Knife River Corporation reported fourth‑quarter 2025 results that exceeded analyst expectations. Revenue rose 15% to $755.1 million, up from $655.5 million in Q4 2024, and full‑year revenue increased 9% to $3,146.0 million. Net income for the quarter was $32.0 million, a 38% increase from $23.3 million in Q4 2024, while full‑year net income fell 22% to $157.1 million from $201.7 million in 2024. Earnings per share were $0.56 for the quarter and $2.76 for the year, beating consensus estimates of $0.41 and $2.30, respectively, by $0.15 and $0.46.
Adjusted EBITDA grew 47% to $119.4 million in Q4 2025 and 7% to $496.5 million for the year. The company’s adjusted EBITDA margin expanded to 15.8% in the quarter, up 34 basis points from 15.4% in Q4 2024, and was 15.8% for the year, matching the quarter’s margin. The margin lift was driven by higher pricing in key materials and the continued execution of the Competitive EDGE program, which has focused on cost discipline and operational efficiency.
"Knife River delivered strong second‑half results in 2025, including a record fourth quarter that saw a 15% increase in revenue, 47% improvement in adjusted EBITDA and 340 basis‑point expansion in adjusted EBITDA margin, year‑over‑year." "This strong finish was supported by favorable fourth quarter weather and caps a year of meaningful progress on our Competitive EDGE efforts." "We enter 2026 with momentum and confidence in our strategy to deliver long‑term, profitable growth." "We have record year‑end backlog of $1 billion, which includes the opportunity to pull through our higher‑margin materials. We will continue our efforts to optimize materials pricing and drive efficiencies at our plants. Also, we expect our strategic M&A activity to continue, as our 2026 deal pipeline looks similar to 2025. And we will keep investing in organic growth opportunities across our markets, focused on the areas where we are getting our best returns." Segment performance was broadly positive, with the West and Mountain divisions reporting the strongest EBITDA growth. The company’s record $1 billion year‑end backlog, largely composed of higher‑margin materials, provides a clear view of future revenue streams.
For 2026, Knife River is guiding revenue between $3,300.0 million and $3,500.0 million and adjusted EBITDA between $520.0 million and $560.0 million. The guidance reflects confidence in continued demand for aggregates and asphalt, as well as the company’s ability to maintain margin discipline. Management emphasized that the 2026 deal pipeline mirrors 2025, indicating ongoing strategic acquisitions.
The market reacted positively, with the stock rising 2.8% in pre‑market trading. The lift was driven by the revenue and EPS beats, the record backlog, and the optimistic 2026 outlook. Analysts highlighted the company’s ability to execute its Competitive EDGE strategy, noting that margin expansion and strong earnings support a bullish view.
Despite the full‑year net income decline, the company attributes the drop to higher interest expense and depreciation following heavy investment and acquisitions. The company remains focused on optimizing pricing, driving efficiencies, and pursuing organic growth opportunities, positioning it for continued mid‑single‑digit revenue growth and mid‑teen adjusted EBITDA growth in 2026.
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