Knife River Corporation
Knife River Corporation is a construction materials and contracting services company.
It supplies aggregates, asphalt, concrete, and offers construction solutions across the U.S.
Join Our Programs
Our clients trust us for our expert advice and in-depth market analysis. Discover our services to gain more knowledge on investing.
Stock Market Webinar
Join our Stock Market Webinar to gain clear, actionable insights into current market trends. Learn how to analyse data, interpret signals, and make informed investment decisions with confidence. Designed for both beginners and experienced investors, this session delivers practical knowledge you can apply immediately.
Performance
In 2024, Knife River Corporation (NYSE: KNF) achieved record financial results, reporting revenue of $2.899 billion, a 2% increase from the previous year. Net income rose 10% to $201.7 million, with earnings per share (EPS) of $3.55, surpassing the estimated annual EPS of $3.49. Adjusted EBITDA reached $463 million, reflecting a 7% increase year-over-year. In the fourth quarter, the company posted revenue of $657.2 million, a 2% increase from the prior-year period, and net income of $23.3 million, up 12% year-over-year. Adjusted EBITDA for the quarter was $81.2 million, a 12% increase from the prior-year period. The positive results were driven by price increases in aggregates, ready-mix, and asphalt product lines, partially offset by declines in material volumes due to the company’s quality-over-quantity initiatives. Looking ahead, Knife River projects 2025 adjusted EBITDA between $473 million and $523 million.
Quality of Earnings
The company demonstrates strong adherence to General Accounting Principles, with financial reports that conform to GAAP, are decision-useful, sustainable, and offer returns exceeding the cost of capital. There have been no recent changes to accounting policies, and all required financial reports are submitted on time. Revenue quality is also robust, marked by high predictability—with a substantial portion of clients returning year after year—strong profitability with gross margins exceeding 70%, diversified income sources with no client accounting for more than 15% of revenue, and clear growth in both revenue and net income. Additionally, there are no significant financial report warning signs: earnings contain minimal accrual components, do not narrowly beat benchmarks in a suspicious pattern, and revenue is not recognized prematurely. Expenses are not misrepresented, audit opinions are unqualified, goodwill is properly assessed, and the company does not rely on aggressive accounting tactics such as related-party transactions or off-balance-sheet debt. Operating ccash flows align with net income, earnings are recurring and persistent, and there is no history of restatements or enforcement actions, reinforcing the reliability and quality of the company’s financial reporting.
Company Summary
Knife River Corporation is a leading U.S. construction materials and contracting company, specializing in aggregates, asphalt, ready-mix concrete, and related services, with operations spanning 14 states and a workforce of over 5,700 employees.
