Knife River (KNF) Q4 2025 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of $497 million in 2025, up 7% year-over-year, with margin at 15.8%, marking the most profitable year to date.

• Achieved record revenue of $3,146 million in 2025, up 9% year-over-year, driven by five aggregates-based acquisitions and strong pricing initiatives.

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

• Entered 2026 with record backlog of $1 billion, up 38% year-over-year, providing strong visibility and growth momentum.

• Strategic initiatives (EDGE, dynamic pricing, cost controls) and the safest year in company history drove margin expansion and operational improvements.

Financial highlights

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

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

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

• Aggregate pricing increased 9% year-over-year; volumes up 17% in Q4.

• Net income margin for 2025 was 5.0%.

Outlook and guidance

• 2026 revenue guidance: $3.3–$3.5 billion; Adjusted EBITDA: $520–$560 million (16% margin at midpoint).

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

• Backlog of $1 billion, with 75% expected to be completed in 2026; majority is public work, but private opportunities are increasing.

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

• SG&A as a percentage of revenue expected to remain flat in 2026, with future declines as synergies are realized.