Overview

* Knife River Q2 revenue rises 3% but misses analyst expectations

* Net income falls 35% due to weather and increased costs

* Record backlog of $1.3 bln supports future growth

Outlook

* Knife River revises 2025 adjusted EBITDA guidance to $475 mln-$525 mln

* Company expects backlog to drive volume growth in H2 2025

* Knife River anticipates high-single-digit price increases for aggregates

* Company sees Oregon funding challenges as a headwind in 2025

Result Drivers

* WEATHER IMPACT - Above-average precipitation delayed construction projects, affecting revenue

* OREGON ECONOMY - Reduced demand due to funding challenges impacted contracting services

* ACQUISITIONS - Acquired two aggregates-led companies contributing positively to revenue

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $833.80 $893 mln

Revenue mln (9

Analysts

)

Q2 EPS $0.89

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "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 ( KNF ) is $117.00, about 27.9% above its August 4 closing price of $84.36

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)