NYSE$KNF

Knife River Corp · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Knife River reported record fourth quarter and full-year performance, driven by focused execution on strategic priorities and strong market fundamentals.

Knife River Corporation reported a 20% increase in revenue for the fourth quarter of 2023, reaching $646.9 million. Net income increased by 15% to $20.7 million, and Adjusted EBITDA rose by 10% to $72.4 million. The company's strong performance was attributed to price increases across all core product lines and an extended construction season.

  • Consolidated revenue increased by 20% year-over-year, reaching $646.9 million.
  • Net income increased by 15% year-over-year, totaling $20.7 million.
  • Adjusted EBITDA increased by 10% year-over-year, amounting to $72.4 million.
  • Contracting Services backlog was $662.2 million, with margins above the prior-year period.

Headline financials

Total Revenue

$647M

Previous: $538M+20.3%
EPS (adj)

$0.36

Previous: $0.31+16.1%
Aggregates Sales Volume

7.6M

Previous: 7.1M+6.5%
Ready-mix Sales Volume

893.0K

Previous: 836.0K+6.8%
Asphalt Sales Volume

1.3M

Previous: 1.3M+2.5%
Aggregates Average Price

$16.43

Previous: $15.60+5.3%
Ready-mix Average Price

$175.01

Previous: $160.19+9.3%
Asphalt Average Price

$69.04

Previous: $63.92+8.0%
Capital Expenditures

-$37.9M

No prior period
Net Income

$20.7M

Previous: -$25.3M+181.8%
Operating Income

$37.2M

Previous: $5.83M+538.1%
Gross Profit

$113M

Previous: $58.3M+92.9%
Stock-Based Comp

$761K

Previous: $472K+61.2%

Revenue & EPS history

Knife River · Revenue · Quarterly

$647M

Q4 2023+20.3%vs Q4 2022
Beat estimate in 9 of 11 quarters(82%)
ActualEstimate

Forward guidance

Knife River introduced full-year 2024 guidance, projecting revenue between $2.75 billion and $2.95 billion and Adjusted EBITDA between $425 million and $475 million.

Tailwinds

  • Continued momentum from record results in geographic segments
  • Normalization of the Energy Services segment
  • Mid-to-high single-digit price growth on aggregates, ready-mix, and asphalt
  • Disciplined approach to pricing
  • Bidding and operational execution will further position the company to drive margin expansion

Headwinds

  • Full year of recurring separation costs
  • Flat to low-single-digit volume declines on aggregates, ready-mix, and asphalt
  • EBITDA guidance for Energy Services segment of $50 million to $60 million, down from historic 2023 results
  • Normal weather, economic, and operating conditions are assumed; deviations could impact results
  • Inability to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items.

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 Q4 2023

Historical avgQ4 2023

+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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