KNF
Knife River Corporation76.22
-0.05-0.07%
Dec 16, 4:00:02 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Backlog mix tempers margins; data upside
Q&A clarified that a backlog shift to lower-margin Mountain and Central dulled EBITDA margin gains to just 10-20bps despite ~200bps product-line improvements from dynamic pricing and pit crews. Oregon stays flat amid funding talks, but private rebound and nimble execution ease worries. Data centers shine as upside: 21 projects, mostly high-margin materials supply, not in guidance midpoint. M&A pipeline brims with infill deals at high-single-digit multiples; balance sheet flexes to 3x leverage briefly. Robust organic implied at 9% growth. Q&A reaffirms momentum. Data centers tip the iceberg.
Key Stats
Market Cap
4.32BP/E (TTM)
29.20Basic EPS (TTM)
2.61Dividend Yield
0%Recent Filings
10-K
FY2025 results
Knife River's FY2025 revenue climbed 9% y/y to $3.1B, fueled by $611M in tuck-in acquisitions adding scale in key markets while legacy pricing rose mid-single digits across aggregates and ready-mix; yet net income fell 22% to $157M as contracting margins slipped 180bps to 11.2% on project mix and higher interest expense from $500M Term Loan B funding the Strata deal. Q4 momentum shone in West (EBITDA up 12% y/y, 19.3% margin) via Hawaii/Alaska demand surges, though Mountain decelerated on thin paving bids; Central surged 23% revenue on Strata ramp but lagged legacy weather delays. Backlog ballooned 38% to $1B (89% public), signaling 2026 strength. Debt hit $1.2B (net leverage ~2.4x EBITDA) with $500M revolver dry; capex skewed growth at $789M. Seasonality crimps Q4 flows.
8-K
Record Q4, strong 2026 guide
Knife River posted record Q4 2025 revenue of $755.1M, up 15%, with adjusted EBITDA surging 47% to $119.4M on acquisition contributions and pricing gains. Full-year revenue hit $3.1B, up 9%, backed by five aggregates deals including Texcrete. Record $1B backlog positions them strongly. 2026 guidance: revenue $3.3B-$3.5B, adjusted EBITDA $520M-$560M. Net leverage sits at 2.2x.
10-Q
Q3 FY2025 results
Knife River posted Q3 revenue of $1.20B, up 9% y/y, with construction materials surging 19% y/y on acquisitions and mid-single-digit price hikes, while contracting services held steady; gross profit climbed 4% to 23.6% margin amid Central segment strength. Operating income rose 3% y/y to $215M, but YTD dipped 19% to $221M (derived) due to $290M capex and $528M buys like March's $441M Strata deal (cash, $139M goodwill, $13M intangibles over 9-10 years). Cash fell to $81M after $83M OCF minus $783M investing, backed by $500M Term Loan B and $457M revolver room; total debt $1.19B. Diluted EPS $2.52 matched 56.9M shares. Backlog hit $995M. Weather delays lurk.
8-K
Record Q3 revenue, backlog
Knife River posted record Q3 revenue of $1.2B, up 9%, and Adjusted EBITDA of $272.8M, up 11%, fueled by acquisitions despite wet weather and Mountain paving delays. Backlog hit $995M, 32% higher, with 87% public work. Company narrowed 2025 guidance to $3.1B-$3.15B revenue, $475M-$500M Adjusted EBITDA. Acquisitions drive growth.
8-K
Q2 earnings miss amid weather
Knife River reported Q2 2025 revenue of $833.8 million, up 3% from last year, but net income fell 35% to $50.6 million amid wet weather delays and Oregon's funding woes. The company hit a record $1.3 billion backlog, nearly 30% higher year-over-year, and closed two aggregates acquisitions in May and July to boost reserves and contracting. Backlog surges. Full-year adjusted EBITDA guidance now ranges $475 million to $525 million, factoring in Texas flooding impacts.
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