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Knife River Corporation
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$2.7B
Market Cap
25.5
P/E
2.62
PEG
9.2%
ROCE
10.1%
ROE
0.74
D/E
9.4%
OPM
-46.8%
% from 52W High
22
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for KNF including FX impact
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📈 Price History
Ratio Health
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By Category
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About

Knife River Corporation, together with its subsidiaries, provides aggregates-based construction materials and contracting services in the United States. The company operates through West, Mountain, Central, and Energy Services segments. It mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete. The company also provides contracting services, such as heavy-civil construction, asphalt and concrete paving, and site development and grading. In addition, it sells cement, merchandise, and other building materials and related services; and produces and supplies liquid asphalt for use in asphalt road construction. The company sells its construction materials to public and private-sector customers comprising federal, state, and municipal governments; industrial, commercial, and residential developers, as well as other private parties; and provides its contracting services to public-sector customers for the development and servicing of highways, local roads, bridges, and other public-infrastructure projects. Knife River Corporation was founded in 1917 and is headquartered in Bismarck, North Dakota.

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📈 Growth Pattern
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⭐ Superinvestors Holding KNF
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 7.7K $629K 0.00% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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🎙 Management Tone Confident Specific ↑ Improving 4 quarters Full tone analysis in Intelligence →
📊 MIXED Knife River Q1 2026: Revenue +16%, Adj. EBITDA +16%, Record backlog $1.2B
Revenue & Profitability
Revenue increased 16% year-over-year in Q1 2026, and adjusted EBITDA also grew 16%. Adjusted EBITDA margins expanded by 290 basis points. Aggregates gross profit margins rose 390 basis points. The company ended the quarter with a record backlog of $1.2 billion, with about 75% expected to be completed in 2026. Management expects 2026 to trend toward the upper half of its revenue and adjusted EBITDA guidance ranges.
Outlook
Management is confident in long-term demand, citing population growth in Knife River states projected to grow 2x faster than non-Knife River states through 2050. State DOT budgets in Knife River states increased approximately 15% in 2026 versus flat in other states. Demand is supported by infrastructure repair needs, data center development, military spending, and energy projects. The company entered the construction season with record backlog and expects continued growth.
Growth Drivers
Key growth levers include disciplined M&A (three acquisitions in Q1 2026, with a strong pipeline), organic expansion through vertical integration, and exposure to high-growth midsize markets. The Mountain segment benefits from population growth and data center investment; the Central segment is driven by the Texas Triangle and energy projects; the West segment gains from military and data center demand. Greenfield investments like the Honey Creek Quarry in Texas support downstream capacity expansion.
Balance Sheet & CapEx
In Q1 2026, the company spent $42 million on maintenance and improvement CapEx (mainly equipment replacement and plant upgrades) and $209 million on growth initiatives, including $174 million for three acquisitions and $35 million for aggregate expansions and greenfield projects. Management expects to end 2026 with no borrowing on its $500 million revolver and net leverage near its target of 2.5x, providing balance sheet capacity for further investments.
Margins
Adjusted EBITDA margins expanded 290 basis points in Q1. Aggregates margin improved by 390 basis points, with per-unit production costs down over 10%. Management reaffirmed full-year guidance of mid-single-digit aggregates pricing improvement (as-reported) and at least 200 basis points of aggregate margin expansion. Contracting services margins were down in Q1 due to timing and mix, but are expected to improve in 2026 driven by more self-performed asphalt paving. SG&A is expected to be comparable as a percent of revenue for the full year, then trend lower.
Key Risks
Management flagged rising diesel costs as a headwind, but noted mitigation strategies (forward contracts, fuel surcharges, dynamic pricing) cover about 80% of diesel exposure. The Oregon DOT situation was described as stable and baked into guidance. Analysts raised concerns about potential gas tax holidays, but management considered them immaterial. The first quarter represents a small portion of annual revenue, so seasonal timing and weather can distort results.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-04
Q2 saw 13% revenue growth and strong double-digit volume gains across all materials, despite headwinds from energy costs and project delays. Adjusted EBITDA rose 7% year-over-year (excluding asset sales), and guidance was raised to $3.4–$3.6B revenue with $520–$560M adjusted EBITDA.
Q1 2026 Q1 2026 2026-05-05
Revenue and adjusted EBITDA rose 16% year-over-year, with margin expansion and strong volume growth across all product lines. Record backlog, strategic acquisitions, and robust market conditions support confidence in achieving the upper half of 2026 guidance.
Q4 2025 Q4 2025 2026-02-17
Record profitability and margin expansion in 2025 were driven by acquisitions, dynamic pricing, and operational initiatives. Entering 2026 with a record $1B backlog, strong liquidity, and robust growth guidance, the company expects continued volume and margin gains across all segments.
Q3 2025 Q3 2025 2025-11-04
Record Q3 revenue and adjusted EBITDA were driven by acquisitions and operational improvements, with strong margin gains in aggregates and ready-mix. Backlog is up 32% year-over-year, and full-year guidance was narrowed, with weather and Oregon stabilization as key variables.
Q2 2025 Q2 2025 2025-08-05
Second quarter results were impacted by weather and Oregon project delays, but record backlog and strong public funding support a positive outlook. Acquisitions and dynamic pricing are driving growth, though guidance was lowered due to Oregon and weather headwinds.
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

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Information Sources:
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