Centuri sheds 15.6% amid CEO change, analyst downgrade

Investing.com - Centuri Holdings Inc (NYSE:CTRI) shed 15.6% on Thursday after disclosing that its President and CEO, Bill Fehrman, will be leaving his post to assume the CEO role at American Electric Power (Nasdaq: NASDAQ:AEP), one of the largest publicly traded utility companies in the U.S. He will continue to lead Centuri until July 31, 2024.

Centuri's Board has chosen Paul Caudill, the former CEO of NV Energy and a previous member of Centuri's advisory board, to fill the role of Interim President and CEO. Fehrman, meanwhile, will continue to serve on Centuri’s Board of Directors until a permanent CEO is appointed.

Karen Haller, Chair of Centuri’s Board of Directors, expressed confidence in the company's position, stating, "Following our successful public launch earlier this year, Centuri is in an excellent position to expand as a standalone utility infrastructure services platform." She praised the company's long-standing growth, attributed to its unique market positioning, focus on safety, and commitment to maintaining recurring work for long-standing, high-profile customers.

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Mr. Fehrman, Centuri’s outgoing President and Chief Executive Officer, said, “It has been an honor to lead and help refine Centuri’s strategy. I remain confident in the strategy that has been implemented and Centuri’s ability to execute in the future. Centuri is a valued partner to many of the companies meeting North America’s growing energy demands and leading the energy transition, and I believe in the company’s opportunity for continued success as it delivers solutions across customers’ value chains. Paul has been a strong partner in developing Centuri’s strategy. I have greatly benefited from his insights and expertise as an advisor over the past few months, and I know he is the right person to serve as Interim CEO.”

Caudill expressed his pleasure at the appointment, stating, "Centuri's success is driven by its operational excellence and deep customer relationships across the regulated utilities industry. Working alongside the Board and management team, I look forward to building on our track record of long-term growth."

Centuri is currently in the process of identifying a permanent CEO.

Meanwhile, analysts at BofA have downgraded Centuri from Neutral to Underperform, noting that, "With further interruption in key leadership roles, and no permanent successor we see intensified risk of mixed execution."