We came across a bullish thesis on Centuri Holdings, Inc. on Monte Independent Investment Research’s Substack by Monte Investments. In this article, we will summarize the bulls’ thesis on CTRI. Centuri Holdings, Inc.’s share was trading at $20.19 as of October 16th. CTRI’s forward P/E was 20.49 according to Yahoo Finance.
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Centuri Holdings (CTRI) is an infrastructure services company that recently became independent following a spin-off from Southwest Gas Holdings, positioning itself to capitalize on growing power demand in North America. The company primarily provides maintenance, upgrades, and buildouts for electric and gas utilities, servicing over 400 customers, including major investment-grade utilities like American Electric Power, Entergy, and Southern Company. A significant portion of Centuri’s business operates under long-term master service agreements (MSAs), which account for 80% of revenue, supplemented by bid contracts.
These agreements, combined with a capital-light model where materials are supplied by customers, provide substantial flexibility and reduce exposure to cost overruns or tariffs. Centuri operates through four segments—US Gas, Canadian Gas, Union Electric, and Non-Union Electric—with US Gas representing the largest revenue share while Canadian Gas delivers the highest margins. Growth is expected to be driven by grid modernization, electrification, renewable energy, and the expansion of data centers, which could see U.S. capacity rise from 56GW in 2024 to 122GW by 2030. Additionally, reindustrialization under new trade agreements is projected to increase power demand by 2.5–3% annually through 2035, further expanding Centuri’s addressable market.
The company ended Q2 2025 with $5.3 billion in backlog, supported by strong new order flow and a book-to-bill of 2.3x, indicating high-margin opportunities ahead. With $14 billion in pipeline opportunities and $200 billion identified across 20 customers over five years, Centuri is well-positioned to optimize margins, particularly in US Gas, while pursuing growth through client development rather than aggressive bidding. The company’s resilient MSA structure, diversified customer base, and favorable market trends make it a compelling investment with multiple catalysts for long-term upside.
Previously we covered a bullish thesis on UGI Corporation (UGI) by Investing 501 in January 2025, which highlighted the challenges and potential turnaround of AmeriGas, along with growth in UGI’s Utilities and Midstream divisions. The company’s stock price has depreciated approximately by 33.91% since our coverage due to ongoing execution risks at AmeriGas. The thesis still stands as UGI’s core businesses remain profitable. Monte Investments shares a similar focus on the utility sector but emphasizes Centuri Holdings’ (CTRI) growth through grid modernization and long-term MSAs rather than a turnaround scenario.
