Latest news with #KnifeRiver
Yahoo
13 hours ago
- Business
- Yahoo
RBC initiates Knife River, Martin Marietta amid continued infrastructure spending
-- RBC Capital Markets began coverage of Knife River Corp and Martin Marietta Material, noting difference in in margin profiles among U.S. aggregates producers as infrastructure spending continues to support the sector. The bank rated Knife River Outperform with a $129 price target on potential for earnings growth through margin improvement. Martin Marietta was initiated at Sector Perform with a $515 target, reflecting its already high margins. Vulcan Materials (NYSE:VMC) and CRH (NYSE:CRH) were rated at Sector Perform and Outperform respectively. RBC noted that while all major U.S. aggregates firms are benefiting from federally funded infrastructure programs, their positioning and profitability vary. Knife River, which was spun out from MDU Resources in 2023, is seen as earlier in its margin expansion cycle compared to more mature peers like Martin Marietta and Vulcan. The analysts said that firm-level differences in exposure to weather, regional gas tax funding, and the mix of construction materials influence operating results. The note includes a breakdown of cost structures across cement, ready mix, asphalt and gypsum segments, and maps company asset locations by U.S. state. RBC also made minor estimate changes to Cemex, CRH, Buzzi Unicem (BIT:BZU), and Vulcan. While Martin Marietta and Vulcan remain the most widely followed names in the sector, RBC said investors may be overlooking Knife River's potential for margin growth and CRH's integration advantages in North America. Heidelberg (ETR:HDDG) Materials was also cited as having underappreciated U.S. assets. Brokerage said the June 23 market debut of Amrize, a CRH spinout, could further shift investor attention toward the sector. Related articles RBC initiates Knife River, Martin Marietta amid continued infrastructure spending Deutsche Bank is now bullish on Cisco - highlights AI tailwinds Boeing Commercial Airplanes head meets Air India chairman after fatal 787 crash
Business Wire
06-05-2025
- Business
- Business Wire
Knife River Corporation Reports First Quarter 2025 Financial Results
BISMARCK, N.D.--(BUSINESS WIRE)--Knife River Corporation (NYSE: KNF), an aggregates-led, vertically integrated construction materials and contracting services company, today announced financial results for the first quarter ended March 31, 2025. Three Months Ended March 31, (In millions, except per share) 2025 2024 % Change Revenue $ 353.5 $ 329.6 7 % Net loss $ (68.7 ) $ (47.6 ) (44 )% Net loss margin (19.4 )% (14.5 )% Adjusted EBITDA $ (38.0 ) $ (17.7 ) (115 )% Adjusted EBITDA margin (10.7 )% (5.4 )% Net loss per share $ (1.21 ) $ (0.84 ) (44 )% Note: Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures." Expand 'Our typical seasonal loss in the first quarter was in line with our expectations, and Knife River remains on track to have our most profitable year in history — including record revenue, net income and adjusted EBITDA," said Knife River President and CEO Brian Gray. "We made substantial investments in the first quarter to prepare for a successful 2025. That includes closing on the acquisition of Strata Corporation, which we expect will positively impact our financial results starting in the second quarter. We anticipate a $45 million EBITDA contribution from Strata for the full year, at margins accretive to Knife River. Additionally, our corporate development team is pursuing other strategic targets and moving them toward completion. 'At the same time, we continued to invest in our Competitive EDGE strategy,' Gray said. 'Our Process Improvement Teams helped us optimize prices during the quarter while also preparing our materials operations for the busy year ahead. We identified and implemented plant-improvement opportunities we expect will increase operating margins this year. 'Together, these investments in our long-term success resulted in SG&A expenses that were $13 million higher than first quarter last year, primarily related to increased corporate development activity, Strata and the 2024 acquisition of Albina Asphalt,' Gray said. 