Knife River Q4 revenue beats on favorable weather conditions

Overview

• Aggregates-based construction firm's Q4 revenue rose 15%, beating analyst expectations

• Adjusted EBITDA for Q4 beat analyst expectations, driven by acquisitions and pricing

• Company completed five acquisitions in 2025, expanding its footprint

Outlook

• Knife River expects 2026 revenue between $3.3 bln and $3.5 bln

• Company anticipates mid-single digit increase in aggregates volumes and pricing

• Knife River plans continued strategic M&A activity in 2026

Result Drivers

• FAVORABLE WEATHER - Co attributed record Q4 results to favorable weather conditions supporting extended construction seasons

• ACQUISITIONS - Five acquisitions completed in 2025 contributed to increased revenue and expanded footprint, per CEO Brian Gray

• INCREASED PRICING - Co reported high-single digit increase in aggregate pricing, contributing to revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the construction materials peer group is "buy"

• Wall Street's median 12-month price target for Knife River Corp is $94.50, about 17% above its February 13 closing price of $80.77

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nBw52lTrva

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