Centuri Holdings, Inc.

Previous wording

Unless the context otherwise requires, references to “we,” “is,” “our,” and “our company” refer to Centuri Holdings, Inc. and its consolidated subsidiaries. As discussed in “Note 1 — Description of Business” to the condensed consolidated financial statements, all financial information presented herein is the financial information of Centuri Holdings, Inc. and its subsidiaries, including Centuri Group, Inc. (“the Operating Company”). This discussion contains forward-looking statements that are based upon current expectations and are subject to uncertainty and changes in circumstances. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed within Item 1A. Risk Factors in our 2024 Annual Report. See “Cautionary Note Regarding Forward-Looking Statements.”

Current wording

Unless the context otherwise requires, references to “we,” “is,” “our,” and “our company” refer to Centuri Holdings, Inc. and its consolidated subsidiaries. This discussion contains forward-looking statements that are based upon current expectations and are subject to uncertainty and changes in circumstances. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed within Item 1A. Risk Factors in our 2024 Annual Report. See “Cautionary Note Regarding Forward-Looking Statements.”

Previous wording

We use a 52/53-week fiscal year that ends on the Sunday closest to the end of the calendar year. Unless otherwise stated, references to months and quarters throughout relate to fiscal months and quarters rather than calendar months and quarters. The first fiscal three months of 2025 and 2024 ended on March 30, 2025 and March 31, 2024, respectively, and each period had 13 weeks.

Current wording

We use a 52/53-week fiscal year that ends on the Sunday closest to the end of the calendar year. Unless otherwise stated, references to months and quarters throughout relate to fiscal months and quarters rather than calendar months and quarters. The first fiscal six months of 2025 and 2024 ended on June 29, 2025 and June 30, 2024, respectively, and each period had 26 weeks. The second fiscal quarters of 2025 and 2024 each had 13 weeks.

Previous wording

On April 17, 2024, the registration statement related to the initial public offering of our common stock (“IPO Registration Statement”) was declared effective, and our common stock began trading on the New York Stock Exchange (“NYSE”) under the ticker “CTRI” (the “Centuri IPO”) on April 18, 2024. On April 22, 2024, the Centuri IPO and a concurrent private placement were completed with final net proceeds of $327.7 million. As of and since the closing of the Centuri IPO, Southwest Gas Holdings has owned 71,665,592 shares of our common stock, or approximately 81% of the total outstanding shares of our common stock.

Current wording

On April 17, 2024, the registration statement related to the initial public offering of our common stock (“IPO Registration Statement”) was declared effective, and our common stock began trading on the New York Stock Exchange (“NYSE”) under the ticker “CTRI” (the “Centuri IPO”) on April 18, 2024. On April 22, 2024, the Centuri IPO and a concurrent private placement were completed with final net proceeds of $327.7 million. As of the closing of the Centuri IPO, Southwest Gas Holdings owned 71,665,592 shares of our common stock, or approximately 81% of the total outstanding shares of our common stock.

Previous wording

Under the terms of a majority of our MSAs, materials used in our utility infrastructure service activities are specified, purchased and supplied by customers. However, our operations are affected by increases in prices, whether caused by inflation, tariffs, rising interest rates or other economic factors. We attempt to recover anticipated increases in the cost of labor, equipment, fuel and materials not purchased by customers through price escalation provisions that allow us to adjust billing rates for certain major contracts annually; by considering the estimated effect of such increases when bidding or pricing new work; or by entering into back-to-back contracts with suppliers and subcontractors. However, the annual adjustment provided by certain contracts is typically subject to a cap and there can be an extended period of time between the impact of inflation on our costs and when billing rates are adjusted. Our actual costs at times can exceed the contractual caps, and therefore negatively impact our operations. Additionally, rising interest rates on our variable-rate debt could have a negative effect on our business, financial condition and results of operations. Overall, our results for the first quarter of 2025 were not significantly impacted by increases in prices, including due to recently implemented tariffs. We are currently monitoring the impacts of tariffs on the price and availability of our equipment as well as any potential impacts to project scheduling, but we do not currently expect a material effect on our results of operations.