'Approximately $8 million of these expenses were incurred in the first quarter as part of an overall $20 million step-up in SG&A for the year. Given the size of Strata and the work we're doing to move other possible transactions through our pipeline, we anticipate our step-up in SG&A will continue to be front-loaded in the first half of the year. We continue to expect the total step-up in SG&A for 2025 to be in line with the $20 million we guided to at year-end 2024.' Seasonality and Timing Knife River typically records a seasonal loss in the first quarter of approximately 5% of our annual EBITDA. With the addition of Strata and Albina in our northern markets, we expect the 8% seasonal loss we experienced this quarter to be more reflective of our first quarter results going forward. Aggregates gross profit decreased year-over-year, as we performed more pre-production activities and implemented site improvements identified by our PIT Crews. As production ramps up for this construction season, we expect these costs will help drive increased profits. Contracting services revenue was higher than the same period last year, but gross profit was lower based on the type of work and the timing of incentive payments. For the full year, we believe contracting services margins will be similar to 2024. Infrastructure Funding and Outlook Our backlog of $938.7 million at the end of the first quarter was near our year-ago record, and at similar expected margins. We also saw improved bidding activity in April 2025 compared to April 2024; we are the apparent low bidder on more bids, including three large projects totaling $170 million. We expect this work will be added to our second quarter backlog. In March, the American Society of Civil Engineers graded our nation's roads a 'D+' and estimated $2.2 trillion will be needed by 2033 for roads to achieve a passing grade. Budgets at the local, state and federal levels remain near all-time records. We believe public funding will continue to support the build-out of America's infrastructure. We are tracking 51 bills in our 14 states, and Idaho, North Dakota and Washington have recently passed new transportation funding packages. "Our business fundamentals remain strong, and we anticipate record financial results in 2025," Gray said. "In the current economic environment, our business has been relatively insulated from any direct impact from tariffs. It is unclear at this time how economic uncertainties will affect downstream private work, as project owners evaluate interest rates and trade policy. However, Knife River has a resilient business model, with the ability to flex between public and private work, along with a proven record of successfully navigating through business cycles. Our outlook for the year does not include any significant impacts related to uncertainty in the private market, and we expect to have more clarity when we report our second quarter results. For the full year 2025, we anticipate revenue of $3.25 billion to $3.45 billion and adjusted EBITDA of $530 million to $580 million. 'America's roads, bridges and runways need to be repaired,' Gray said. 'The funding is there to support these efforts, and we are well-positioned to execute on the opportunities in our markets. Additionally, we are committed to our EDGE plan and our self-help initiatives to improve our margins and deliver long-term, profitable growth for our shareholders.' For the three months ended March 31, 2025, we reported consolidated revenue of $353.5 million, a 7% increase from the prior-year, primarily driven by a $14.6 million increase to our contracting services revenues and price increases on asphalt, aggregates and ready-mix. As anticipated, all product lines experienced cost increases in the first quarter compared to the prior year. Aggregates had the highest increase in costs, primarily driven by pre-production activities and improvements identified by our PIT Crews. We also had higher selling, general and administrative costs, including $5.8 million related to our corporate due diligence and integration process, as well as $3.5 million of overhead from the addition of Strata and Albina. As previously announced, we made a change to our organizational structure in January 2025 to better align with our business strategy. Our former Pacific and Northwest operating segments were combined to form the new West operating segment. Our former North Central and South operating segments were combined to form the new Central operating segment. The reorganization resulted in four operating segments: West, Mountain, Central and Energy Services, each of which is also a reportable segment. Prior periods presented have been recast to conform to the current reportable segment presentation. See the section entitled "Non-GAAP Financial Measures" for more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure. First quarter revenue increased 5% year-over-year to $208.3 million, primarily related to higher pricing across all product lines. Contracting services contributed nearly $3.0 million of this increase, mostly due to more available public-agency and commercial work in California. EBITDA was $24.9 million for the quarter, a 28% increase year-over-year, as the segment benefited from strong market demand in Hawaii and favorable construction project execution in California and southern Oregon. This was partially offset by lower aggregate and ready-mix volumes and margins in Oregon, due to lower market demand. The