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Mar 31
Knife River Q1 2025 Earnings Report
Reported First Quarter 2025 Financial Results
Key Takeaways
Knife River Corporation reported a 7% increase in consolidated revenue for the first quarter of 2025, reaching $353.5 million, primarily driven by increased contracting services revenue and price increases. Despite the revenue growth, the company experienced a net loss of $68.7 million, an increase from the prior year, primarily due to higher costs in materials and increased selling, general, and administrative expenses.
Consolidated revenue for Q1 2025 increased by 7% to $353.5 million.
The company reported a net loss of $68.7 million for the first quarter.
Higher costs in materials and increased SG&A expenses contributed to the net loss.
Acquisition of Strata Corporation closed, expected to positively impact results from Q2 2025.
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 expects record full-year revenue, net income, and adjusted EBITDA in 2025, with full-year revenue projected to be between $3.25 billion and $3.45 billion and adjusted EBITDA between $530 million and $580 million. The guidance includes completed acquisitions to date and is based on normal weather, economic, and operating conditions.
Positive Outlook
- On track for record full-year revenue, net income and adjusted EBITDA.
- Closed on the acquisition of Strata Corporation, expected to contribute $45 million EBITDA for the full year.
- Backlog of $938.7 million at the end of the first quarter was near year-ago record at similar expected margins.
- Improved bidding activity in April 2025 compared to April 2024, including apparent low bidder on projects totaling $170 million.
- Public funding for infrastructure remains near all-time records, supporting the build-out of America’s infrastructure.
Challenges Ahead
- Unclear how economic uncertainties will affect downstream private work.
- Outlook for the year does not include any significant impacts related to uncertainty in the private market.
- SG&A expenses are expected to be higher than last year, front-loaded in the first half of the year.
- Seasonal loss in the first quarter was in line with expectations but larger than the prior year.
- Aggregates gross profit decreased year-over-year due to pre-production activities and site improvements.
Revenue & Expenses
Visualization of income flow from segment revenue to net income