Knife River (NYSE:KNF) Posts Earnings Results, Beats Estimates By $0.15 EPS

Knife River (NYSE:KNF) posted its earnings results on Tuesday. The company reported $0.56 earnings per share for the quarter, topping the consensus estimate of $0.41 by $0.15, FiscalAI reports. The firm had revenue of $755.10 million during the quarter, compared to analyst estimates of $726.60 million. Knife River had a return on equity of 9.97% and a net margin of 4.87%.The company’s revenue for the quarter was up 14.9% on a year-over-year basis. During the same period in the previous year, the company earned $0.41 EPS.

Here are the key takeaways from Knife River’s conference call:

• Knife River reported a stronger finish to 2025 with Adjusted EBITDA of $497M (up 7% year‑over‑year), a very strong Q4 (Adjusted EBITDA +47%) and a record backlog of $1.0 billion (up 38% YoY), giving multi‑year revenue visibility.
• 2026 guidance calls for revenue of $3.3B–$3.5B and Adjusted EBITDA of $520M–$560M (midpoint margin ≈16%), signaling management expects continued top‑line and EBITDA growth.
• M&A is a core growth engine — Knife River closed five acquisitions in 2025 (including the large Strata deal and TexCrete) and says the pipeline is robust, targeting aggregates‑based, vertically integrated bolt‑ons in higher growth markets.
• Management expects continued margin expansion from self‑help initiatives (dynamic pricing, pit‑crew cost controls — aggregates pricing +9% in 2025 and ~200 bps aggregates margin expansion targeted for 2026) but warns of a geographic mix shift toward Mountain/Central (lower‑margin regions) and lower expected backlog margins, which may temper consolidated margin gains.
• Capital deployment and liquidity position support growth — Knife River invested ~$789M in 2025, expects maintenance capex of 5%–7% of revenue in 2026, finished the year with ~$75M cash, ~$475M revolver availability and net leverage of 2.2x (below the 2.5x target), giving flexibility to fund more deals.

Knife River Price Performance

Shares of Knife River stock opened at $93.99 on Wednesday. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.39 and a quick ratio of 1.47. The company has a market cap of $5.33 billion, a PE ratio of 36.01, a price-to-earnings-growth ratio of 1.36 and a beta of 0.47. The firm has a fifty day moving average price of $76.03 and a two-hundred day moving average price of $75.41. Knife River has a fifty-two week low of $58.72 and a fifty-two week high of $105.23.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on KNF. Weiss Ratings reissued a “hold (c)” rating on shares of Knife River in a research report on Thursday, January 22nd. JPMorgan Chase & Co. started coverage on shares of Knife River in a research note on Thursday, December 4th. They issued a “neutral” rating and a $83.00 target price on the stock. Zacks Research upgraded shares of Knife River from a “strong sell” rating to a “hold” rating in a report on Monday, January 5th. Royal Bank Of Canada decreased their price target on shares of Knife River from $115.00 to $105.00 and set an “outperform” rating for the company in a report on Thursday, November 6th. Finally, Wall Street Zen downgraded Knife River from a “hold” rating to a “sell” rating in a research report on Sunday. Six research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $91.67.

Hedge Funds Weigh In On Knife River

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. McMillan Office Inc. bought a new stake in shares of Knife River in the 4th quarter worth approximately $36,000. Smartleaf Asset Management LLC increased its position in shares of Knife River by 1,365.6% during the second quarter. Smartleaf Asset Management LLC now owns 1,363 shares of the company’s stock valued at $113,000 after purchasing an additional 1,270 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of Knife River in the fourth quarter valued at $184,000. Lido Advisors LLC bought a new position in Knife River in the fourth quarter worth $211,000. Finally, CIBC Private Wealth Group LLC lifted its position in Knife River by 43.8% in the third quarter. CIBC Private Wealth Group LLC now owns 2,835 shares of the company’s stock worth $218,000 after purchasing an additional 863 shares during the period. 80.11% of the stock is currently owned by institutional investors.

More Knife River News

Here are the key news stories impacting Knife River this week:

• Positive Sentiment: Q4 beat — Knife River reported EPS of $0.56 vs. the $0.41 consensus and revenue of $755.1M (up 14.9% YoY), beating revenue estimates. This is the primary driver of the rally. Business Wire: Q4 Results
• Positive Sentiment: Raised FY2026 top-line and margin targets — Management set 2026 revenue guidance of $3.3B–$3.5B and targeted $520M–$560M of adjusted EBITDA, giving investors a clearer earnings runway. Seeking Alpha: 2026 Guidance & Strategy
• Positive Sentiment: Backlog and strategic progress — Management emphasized backlog-fueled momentum and progress on vertical integration (which can improve margins and mix if executed). Investors viewed the call highlights as supportive of sustained growth. TipRanks: Earnings Call Highlights
• Neutral Sentiment: Market reaction coverage — Several outlets noted the beat and guidance; headlines (e.g., Yahoo) quantified the stock move and summarized the catalysts without adding new fundamental details. Yahoo Finance: Stock Reaction
• Neutral Sentiment: Analyst estimates — Street models expect Knife River to deliver multi-dollar EPS for FY2026 (consensus estimates are being updated after results); watch upcoming revisions. MarketBeat: Earnings & Guidance
• Negative Sentiment: Margins and valuation remain watchpoints — Q4 net margin (~4.9%) and ROE (~10%) are modest, and the shares trade at a relatively rich P/E (~36). Execution risk on integration and converting backlog to profit could cap upside if margins don’t improve.

Knife River Company Profile

Knife River Corporation, headquartered in Bismarck, North Dakota, is a leading integrated construction materials and contracting company in the western United States. The company specializes in producing and supplying aggregates, asphalt mix, ready-mixed concrete and other heavy construction materials used in highway, commercial and residential projects.

In addition to material production, Knife River offers a comprehensive suite of contracting services, including heavy civil construction, road building, underground and open-pit mining and logistics support.