segment also realized a one-time gain of $3.5 million related to an acquisition in the quarter. First quarter revenue increased to $66.0 million, primarily the result of increased contracting services activity due to timing of public agency work in Idaho and improved pricing on ready-mix and aggregates. EBITDA decreased $10.2 million, largely related to higher aggregate costs, which were primarily driven by pre-production costs, PIT Crew improvements and less volumes due to weather in Montana and Wyoming. Contracting services also saw a decrease in margin due to more subcontract work performed in the quarter and the timing of when project incentives were earned. First quarter revenue increased 11% year-over-year to $67.9 million, driven by increased contracting services activity for paving projects in Texas, as well as higher sales volumes for all material product lines across the segment. EBITDA decreased 30%, as the segment's northern operations experienced an increase in aggregate pre-production costs in the quarter, reducing aggregate margins. Also, the addition of Strata during the winter months added to the seasonal loss for the segment. Partially offsetting the decrease in EBITDA were higher margins for both ready-mix and asphalt, due to price increases. First quarter revenue increased 9% year-over-year, primarily due to contributions from the acquisition of Albina Asphalt in November 2024, partially offset by lower volumes in Texas due to freezing temperatures in the period. EBITDA decreased $5.3 million year-over-year as a result of expected seasonal losses at Albina and costs incurred on planned maintenance activities to our railcars and facilities. Knife River is committed to disciplined capital allocation, including reinvesting in the company to maintain fixed assets, improve operations and grow our business. We have approved 2025 capital expenditures for maintenance and improvement to be between 5% and 7% of revenue guidance. In the first quarter of 2025, we spent $63.9 million, largely on the replacement of depleting aggregate reserves, construction equipment and plant improvements. Additionally in the first quarter, we spent $440 million on growth initiatives, including $419 million on Strata (net of working capital adjustments, proceeds from the divestiture of four ready-mix plants and cash acquired), $10 million on Kalama River Quarry and $11 million on greenfield projects. For the remainder of the year, we have approved $57 million for organic projects. Capital expenditures for future acquisitions and additional organic growth projects would be incremental to the outlined capital program. It is anticipated that capital expenditures for 2025 will be funded by multiple sources, including internally generated cash and debt facilities. In addition to cash on hand, Knife River used the proceeds from the issuance of a new $500 million Term Loan B facility to finance a portion of Strata's purchase price. Separately, Knife River also increased the total commitments under its existing revolving credit facility from $350 million to $500 million for future expenditures and extended the maturity date of its existing senior secured credit facilities from 2028 to 2030. As of March 31, 2025, Knife River had $86.1 million of unrestricted cash and cash equivalents and $1.2 billion of gross debt and $477.1 million of available capacity under its revolving credit facility, net of outstanding letters of credit. Net leverage, defined as the ratio of net debt to trailing-twelve-month Adjusted EBITDA, was 2.5x at March 31, 2025, in line with our long-term target. Knife River expects full-year 2025 financial results, including completed acquisitions to date, in the ranges noted in the following table. We expect price increases of mid-single digits for aggregates and ready-mix and low-single digits for asphalt. We expect consolidated volume increases of high-single-digits for aggregates, high-teens for ready-mix and low-single-digits for asphalt. The guidance ranges are based on normal weather, economic and operating conditions, and do not include potential acquisitions or material impacts related to tariffs. FIRST QUARTER 2025 RESULTS CONFERENCE CALL Expand Knife River will host a conference call at 11 a.m. EDT on May 6, 2025, to discuss first quarter results and conduct a question-and-answer session. The event will be webcast at To participate in the live call: Domestic: 1-800-549-8228 International: 1-289-819-1520 Conference ID: 83668 ABOUT KNIFE RIVER CORPORATION Expand Knife River Corporation, a member of the S&P MidCap 400 index, mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, asphalt and other value-added products. Knife River also performs vertically integrated contracting services, specializing in publicly funded DOT projects and private projects across the