KNF Earnings Prediction
The chart below shows how KNF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KNF sees a +0.13% change in stock price 10 days leading up to the earnings, and a -0.20% change 10 days following the report. On the earnings day itself, the stock moves by +0.82%. This data can give you a slight idea of what to expect for the next quarter's release.
KNF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
657.20M
1.59%
-40.54%
Gross Margin
17.36%
-0.17%
-29.72%
Operating Margin
6.70%
16.52%
-64.59%
Net Margin
3.55%
10.94%
-73.51%
EPS
0.41
13.89%
-84.23%
No Data Available
KNF Earnings Analysis
Knife River Corp Corporation (KNF.N) Earnings Conference Call
Positive
Earnings Beat Expectations: Knife River Corporation beat earnings expectations with reported EPS of $0.41, exceeding the expected $0.40.
Record Financial Performance: In 2024, Knife River achieved record results, including record full year revenue, adjusted EBITDA, and adjusted EBITDA margin.
EBITDA Growth and Margin Expansion: Adjusted EBITDA grew by 48% over the last two years, with adjusted EBITDA margins increasing by 360 basis points, showcasing the success of the competitive Edge strategy.
Price Increase Strategies: Annual price increases of 7% for aggregates and 10% for ready mix were achieved, driven by efforts to optimize pricing and control costs.
Acquisition Investment Strategy: The company invested $131 million in six acquisitions in 2024, expecting EBITDA contributions of approximately $16 million to $20 million in 2025 from these acquisitions.
Backlog Growth Indicator: Knife River's backlog increased by 13% year-over-year to $746 million, indicating strong future revenue potential.
Major Road Construction Project: The company secured a significant $96 million road construction project in Idaho, which will utilize substantial amounts of aggregates, asphalt, and ready-mix.
Strong Infrastructure Market Outlook: Infrastructure spending remains robust, with nearly half of the IAG funding yet to be obligated, providing a strong market backdrop for future projects.
Acquisition Readiness: Knife River is in a strong financial position to pursue additional acquisitions, with a proven track record of successful integrations and a solid acquisition pipeline.
Organic Growth Investment: The company is investing approximately $70 million in 2025 for organic growth projects, including expansions in South Dakota and new operations in Idaho.
Energy Services Margin Resilience: Knife River's Energy Services segment is expected to remain accretive to overall adjusted EBITDA margins despite a decrease in revenue and EBITDA from the previous year.
Record Revenue Projection: The company anticipates another year of record revenue and adjusted EBITDA in 2025, with projected consolidated revenue between $3 billion and $3.2 billion.
Negative
Earnings Beat, Volume Decline: Despite beating earnings expectations with an EPS of $0.41, the company faced a decline in volumes, particularly in the ready-mix product line, which saw a 9% decrease due to EDGE pricing initiatives and reduced private market demand.
Energy Services Decline: While the company achieved record revenue and EBITDA, the Energy Services segment reported a decline in revenue and EBITDA compared to the previous year, indicating potential challenges in that area.
SG&A Expense Increase: The increase in SG&A expenses by 5% was attributed to higher labor costs and third-party expenses related to the acquisition program, which could impact overall profitability if not managed effectively.
Debt Financing for Acquisition: The company plans to raise approximately $500 million in additional debt to finance the acquisition of Strata Corporation, which could increase financial leverage and risk if not managed properly.
Price Increases vs. Volume Growth: The anticipated mid-single-digit price increases for 2025 may not fully offset the low single-digit volume increases expected across product lines, indicating potential challenges in maintaining growth momentum.
KNF FAQs
How does KNF typically perform around its earnings report dates?
Is Knife River Corp (KNF) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
KNF Earning Call Sentiment
Knife River Corporation (NYSE:KNF) Q4 2024 Earnings Call Transcript
KNF.N
-8.25%Positive
The earnings call indicates strong financial performance with record revenue and improved margins. Despite competitive pressures and regulatory issues, the company has a robust backlog and optimistic guidance for 2025. The Strata acquisition, though a risk, is expected to be accretive. Positive sentiment is reinforced by the EDGE strategy and shareholder value commitment. The Q&A section highlights regional profitability improvements and strong private bidding opportunities, further supporting a positive outlook. Considering the market cap, a positive stock price movement (2% to 8%) is anticipated over the next two weeks.
