{"id":846949,"date":"2025-05-06T06:06:24","date_gmt":"2025-05-06T10:06:24","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/knife-river-corporation-reports-first-quarter-2025-financial-results\/"},"modified":"2025-05-06T06:06:24","modified_gmt":"2025-05-06T10:06:24","slug":"knife-river-corporation-reports-first-quarter-2025-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/knife-river-corporation-reports-first-quarter-2025-financial-results\/","title":{"rendered":"Knife River Corporation Reports First Quarter 2025 Financial Results"},"content":{"rendered":"

<\/p>\n

Knife River Corporation Reports First Quarter 2025 <\/b>Financial Results<\/b><\/p>\n

Closed on acquisition of Strata Corporation<\/i><\/p>\n

On track for record full-year revenue, net income and adjusted EBITDA<\/i><\/p>\n

Updated full-year 2025 guidance<\/i><\/p>\n

BISMARCK, N.D.–(BUSINESS WIRE<\/a>)–
\nKnife River Corporation (NYSE: KNF), an aggregates-led, vertically integrated construction materials and contracting services company, today announced financial results for the first quarter ended March 31, 2025.\n<\/p>\n\n\n
\n

PERFORMANCE SUMMARY<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\nThree Months Ended March 31,\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n(In millions, except per share)\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n2025\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n2024\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n% Change\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n353.5\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n329.6\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n7\n<\/p>\n<\/td>\n

\n

\n%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet loss\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(68.7\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(47.6\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n(44\n<\/p>\n<\/td>\n

\n

\n)%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet loss margin\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(19.4\n<\/p>\n<\/td>\n

\n

\n)%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(14.5\n<\/p>\n<\/td>\n

\n

\n)%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted EBITDA\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(38.0\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(17.7\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n(115\n<\/p>\n<\/td>\n

\n

\n)%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted EBITDA margin\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(10.7\n<\/p>\n<\/td>\n

\n

\n)%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n(5.4\n<\/p>\n<\/td>\n

\n

\n)%\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n

\n

\n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet loss per share\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(1.21\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n$\n<\/p>\n<\/td>\n

\n

\n(0.84\n<\/p>\n<\/td>\n

\n

\n)\n<\/p>\n<\/td>\n

\n

\n(44\n<\/p>\n<\/td>\n

\n

\n)%\n<\/p>\n<\/td>\n<\/tr>\n

\n

\nNote: Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure, see the section entitled “Non-GAAP Financial Measures.”\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n\n\n
\n

MANAGEMENT COMMENTARY<\/b><\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\n\u201cOur typical seasonal loss in the first quarter was in line with our expectations, and Knife River remains on track to have our most profitable year in history \u2014 including record revenue, net income and adjusted EBITDA,” said Knife River President and CEO Brian Gray. “We made substantial investments in the first quarter to prepare for a successful 2025. That includes closing on the acquisition of Strata Corporation, which we expect will positively impact our financial results starting in the second quarter. We anticipate a $45 million EBITDA contribution from Strata for the full year, at margins accretive to Knife River. Additionally, our corporate development team is pursuing other strategic targets and moving them toward completion.\n<\/p>\n

\n\u201cAt the same time, we continued to invest in our Competitive EDGE strategy,\u201d Gray said. \u201cOur Process Improvement Teams helped us optimize prices during the quarter while also preparing our materials operations for the busy year ahead. We identified and implemented plant-improvement opportunities we expect will increase operating margins this year.\n<\/p>\n

\n\u201cTogether, these investments in our long-term success resulted in SG&A expenses that were $13 million higher than first quarter last year, primarily related to increased corporate development activity, Strata and the 2024 acquisition of Albina Asphalt,\u201d Gray said. \u201cApproximately $8 million of these expenses were incurred in the first quarter as part of an overall $20 million step-up in SG&A for the year. Given the size of Strata and the work we\u2019re doing to move other possible transactions through our pipeline, we anticipate our step-up in SG&A will continue to be front-loaded in the first half of the year. We continue to expect the total step-up in SG&A for 2025 to be in line with the $20 million we guided to at year-end 2024.\u201d\n<\/p>\n

Seasonality and Timing<\/b><\/p>\n