industrial, commercial and residential space. For more information about the company, visit Knife River Corporation Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2025 2024 (In millions, except per share amounts) Revenue: Construction materials $ 213.4 $ 204.1 Contracting services 140.1 125.5 Total revenue 353.5 329.6 Cost of revenue: Construction materials 233.8 209.8 Contracting services 129.3 113.3 Total cost of revenue 363.1 323.1 Gross profit (9.6 ) 6.5 Selling, general and administrative expenses 73.1 60.2 Operating loss (82.7 ) (53.7 ) Interest expense 15.3 13.9 Other income 4.6 3.7 Loss before income taxes (93.4 ) (63.9 ) Income tax benefit (24.7 ) (16.3 ) Net loss $ (68.7 ) $ (47.6 ) Net loss per share: Basic $ (1.21 ) $ (.84 ) Diluted $ (1.21 ) $ (.84 ) Weighted average common shares outstanding: Basic 56.6 56.6 Diluted 56.6 56.6 Expand Knife River Corporation Consolidated Balance Sheets (Unaudited) March 31, 2025 December 31, 2024 (In millions, except shares and per share amounts) Assets Current assets: Cash, cash equivalents and restricted cash $ 138.5 $ 170.7 $ 281.1 Receivables, net 238.0 183.7 267.3 Costs and estimated earnings in excess of billings on uncompleted contracts 28.5 33.6 31.3 Inventories 467.1 375.8 380.3 Prepayments and other current assets 74.6 54.0 27.7 Total current assets 946.7 817.8 987.7 Noncurrent assets: Net property, plant and equipment 1,743.5 1,320.6 1,441.7 Goodwill 449.6 274.5 297.2 Other intangible assets, net 42.0 10.3 29.4 Operating lease right-of-use assets 46.5 45.8 49.4 Investments and other 52.4 44.6 45.8 Total noncurrent assets 2,334.0 1,695.8 1,863.5 Total assets $ 3,280.7 $ 2,513.6 $ 2,851.2 Liabilities and Stockholders' Equity Current liabilities: Long-term debt - current portion $ 11.8 $ 7.1 $ 10.5 Accounts payable 112.0 97.4 140.8 Billings in excess of costs and estimated earnings on uncompleted contracts 42.0 50.8 42.1 Accrued compensation 19.0 17.7 50.7 Accrued interest 15.9 15.5 5.5 Other taxes payable 14.2 11.8 8.3 Current operating lease liabilities 13.4 13.3 14.8 Other accrued liabilities 93.7 83.6 97.3 Total current liabilities 322.0 297.2 370.0 Noncurrent liabilities: Long-term debt 1,160.4 673.5 666.9 Deferred income taxes 221.6 174.1 174.7 Noncurrent operating lease liabilities 33.1 32.6 34.5 Other 136.0 117.6 129.0 Total liabilities 1,873.1 1,295.0 1,375.1 Commitments and contingencies Stockholders' equity: Common stock, 300,000,000 shares authorized, $0.01 par value, 57,083,497 shares issued and 56,652,361 shares outstanding at March 31, 2025; 57,040,840 shares issued and 56,609,704 shares outstanding at March 31, 2024; 57,043,841 shares issued and 56,612,705 shares outstanding at December 31, 2024 .6 .6 .6 Other paid-in capital 621.0 614.6 620.9 Retained earnings 798.8 618.2 867.5 Treasury stock held at cost - 431,136 shares (3.6 ) (3.6 ) (3.6 ) Accumulated other comprehensive loss (9.2 ) (11.2 ) (9.3 ) Total stockholders' equity 1,407.6 1,218.6 1,476.1 Total liabilities and stockholders' equity $ 3,280.7 $ 2,513.6 $ 2,851.2 Expand Knife River Corporation Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, 2025 2024 (In millions) Operating activities: Net loss $ (68.7 ) $ (47.6 ) Adjustments to reconcile net loss to net cash used in operating activities 38.2 32.2 Changes in current assets and liabilities, net of acquisitions: Receivables 41.1 76.8 Inventories (50.4 ) (56.2 ) Other current assets (35.5 ) (16.5 ) Accounts payable (12.8 ) (4.2 ) Other current liabilities (40.3 ) (39.7 ) Pension and postretirement benefit plan contributions (.1 ) (.1 ) Other noncurrent changes 3.2 12.1 Net cash used in operating activities (125.3 ) (43.2 ) Investing activities: Capital expenditures (75.0 ) (43.7 ) Acquisitions, net of cash acquired (443.4 ) — Net proceeds from sale or disposition of property and other 17.5 1.6 Investments (2.7 ) (3.0 ) Net cash used in investing activities (503.6 ) (45.1 ) Financing activities: Issuance of long-term debt 500.0 — Repayment of long-term debt — (1.7 ) Debt issuance costs (11.1 ) — Tax withholding on stock-based compensation (2.6 ) (1.6 ) Net cash provided by (used in) financing activities 486.3 (3.3 ) Decrease in cash, cash equivalents and restricted cash (142.6 ) (91.6 ) Cash, cash equivalents and restricted cash -- beginning of year 281.1 262.3 Cash, cash equivalents and restricted cash -- end of period $ 138.5 $ 170.7 Expand Segment Financial Data and Highlights (Unaudited) Three Months Ended March 31, 2025 2024 Dollars Margin Dollars Margin (Dollars in millions) Revenues by segment: West $ 208.3 $ 198.7 Mountain 66.0 59.8 Central 67.9 61.0 Energy Services 13.9 12.8 Total segment revenues 356.1 332.3 Corporate Services and Eliminations (2.6 ) (2.7 ) Consolidated revenues $ 353.5 $ 329.6 EBITDA by segment: West $ 24.9 12.0 % $ 19.4 9.8 % Mountain (16.3 ) (24.6 )% (6.1 ) (10.1 )% Central (24.3 ) (35.8 )% (18.7 ) (30.7 )% Energy Services (7.8 ) (56.0 )% (2.5 ) (19.4 )% Total segment EBITDA (b) (23.5 ) (6.6 )% (7.9 ) (2.4 )% Corporate Services and Eliminations (18.0 ) N.M. (12.7 ) N.M. Consolidated EBITDA (b) $ (41.5 ) (11.7 )% $ (20.6 ) (6.2 )% (a) N.M. - not meaningful (b) Consolidated EBITDA, total segment EBITDA, Consolidated EBITDA margin and total segment EBITDA margin are non-GAAP financial measures. For more information and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures." Expand The following table summarizes backlog for the company. Margins on backlog at March 31, 2025, are expected to be comparable to the margins on backlog at March 31, 2024. Approximately 87% of the company's contracting services backlog relates to publicly funded projects, including street and highway construction projects. Period over period increases or decreases should not be used as an indicator of future revenues or earnings. Three Months Ended March 31, 2025 2024 Dollars Margin Dollars Margin (Dollars in millions) Revenues by product line: Aggregates $ 81.4 $ 84.3 Ready-mix concrete 108.5 99.8 Asphalt 16.1 16.5 Liquid asphalt 12.2 11.0 Other* 43.5 39.0 Contracting services 140.1 125.5 Internal sales (48.3 ) (46.5 ) Total revenues $ 353.5 $ 329.6 Gross profit by product line: Aggregates $ (6.0 ) (7.4 )% $ 4.8 5.7 % Ready-mix concrete 8.7 8.1 % 8.6 8.6 % Asphalt (5.7 ) (35.4 )% (5.6 ) (33.8 )% Liquid asphalt (4.2 ) (34.3 )% (0.9 ) (8.6 )% Other* (13.2 ) (30.3 )% (12.6 ) (32.4 )% Contracting services 10.8 7.7 % 12.2 9.7 % Total gross profit $ (9.6 ) (2.7 )% $ 6.5 2.0 % * Other includes cement, merchandise, fabric and spreading, and other products and services that individually are not considered to be a core line of business. Expand NON-GAAP FINANCIAL MEASURES EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, as well as total segment measures, as applicable, net debt and net leverage are considered non-GAAP measures of financial performance. These non-GAAP financial measures are not measures of financial performance under GAAP. The items excluded from these non-GAAP financial measures are significant components in understanding and assessing financial performance. Therefore, these non-GAAP financial measures should not be considered substitutes for the applicable GAAP metric. EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are most directly comparable to the corresponding GAAP measures of net income and net income margin. Net debt and net leverage are most directly comparable to the corresponding GAAP measures of total debt. We believe these non-GAAP financial measures, in addition to corresponding GAAP measures, are useful to investors by providing meaningful information about operational efficiency compared to our peers by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. We believe Adjusted EBITDA and Adjusted EBITDA margin are useful performance measures because they allow for an effective evaluation of our operating performance by excluding stock-based compensation and unrealized gains and losses on benefit plan investments as they are considered non-cash and not part of our core operations. We also exclude the one-time, non-recurring costs associated with the separation of Knife River from MDU Resources as those are not expected to continue. We believe EBITDA and Adjusted EBITDA assist rating agencies and investors in comparing operating performance across operating periods on a consistent basis by excluding items management does not believe are indicative of the company's operating performance, including using EBITDA and Adjusted EBITDA to calculate Knife River's leverage as a multiple of EBITDA and Adjusted EBITDA. Additionally, EBITDA and Adjusted EBITDA are important financial metrics for debt investors who utilize debt to EBITDA and debt to Adjusted EBITDA ratios. We believe EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin, including those measures by segment, are useful performance measures because they provide clarity as to the operational results of the company. Management believes net debt and net leverage are useful performance measures because they provide a measure of how long it would take the company to pay back its debt if net debt and Adjusted EBITDA were constant. Net leverage also allows management to assess our borrowing capacity and optimal leverage ratio. Our management uses these non-GAAP financial measures in conjunction with GAAP results when evaluating our operating results internally and calculating employee incentive compensation, and leverage as a multiple of Adjusted EBITDA to determine the appropriate method of funding our operations. EBITDA is calculated by adding back income taxes, interest expense (net of interest income) and depreciation, depletion and amortization expense to net income. EBITDA margin is calculated by dividing EBITDA by revenues. Adjusted EBITDA is calculated by adding back unrealized gains and losses on benefit plan investments, stock-based compensation and one-time separation costs, to EBITDA. