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Sep 30, 2024
Knife River Q3 2024 Earnings Report
Achieved record third quarter revenue, gross profit, and net income, driven by price increases and contracting services, while closing on additional acquisitions to enhance long-term profitability.
Key Takeaways
Knife River Corporation reported record third-quarter revenue of $1.1 billion, a 1% increase year-over-year, driven by price increases in aggregates and ready-mix product lines and increased contracting services revenues. Net income also reached a record $148.1 million, up from $146.7 million in the prior year. The company narrowed its full-year guidance for 2024 revenue to between $2.85 billion and $2.95 billion, and adjusted EBITDA to between $445 million and $465 million.
Achieved record third-quarter revenue, gross profit, and net income.
Geographic segments contributed record EBITDA of $224.6 million, a 6% increase year-over-year.
Closed on additional acquisitions, deploying $129.3 million of capital on six acquisitions through Nov. 2, 2024.
Backlog of $755 million is higher than the same period last year, with slightly higher expected margins.
Revenue by Segment
Forward Guidance
Knife River narrowed its full year 2024 revenue and Adjusted EBITDA guidance ranges. The company expects revenue in the range of $2.85 billion to $2.95 billion, and adjusted EBITDA in the range of $445 million to $465 million.
Positive Outlook
- Expect price increases of high single digits for aggregates and ready-mix.
- Expect price increases of low single digits for asphalt.
- Strong public funding backdrop.
- Continued opportunities to bid on projects across our footprint.
- Good schedule of DOT bid lettings coming up for 2025 across our states.
Challenges Ahead
- Anticipated acquisition expenses related to our growth program.
- Expect continued pricing momentum to be partially offset by volume declines for the materials product lines.
- Expect mid single digits volume decline for aggregates.
- Expect high single digits volume decline for ready-mix.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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