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Dec 31, 2023
Knife River Q4 2023 Earnings Report
Knife River reported record fourth quarter and full-year performance, driven by focused execution on strategic priorities and strong market fundamentals.
Key Takeaways
Knife River Corporation reported a 20% increase in revenue for the fourth quarter of 2023, reaching $646.9 million. Net income increased by 15% to $20.7 million, and Adjusted EBITDA rose by 10% to $72.4 million. The company's strong performance was attributed to price increases across all core product lines and an extended construction season.
Consolidated revenue increased by 20% year-over-year, reaching $646.9 million.
Net income increased by 15% year-over-year, totaling $20.7 million.
Adjusted EBITDA increased by 10% year-over-year, amounting to $72.4 million.
Contracting Services backlog was $662.2 million, with margins above the prior-year period.
Forward Guidance
Knife River introduced full-year 2024 guidance, projecting revenue between $2.75 billion and $2.95 billion and Adjusted EBITDA between $425 million and $475 million.
Positive Outlook
- Continued momentum from record results in geographic segments
- Normalization of the Energy Services segment
- Mid-to-high single-digit price growth on aggregates, ready-mix, and asphalt
- Disciplined approach to pricing
- Bidding and operational execution will further position the company to drive margin expansion
Challenges Ahead
- Full year of recurring separation costs
- Flat to low-single-digit volume declines on aggregates, ready-mix, and asphalt
- EBITDA guidance for Energy Services segment of $50 million to $60 million, down from historic 2023 results
- Normal weather, economic, and operating conditions are assumed; deviations could impact results
Historical Earnings Impact
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Avg. Return Before/After Earnings
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