Current wording

Under the terms of a majority of our MSAs, materials used in our utility infrastructure service activities are specified, purchased and supplied by customers. However, our operations are affected by increases in prices, whether caused by inflation, tariffs, rising interest rates or other economic factors. We attempt to recover anticipated increases in the cost of labor, equipment, fuel and materials not purchased by customers through price escalation provisions that allow us to adjust billing rates for certain major contracts annually; by considering the estimated effect of such increases when bidding or pricing new work; or by entering into back-to-back contracts with suppliers and subcontractors. However, the annual adjustment provided by certain contracts is typically subject to a cap and there can be an extended period of time between the impact of inflation on our costs and when billing rates are adjusted. Our actual costs at times can exceed the contractual caps, and therefore negatively impact our operations. Additionally, rising interest rates on our variable-rate debt could have a negative effect on our business, financial condition and results of operations. Overall, our results for the second quarter of 2025 were not significantly impacted by increases in prices, including due to recently implemented tariffs. We are currently monitoring the impacts of tariffs on the price and availability of our equipment as well as any potential impacts to project scheduling, but we do not currently expect a material effect on our results of operations.

Previous wording

Backlog as of March 30, 2025 was approximately $4.5 billion, with approximately 89% of backlog related to MSAs. Backlog represents contracted revenue on existing bid agreements as well as estimates of revenue to be realized over the contractual life of existing long-term MSAs. The contractual life of an MSA is defined as the stated length of the contract including any renewal options stated in the contract that we believe our customers are reasonably certain to execute.

Current wording

Backlog as of June 29, 2025 was approximately $5.3 billion, with approximately 92% of backlog related to MSAs. Backlog represents contracted revenue on existing bid agreements as well as estimates of revenue to be realized over the contractual life of existing long-term MSAs. The contractual life of an MSA is defined as the stated length of the contract including any renewal options stated in the contract that we believe our customers are reasonably certain to execute.

Previous wording

Our results of operations, on a consolidated basis and by segment, for the fiscal three month periods ended March 30, 2025 and March 31, 2024 are set forth and compared below.

Current wording

Our results of operations, on a consolidated basis and by segment, for the fiscal three and six month periods ended June 29, 2025 and June 30, 2024 are set forth and compared below.

Previous wording

The following table summarizes our revenue, gross profit (loss) and gross margin for the periods indicated by segment as well as the dollar and percentage change from the prior year period. The discussion that follows highlights key revenue and gross margin changes at the segment level. Changes in gross profit (loss) correspond with the discussed changes in revenue and gross margin.

Current wording

The following table summarizes our revenue, gross profit and gross margin for the periods indicated by segment as well as the dollar and percentage change from the prior year period. The discussion that follows highlights key revenue and gross margin changes at the segment level. Changes in gross profit correspond with the discussed changes in revenue and gross margin.

Previous wording

•Revenue from our Canadian Gas segment totaled $39.8 million, reflecting a decrease of $1.2 million, or 2.9%, compared to the prior year period. As a percentage of revenue, gross profit increased to 17.8% in the current period as compared to 7.5% in the same period from the prior year. This increase was primarily attributable to improvements on bid margins, as the prior year period was negatively impacted by performance issues on certain bid projects which did not recur in the current year period. Additionally, in the current year period the segment benefited from a $1.0 million government rebate related to surplus Workplace Safety and Insurance Board premiums paid in previous years.

Current wording

•Revenue from our Canadian Gas segment totaled $55.1 million, reflecting an increase of $8.4 million, or 18.1%, compared to the prior year period, resulting from higher MSA volumes. As a percentage of revenue, gross profit increased to 17.2% in the current period as compared to 15.1% in the same period from the prior year. This increase was primarily attributable to improvements on bid margins, as the prior year period was negatively impacted by performance issues on certain bid projects which did not recur in the current year period.

