Construction company Knife River's Q2 revenue rises less than expected, due to weather impact

Knife River

05/08/2025 12:33

Overview

Knife River Q2 revenue rises 3% but misses analyst expectations

Net income falls 35% due to weather and increased costs

Record backlog of $1.3 bln supports future growth

Outlook

Knife River revises 2025 adjusted EBITDA guidance to $475 mln-$525 mln

Company expects backlog to drive volume growth in H2 2025

Knife River anticipates high-single-digit price increases for aggregates

Company sees Oregon funding challenges as a headwind in 2025

Result Drivers

WEATHER IMPACT - Above-average precipitation delayed construction projects, affecting revenue

OREGON ECONOMY - Reduced demand due to funding challenges impacted contracting services

ACQUISITIONS - Acquired two aggregates-led companies contributing positively to revenue

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$833.80 mln
$893 mln (9 Analysts)
Q2 EPS
$0.89


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the construction materials peer group is "buy"

Wall Street's median 12-month price target for Knife River Corp is $117.00, about 27.9% above its August 4 closing price of $84.36

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nBwb8CLWHa

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)