Overview

* Knife River Q3 revenue grows 9% yr/yr but misses analyst expectations

* Adjusted EBITDA for Q3 misses analyst expectations

* Company reports record backlog, driven by strategic acquisitions and public infrastructure projects

Outlook

* Knife River narrows 2025 revenue guidance to $3.1 bln-$3.15 bln

* Company expects 2025 adjusted EBITDA between $475 mln and $500 mln

* Record backlog supports optimism for 2026 growth

Result Drivers

* STRATEGIC ACQUISITIONS - Recent acquisitions boosted operations despite economic uncertainty and weather challenges

* PRICE OPTIMIZATION - Focus on price optimization and cost controls improved adjusted EBITDA and gross margins

* RECORD BACKLOG - Record backlog driven by public infrastructure projects positions company for future growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Miss $1.20 $1.21

Revenue bln bln (9

Analysts

)

Q3 EPS $2.52

Q3 Net $143.20

Income mln

Q3 Miss $272.80 $273.81

Adjusted mln mln (7

EBITDA Analysts

)

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 $106.61, about 42.7% above its November 3 closing price of $61.11

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

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(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.)