Previous wording

•Revenue from our Union Electric segment totaled $175.5 million, reflecting an increase of $11.6 million, or 7.1%, compared to the prior year period. This increase was driven by incremental bid work, which was partially offset by a planned decline in offshore wind revenue of $22.3 million due to timing of projects. Emergency restoration services revenue for the Union Electric segment was $1.6 million for the current period compared to $7.5 million for the prior year period. As a percentage of revenue, gross profit decreased to 6.7% in the current period as compared to 6.9% in the prior year period.

Current wording

•Revenue from our Union Electric segment totaled $182.2 million, reflecting an increase of $18.0 million, or 11.0%, compared to the prior year period. This increase was driven by new bid project wins, which was partially offset by a planned decline in offshore wind revenue of $12.8 million due to timing of projects. Emergency restoration services revenue for the Union Electric segment was $3.5 million for the current period compared to $6.1 million for the prior year period. As a percentage of revenue, gross profit increased to 8.4% in the current period as compared to 7.4% in the prior year period due to improved profitability on certain MSA contracts.

Previous wording

•Revenue from our Non-Union Electric segment totaled $137.1 million, reflecting an increase of $40.5 million, or 41.9%, compared to the prior year period. This increase was primarily due to an increase in volumes on existing MSAs. Additionally, emergency restoration services increased $14.8 million, accounting for $16.6 million of the segment’s revenue for the current period compared to just $1.8 million for the prior year period. As a percentage of revenue, gross profit increased to 11.9% in the current period compared to 2.9% in the prior year period due to the higher profitability of storm work and more efficient utilization of fixed costs due to an increase in crew counts and weekly hours worked per crew under existing MSAs.

Current wording

•Revenue from our Non-Union Electric segment totaled $149.9 million, reflecting an increase of $29.4 million, or 24.4%, compared to the prior year period. This increase was primarily due to an increase in volumes on existing MSAs and partially offset by a decrease in emergency restoration services revenue ($13.5 million in the current year period compared to $30.2 million in the prior year period). As a percentage of revenue, gross profit decreased to 11.0% in the current period compared to 13.5% in the prior year period. Profitability was negatively affected due to a decrease in emergency restoration services.

Previous wording

The decrease in interest expense, net in the current period compared to the prior year period was primarily due to a reduction in average debt balance and a reduction in interest rates on outstanding variable-rate borrowings.

Current wording

The decrease of $4.4 million in interest expense, net in the current period compared to the prior year period was due to a reduction in average debt balance and a reduction in interest rates on outstanding variable-rate borrowings.

Previous wording

The Company’s effective tax rate for the fiscal three months ended March 30, 2025 and March 31, 2024 was relatively consistent, at 42.3% and 45.2%, respectively. The tax rates for both periods were unfavorably impacted by the disproportionate amount of non-deductible expenses in relation to income before income taxes.

Current wording

The Company’s effective tax rate for the fiscal three months ended June 29, 2025 and June 30, 2024 was 43.4% and (4.2)%, respectively. The tax rates for both periods were impacted by the disproportionate amount of non-deductible expenses in relation to income before income taxes. Additionally, differences in pre-tax income/loss by jurisdiction caused fluctuations in the effective tax rate when comparing periods.

Previous wording

We prepare and present our financial statements in accordance with GAAP. However, management believes that EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Loss, all of which are measures not presented in accordance with GAAP, provide investors with additional useful information in evaluating our performance. We use these non-GAAP measures internally to evaluate performance and to make financial, investment and operational decisions. We believe that presentation of these non-GAAP measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparisons of results. Management also believes that providing these non-GAAP measures helps investors evaluate the Company’s operating performance, profitability and business trends in a way that is consistent with how management evaluates such matters.

Current wording

We prepare and present our financial statements in accordance with GAAP. However, management believes that EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Net Income, all of which are measures not presented in accordance with GAAP, provide investors with additional useful information in evaluating our performance. We use these non-GAAP measures internally to evaluate performance and to make financial, investment and operational decisions. We believe that presentation of these non-GAAP measures provides investors with greater transparency with respect to our results of operations and that these measures are useful for period-to-period comparisons. Management also believes that providing these non-GAAP measures helps investors evaluate the Company’s operating results in a way that is consistent with how management evaluates such matters.

