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Sep 30
Knife River Q3 2025 Earnings Report
Knife River Corporation reported record revenue and Adjusted EBITDA for the third quarter ended September 30, 2025, driven by strategic acquisitions and price optimization, despite external headwinds.
Key Takeaways
Knife River Corporation delivered record financial results in the third quarter of 2025, with revenue reaching $1.2 billion and Adjusted EBITDA increasing by 11% to $272.8 million. This performance was largely attributed to strategic acquisitions and effective price optimization and cost controls, which also led to improved gross margins across all product lines. The company also achieved a record backlog of $995 million, positioning it well for 2026, and narrowed its full-year 2025 guidance.
Record revenue of $1,203.7 million, a 9% increase year-over-year, driven by acquisitions and increased product pricing.
Adjusted EBITDA grew by 11% to $272.8 million, with Adjusted EBITDA margin improving by 50 basis points to 22.7%.
Gross margins improved across all product lines: Aggregates up 50 bps to 27.2%, Ready-mix up 160 bps to 20.2%, and Asphalt up 20 bps to 20.2%.
Record backlog of $995 million, a 32% increase from the prior year, with 87% public work and 77% expected to convert to revenue within 12 months.
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 Corporation narrowed its full-year 2025 revenue guidance to a range of $3.1 billion to $3.15 billion and Adjusted EBITDA guidance to a range of $475 million to $500 million, reflecting confidence in finishing the year strong and continued profitable growth into 2026.
Positive Outlook
- Full-year 2025 revenue guidance narrowed to $3.1 billion to $3.15 billion.
- Full-year 2025 Adjusted EBITDA guidance narrowed to $475 million to $500 million.
- Expected high-single digit price increases for aggregates.
- Expected mid-single digit price increases for ready-mix.
- Expected low-double digit increase in ready-mix volumes.
Challenges Ahead
- Expected low-single digit decrease in asphalt pricing.
- Expected flat consolidated aggregate volumes.
- Expected low-single digit decrease in asphalt volumes.
- Margins on backlog at September 30, 2025, are expected to be slightly lower than the margins on backlog at September 30, 2024.
- Net leverage expected to be at or below the long-term target of 2.5x by year-end, implying current leverage is slightly above target.
Revenue & Expenses
Visualization of income flow from segment revenue to net income