CAMDEN, N.J. - American Water (NYSE: NYSE:AWK), the nation's largest regulated water and wastewater utility company, with a market capitalization of $25.5 billion and an impressive track record of maintaining dividend payments for 17 consecutive years, today unveiled a series of executive leadership appointments, including the creation of a new role dedicated to customer strategy. According to InvestingPro analysis, the company currently appears overvalued against its Fair Value estimate. Lynnae Wilson has been named Senior Vice President, Customer Strategy, a position aimed at enhancing the strategic alignment of customer service and technology.
Wilson joins American Water with over two decades of utility operations experience, most recently overseeing electric operations at CenterPoint Energy (NYSE:CNP). Her appointment is part of a broader realignment of the company's leadership structure, coming at a time when the company maintains strong financial metrics with a 60% gross profit margin and revenue growth of 9.2% over the last twelve months. Matt Prine, formerly President of Indiana American Water, will take on the role of Chief Customer Officer, while Deb Degillio has been appointed Chief Technology and Information Officer.
Prine's tenure as President since 2019 is expected to enrich the integration of customer service with operations. Degillio, with her extensive background in implementing technology-driven customer service systems, will apply her expertise to the IT domain.
Additionally, Barry Suits is set to succeed Prine as President of Indiana American Water. Suits brings years of experience from his leadership roles in Maryland and Virginia since 2015. Laura Runkle, who has served as Vice President of Operations for Iowa American Water, will fill Suits' previous position, overseeing the Maryland and Virginia sectors.
These strategic changes are scheduled to take effect on January 13, 2025, allowing for a smooth transition of responsibilities. The company emphasizes that these appointments reflect its commitment to prioritizing customer needs and community engagement.
Cheryl Norton, Executive Vice President and Chief Operating Officer of American Water, expressed confidence in the newly appointed leaders, highlighting their dedication to the company's mission to deliver safe and affordable water services. She noted their collective experience and understanding of team building and community service.
American Water, with a legacy dating back to 1886, serves over 14 million people through regulated operations across 14 states and 18 military installations. The company prides itself on its extensive national reach and the expertise of its 6,500 employees. InvestingPro subscribers can access detailed analysis of American Water's financial health, including 8 additional ProTips and comprehensive metrics in the Pro Research Report, offering valuable insights for investors considering utility sector opportunities.
This announcement is based on a press release statement from American Water.
In other recent news, American Water Works Company, Inc. has been making significant strides in its business operations. The company reported a rise in earnings per share (EPS) to $1.80 from $1.66, reaffirmed its full-year 2024 EPS guidance, and projected substantial growth for 2025, driven by capital investments and strategic acquisitions. The acquisition of Butler Area Sewer Authority added 15,000 customers, contributing to nearly 50,000 new customers in 2024.
Additionally, American Water's board of directors declared a quarterly cash dividend of $0.7650 per share, maintaining a pattern of dividend payments for 17 consecutive years. The company's capital investment strategy projects an 8% to 9% rate base growth over the next decade.
In terms of strategic growth, New Jersey American Water, a subsidiary of American Water, recently acquired the Borough of Manville's wastewater collection system, adding approximately 4,300 customers to its service base.
UBS analysts upgraded American Water's stock from Neutral to Buy, expressing confidence in the company's ability to maintain consistent 8% growth in EPS and dividends per share through 2028. These are just a few of the recent developments for American Water, demonstrating its robust financial health and strategic growth initiatives.
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