Previous wording

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for (i) non-cash stock-based compensation expense, (ii) separation-related costs, (iii) strategic review costs, and (iv) severance costs. Adjusted EBITDA Margin is defined as the percentage derived from dividing Adjusted EBITDA by revenue. Management believes that EBITDA helps investors gain an understanding of the factors affecting our ongoing cash earnings from which capital investments are made and debt is serviced, and that Adjusted EBITDA provides additional insight by removing certain expenses that are non-recurring and/or non-operational in nature. Management believes that Adjusted EBITDA Margin is useful for the same reason as Adjusted EBITDA, and also provides an additional understanding of how Adjusted EBITDA is impacted by factors other than changes in revenue. Because these non-GAAP metrics, as defined, exclude some, but not all, items that affect comparable GAAP financial measures, these non-GAAP metrics may not be comparable to similarly titled measures of other companies.

Current wording

EBITDA is defined as earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted for (i) non-cash stock-based compensation, (ii) separation-related costs, (iii) strategic review costs, (iv) severance costs, and (v) other professional fees. Adjusted EBITDA Margin is defined as the percentage derived from dividing Adjusted EBITDA by revenue. Management believes that EBITDA helps investors gain an understanding of the factors affecting our ongoing cash earnings from which capital investments are made and debt is serviced, and that Adjusted EBITDA provides additional insight by removing certain expenses that are non-recurring and/or non-operational in nature. Management believes that Adjusted EBITDA Margin is useful for the same reason as Adjusted EBITDA, and also provides an additional understanding of how Adjusted EBITDA is impacted by factors other than changes in revenue. Because these non-GAAP metrics, as defined, exclude some, but not all, items that affect comparable GAAP financial measures, these non-GAAP metrics may not be comparable to similarly titled measures of other companies.

Previous wording

Adjusted Net Loss is defined as net loss adjusted for (i) separation-related costs, (ii) strategic review costs, (iii) severance costs, (iv) amortization of intangible assets, (v) non-cash stock-based compensation expense, and (vi) the income tax impact of adjustments that are subject to tax, which is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods. Management believes that Adjusted Net Loss helps investors understand the profitability of our business when excluding certain expenses that are non-recurring and/or non-operational in nature.

Current wording

Adjusted Net Income is defined as net income (loss) adjusted for (i) separation-related costs, (ii) strategic review costs, (iii) severance costs, (iv) amortization of intangible assets, (v) other professional fees, (vi) non-cash stock-based compensation, and (vii) the income tax impact of adjustments that are subject to tax, which is determined using the incremental statutory tax rates of the jurisdictions to which each adjustment relates for the respective periods. Management believes that Adjusted Net Income helps investors understand the profitability of our business when excluding certain expenses that are non-recurring and/or non-operational in nature.

Previous wording

Using EBITDA as a performance measure has material limitations as compared to net loss, or other financial measures as defined under GAAP, as it excludes certain recurring items, which may be meaningful to investors. EBITDA excludes interest expense net of interest income; however, as we have borrowed money to finance transactions and operations, or invested available cash to generate interest income, interest expense and interest income are elements of our cost structure and can affect our ability to generate revenue and returns for our stockholders. Further, EBITDA excludes depreciation and amortization; however, as we use capital and intangible assets to generate revenue, depreciation and amortization are necessary elements of our costs and ability to generate revenue. Finally, EBITDA excludes income taxes; however, as we are organized as a corporation, the payment of taxes is a necessary element of our operations. As a result of these exclusions from EBITDA, any measure that excludes interest expense net of interest income, depreciation and amortization and income taxes has material limitations as compared to net loss. When using EBITDA as a performance measure, management compensates for these limitations by comparing EBITDA to net loss in each period, to allow for the comparison of the performance of the underlying core operations with the overall performance of the Company on a full-cost, after-tax basis.

