Loading...
01/11 04:07
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights increased revenue and EBITDA guidance, a successful Strata acquisition, and strong public project backlog. Despite some private sector pressures and SG&A increases, management remains confident about hitting guidance targets. The market's positive response to the acquisition and improved financial metrics suggests a positive stock price movement in the coming weeks, especially given the company's mid-sized market cap.
Revenue $3,250,000,000 to $3,450,000,000 (increase from previous guidance) due to strong public project backlog and acquisitions.
Adjusted EBITDA $530,000,000 to $580,000,000 (increase of $45,000,000 from previous guidance) primarily driven by the Strata acquisition.
SG&A Expenses $13,000,000 increase year-over-year, with $8,000,000 related to business development and acquisition costs, and $3,500,000 from Strata and Albina.
Capital Expenditures $64,000,000 for maintenance and improvements in Q1, with full year guidance of 5% to 7% of expected revenue.
Cash Position $86,000,000 in unrestricted cash with no borrowings on the revolver, which was increased from $350,000,000 to $500,000,000 for additional liquidity.
Net Leverage 2.5 times based on trailing twelve month EBITDA at the end of Q1.
Average Selling Price (Aggregates) Increased by 6% year-over-year due to ongoing pricing initiatives.
Ready Mix Revenue Increased by 9% due to higher average selling prices and volume growth.
Backlog Near record levels with expected similar margins as last year.
Acquisition Costs $429,000,000 spent on acquisitions in Q1, including $419,000,000 on Strata and $10,000,000 on Kalama Quarry.
Ready Mix Revenue: Ready mix saw a 9% increase in revenue due to higher average selling prices and volume growth.
Aggregate Pricing: The aggregates product line continues to see pricing improvement with the average selling price increasing 6% year over year.
Asphalt Volume: We expect activity to pick up as we enter the second quarter and maintain our guidance that volume and price will increase low single digits.
Acquisition of Strata Corporation: Closed on Strata Corporation and have additional deals in our pipeline with a focus on materials led companies.
Kalama Quarry Acquisition: Closed on the acquisition of the Kalamaquori, which includes 50,000,000 tonnes of strategically located reserves.
Public Project Backlog: Public projects represent 87% of our backlog and are expected to benefit from increased infrastructure funding.
Operational Improvements: Identified opportunities to increase throughput and reduce production costs at multiple aggregate sites.
Dynamic Pricing Software: Deployed best in class pricing and analytics software for our materials operations.
SG&A Increase: Invested approximately $8,000,000 in the first quarter largely related to acquisitions and business development activity.
Competitive Edge Strategy: Continue to invest in our competitive edge strategy to drive excellence and long term profitable growth.
Safety Program Rollout: Rollout of a new safety program based on the belief that safety is a personal choice and that all injuries are preventable.
Economic Uncertainties: There are macro-level uncertainties in the economy that could impact business activities.
Private Market Pressures: There is a slowdown in private construction markets, particularly in Oregon and Montana, due to uncertainty around tariffs and the economy.
Seasonal Losses: The company anticipates an 8% seasonal loss in the first quarter, which is higher than the historical average of 5% due to recent acquisitions.
Regulatory Issues: Delays in private projects are influenced by legislative actions and funding issues in states like Oregon.
Supply Chain Challenges: The company is monitoring potential impacts of tariffs on liquid asphalt and other materials.
Integration Risks: The integration of recent acquisitions (Strata and Albina) may present challenges, including increased SG&A costs.
Competitive Pressures: Increased competition in certain markets may affect margins and project bidding.
Funding Delays: Some public projects are delayed, which could impact revenue and operational efficiency.
Acquisition Program: Knife River has closed on Strata Corporation and has additional deals in the pipeline focusing on materials-led companies.
Competitive Edge Strategy: Continued investment in competitive edge strategy to drive excellence and long-term profitable growth.
Operational Improvements: Identified operational improvements at multiple aggregate sites to increase throughput and reduce production costs.
Safety Program: Rollout of a new safety program emphasizing that all injuries are preventable.
Infrastructure Investment: Positioned to benefit from significant infrastructure investment, with a strong backlog of public projects.
Revenue Guidance: Full year revenue guidance raised to between $3,250,000,000 and $3,450,000,000.
Adjusted EBITDA Guidance: Adjusted EBITDA guidance raised to between $530,000,000 and $580,000,000.
Capital Expenditures: Expected capital expenditures for 2025 to be similar to prior years at 5% to 7% of expected revenue.
SG&A Expenses: Anticipated SG&A expenses to increase by $20,000,000 for the full year, primarily due to acquisitions and business development.
Aggregate Volume Growth: Expecting aggregate volumes to increase high single digits compared to the previous year.
Ready Mix Volume Growth: Expecting ready mix volumes to increase high teens for the full year.
Shareholder Return Plan: Knife River Corporation has not explicitly mentioned a shareholder return plan involving dividends or share buybacks during the conference call. However, they discussed significant investments in acquisitions and operational improvements aimed at driving long-term shareholder value.
Acquisition Spending: In the first quarter, Knife River spent approximately $429 million on acquisitions, including $419 million on Strata Corporation and $10 million on the Kalama Quarry.
SG&A Increase: The company anticipates a $20 million increase in SG&A for the full year, with $8 million already spent in the first quarter primarily related to acquisitions and business development.
Financial Guidance: For 2025, Knife River raised its revenue guidance to between $3.25 billion and $3.45 billion and adjusted EBITDA guidance to between $530 million and $580 million, reflecting the positive impact of acquisitions.
The earnings call reveals strong performance in energy services and central segment EBITDA margins, along with a record backlog. The Q&A highlights management's confidence in growth due to stabilization in Oregon, increased paving work, and favorable weather. Despite some competitive bid dynamics, the outlook for asphalt paving and ready-mix businesses is optimistic. The company's M&A strategy and organic volume trends also support a positive sentiment. Given the market cap, the positive aspects are likely to lead to a stock price increase in the 2% to 8% range over the next two weeks.
The earnings call shows a mixed sentiment. Positive aspects include the successful integration of Strata, increased revenue guidance, and strong performance in regions outside Oregon. However, challenges in Oregon due to legislative inaction, lower margins in the backlog, and increased SG&A expenses offset these positives. The Q&A section reveals uncertainties in Oregon's market and management's reluctance to provide specific guidance. The market cap suggests a moderate reaction, leading to a neutral stock price prediction over the next two weeks.
The earnings call highlights increased revenue and EBITDA guidance, a successful Strata acquisition, and strong public project backlog. Despite some private sector pressures and SG&A increases, management remains confident about hitting guidance targets. The market's positive response to the acquisition and improved financial metrics suggests a positive stock price movement in the coming weeks, especially given the company's mid-sized market cap.
The earnings call reveals positive financial performance with increased revenue and EBITDA guidance, driven by successful acquisitions and operational efficiencies. The Strata integration is progressing well, and the company expects accretive margins. Despite concerns over SG&A costs and project delays, the overall outlook is optimistic, with strong demand and strategic growth initiatives. The positive sentiment from analysts in the Q&A supports a positive stock price movement, likely in the 2% to 8% range, considering the company's market cap of approximately $3.97 billion.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
