Centuri Q2 revenue +32.9% to $962.0M; net income -24.3% on Chicago reversal, fuel costs

Filed August 4, 2026 · Period ending June 28, 2026 · Compared to 10-Q Aug 6, 2025 · ~2 min read

Key Changes

• high

  $9.0M revenue reversal on legacy City of Chicago contract following April 2026 court order reduced Q2 net income by $6.7M; company disagrees with order and continues to pursue claims.

  MD&A: City of Chicago reversal verify on EDGAR →
• high

  Gross margin compressed from 9.4% to 7.2% despite 32.9% revenue growth, driven by the Chicago reversal, elevated fuel costs (~75-140 bp impact across segments), and workforce scale-up inefficiencies (~60 bp in U.S. Gas).

  MD&A: Gross margin verify on EDGAR →
• high

  Backlog increased 21% YoY to $6.4B, though MSA share fell to 83%, indicating higher proportion of bid work; operating income declined 25% to $24.1M as margin compression offset revenue gains.

  MD&A: Backlog & Operating income verify on EDGAR →