Current wording

Using EBITDA as a performance measure has material limitations as compared to net income (loss), or other financial measures as defined under GAAP, as it excludes certain recurring items, which may be meaningful to investors. EBITDA excludes interest expense net of interest income; however, as we have borrowed money to finance transactions and operations, or invested available cash to generate interest income, interest expense and interest income are elements of our cost structure and can affect our ability to generate revenue and returns for our stockholders. Further, EBITDA excludes depreciation and amortization; however, as we use capital and intangible assets to generate revenue, depreciation and amortization are necessary elements of our costs and ability to generate revenue. Finally, EBITDA excludes income taxes; however, as we are organized as a corporation, the payment of taxes is a necessary element of our operations. As a result of these exclusions from EBITDA, any measure that excludes interest expense net of interest income, depreciation and amortization and income taxes has material limitations as compared to net income (loss). When using EBITDA as a performance measure, management compensates for these limitations by comparing EBITDA to net income (loss) in each period, to allow for the comparison of the performance of the underlying core operations with the overall performance of the Company on a full-cost, after-tax basis.

Previous wording

As to certain of the items related to these non-GAAP metrics: (i) non-cash stock-based compensation expense varies from period to period due to changes in the estimated fair value of performance-based awards, forfeitures and amounts granted; (ii) separation-related costs represent expenses incurred post-Centuri IPO in connection with the separation and stand up of Centuri as its own public company, including costs incurred in connection with the establishment of Centuri’s Unutilized Tax Assets Agreement with Southwest Gas Holdings and under other separation-related agreements, which are not reflective of our ongoing operations and will not recur following the full separation from Southwest Gas Holdings; (iii) strategic review costs represent costs incurred during the Centuri IPO and related costs incurred to establish Centuri as a public company leading up to the IPO; and (iv) severance costs relate to non-recurring restructuring activities. The most comparable GAAP financial measure and information reconciling the GAAP and non-GAAP financial measures are set forth below.

Current wording

As to certain of the items related to these non-GAAP metrics: (i) non-cash stock-based compensation varies from period to period due to changes in the estimated fair value of performance-based awards, forfeitures and amounts granted; (ii) separation-related costs represent expenses incurred post-Centuri IPO in connection with the separation and stand up of Centuri as its own public company, including costs incurred in association with Southwest Gas Holdings’ sale of its holdings of our common stock and costs incurred in connection with the establishment of Centuri’s Unutilized Tax Assets Agreement with Southwest Gas Holdings and under other separation-related agreements, which are not reflective of our ongoing operations and will not recur following the full separation from Southwest Gas Holdings; (iii) strategic review costs represent expenses incurred during the Centuri IPO and related costs incurred to establish Centuri as a public company leading up to the IPO; (iv) severance costs relate to non-recurring restructuring activities; and (v) other professional fees are non-recurring costs associated with certain one-time events. The most comparable GAAP financial measure and information reconciling the GAAP and non-GAAP financial measures are set forth below.

Previous wording

The following table presents reconciliations of net loss to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the specified periods:

Current wording

The following table presents reconciliations of net income (loss) to EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin for the specified periods:

Previous wording

The following table presents reconciliations of net loss to Adjusted Net Loss for the specified periods:

Current wording

The following table presents reconciliations of net income (loss) to Adjusted Net Income for the specified periods:

Previous wording

Our primary liquidity needs have historically related to supporting working capital requirements, funding capital expenditures and servicing our debt. As of March 30, 2025 and December 29, 2024, cash and cash equivalents were $15.3 million and $49.0 million, respectively. We believe our capital resources, including existing cash balances, together with our operating cash flows and borrowings under our credit facilities, are sufficient to meet our financial obligations for at least the next 12 months.

Current wording

Our primary liquidity needs have historically related to supporting working capital requirements, funding capital expenditures and servicing our debt. As of June 29, 2025 and December 29, 2024, cash and cash equivalents were $28.3 million and $49.0 million, respectively. We believe our capital resources, including existing cash balances, together with our operating cash flows and borrowings under our credit facilities, are sufficient to meet our financial obligations for the next 12 months and the foreseeable future.

