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California-based Tensile Capital Management disclosed a new position in the third quarter, acquiring 812,088 shares of Centuri in a position valued at approximately $17.2 million.
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This month marked a new position for the fund, which reported not holding any Centuri shares in the previous period.
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Centuri’s stake represents 2.2% of assets under management, putting it outside the fund’s top five holdings.
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California-based Tensile Capital Management has initiated a new stake in Centuri Holdings (NYSE:CTRI)adding 812,088 shares valued at approximately $17.2 million, according to a Nov. 14 filing with the SEC.
Tensile Capital Management LP revealed a new position in Fund of the century (NYSE:CTRI)acquiring 812,088 shares valued at $17.2 million, according to a quarterly report filed with the U.S. Securities and Exchange Commission on Nov. 14.
The new position represented approximately 2.2% of the fund’s reportable U.S. equity assets under management as of September 30.
Main headlines after filing:
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NASDAQ: VERX: $94.3 million (11.8% of assets under management)
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NYSE: DKS: $79.5 million (9.9% of assets under management)
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NYSE: VVV: $74.7 million (9.3% of assets under management)
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NYSE: LAD: $74.4 million (9.3% of assets under management)
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NYSE: USFD: $58.5 million (7.3% of assets under management)
As of Friday, Centuri shares were priced at $25.58, up 18% over the past year and slightly outperforming the S&P 500, up 13% over the same period.
|
Metric |
Value |
|---|---|
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Revenue (TTM) |
$2.8 billion |
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Net Income (TTM) |
$2.5 million |
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Market capitalization |
$2.5 billion |
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Price (at market close Friday) |
$25.58 |
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Centuri Holdings provides utility infrastructure services, including maintenance, replacement, repair and installation of gas and electric utilities throughout North America.
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The Company generates revenue primarily through service contracts with regulated utility providers, focusing on the modernization and expansion of energy infrastructure.
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It serves electric, gas and combined utility companies, as well as end markets such as renewable energy, data centers and 5G data communications.
Centuri Holdings, Inc. is a leading provider of utility infrastructure services with a diversified portfolio in the gas and electric segments in the United States and Canada. The company leverages its scale and expertise to support critical modernization and reliability initiatives for utility customers. Its focus on regulated markets and critical infrastructure makes it a stable partner for investments and long-term growth of utilities.
Centuri’s fundamentals have strengthened since its April 2024 IPO, with record quarterly revenue and accelerated core business growth providing a clearer picture of the company’s earnings power following the spinoff from Southwest Gas. Tensile’s new position suggests this momentum may continue as utilities expand gas grid and system upgrades across North America.
Centuri’s third-quarter results illustrate why: Revenue increased 18% to a record $850 million, while core revenue, excluding unpredictable storm restoration work, jumped 25% year over year. At the same time, core gross profit climbed 28% and the company’s backlog reached a record $5.9 billion, up 59% from year-end 2024, providing promising visibility into 2026 growth. Management also reaffirmed a robust revenue outlook of $2.8 billion to $2.9 billion for the full year, despite expectations more moderate in terms of recovery after the storm.
For Tensile, the participation is modest compared to the first positions, but is part of a model of stratification in activities with recurring income, linked to infrastructures and with stable multi-year pipelines. Centuri shares are now trading about 7% below their post-IPO highs, suggesting room for upside if Centuri continues to improve its margins and its “One Centuri” integration strategy.