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues. Net debt is calculated by adding unamortized debt issuance costs to the total debt balance presented on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt by trailing-twelve-month Adjusted EBITDA. These non-GAAP financial measures are calculated the same for both the segment and consolidated metrics and should not be considered as alternatives to, or more meaningful than, GAAP financial measures such as net income, net income margin and total debt and are intended to be helpful supplemental financial measures for investors' understanding of our operating performance. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies' EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, net debt and net leverage measures having the same or similar names. The following information reconciles segment and consolidated net income (loss) to EBITDA and Adjusted EBITDA and provides the calculation of EBITDA margin, Adjusted EBITDA margin, net debt and net leverage. Interest expense, net, is net of interest income that is included in other income (expense) on the Consolidated Statements of Operations. The following table provides the reconciliation of net loss to EBITDA and Adjusted EBITDA. The following table provides the reconciliation of consolidated net loss to total segment EBITDA. The following tables provide the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA. Twelve Months Ended March 31, 2025 Three Months Ended March 31, 2025 Twelve Months Ended December 31, 2024 Three Months Ended March 31, 2024 (In millions) Net income (loss) $ 180.6 $ (68.7 ) $ 201.7 $ (47.6 ) Depreciation, depletion and amortization 143.5 38.8 136.9 32.2 Interest expense, net 48.4 13.1 46.4 11.1 Income taxes 60.9 (24.7 ) 69.3 (16.3 ) EBITDA $ 433.4 $ (41.5 ) $ 454.3 $ (20.6 ) Unrealized (gains) losses on benefit plan investments (1.0 ) 0.7 (2.9 ) (1.2 ) Stock-based compensation expense 8.8 2.8 7.8 1.8 One-time separation costs 1.5 — 3.8 2.3 Adjusted EBITDA $ 442.7 $ (38.0 ) $ 463.0 $ (17.7 ) Expand Twelve Months Ended March 31, 2025 (In millions) Long-term debt $ 1,160.4 Long-term debt - current portion 11.8 Total debt 1,172.2 Add: Unamortized debt issuance costs 17.8 Total debt, gross 1,190.0 Less: Cash and cash equivalents, excluding restricted cash 86.1 Total debt, net $ 1,103.9 Trailing-twelve-months ended March 31, 2025, Adjusted EBITDA $ 442.7 Net leverage 2.5 x Expand The following table provides a reconciliation of consolidated GAAP net income to EBITDA and Adjusted EBITDA for forecasted results. Knife River's long-term goal for net leverage target and projections for 2025 EBITDA contributions and 2025 Adjusted EBITDA margin are non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from Knife River's financial statements. When the company provides its forward-looking long-term goal for net leverage target and projections for 2025 EBITDA contributions and 2025 Adjusted EBITDA margin, it does not provide a reconciliation of these non-GAAP financial measures as Knife River is unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results, including, but not limited to, the potentially high variability, complexity and low visibility with respect to the items that would be excluded from the applicable GAAP measure in the relevant future period, such as unusual gains and losses, the impact and timing of potential acquisitions and divestitures, certain financing costs and other structural changes or their probable significance. Therefore, Knife River is unable to provide a reconciliation of these measures without unreasonable efforts. The information in this news release highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries, including with respect to the benefits of acquisitions. Many of these highlighted statements and other statements not historical in nature are 'forward-looking statements' within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that its expectations are expressed in good faith and based on reasonable assumptions, there is no assurance the company's statements with respect to its EDGE strategy, shareholder value creation, financial guidance, expected long-term goals, backlog margin, acquisitions, financing plans or other proposed strategies will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's 2024 Form 10-K and subsequent filings with the Securities and Exchange Commission. Changes in such assumptions and factors could cause actual future results to differ materially from those expressed in the forward-looking statements. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.