Previous wording

Net cash provided by (used in) operating activities for the fiscal three months ended March 30, 2025 was $16.7 million, compared to $(26.5) million for the fiscal three months ended March 31, 2024, representing an increase in operating cash flows of $43.2 million. This increase was driven by better operating results in the current period and more favorable changes in contract liabilities, as in the fiscal three months ended March 31, 2024 we recognized revenue on several projects that had significant outstanding contract liability balances at the end of fiscal year 2023. This increase was partially offset by $13.5 million in net cash outflows on our Accounts Receivable Securitization Facility (“Securitization Facility”) in the first fiscal quarter of 2025 as we decreased the amount of accounts receivables sold during the quarter.

Current wording

Net cash used in operating activities for the fiscal six months ended June 29, 2025 was $11.0 million, compared to $83.0 million for the fiscal six months ended June 30, 2024, representing an increase in operating cash flows of $72.0 million. This increase was primarily driven by a $18.0 million lower loss before income taxes in the current period (the decrease in income tax benefit in the current year has not yet significantly impacted our cash balance) and more favorable changes in contract liabilities ($34.3 million favorable between periods), as in the fiscal six months ended June 30, 2024 we recognized revenue on several projects that had significant outstanding contract liability balances at the end of fiscal year 2023.

Previous wording

Net cash used in investing activities was $23.2 million in the fiscal three months ended March 30, 2025 compared to $24.6 million for the fiscal three months ended March 31, 2024, a decrease of $1.4 million.

Current wording

Net cash used in investing activities was $42.6 million in the fiscal six months ended June 29, 2025 compared to $42.3 million for the fiscal six months ended June 30, 2024, an increase of $0.3 million.

Previous wording

The construction industry is capital intensive, andwe expect to continue to incur capital expenditures to meet anticipated needs for our services. For the fiscal three months ended March 30, 2025 and March 31, 2024, we had capital expenditures of $24.4 million and $26.3 million, respectively.

Current wording

The construction industry is capital intensive, andwe expect to continue to incur capital expenditures to meet anticipated needs for our services. For the fiscal six months ended June 29, 2025 and June 30, 2024, we had capital expenditures of $45.2 million and $46.6 million, respectively.

Previous wording

These items were partially offset by proceeds from the sale of property and equipment of $1.2 million and $1.6 million for the fiscal three month periods ended March 30, 2025 and March 31, 2024, respectively.

Current wording

These items were partially offset by proceeds from the sale of property and equipment of $2.5 million and $4.3 million for the fiscal six month periods ended June 29, 2025 and June 30, 2024, respectively.

Previous wording

While we primarily operate in the United States, we also have operations in Canada. Therefore, changes in the value of Canadian dollars affect our financial statements when translated into U.S. dollars. The revenue from our Canadian operations was approximately 7% and 8% of total revenue for the fiscal three month periods ended March 30, 2025 and March 31, 2024, respectively. At times, we also enter into transactions in foreign currencies, primarily in Canadian dollars, that subject us to currency risks. We regularly monitor our foreign currency exposure to determine the most effective foreign currency risk mitigation strategies. Currently, we are not party to any foreign currency exchange contracts.

Current wording

While we primarily operate in the United States, we also have operations in Canada. Therefore, changes in the value of Canadian dollars affect our financial statements when translated into U.S. dollars. The revenue from our Canadian operations was approximately 7% of total revenue for both the fiscal six month periods ended June 29, 2025 and June 30, 2024. At times, we also enter into transactions in foreign currencies, primarily in Canadian dollars, that subject us to currency risks. We regularly monitor our foreign currency exposure to determine the most effective foreign currency risk mitigation strategies. Currently, we are not party to any foreign currency exchange contracts.

