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Jun 30, 2023

Knife River Q2 2023 Earnings Report

Knife River reported record second quarter revenue, net income, EBITDA and backlog, reduced net debt leverage to 2.3x EBITDA, and raised revenue and EBITDA guidance.

Key Takeaways

Knife River Corporation announced record second quarter results with all-time highs in revenue, net income, and EBITDA. The company reported revenue of $785.2 million, a 10% increase from the prior-year period, and net income of $56.8 million, a 47% increase year-over-year. Based on strong first half results, the company raised its full year revenue guidance to $2.6 - $2.8 billion and EBITDA guidance to $320 - $370 million.

Achieved record second quarter revenue, net income, EBITDA and backlog.

Reduced net debt leverage to 2.3x EBITDA.

Raised revenue and EBITDA guidance.

Initiated adjusted EBITDA guidance.

Total Revenue
$785M
Previous year: $712M
+10.3%
EPS
$1
Previous year: $500
-99.8%
Aggregates (tons)
9.18K
Previous year: 9.52M
-99.9%
Ready-mix concrete (cubic yards)
1.11K
Previous year: 1.14M
-99.9%
Asphalt (tons)
1.91K
Previous year: 2.1M
-99.9%
Gross Profit
$153M
Previous year: $103M
+48.1%
Cash and Equivalents
$68.5M
Previous year: $12.7M
+438.8%
Total Assets
$2.64B

Knife River

Knife River

Knife River Revenue by Segment

Forward Guidance

For the full year 2023, Knife River is increasing its guidance ranges on revenue and EBITDA. Revenues are expected to be in the range of $2.6 billion to $2.8 billion. EBITDA is expected to be in the range of $320 million to $370 million. Adjusted EBITDA is expected to be in the range of $330 million to $380 million. Capital expenditures are expected to be approximately $125 million.

Positive Outlook

  • Momentum in pricing strength
  • Cost optimization
  • Federal funding tailwinds
  • Continued positive impacts from the EDGE initiatives

Revenue & Expenses

Visualization of income flow from segment revenue to net income