Knife River Corp · Q3 2023 earnings

Briefing

Knife River achieved all-time quarterly records for revenue, net income and Adjusted EBITDA. Competitive EDGE initiatives drove strong margin improvement and guidance was raised for revenue and Adjusted EBITDA.

Knife River Corporation reported record third-quarter results, with revenue reaching $1,090.4 million, net income at $146.7 million, and Adjusted EBITDA at $247.5 million. The company's 'Competitive EDGE' strategy and strong market conditions drove these results. Due to the strong results for the first nine months of the year, the company raised and narrowed its full year guidance for revenue and Adjusted EBITDA.

• Revenue increased by 12% year-over-year to $1,090.4 million, driven by strong results in each region and double-digit price increases across all core product lines.
• Net income increased by 47% year-over-year to $146.7 million, driven by EDGE-related price optimization and bidding strategies.
• Adjusted EBITDA increased by 43% year-over-year to $247.5 million.
• Contracting services backlog was $732.2 million at improved margins and higher total profit relative to the same time last year.

Headline financials

Revenue & EPS history

Knife River is raising and narrowing its guidance ranges on revenue, EBITDA and Adjusted EBITDA as a result of pricing momentum, cost controls, and positive impacts from EDGE initiatives.