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Mar 31, 2024
Knife River Q1 2024 Earnings Report
Achieved record first quarter revenue and increased backlog with higher expected margins, while advancing organic and acquisition growth initiatives.
Key Takeaways
Knife River Corporation reported a record first quarter revenue of $329.6 million, a 7% increase from the prior-year period. The company experienced a seasonal net loss of $47.6 million, compared to a net loss of $41.3 million in the prior-year period. Adjusted EBITDA for the quarter was a loss of $17.7 million, compared to a loss of $13.7 million in the prior-year period.
Record first quarter revenue achieved, driven by price increases and increased contracting services revenues.
Contracting services backlog increased to $959.5 million with higher expected margins.
Advanced organic growth investments, including upgraded plants and a new ready-mix operation.
Acquired a small ready-mix operation in South Dakota, marking the company's 85th acquisition.
Knife River
Knife River
Knife River Revenue by Segment
Revenue by Segment
West Revenue
CapyFin.comMountain Revenue
CapyFin.comCentral Revenue
CapyFin.comEnergy Services Revenue
CapyFin.com Forward Guidance
Knife River is reaffirming the 2024 guidance shared last quarter, including mid-to-high single-digit price growth and flat to low-single-digit volume declines. Revenue guidance is reaffirmed in the range of $2.75 billion to $2.95 billion, and Adjusted EBITDA in the range of $425 million to $475 million.
Positive Outlook
- Mid-to-high single-digit price growth expected.
- Revenue guidance in the range of $2.75 billion to $2.95 billion.
- Adjusted EBITDA in the range of $425 million to $475 million.
- Transportation departments in Knife River’s 14 states increased their total spending authority for 2024 by 16% from 2023.
- Ample opportunities to bid upcoming work.
Challenges Ahead
- Flat to low-single-digit volume declines expected.
- Guidance based on normal weather, economic and operating conditions.
- Seasonal loss in the first quarter is typical.
- Increased costs related to the separation from MDU Resources.
- Operations were able to begin pre-construction season activities earlier, which included expenses for maintenance-related work, plant mobilization and crew training.
Revenue & Expenses
Visualization of income flow from segment revenue to net income