NYSE$KNF

Knife River Corp · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Achieved record first quarter revenue and increased backlog with higher expected margins, while advancing organic and acquisition growth initiatives.

Knife River Corporation reported a record first quarter revenue of $329.6 million, a 7% increase from the prior-year period. The company experienced a seasonal net loss of $47.6 million, compared to a net loss of $41.3 million in the prior-year period. Adjusted EBITDA for the quarter was a loss of $17.7 million, compared to a loss of $13.7 million in the prior-year period.

  • Record first quarter revenue achieved, driven by price increases and increased contracting services revenues.
  • Contracting services backlog increased to $959.5 million with higher expected margins.
  • Advanced organic growth investments, including upgraded plants and a new ready-mix operation.
  • Acquired a small ready-mix operation in South Dakota, marking the company's 85th acquisition.

Headline financials

Total Revenue

$330M

Previous: $308M+7.0%
EPS

-$0.84

Previous: -$0.73-15.1%
Aggregates Sales Volume

4.3M

Previous: 4.9K+87307.6%
Ready-mix Sales Volume

530.0K

Previous: 561+94374.2%
Asphalt Sales Volume

221.0K

Previous: 179+123363.7%
Aggregates Average Price

$19.80

Previous: $17.16+15.4%
Ready-mix Average Price

$188.41

Previous: $172.64+9.1%
Asphalt Average Price

$74.50

Previous: $76.07-2.1%
Capital Expenditures

-$43.7M

No prior period
Free Cash Flow

-$47.6M

Previous: -$41.3M-15.3%
Net Income

-$47.6M

Previous: -$41.3M-15.3%
Operating Income

-$53.7M

Previous: -$44.6M-20.6%
Gross Profit

$6.49M

Previous: $4.1M+58.6%
Cash & Equivalents

$128M

Previous: $7.22M+1678.9%
Total Assets

$2.51B

Previous: $2.33B+8.0%
Stock-Based Comp

$1.81M

Previous: $453K+299.8%

Revenue & EPS history

Knife River · Revenue · Quarterly

$330M

Q1 2024+7%vs Q1 2023
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Knife River is reaffirming the 2024 guidance shared last quarter, including mid-to-high single-digit price growth and flat to low-single-digit volume declines. Revenue guidance is reaffirmed in the range of $2.75 billion to $2.95 billion, and Adjusted EBITDA in the range of $425 million to $475 million.

Tailwinds

  • Mid-to-high single-digit price growth expected.
  • Revenue guidance in the range of $2.75 billion to $2.95 billion.
  • Adjusted EBITDA in the range of $425 million to $475 million.
  • Transportation departments in Knife River’s 14 states increased their total spending authority for 2024 by 16% from 2023.
  • Ample opportunities to bid upcoming work.

Headwinds

  • Flat to low-single-digit volume declines expected.
  • Guidance based on normal weather, economic and operating conditions.
  • Seasonal loss in the first quarter is typical.
  • Increased costs related to the separation from MDU Resources.
  • Operations were able to begin pre-construction season activities earlier, which included expenses for maintenance-related work, plant mobilization and crew training.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 14 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.5%

Avg return

Earnings day

+4.3%

Avg return

5 days after

+3.3%

Avg return

30 days after

64%

9 / 14 earnings

Positive

+16.6%

Q4 2025

Best reaction

-6.0%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.6%+0.2%-15.2%
Q4 2025+16.6%+12.3%-1.0%
Q3 2025+8.5%+16.2%+21.2%
Q1 2025-5.3%-2.0%-4.8%
Q4 2024+4.3%+8.0%-4.1%
Q3 2024-6.0%+3.7%+6.3%
Q2 2024-0.7%+3.6%+6.4%
Q1 2024-5.7%-2.8%-16.0%
Q4 2021+0.1%+3.1%+12.2%
Q4 2023+1.0%+0.2%+9.2%
Q3 2023+1.2%+2.4%+12.1%
Q3 2022+1.2%+2.4%+12.1%
Q2 2023+5.0%+6.5%+4.3%
Q2 2022+5.0%+6.5%+4.3%
Q1 2023
Q4 2022
Q1 2022

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