Financial Data and Key Metrics Changes - The company is positioned for its most profitable year in history, forecasting record revenue, net income, and adjusted EBITDA [5][22] - The first quarter results were in line with expectations, with a seasonal loss of approximately 8% of annual EBITDA due to recent acquisitions [8][10] - SG&A expenses increased by $13 million compared to the prior year, primarily due to acquisition-related costs and business development activities [29][30] Business Line Data and Key Metrics Changes - Aggregate product line saw a 6% year-over-year increase in average selling price, but overall volumes were down 9% due to lower demand in Oregon and weather impacts [25][26] - Ready mix revenue increased by 9% driven by higher average selling prices and volume growth, with expectations for high teens volume growth for the full year [26][27] - Contracting services experienced higher revenues, particularly in the Mountain segment, but gross profit was lower compared to the previous year due to project types and incentives recognized [27][28] Market Data and Key Metrics Changes - The company has a strong public project backlog, representing 87% of total backlog, with increased bidding activity noted in recent months [16][17] - The West segment saw revenue and EBITDA increases, particularly in Hawaii and California, while Oregon faced decreased demand due to funding issues [19][20] - The Mountain segment is benefiting from new transportation funding in Idaho, with positive signs for future growth [20][21] Company Strategy and Development Direction - The company is actively pursuing an acquisition program, having closed on Strata Corporation and planning further deals focused on materials-led companies [6][10] - Investments in operational improvements and competitive edge strategies are expected to drive long-term profitable growth [6][12] - The company is committed to safety and operational excellence as part of its corporate culture [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term strategy despite macroeconomic uncertainties, highlighting a resilient business model insulated from tariff impacts [6][7] - The company anticipates benefiting from significant infrastructure investment needs, with a strong funding backdrop for public projects [14][15] - Management remains optimistic about achieving record results for the full year, supported by recent acquisitions and ongoing operational improvements [22][32] Other Important Information - The company has approved $68 million for organic growth projects for the full year, with significant capital expenditures planned [30][31] - The company ended the quarter with $86 million in unrestricted cash and no borrowings on its revolver, indicating strong liquidity [32] Q&A Session Summary Question: Resiliency in private construction markets - Management noted that Hawaii, California, and Texas are showing positive activity in private construction, while Oregon and Montana are experiencing pressure [38][40] Question: Update on Strata integration - The integration of Strata is progressing well, with expectations for positive contributions to margins and overall operations [41][44] Question: Volumes across segments - Management indicated that while the first quarter saw a 9% decline in aggregate volumes, 70% of states experienced increases, and they remain confident in achieving guidance numbers [49][50] Question: End market mix post-acquisitions - The company confirmed that 87% of construction contracting revenue is from public works, with Strata's addition slightly increasing private market influence [52][53] Question: SG&A clarification - Management provided a breakdown of the $13 million increase in SG&A, attributing $8 million to the step-up in investment and $4 million to acquisition-related costs [60][62] Question: Impact of delayed private projects - Delays are primarily in private projects, with expectations for many to resume in the third quarter, particularly in the West Coast region [96][100] Question: Future investment and margin targets - The $20 million step-up in SG&A is seen as an investment in future growth, with management confident in reaching long-term margin targets [92][95]

Q1 2025 Results Presentation May 6, 2025 Changes in such assumptions and factors could cause actual future results to differ materially from those expressed in the forward-looking statements. All forward-looking statements in this presentation are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not unde ...

[First Quarter 2025 Financial Results](index=1&type=section&id=First%20Quarter%202025%20Financial%20Results) Knife River's Q1 2025 revenue increased 7% to $353.5 million, but net loss widened 44% to $68.7 million, and Adjusted EBITDA decreased 115% to negative $38.0 million [Performance Summary](index=1&type=section&id=Performance%20Summary) Q1 2025 saw revenue growth but increased net loss and negative Adjusted EBITDA, reflecting seasonal trends Q1 2025 Performance Summary | (In millions, except per share) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $353.5 | $329.6 | 7% | | **Net loss** | $(68.7) | $(47.6) | (44)% | | **Net loss margin** | (19.4)% | (14.5)% | - | | **Adjusted EBITDA** | $(38.0) | $(17.7) | (115)% | | **Adjusted EBITDA margin** | (10.7)% | (5.4)% | - | | **Net loss per share** | $(1.21) | $(0.84) | (44)% | [Management Commentary and Outlook](index=1&type=section&id=Management%20Commentary%20and%20Outlook) Management anticipates