Knife River Corporation

Latest Results (02.04.2026):

Knife River Corporation — second quarter 2025: Revenue rose to $833.8 million (up 3% year‑over‑year) but net income fell to $50.6 million (down 35%), with adjusted EBITDA of $140.8 million (down 9%) and adjusted EBITDA margin of 16.9%. The company reported a record contracting backlog and revised full‑year adjusted EBITDA guidance, while citing weather and regional funding headwinds that pressured margins and volumes in parts of its footprint.

Key financials

Q2 2025 revenue $833.8M (+3% YoY); net income $50.6M (−35%), net income per share $0.89; adjusted EBITDA $140.8M (−9%), adjusted EBITDA margin 16.9% vs 19.1% a year ago.

Record backlog

Backlog totaled $1,253.4M (~$1.25B), nearly 30% higher YoY. ~90% of backlog is public work and ~80% is expected to convert to revenue within one year, supporting expected H2 volume growth.

Guidance and outlook

Knife River updated full‑year 2025 guidance: revenue $3.10–3.30B and adjusted EBITDA $475–525M. Management cited weather, Oregon project timing and July Texas flooding as reasons for the revised adjusted EBITDA range and reiterated a long‑term target of 20% adjusted EBITDA margin.

Acquisitions & integration

Integration of Strata is on schedule and contributed to results. Since Q1 the company closed two bolt‑on aggregates acquisitions — Kraemer Trucking & Excavating (May 2025) and High Desert Aggregate & Paving (July 2025; two asphalt plants subsequently sold) — with expected near‑term synergies included in guidance.

Weather and regional headwinds

Above‑average precipitation delayed field work across Central and Mountain regions and impacted Energy Services terminal volumes; Oregon demand remained weak due to DOT funding uncertainty, limiting bid lettings and paving projects.

Segment snapshot

West: revenue $317.4M (−5%), EBITDA $60.7M (−11%). Mountain: revenue $176.1M (−9%), EBITDA $30.9M (−28%). Central: revenue $255.2M (+19%), EBITDA $44.4M (+23%) (Strata contributed materially). Energy Services: revenue $97.4M (+28%), EBITDA $17.1M (−12%).

Pricing, volumes and margins

Quarterly pricing gains achieved: low‑double‑digit aggregates, high‑single‑digit ready‑mix, low‑single‑digit asphalt. Volumes: aggregates down, ready‑mix up, asphalt down. Backlog margins expected to be slightly lower vs prior year.

Capital allocation & balance sheet

Six‑month spending: $111.0M on maintenance/replacement capex and $619.5M on growth (including $501.9M acquisitions). At June 30, 2025 Knife River reported roughly $26.6M unrestricted cash, total gross debt ≈ $1.37B, $294M available on the revolver and net leverage of 3.1x (expected ≤2.5x by year‑end).