Previous wording

We have a senior secured revolving credit and term loan multi-currency facility. The line of credit portion comprises $400 million, and associated amounts borrowed and repaid are available to be re-borrowed. The term loan facility portion provided approximately $1.145 billion in financing as of August 27, 2021. The term loan facility expires on August 27, 2028, and the revolving credit facility expires on August 27, 2026. This multi-currency facility allows us to request loan advances in either Canadian dollars or U.S. dollars. The obligations under the credit agreement are secured by present and future ownership interests in substantially all of our direct and indirect subsidiaries, substantially all of our tangible and intangible personal property, and all products, profits and proceeds of the foregoing. Assets securing the facility totaled $1.9 billion as of March 30, 2025 and $2.0 billion as of December 29, 2024. During the fiscal three months ended March 30, 2025, the maximum amount outstanding on the combined facility was $804.2 million, at which point $706.4 million was outstanding on the term loan portion of the facility. As of March 30, 2025 and December 29, 2024, $97.8 million and $113.5 million, respectively, was outstanding on the revolving credit facility, in addition to $706.4 million that was outstanding on the term loan portion of the facility during both periods. Also, as of March 30, 2025 and December 29, 2024, there was approximately $241.8 million and $226.1 million, respectively, net of outstanding letters of credit, of unused capacity under the line of credit. We had $64.6 million of unused letters of credit available as of both March 30, 2025 and December 29, 2024.

Current wording

We have a senior secured revolving credit and term loan multi-currency facility. As of June 29, 2025, the line of credit portion comprised $400 million. Amounts borrowed and repaid are available to be re-borrowed. The term loan facility portion provided approximately $1.145 billion in financing as of August 27, 2021. This multi-currency facility allows us to request loan advances in either Canadian dollars or U.S. dollars. The obligations under the credit agreement are secured by present and future ownership interests in substantially all of our direct and indirect subsidiaries, substantially all of our tangible and intangible personal property, and all products, profits and proceeds of the foregoing. Assets securing the facility totaled $2.0 billion as of both June 29, 2025 and December 29, 2024. During the fiscal six months ended June 29, 2025, the maximum amount outstanding on the combined facility was $878.6 million, at which point $706.4 million was outstanding on the term loan portion of the facility. As of June 29, 2025 and December 29, 2024, $172.2 million and $113.5 million, respectively, was outstanding on the revolving credit facility, in addition to $706.4 million that was outstanding on the term loan portion of the facility for both periods. Also, as of June 29, 2025 and December 29, 2024, there was approximately $171.4 million and $226.1 million, respectively, net of outstanding letters of credit, of unused capacity under the line of credit. We had $68.6 million and $64.6 million of unused letters of credit available as of June 29, 2025 and December 29, 2024, respectively.

Previous wording

We currently have seven equipment term loans with initial amounts totaling approximately $170 million, with certain owned equipment used as collateral. The loans are serviced in U.S. dollars.

Current wording

We currently have six equipment term loans with initial amounts totaling approximately $150 million, with certain owned equipment used as collateral. The loans are serviced in U.S. dollars.

Previous wording

This discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires the use of estimates and assumptions. A summary of our critical accounting policies and estimates is included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our 2024 Annual Report. We are required to make estimates and judgments in the preparation of our condensed consolidated financial statements that affect the reported amounts of assets and liabilities, revenue and expenses and related disclosures. We continually review these estimates and their underlying assumptions to ensure they are appropriate for the circumstances. Changes in the estimates and assumptions we use could have a material impact on our financial results. During the fiscal three months ended March 30, 2025, there were no material changes in our critical accounting estimates or policies.

Current wording

This discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires the use of estimates and assumptions. A summary of our critical accounting policies and estimates is included in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained in our 2024 Annual Report. We are required to make estimates and judgments in the preparation of our condensed consolidated financial statements that affect the reported amounts of assets and liabilities, revenue and expenses and related disclosures. We continually review these estimates and their underlying assumptions to ensure they are appropriate for the circumstances. Changes in the estimates and assumptions we use could have a material impact on our financial results. During the fiscal six months ended June 29, 2025, there were no material changes in our critical accounting estimates or policies.