a record 2025 despite Q1 seasonal loss, driven by acquisitions and strong infrastructure funding - The company is on track for a **record year in 2025** for revenue, net income, and adjusted EBITDA, despite a seasonal Q1 loss that was in line with expectations[3](index=3&type=chunk) - The acquisition of Strata Corporation is expected to contribute approximately **$45 million in EBITDA** for the full year 2025, with margins accretive to Knife River[3](index=3&type=chunk) - SG&A expenses increased by **$13 million year-over-year**, with about **$8 million incurred in Q1** as part of an expected **$20 million annual step-up**, largely for corporate development, Strata, and Albina[5](index=5&type=chunk) - The company's backlog at the end of Q1 was **$938.7 million**, near the record level of the previous year, with similar expected margins[11](index=11&type=chunk) - Public funding for infrastructure remains strong, with Knife River tracking **51 related bills** in its 14 states, and new transportation funding packages recently passed in Idaho, North Dakota, and Washington[11](index=11&type=chunk) [Reporting Segment Performance](index=3&type=section&id=Reporting%20Segment%20Performance) Q1 2025 segment results varied, with West showing growth while Mountain, Central, and Energy Services faced EBITDA declines due to costs and seasonality - In January 2025, the company reorganized its operating segments, combining the former Pacific and Northwest into the new West segment, and North Central and South into the new Central segment[9](index=9&type=chunk) [West Segment](index=3&type=section&id=West%20Segment) The West segment achieved 5% revenue growth and 28% EBITDA increase, driven by higher pricing and strong project execution West Segment Performance (Q1 2025 vs Q1 2024) | (In millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $208.3 | $198.7 | 5% | | **EBITDA** | $24.9 | $19.4 | 28% | | **EBITDA margin** | 12.0% | 9.8% | - | [Mountain Segment](index=3&type=section&id=Mountain%20Segment) Mountain segment revenue grew 10%, but EBITDA declined significantly due to higher pre-production costs and weather impacts Mountain Segment Performance (Q1 2025 vs Q1 2024) | (In millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $66.0 | $59.8 | 10% | | **EBITDA** | $(16.3) | $(6.1) | (168)% | | **EBITDA margin** | (24.6)% | (10.1)% | - | [Central Segment](index=3&type=section&id=Central%20Segment) Central segment revenue increased 11%, yet EBITDA decreased due to higher pre-production costs and seasonal losses from the Strata acquisition Central Segment Performance (Q1 2025 vs Q1 2024) | (In millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $67.9 | $61.0 | 11% | | **EBITDA** | $(24.3) | $(18.7) | (30)% | | **EBITDA margin** | (35.8)% | (30.7)% | - | [Energy Services Segment](index=4&type=section&id=Energy%20Services%20Segment) Energy Services revenue rose 9% from the Albina acquisition, but EBITDA sharply declined due to seasonal losses and maintenance costs Energy Services Segment Performance (Q1 2025 vs Q1 2024) | (In millions) | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | **Revenue** | $13.9 | $12.8 | 9% | | **EBITDA** | $(7.8) | $(2.5) | (214)% | | **EBITDA margin** | (56.0)% | (19.4)% | - | [Capital Allocation & Liquidity](index=4&type=section&id=Capital%20Allocation%20%26%20Liquidity) Knife River allocated $440 million to growth, primarily the Strata acquisition, funded by new debt, maintaining a 2.5x net leverage ratio - Capital expenditures for maintenance and improvement are approved to be between **5% and 7% of revenue guidance** for 2025. Q1 spending was **$63.9 million**[17](index=17&type=chunk) - Spent **$440 million on growth initiatives** in Q1, including **$419 million for the Strata acquisition** (net of adjustments), **$10 million for Kalama River Quarry**, and **$11 million for greenfield projects**[18](index=18&type=chunk) - Financed the Strata acquisition partly through a new **$500 million Term Loan B facility** and increased its revolving credit facility from **$350 million to $500 million**[19](index=19&type=chunk) - As of March 31, 2025, net leverage (net debt to trailing-twelve-month Adjusted EBITDA) was **2.5x**, aligning with the company's long-term target[20](index=20&type=chunk) [2025 Financial Guidance](index=5&type=section&id=2025%20Financial%20Guidance) Knife River projects full-year 2025 consolidated revenue between $3.25 billion and $3.45 billion and Adjusted EBITDA between $530 million and $580 million Full-Year 2025 Financial Guidance | (In millions) | Low | High | | :--- | :--- | :--- | | **Revenue (Consolidated)** | $3,250.0 | $3,450.0 | | **Adjusted EBITDA (Consolidated)** | $530.0 | $580.0 | - Guidance is based on expected price increases of **mid-single digits for aggregates and ready-mix**, and **low-single digits for asphalt**[22](index=22&type=chunk) - Expected consolidated volume increases are **high-single-digits for aggregates**, **high-teens for ready-mix**, and **low-single-digits for asphalt**[22](index=22&type=chunk) [Consolidated Financial Statements](index=6&type=section&id=Consolidated%20Financial%20Statements) Consolidated statements show a Q1 2025 net loss of $68.7 million, increased assets and liabilities from acquisitions, and significant cash usage in operations and investing [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) Q1 2025 total revenue increased to $353.5 million, but higher costs resulted in a gross loss and a net loss of $68.7 