Knife River Corp
NYSE:KNF
Knife River Corp
Knife River Corporation, a formidable player in the construction materials sector, has carved out a name for itself by capitalizing on the fundamental demands of infrastructure and development. Originally a subsidiary of MDU Resources Group, Knife River reached a significant milestone in its storied journey when it entered the public market in 2023. This move unlocked fresh avenues for growth and autonomy, deepening its reach in the material supply domain. Operating across several states in the U.S., the company specializes in the production and distribution of essential construction materials such as aggregates, asphalt, and ready-mix concrete. Through vertical integration, Knife River efficiently manages its supply chain from quarry extraction to delivery, optimizing costs and ensuring a steady flow of quality materials crucial to residential, commercial, and public projects.
The company's success hinges on its ability to meet the critical infrastructure needs of America. As urbanization accelerates, and government spending on infrastructure increases, Knife River is strategically poised to benefit. Its business model is rooted in addressing the ever-present need for robust roadways, bridges, and buildings. By embedding itself deeply into the fabric of construction projects, the corporation not only sells raw materials but also provides ancillary services such as paving and construction management. This dual revenue stream maximizes its leverage in the construction lifecycle, ensuring profitability is not solely tied to material sales but also to the execution of large-scale projects. Through strategic acquisitions and an emphasis on operational efficiency, Knife River continues to fortify its position as an indispensable partner to both private and public sector builders.
Knife River Corporation, a formidable player in the construction materials sector, has carved out a name for itself by capitalizing on the fundamental demands of infrastructure and development. Originally a subsidiary of MDU Resources Group, Knife River reached a significant milestone in its storied journey when it entered the public market in 2023. This move unlocked fresh avenues for growth and autonomy, deepening its reach in the material supply domain. Operating across several states in the U.S., the company specializes in the production and distribution of essential construction materials such as aggregates, asphalt, and ready-mix concrete. Through vertical integration, Knife River efficiently manages its supply chain from quarry extraction to delivery, optimizing costs and ensuring a steady flow of quality materials crucial to residential, commercial, and public projects.
The company's success hinges on its ability to meet the critical infrastructure needs of America. As urbanization accelerates, and government spending on infrastructure increases, Knife River is strategically poised to benefit. Its business model is rooted in addressing the ever-present need for robust roadways, bridges, and buildings. By embedding itself deeply into the fabric of construction projects, the corporation not only sells raw materials but also provides ancillary services such as paving and construction management. This dual revenue stream maximizes its leverage in the construction lifecycle, ensuring profitability is not solely tied to material sales but also to the execution of large-scale projects. Through strategic acquisitions and an emphasis on operational efficiency, Knife River continues to fortify its position as an indispensable partner to both private and public sector builders.
Record Profitability: Knife River delivered its most profitable year ever, with adjusted EBITDA up 7% to $497 million for 2025 and a 47% jump in Q4 EBITDA.
Backlog Growth: Entered 2026 with a record $1 billion backlog, up 38% year-over-year, providing strong multiyear visibility.
Acquisition Momentum: Completed 5 acquisitions in 2025, including the largest ever (Strata), and expects another active year for M&A in 2026.
Margin Expansion: Achieved a record Q4 gross margin of nearly 19%; aggregates, ready-mix, and asphalt all saw notable margin improvements.
Guidance Raised: Forecasts 2026 revenue of $3.3–$3.5 billion and adjusted EBITDA of $520–$560 million, implying about 16% EBITDA margin at midpoint.
Cost Controls: Ongoing focus on cost reduction and operational efficiencies, especially through self-help initiatives and dynamic pricing.
Strong Balance Sheet: Ended 2025 with $75 million in cash, $475 million available on the revolver, and net leverage of 2.2x, supporting further growth.
Favorable Market Conditions: Sees continued demand from public infrastructure projects and emerging opportunities in private sectors like data centers.
