Centuri is a defensive utility infrastructure compounder with record backlog and secular grid tailwinds, but its upside depends on proving margin expansion and deleveraging can overcome seasonality, execution risk, and balance-sheet leverage.
Overview
Centuri Holdings is a North American specialty utility infrastructure contractor serving regulated gas and electric utilities through a localized operating model across the U.S. and Canada. Its revenue is highly recurring, with 85%–90% of backlog tied to long-term MSAs and a 100% major MSA renewal rate. The business benefits from mandated utility maintenance, pipeline replacement, grid modernization, and data center-related power demand, making it more defensive than upstream energy contractors despite near-term seasonality and leverage concerns.