Knife River (KNF) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $3,146M and Adjusted EBITDA of $497M in 2025, up 9% and 7% year-over-year, respectively, marking the most profitable year to date.

• Completed five aggregates-based acquisitions in 2025, expanding market presence and ready-mix volumes, with a robust pipeline for 2026.

• Ended 2025 with a record $1 billion backlog, up 38% year-over-year, supported by strong public funding and ongoing optimization initiatives.

• Strategic initiatives (EDGE, dynamic pricing, cost controls) drove margin expansion and operational improvements across all segments.

• Reported the safest year in company history.

Financial highlights

• Q4 2025 revenue: $755.1M (+15% YoY); full-year revenue: $3,146M (+9% YoY).

• Q4 adjusted EBITDA: $119.4M (+47% YoY); full-year adjusted EBITDA: $497M (+7% YoY); margin at 15.8%.

• Gross profit increased 27% in Q4, with record gross margin of nearly 19%.

• Aggregates volumes up 17% and pricing up 9% in Q4; ready-mix volumes up 20%.

• Ended 2025 with $75M–$74M in cash, $475M–$476.6M available on revolver, and net leverage at 2.2x.

Outlook and guidance

• 2026 revenue guidance: $3.3–$3.5 billion; Adjusted EBITDA: $520–$560 million.

• Aggregates and asphalt volumes/pricing expected to rise mid-single digits; ready-mix volumes to increase mid-teens.

• Energy Services results expected to be in line with 2025; depreciation and amortization to rise mid-single digits.

• SG&A as a percent of revenue expected to remain flat in 2026, with underlying costs rising low to mid-single digits.

• Maintenance capex to remain 5–7% of revenue; $130–$131 million planned for organic growth and reserve additions.