Knife River Corp Q3 revenue misses; narrows 2025 revenue guidance

Knife River

04/11/2025 12:23

Overview

Knife River Q3 revenue grows 9% yr/yr but misses analyst expectations

Adjusted EBITDA for Q3 misses analyst expectations

Company reports record backlog, driven by strategic acquisitions and public infrastructure projects

Outlook

Knife River narrows 2025 revenue guidance to $3.1 bln-$3.15 bln

Company expects 2025 adjusted EBITDA between $475 mln and $500 mln

Record backlog supports optimism for 2026 growth

Result Drivers

STRATEGIC ACQUISITIONS - Recent acquisitions boosted operations despite economic uncertainty and weather challenges

PRICE OPTIMIZATION - Focus on price optimization and cost controls improved adjusted EBITDA and gross margins

RECORD BACKLOG - Record backlog driven by public infrastructure projects positions company for future growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
$1.20 bln
$1.21 bln (9 Analysts)
Q3 EPS
$2.52
Q3 Net Income
$143.20 mln
Q3 Adjusted EBITDA
Miss
$272.80 mln
$273.81 mln (7 Analysts)

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 $106.61, about 42.7% above its November 3 closing price of $61.11

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw5TQVKwa

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(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.)