Knife River (NYSE:KNF) Announces Quarterly Earnings Results, Misses Estimates By $0.36 EPS

Knife River (NYSE:KNF) posted its quarterly earnings data on Tuesday. The company reported $0.77 EPS for the quarter, missing the consensus estimate of $1.13 by ($0.36), Zacks reports. Knife River had a return on equity of 9.35% and a net margin of 4.58%.The company had revenue of $938.57 million during the quarter, compared to the consensus estimate of $931.39 million. During the same period last year, the business earned $0.89 EPS. The firm’s quarterly revenue was up 12.6% compared to the same quarter last year.

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

• Positive Sentiment: Revenue guidance was raised to $3.4 billion-$3.6 billion, while adjusted EBITDA guidance was reaffirmed at $520 million-$560 million; management expects about 55% of full-year EBITDA in the third quarter.
• Positive Sentiment: Underlying operations remained strong, with second-quarter revenue up 13%, double-digit volume growth across materials, and like-for-like adjusted EBITDA up 7% excluding asset-sale gains. Aggregate, ready-mix, and asphalt gross profit increased 12%, 21%, and 24%, respectively.
• Neutral Sentiment: Results were pressured by approximately $24 million of fuel costs, weather, project delays, and unfavorable contracting-services work mix. Fuel escalators and project bonuses should provide some recovery in the second half, but much of the delayed Texas, Hawaii, and Alaska work is now expected to shift into 2027.
• Negative Sentiment: Contracting-services margins faced competitive bidding pressure, particularly tied to limited Oregon paving activity, while lower-margin legacy acquisition projects are expected to weigh primarily through the third quarter. Aggregate margin expansion is now expected to be closer to 100 basis points rather than the previously targeted 200 basis points.
• Positive Sentiment: Management highlighted strong long-term demand from infrastructure, data centers, semiconductor facilities, and energy projects, alongside a healthy acquisition pipeline and approximately $140 million invested in organic growth initiatives. Net leverage is expected to return near the company’s 2.5-times long-term target by year-end.

Knife River Price Performance

Shares of NYSE:KNF traded down $0.56 on Wednesday, reaching $68.95. The company’s stock had a trading volume of 260,656 shares, compared to its average volume of 601,993. The company has a 50-day simple moving average of $80.38 and a 200 day simple moving average of $81.33. Knife River has a 52-week low of $58.72 and a 52-week high of $96.28. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.31 and a current ratio of 2.67. The company has a market cap of $3.91 billion, a P/E ratio of 26.83, a PEG ratio of 1.41 and a beta of 0.42.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. McMillan Office Inc. purchased a new stake in Knife River during the fourth quarter valued at approximately $36,000. Smartleaf Asset Management LLC boosted its holdings in shares of Knife River by 1,365.6% in the 2nd quarter. Smartleaf Asset Management LLC now owns 1,363 shares of the company’s stock worth $113,000 after purchasing an additional 1,270 shares during the period. Kestra Advisory Services LLC purchased a new stake in Knife River during the 4th quarter valued at $184,000. Lido Advisors LLC purchased a new stake in Knife River during the 4th quarter valued at $211,000. Finally, CIBC Private Wealth Group LLC lifted its position in Knife River by 43.8% in the third quarter. CIBC Private Wealth Group LLC now owns 2,835 shares of the company’s stock worth $218,000 after buying an additional 863 shares during the last quarter. Institutional investors own 80.11% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have recently commented on the stock. Stephens set a $80.00 price objective on shares of Knife River in a research report on Wednesday. Weiss Ratings raised shares of Knife River from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, May 27th. JPMorgan Chase & Co. raised their price target on Knife River from $90.00 to $95.00 and gave the company a “neutral” rating in a report on Wednesday, May 6th. Oppenheimer began coverage on Knife River in a research report on Thursday, May 28th. They issued an “outperform” rating and a $95.00 price objective on the stock. Finally, Royal Bank Of Canada set a $103.00 price objective on Knife River in a research note on Wednesday. Six analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, Knife River presently has a consensus rating of “Moderate Buy” and a consensus price target of $91.86.

Knife River News Summary

Here are the key news stories impacting Knife River this week:

• Positive Sentiment: Knife River raised its 2026 revenue outlook to $3.4 billion–$3.6 billion, up from its previous $3.3 billion–$3.5 billion range, while reaffirming adjusted EBITDA guidance of $520 million–$560 million. The midpoint of the revenue forecast is broadly in line with Wall Street expectations. Knife River forecasts 2026 revenue and reaffirms EBITDA guidance
• Positive Sentiment: Second-quarter revenue increased 12.6% year over year to $938.6 million, exceeding the consensus estimate of $931.4 million, indicating continued demand for the company’s construction materials and contracting services. Knife River second-quarter 2026 financial results
• Neutral Sentiment: Wells Fargo upgraded KNF from “underweight” to “equal weight,” but reduced its price target to $73 from $81. The upgrade removes a bearish rating, while the lower target signals more limited upside following the earnings reaction.
• Negative Sentiment: Knife River reported second-quarter EPS of $0.77, below estimates ranging from $1.11 to $1.13 and down from $0.89 a year earlier. Net income fell 13% to $43.9 million, while net margin contracted to 4.7% from 6.1%, suggesting that cost or margin pressures outweighed the revenue growth. Knife River second-quarter earnings miss
• Negative Sentiment: Zacks Research downgraded Knife River from “strong buy” to “hold,” adding to investor caution after the earnings shortfall. The stock’s valuation remains elevated at roughly 27 times earnings, increasing sensitivity to weaker near-term profitability.

Knife River Company Profile

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.