Knife River
🇺🇸 NYSE:KNF
•
Dec 31, 2024
Knife River Q4 2024 Earnings Report
Key Takeaways
Knife River Corporation achieved record Q4 revenue of $657.2 million, driven by price increases in aggregates, ready-mix, and asphalt. Net income grew 12% to $23.3 million, with an operating margin of 6.7%. The company continued its margin expansion strategy and made strategic acquisitions, including the pending $454 million acquisition of Strata Corporation.
Knife River Revenue
Knife River EPS
Knife River Revenue by Segment
Forward Guidance
Knife River expects 2025 revenue between $3.0 billion and $3.2 billion, with adjusted EBITDA projected between $485 million and $535 million. The company is focused on margin expansion, strategic acquisitions, and pricing improvements.
Positive Outlook
- Price increases expected in aggregates, ready-mix, and asphalt.
- Volume growth anticipated across all product lines.
- Integration of Strata Corporation acquisition expected to drive EBITDA growth.
- Operational efficiency initiatives to continue under EDGE strategy.
- Strong backlog of $746 million, up 13% YoY.
Challenges Ahead
- Lower liquid asphalt pricing may impact margins.
- Macroeconomic uncertainties could affect construction demand.
- Regulatory review of Strata acquisition may delay expected synergies.
- Weather conditions could impact project execution timelines.
- Interest rate environment may affect financing costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income