NYSE$KNF

Knife River Corp · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Achieved record third quarter revenue, gross profit, and net income, driven by price increases and contracting services, while closing on additional acquisitions to enhance long-term profitability.

Knife River Corporation reported record third-quarter revenue of $1.1 billion, a 1% increase year-over-year, driven by price increases in aggregates and ready-mix product lines and increased contracting services revenues. Net income also reached a record $148.1 million, up from $146.7 million in the prior year. The company narrowed its full-year guidance for 2024 revenue to between $2.85 billion and $2.95 billion, and adjusted EBITDA to between $445 million and $465 million.

  • Achieved record third-quarter revenue, gross profit, and net income.
  • Geographic segments contributed record EBITDA of $224.6 million, a 6% increase year-over-year.
  • Closed on additional acquisitions, deploying $129.3 million of capital on six acquisitions through Nov. 2, 2024.
  • Backlog of $755 million is higher than the same period last year, with slightly higher expected margins.

Headline financials

Total Revenue

$1.11B

Previous: $1.09B+1.4%
EPS

$2.60

Previous: $2.58+0.8%
Aggregates Sales Volume

11.2M

Previous: 12.0M-7.1%
Ready-mix Sales Volume

1.1M

Previous: 1.3M-9.7%
Asphalt Sales Volume

3.1M

Previous: 3.3M-5.9%
Aggregates Average Price

$17.32

Previous: $16.10+7.6%
Ready-mix Average Price

$185.97

Previous: $169.98+9.4%
Asphalt Average Price

$68.28

Previous: $66.51+2.7%
Backlog

$755M

No prior period
Net Income Margin

13.4%

No prior period
Adjusted EBITDA

$245M

No prior period
Adjusted EBITDA Margin

22.2%

No prior period
Aggregates Gross Margin

26.7%

No prior period
Ready-mix Gross Margin

18.6%

No prior period
Asphalt Gross Margin

20.0%

No prior period
Capital Expenditures

-$23.6M

Previous: -$19.9M-18.6%
Free Cash Flow

$148M

Previous: $147M+1.0%
Net Income

$148M

Previous: $147M+1.0%
Operating Income

$209M

Previous: $210M-0.5%
Gross Profit

$273M

Previous: $269M+1.3%
Cash & Equivalents

$220M

Previous: $84M+162.3%
Total Assets

$2.88B

Previous: $2.68B+7.6%
Stock-Based Comp

$2.04M

Previous: $1.46M+39.7%

Revenue & EPS history

Knife River · Revenue · Quarterly

$1.11B

Q3 2024+1.4%vs Q3 2023
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Knife River narrowed its full year 2024 revenue and Adjusted EBITDA guidance ranges. The company expects revenue in the range of $2.85 billion to $2.95 billion, and adjusted EBITDA in the range of $445 million to $465 million.

Tailwinds

  • Expect price increases of high single digits for aggregates and ready-mix.
  • Expect price increases of low single digits for asphalt.
  • Strong public funding backdrop.
  • Continued opportunities to bid on projects across our footprint.
  • Good schedule of DOT bid lettings coming up for 2025 across our states.

Headwinds

  • Anticipated acquisition expenses related to our growth program.
  • Expect continued pricing momentum to be partially offset by volume declines for the materials product lines.
  • Expect mid single digits volume decline for aggregates.
  • Expect high single digits volume decline for ready-mix.
  • Expect mid single digits volume decline for asphalt.

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 Q3 2024

Historical avgQ3 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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