Yahoo
24-02-2025
- Business
- Yahoo
Knife River Full Year 2024 Earnings: EPS Beats Expectations
Revenue: US$2.90b (up 2.4% from FY 2023). Net income: US$201.7m (up 10% from FY 2023). Profit margin: 7.0% (up from 6.5% in FY 2023). The increase in margin was driven by higher revenue. EPS: US$3.56 (up from US$3.23 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.9%. The primary driver behind last 12 months revenue was the Central segment contributing a total revenue of US$1.03b (36% of total revenue). Notably, cost of sales worth US$2.33b amounted to 80% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$241.0m (65% of total expenses). Explore how KNF's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Basic Materials industry in the US. Performance of the American Basic Materials industry. The company's shares are down 8.9% from a week ago. Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We've done some analysis and you can see our take on Knife River's balance sheet. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
24-02-2025
- Business
- Yahoo
Knife River Full Year 2024 Earnings: EPS Beats Expectations
Revenue: US$2.90b (up 2.4% from FY 2023). Net income: US$201.7m (up 10% from FY 2023). Profit margin: 7.0% (up from 6.5% in FY 2023). The increase in margin was driven by higher revenue. EPS: US$3.56 (up from US$3.23 in FY 2023). All figures shown in the chart above are for the trailing 12 month (TTM) period Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.9%. The primary driver behind last 12 months revenue was the Central segment contributing a total revenue of US$1.03b (36% of total revenue). Notably, cost of sales worth US$2.33b amounted to 80% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$241.0m (65% of total expenses). Explore how KNF's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 6.3% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Basic Materials industry in the US. Performance of the American Basic Materials industry. The company's shares are down 8.9% from a week ago. Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. We've done some analysis and you can see our take on Knife River's balance sheet. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
13-02-2025
- Business
- Yahoo
Knife River Corporation's (NYSE:KNF) institutional investors lost 5.6% over the past week but have profited from longer-term gains
Given the large stake in the stock by institutions, Knife River's stock price might be vulnerable to their trading decisions 50% of the business is held by the top 16 shareholders Analyst forecasts along with ownership data serve to give a strong idea about prospects for a business A look at the shareholders of Knife River Corporation (NYSE:KNF) can tell us which group is most powerful. With 83% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). No shareholder likes losing money on their investments, especially institutional investors who saw their holdings drop 5.6% in value last week. Still, the 41% one-year gains may have helped mitigate their overall losses. But they would probably be wary of future losses. Let's take a closer look to see what the different types of shareholders can tell us about Knife River. View our latest analysis for Knife River Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Knife River already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Knife River's earnings history below. Of course, the future is what really matters. Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Knife River is not owned by hedge funds. Our data shows that BlackRock, Inc. is the largest shareholder with 13% of shares outstanding. For context, the second largest shareholder holds about 11% of the shares outstanding, followed by an ownership of 3.5% by the third-largest shareholder. A closer look at our ownership figures suggests that the top 16 shareholders have a combined ownership of 50% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Management ultimately answers to the board. However, it is not uncommon for managers to be executive board members, especially if they are a founder or the CEO. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our data suggests that insiders own under 1% of Knife River Corporation in their own names. Keep in mind that it's a big company, and the insiders own US$34m worth of shares. The absolute value might be more important than the proportional share. Arguably, recent buying and selling is just as important to consider. You can click here to see if insiders have been buying or selling. The general public-- including retail investors -- own 16% stake in the company, and hence can't easily be ignored. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. It's always worth thinking about the different groups who own shares in a company. But to understand Knife River better, we need to consider many other factors. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
