-UK-and-US-utility-services executive), FY2025 closes with selected various aggregate revenue ~$2.50-2.80B, adj. EBITDA ~$200-280M, adj. EPS ~$0.60-1.30, net debt ~$0.7-1.0B, and ~87-90M shares outstanding. The first deep-dive — US-and-Canada natural-gas-distribution-infrastructure + utility-services franchise — covers entire US + Canada natural-gas + electric + telecommunications + emerging-renewables utility-services business + Centuri-Holdings-and-emerging-Centuri-Holdings positioning. Geographic + Workforce composition: ~95K+ specialty-utility-services-workforce providing US-and-Canada multi-jurisdiction-utility-services: US-gas-LDC-modernization (substantial multi-cycle largest-business + Linetec + NPL + Neuco + Drum-Industries-multi-cycle-acquisitions); Canada-gas-LDC; Pipeline-services (selective); Electric-utility-services (post-2021-Riggs-Distler-acquisition ~$855M). Revenue mix: US-Gas-LDC-Modernization ~55-65%; Canada-Gas-LDC ~15-20%; Electric-Utility-Services ~15-25% (post-2021-Riggs-Distler-acquisition + emerging-renewables); Pipeline-Services + Other ~5-10%. Customer base: US-and-Canada-multi-cycle-gas-LDC (Southern-Company-Atlanta + NSTAR + Nicor + Peoples + emerging-multi-cycle-gas-LDC) + emerging-electric-utility + emerging-telecommunications + emerging-renewables. Competes with Quanta Services (PWR most-direct-larger-Quanta-Services-comp), MasTec (MTZ most-direct-MasTec-comp), MYR Group (MYRG most-direct-MYR-Group-comp), Primoris Services (PRIM most-direct-Primoris-Services-comp), Granite Construction (GVA), Sterling Infrastructure (STRL most-direct-Sterling-Infrastructure-comp), IES Holdings (IESC), Comfort Systems (FIX), MDU Resources (MDU), EMCOR (EME), AECOM (ACM), Jacobs (J), Tutor Perini (TPC); pipeline-services Williams Companies (WMB), Kinder Morgan (KMI), Enbridge (ENB), TC Energy (TRP), Energy Transfer (ET), ONEOK (OKE); electric-utility customers Southern Company (SO), Duke Energy (DUK), Dominion Energy (D), American Electric Power (AEP), Exelon (EXC), Xcel Energy (XEL), DTE Energy (DTE), Consolidated Edison (ED), Eversource Energy (ES), CenterPoint Energy (CNP), Sempra (SRE), NiSource (NI), PG&E (PCG), FirstEnergy (FE), Entergy (ETR), Evergy (EVRG), Vistra (VST). The second deep-dive — Christian-Brown + 2024-Centuri-Holdings-IPO-Southwest-Gas-spin + multi-decade compounder thesis — covers Christian-Brown-CEO + National-Grid + multi-cycle-UK-and-US-utility-services expertise, 2024-April-substantial-Centuri-Holdings-IPO-Southwest-Gas-spin transformational-platform + multi-cycle-disciplined-bolt-on-and-strategic-M&A, emerging-US-gas-LDC-modernization + emerging-electric-utility-services + emerging-renewables + emerging-IIJA-and-IRA-infrastructure structural-tailwinds. Multi-cycle-deleveraging-post-IPO: distinctive multi-cycle deleveraging-post-IPO + emerging-multi-cycle-Southwest-Gas-Holdings-Centuri-Holdings-retained-stake-distribution potential. Multi-decade compounder thesis combines Southwest-Gas-Holdings-and-Centuri-Holdings ~143+ year heritage, ~95K+ specialty-utility-services-workforce, 2024-Centuri-Holdings-IPO-Southwest-Gas-spin + multi-cycle-disciplined-bolt-on-and-strategic-M&A, Christian Brown + National-Grid expertise, no-regular-dividend + multi-cycle-deleveraging-post-IPO + emerging-strategic-acquisition-target potential, emerging-US-gas-LDC-modernization + emerging-electric-utility-services + emerging-renewables + emerging-IIJA-and-IRA-infrastructure structural-tailwinds. Capital position is post-NYSE-IPO non-IG (B+/BB-), no-regular-dividend, no-buyback, multi-cycle-deleveraging-and-conservative: net debt ~$0.7-1.0B (~3.0-4.5x leverage), B+/BB-equivalent, $0.05-0.15B cash + undrawn revolver liquidity, FCF ~$80-180M/yr deployed into capex ~$60-120M/yr + no dividend + no buyback + multi-cycle-disciplined-bolt-on-and-strategic-M&A + emerging-electric-utility-services capex, ~87-90M shares + ~80%-Southwest-Gas-Holdings-Centuri-Holdings-retained-stake. At ~$16-30 per share, equity value ~$1.4-2.7B, EV ~$2.1-3.7B, ~12-50x EPS and ~8-18x EV/EBITDA. Base case: US-gas-LDC-modernization cycle constructive + Canada-gas-LDC + emerging-electric-utility-services + emerging-renewables + emerging-IIJA-and-IRA + revenue $2.60-3.00B + adj. EBITDA $230-330M + adj. EPS $0.85-1.55 + multi-cycle-deleveraging + ~10-25% return. Bull case: US-gas-LDC-modernization accelerates + emerging-electric-utility-services inflects + emerging-renewables inflects + emerging-IIJA-and-IRA inflects + revenue $2.90-3.40B + adj. EBITDA $290-420M + adj. EPS $1.20-2.20 + multi-cycle-deleveraging + selective-M&A + emerging-strategic-acquisition-target (PWR + MTZ + MYRG + PRIM interest + Southwest-Gas-Holdings-Centuri-Holdings-retained-stake-distribution) + re-rate 20-30x + 35-75%+ return + takeout-premium-upside. Bear case: US-gas-LDC-modernization stresses + emerging-electric-utility-services disappoints + multi-cycle-deleveraging delays + adj. EPS $0.20-0.40 + de-rate 15-25x + flat-to-substantially-negative.