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Knife River Corporation Reports Fourth Quarter and Full-Year 2025 Financial Results

KNF
  • Knife River Corporation reported record fourth quarter revenue of $755.1 million (15% increase) and full-year revenue of $3,146.0 million (9% increase) for 2025.
  • Fourth quarter adjusted EBITDA rose 47% to $119.4 million, while full-year adjusted EBITDA increased 7% to $496.5 million.
  • Full-year net income declined 22% to $157.1 million due to higher interest expense and acquisition-related costs, despite strong operational performance.
  • The company completed five aggregates-based acquisitions in 2025, including the Texcrete transaction which aims to double ready-mix volumes in the Texas Triangle in 2026.
  • Knife River entered 2026 with a record backlog of $1 billion, 89% of which relates to publicly funded projects.
  • The company initiated 2026 financial guidance projecting revenue between $3.3 billion and $3.5 billion and adjusted EBITDA between $520.0 million and $560.0 million.
  • Segment performance varied, with the Central segment showing 32% fourth-quarter revenue growth driven by acquisitions, while the Energy Services segment saw a 5% revenue decline due to lower oil prices.
  • Capital allocation in 2025 included $610.0 million spent on acquisitions and $178.6 million on organic growth projects, with total capital expenditures for maintenance and improvements at $348.1 million.
  • Net leverage stood at 2.2x as of December 31, 2025, with $73.8 million in unrestricted cash and $476.6 million available under its revolving credit facility.
  • Management expects 2026 aggregates volumes and pricing to increase mid-single digits, ready-mix volumes to grow mid-teens, and asphalt volumes to rise mid-single digits.
  • Organizational restructuring in January 2025 consolidated former segments into four reportable units: West, Mountain, Central, and Energy Services.