Knife River (NYSE:KNF) Announces Earnings Results

Knife River (NYSE:KNF) announced its quarterly earnings data on Tuesday. The company reported ($1.40) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($1.42) by $0.02, FiscalAI reports. The firm had revenue of $410.10 million for the quarter, compared to the consensus estimate of $387.06 million. Knife River had a net margin of 4.99% and a return on equity of 10.27%. The business’s revenue for the quarter was up 16.0% on a year-over-year basis. During the same period in the prior year, the company posted ($1.21) earnings per share.

Here are the key takeaways from Knife River’s conference call:

• Knife River reported a strong Q1: 16% revenue growth, 16% adjusted EBITDA growth and a 290 basis point expansion in adjusted EBITDA margin, driven by double?digit volume gains and pricing/cost improvements.
• Record backlog of $1.2 billion (about 75% expected to be completed in 2026) provides visibility into the construction season and underpins management’s view that full?year results will trend toward the upper half of guidance.
• The company completed three aggregates?based acquisitions in Q1 (including Morgan Asphalt in Salt Lake City) and says it has a substantial, fragmented M&A pipeline, positioning Knife River to expand its footprint at attractive multiples.
• Management highlighted vertical integration as a core advantage and “profit multiplier,” enabling higher margins through pull?through of upstream materials, synergies across units, and multiple pathways to capture project profit.
• Energy/diesel cost pressure and Q1 seasonality weighed on contracting services margins; management says about 80% of diesel exposure is mitigated via pre?purchases, escalation/fuel surcharges and dynamic pricing, but risks remain.

Knife River Price Performance

Shares of KNF traded down $2.56 during mid-day trading on Tuesday, reaching $87.74. The company had a trading volume of 261,747 shares, compared to its average volume of 606,931. The company’s 50 day simple moving average is $84.50 and its 200 day simple moving average is $77.17. Knife River has a 1-year low of $58.72 and a 1-year high of $103.18. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.39 and a current ratio of 2.54. The company has a market capitalization of $4.98 billion, a price-to-earnings ratio of 31.79, a P/E/G ratio of 2.09 and a beta of 0.55.

Institutional Investors Weigh In On Knife River

A number of hedge funds have recently made changes to their positions in the stock. McMillan Office Inc. acquired a new stake in shares of Knife River during the 4th quarter valued at $36,000. Smartleaf Asset Management LLC boosted its holdings in shares of Knife River by 1,365.6% during the 2nd quarter. Smartleaf Asset Management LLC now owns 1,363 shares of the company’s stock valued at $113,000 after acquiring an additional 1,270 shares in the last quarter. Kestra Advisory Services LLC acquired a new stake in shares of Knife River during the 4th quarter valued at $184,000. Lido Advisors LLC acquired a new stake in shares of Knife River during the 4th quarter valued at $211,000. Finally, CIBC Private Wealth Group LLC boosted its holdings in shares of Knife River by 43.8% during the 3rd quarter. CIBC Private Wealth Group LLC now owns 2,835 shares of the company’s stock valued at $218,000 after acquiring an additional 863 shares in the last quarter. 80.11% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

KNF has been the topic of a number of analyst reports. Royal Bank Of Canada increased their price objective on shares of Knife River from $106.00 to $109.00 and gave the stock an “outperform” rating in a research note on Wednesday, February 18th. Zacks Research raised Knife River from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. DA Davidson raised their target price on Knife River from $95.00 to $105.00 and gave the company a “buy” rating in a report on Wednesday, February 18th. JPMorgan Chase & Co. raised their target price on Knife River from $83.00 to $90.00 and gave the company a “neutral” rating in a report on Thursday, March 5th. Finally, Wells Fargo & Company reduced their target price on Knife River from $81.00 to $80.00 and set an “underweight” rating on the stock in a report on Wednesday, April 15th. Six analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $97.29.

About Knife River

Knife River Corporation, headquartered in Bismarck, North Dakota, is a leading integrated construction materials and contracting company in the western United States. The company specializes in producing and supplying aggregates, asphalt mix, ready-mixed concrete and other heavy construction materials used in highway, commercial and residential projects.

In addition to material production, Knife River offers a comprehensive suite of contracting services, including heavy civil construction, road building, underground and open-pit mining and logistics support.