Knife River (NYSE:KNF) Releases Earnings Results, Beats Expectations By $0.02 EPS

Knife River (NYSE:KNF) posted its quarterly earnings results on Tuesday. The company reported ($1.40) EPS for the quarter, topping analysts’ consensus estimates of ($1.42) by $0.02, FiscalAI reports. Knife River had a return on equity of 9.35% and a net margin of 4.58%.The company had revenue of $410.13 million during the quarter, compared to analysts’ expectations of $387.06 million. During the same quarter in the previous year, the firm earned ($1.21) EPS. Knife River’s revenue was up 16.0% on a year-over-year basis.

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 Trading Down 3.3%

KNF traded down $2.98 during trading on Thursday, reaching $88.54. 247,971 shares of the company’s stock were exchanged, compared to its average volume of 606,653. Knife River has a one year low of $58.72 and a one year high of $103.18. The company has a current ratio of 2.67, a quick ratio of 1.39 and a debt-to-equity ratio of 0.91. The stock has a market capitalization of $5.02 billion, a PE ratio of 34.45, a price-to-earnings-growth ratio of 1.96 and a beta of 0.55. The firm has a fifty day moving average price of $84.51 and a two-hundred day moving average price of $77.49.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on KNF. DA Davidson boosted their price target on Knife River from $95.00 to $105.00 and gave the stock a “buy” rating in a report on Wednesday, February 18th. Wells Fargo & Company dropped their price target on Knife River from $81.00 to $80.00 and set an “underweight” rating for the company in a research note on Wednesday, April 15th. Royal Bank Of Canada raised their price objective on Knife River from $106.00 to $109.00 and gave the company an “outperform” rating in a report on Wednesday, February 18th. B. Riley Financial assumed coverage on Knife River in a report on Thursday, January 15th. They issued a “buy” rating and a $92.00 target price for the company. Finally, Wall Street Zen upgraded Knife River from a “sell” rating to a “hold” rating in a research report on Monday, February 23rd. Six investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $98.00.

Institutional Investors Weigh In On Knife River

A number of institutional investors have recently added to or reduced their stakes in KNF. Crossmark Global Holdings Inc. increased its position in shares of Knife River by 6.3% during the third quarter. Crossmark Global Holdings Inc. now owns 3,705 shares of the company’s stock worth $285,000 after buying an additional 220 shares during the period. Inceptionr LLC bought a new stake in shares of Knife River during the 4th quarter valued at about $284,000. Entropy Technologies LP acquired a new stake in Knife River during the fourth quarter worth approximately $273,000. Cibc World Markets Corp bought a new stake in Knife River in the fourth quarter worth approximately $266,000. Finally, Magnetar Financial LLC bought a new position in shares of Knife River during the 4th quarter worth approximately $236,000. 80.11% of the stock is owned by institutional investors.

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.