Knife River Corporation

Latest Results (18.11.2025):

Knife River Corporation reported its second quarter 2025 financial results, showcasing a mixed performance. While revenues increased 3% year-over-year to $833.8 million, the company experienced a significant decline in net income, which dropped 35% to $50.6 million, reflecting margin pressures and higher operating costs. Despite these short-term challenges—including the impact of unfavorable weather and lower contracting services in specific regions—the company achieved a record backlog of $1.3 billion and made strategic acquisitions, reinforcing its long-term growth outlook.

Financial Performance

For Q2 2025, Knife River Corporation posted consolidated revenues of $833.8 million, up 3% from the prior year. However, net income fell to $50.6 million (down 35%), with net income margins declining from 9.7% to 6.1%. Adjusted EBITDA also decreased by 9% to $140.8 million, indicating tighter cost pressures.

Record Backlog and Strategic Acquisitions

The company achieved an all-time record backlog of $1.3 billion—nearly 30% higher than last year—with $650 million added during the quarter. Additionally, strategic acquisitions of Kraemer Trucking and Excavating and High Desert Aggregate and Paving have expanded Knife River Corporation’s operational footprint and delivered immediate synergies that are expected to boost future performance.

Operational and Market Challenges

Unfavorable weather conditions, which led to a slow start in the construction season, adversely affected several segments, particularly in the Central, Mountain, and Energy Services regions. In Oregon, reduced demand due to public funding challenges further impacted contracting services, despite a history of strong performance in the market.

Outlook and Long-Term Strategy

Looking ahead, Knife River Corporation has revised its full-year 2025 adjusted EBITDA guidance to a range of $475 million to $525 million. The company is focusing on process improvements, pricing optimization, and its Competitive EDGE strategy to drive future growth and resilience, leveraging record public funding levels and ongoing infrastructure investments.