Knife River (NYSE:KNF) Announces Quarterly Earnings Results, Beats Estimates By $0.15 EPS

Knife River (NYSE:KNF) announced its quarterly earnings data on Tuesday. The company reported $0.56 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.15, FiscalAI reports. The business had revenue of $755.10 million during the quarter, compared to analyst estimates of $726.60 million. Knife River had a return on equity of 10.27% and a net margin of 4.99%.Knife River’s revenue was up 14.9% compared to the same quarter last year. During the same period in the prior year, the company earned $0.41 earnings per share.

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

• Knife River reported a stronger finish to 2025 with Adjusted EBITDA of $497M (up 7% year‑over‑year), a very strong Q4 (Adjusted EBITDA +47%) and a record backlog of $1.0 billion (up 38% YoY), giving multi‑year revenue visibility.
• 2026 guidance calls for revenue of $3.3B–$3.5B and Adjusted EBITDA of $520M–$560M (midpoint margin ≈16%), signaling management expects continued top‑line and EBITDA growth.
• M&A is a core growth engine — Knife River closed five acquisitions in 2025 (including the large Strata deal and TexCrete) and says the pipeline is robust, targeting aggregates‑based, vertically integrated bolt‑ons in higher growth markets.
• Management expects continued margin expansion from self‑help initiatives (dynamic pricing, pit‑crew cost controls — aggregates pricing +9% in 2025 and ~200 bps aggregates margin expansion targeted for 2026) but warns of a geographic mix shift toward Mountain/Central (lower‑margin regions) and lower expected backlog margins, which may temper consolidated margin gains.
• Capital deployment and liquidity position support growth — Knife River invested ~$789M in 2025, expects maintenance capex of 5%–7% of revenue in 2026, finished the year with ~$75M cash, ~$475M revolver availability and net leverage of 2.2x (below the 2.5x target), giving flexibility to fund more deals.

Knife River Stock Down 3.5%

Shares of NYSE:KNF opened at $90.69 on Thursday. The firm has a fifty day moving average price of $76.32 and a two-hundred day moving average price of $75.51. The company has a market cap of $5.14 billion, a price-to-earnings ratio of 32.86, a PEG ratio of 1.58 and a beta of 0.47. The company has a debt-to-equity ratio of 0.70, a current ratio of 2.54 and a quick ratio of 1.47. Knife River has a one year low of $58.72 and a one year high of $104.40.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Knife River in a research note on Thursday, January 22nd. Stephens increased their target price on shares of Knife River from $86.00 to $105.00 and gave the stock an “overweight” rating in a research report on Wednesday. Zacks Research upgraded shares of Knife River from a “strong sell” rating to a “hold” rating in a research note on Monday, January 5th. B. Riley Financial began coverage on shares of Knife River in a report on Thursday, January 15th. They issued a “buy” rating and a $92.00 price objective for the company. Finally, JPMorgan Chase & Co. assumed coverage on shares of Knife River in a report on Thursday, December 4th. They set a “neutral” rating and a $83.00 target price on the stock. Six equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Knife River has a consensus rating of “Moderate Buy” and an average target price of $96.43.

Hedge Funds Weigh In On Knife River

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Magnetar Financial LLC bought a new position in Knife River in the fourth quarter valued at $236,000. Entropy Technologies LP purchased a new position in shares of Knife River in the 4th quarter worth about $273,000. Marshall Wace LLP bought a new position in shares of Knife River during the 4th quarter valued at about $231,000. Orion Porfolio Solutions LLC raised its holdings in shares of Knife River by 13.3% during the 4th quarter. Orion Porfolio Solutions LLC now owns 3,278 shares of the company’s stock valued at $231,000 after buying an additional 386 shares in the last quarter. Finally, Cibc World Markets Corp bought a new stake in Knife River in the 4th quarter worth approximately $266,000. 80.11% of the stock is currently owned by hedge funds and other 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.