Knife River (KNF) investor relations material

Executive summary

• Achieved record third quarter revenue of $1.2 billion, up 9% year-over-year, driven by acquisitions, price increases, and operational improvements.

• Adjusted EBITDA reached $272.8 million, an 11% increase from the prior year, with margin growth supported by process improvements and pricing initiatives.

• Net income for Q3 2025 was $143.2 million, with a net income margin of 11.9%.

• Record third quarter backlog of $995 million, 32% higher year-over-year, with 87% public work and strong bidding activity.

• Strategic acquisitions and price optimization contributed to margin improvements and operational resilience.

Financial highlights

• Revenue: $1,203.7 million (up 9% year-over-year); Adjusted EBITDA: $272.8 million (up 11%); margin improved by 50 bps to 22.7%.

• Aggregates prices increased 8–9% and margins improved 50 basis points year-over-year; volumes up due to acquisitions and growth in Alaska and Hawaii.

• Ready-mix prices rose nearly 6%, volumes up 16%, and margins improved 160 basis points; full-year volumes expected to rise by low double digits.

• Asphalt volumes and pricing down by low single digits for the year, but cost management led to slight margin improvement.

• SG&A expenses increased 8%, mainly due to acquisition overhead, but costs were lower than forecast due to asset sales and lower payroll incentives.

Outlook and guidance

• Full-year 2025 revenue guidance narrowed to $3.1–$3.15 billion; Adjusted EBITDA guidance to $475–$500 million, assuming normal weather and economic conditions.

• Backlog is 32% higher year-over-year, with more paving work secured and additional jobs in the bid schedule.

• Expect high-single-digit price increases for aggregates, mid-single digits for ready-mix, and low-single-digit decrease for asphalt pricing.

• Ready-mix volumes projected to increase low double digits; asphalt volumes to decrease low single digits.

• Net leverage expected to be at or below 2.5x by year-end.