Centuri Holdings priced an underwritten public offering of 7,441,860 shares of common stock at $21.50 per share, with an option for underwriters to purchase up to 1,116,279 additional shares. The offering is expected to close on November 14, 2025, and a concurrent private placement of 3,488,372 shares will be sold to Icahn Partners LP and Icahn Partners Master Fund LP at the same price, raising roughly $75 million.
The company will use the net proceeds from both the public offering and the private placement for general corporate purposes, including funding acquisitions and repaying borrowings under its current credit agreement. The transaction also coincides with the appointment of Dustin DeMaria, a senior analyst at Icahn Enterprises, to Centuri’s board, underscoring the close relationship with Icahn’s investment group.
In its most recent earnings release, Centuri reported third‑quarter revenue of $850 million, an 18% year‑over‑year increase, but earnings per share fell to $0.06 versus analyst expectations of $0.47. Gross profit margin stood at 8.35%, reflecting pressure from higher input costs and a shift toward lower‑margin service contracts. Management raised full‑year revenue guidance, signaling confidence in continued top‑line growth, while adjusted EBITDA guidance was revised downward to reflect margin compression.
The EPS miss can be traced to a combination of weaker gross margins and a one‑time charge related to restructuring costs. Although revenue grew, the company’s cost base expanded faster, eroding profitability. The guidance increase indicates that management believes the revenue momentum will continue, but the margin squeeze suggests that profitability will remain a challenge unless cost discipline improves or higher‑margin contracts are secured.
Investors reacted cautiously to the announcement, with the dilutive nature of the equity raise and the recent earnings miss dampening enthusiasm. The market’s muted response reflects concerns about the company’s ability to translate revenue growth into sustainable earnings while managing debt levels.
Looking ahead, Centuri’s strategy to use the proceeds for acquisitions and debt repayment aims to strengthen its balance sheet and expand its service portfolio. However, the company must address margin compression and continue to secure higher‑margin contracts to support long‑term profitability. The board appointment signals a continued partnership with Icahn Enterprises, which may influence future strategic decisions.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.