We came across a bullish thesis on Centuri Holdings, Inc. on the Monte Independent Investment Research substack of Monte Investments. In this article, we will summarize the bulls’ thesis on CTRI. Centuri Holdings, Inc. stock was trading at $20.19 as of October 16. 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 spinoff from Southwest Gas Holdings, positioning itself to take advantage of growing demand for electricity in North America. The company primarily provides maintenance, upgrades and development services for electric and gas utilities, serving more than 400 customers, including large blue-chip utilities like American Electric Power, Entergy and Southern Company. A significant part of Centuri’s business operates under long-term Master Service Agreements (MSAs), which represent 80% of turnover, supplemented by tender contracts.
These agreements, combined with a low-capital model in which 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 accounting for the largest share of revenue while Canadian Gas generates the highest margins. Growth is expected to be driven by grid modernization, electrification, renewable energy and data center expansion, which could see US capacity increase from 56 GW in 2024 to 122 GW by 2030. Additionally, reindustrialization under new trade agreements is expected to increase electricity demand by 2.5 to 3 percent annually through 2035, expanding the potential market for Centuri.
The company ended the second quarter of 2025 with an order backlog of $5.3 billion, supported by strong new order flow and a 2.3x order-to-bill ratio, 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 the U.S. gas sector, while continuing to grow through customer development rather than aggressive bidding. The company’s resilient MSA structure, diverse customer base and favorable market trends make it an attractive investment with multiple long-term upside catalysts.
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, as well as the growth of UGI’s Utilities and Midstream divisions. The company’s stock price has depreciated approximately 33.91% since our coverage due to continued execution risks at AmeriGas. The thesis remains current: UGI’s core businesses remain profitable. Monte Investments shares a similar focus on the utilities sector, but emphasizes Centuri Holdings’ (CTRI) growth through grid modernization and long-term MSAs rather than a turnaround scenario.