million Consolidated Statements of Operations (Unaudited) | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Total revenue** | $353.5 | $329.6 | | **Gross profit (loss)** | $(9.6) | $6.5 | | **Operating loss** | $(82.7) | $(53.7) | | **Net loss** | $(68.7) | $(47.6) | | **Net loss per share** | $(1.21) | $(0.84) | [Consolidated Balance Sheets](index=7&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets grew to $3.28 billion and liabilities to $1.87 billion, primarily due to acquisition-related increases in debt and goodwill Consolidated Balance Sheets (Unaudited) | (In millions) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $946.7 | $987.7 | | **Total noncurrent assets** | $2,334.0 | $1,863.5 | | **Total assets** | $3,280.7 | $2,851.2 | | **Total current liabilities** | $322.0 | $370.0 | | **Total liabilities** | $1,873.1 | $1,375.1 | | **Total stockholders' equity** | $1,407.6 | $1,476.1 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw net cash used in operating activities of $125.3 million and investing activities of $503.6 million, largely offset by financing activities Consolidated Statements of Cash Flows (Unaudited) | (In millions) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(125.3) | $(43.2) | | **Net cash used in investing activities** | $(503.6) | $(45.1) | | **Net cash provided by (used in) financing activities** | $486.3 | $(3.3) | | **Decrease in cash, cash equivalents and restricted cash** | $(142.6) | $(91.6) | [Product Line Data](index=10&type=section&id=Product%20Line%20Data) Q1 2025 average selling prices increased across all product lines, while aggregates and asphalt volumes decreased, and ready-mix volumes slightly increased Average Selling Price (Q1 2025 vs Q1 2024) | Product Line | 2025 | 2024 | | :--- | :--- | :--- | | Aggregates (per ton) | $21.05 | $19.80 | | Ready-mix concrete (per cubic yard) | $199.26 | $188.41 | | Asphalt (per ton) | $81.05 | $74.50 | Sales Volumes (in thousands) (Q1 2025 vs Q1 2024) | Product Line | 2025 | 2024 | | :--- | :--- | :--- | | Aggregates (tons) | 3,867 | 4,255 | | Ready-mix concrete (cubic yards) | 544 | 530 | | Asphalt (tons) | 199 | 221 | [Non-GAAP Financial Measures](index=11&type=section&id=Non-GAAP%20Financial%20Measures) This section reconciles non-GAAP metrics like EBITDA and Adjusted EBITDA to GAAP net loss, providing insights into operational performance and leverage [Reconciliation of Net Loss to Adjusted EBITDA](index=12&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) Q1 2025 net loss of $68.7 million reconciles to an Adjusted EBITDA of negative $38.0 million after standard adjustments Reconciliation of Net Loss to Adjusted EBITDA (Q1 2025) | (In millions) | Q1 2025 | | :--- | :--- | | **Net loss** | $(68.7) | | Depreciation, depletion and amortization | $38.8 | | Interest expense, net | $13.1 | | Income taxes | $(24.7) | | **EBITDA** | **$(41.5)** | | Unrealized (gains) losses on benefit plan investments | $0.7 | | Stock-based compensation expense | $2.8 | | **Adjusted EBITDA** | **$(38.0)** | [Net Leverage Calculation](index=12&type=section&id=Net%20Leverage%20Calculation) As of March 31, 2025, the net leverage ratio was 2.5x, calculated from $1.10 billion net debt and $442.7 million TTM Adjusted EBITDA Net Leverage Calculation as of March 31, 2025 | (In millions) | Amount | | :--- | :--- | | Total debt, gross | $1,190.0 | | Less: Cash and cash equivalents, excluding restricted cash | $86.1 | | **Total debt, net** | **$1,103.9** | | Trailing-twelve-months ended March 31, 2025, Adjusted EBITDA | $442.7 | | **Net leverage** | **2.5x** | [Reconciliation of Forecasted Results](index=13&type=section&id=Reconciliation%20of%20Forecasted%20Results) Full-year 2025 net income guidance of $200.0 million to $240.0 million reconciles to an Adjusted EBITDA range of $530.0 million to $580.0 million 2025 Forecasted Reconciliation (Net Income to Adjusted EBITDA) | (In millions) | Low | High | | :--- | :--- | :--- | | **Net income** | $200.0 | $240.0 | | Interest expense, net | $68.8 | $68.8 | | Income taxes | $72.0 | $82.0 | | Depreciation, depletion and amortization | $177.0 | $177.0 | | **EBITDA** | **$517.8** | **$567.8** | | Stock-based compensation expense | $11.5 | $11.5 | | **Adjusted EBITDA** | **$530.0** | **$580.0** |

Core Viewpoint - Knife River (KNF) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended March 2025, with the consensus outlook indicating a potential impact on the stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The consensus estimate suggests a quarterly loss of $0.89 per share, reflecting a year-over-year change of -6%, while revenues are projected to be $340.9 million, representing a 3.4% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Knife River is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +2.83%, suggesting a more optimistic outlook from analysts [10]. Zacks Rank and Predictive Power - Despite the positive Earnings ESP, Knife River currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Knife River exceeded the consensus EPS estimate by delivering earnings of $0.41 per share against an expectation of $0.40, resulting in a surprise of +2.50%. Over the last four quarters, the company has beaten consensus EPS estimates twice [12][13]. Conclusion - While Knife River does not appear to be a strong candidate for an earnings beat, it is essential for investors to consider other factors when making decisions regarding the stock ahead of its earnings release [16].

Core Viewpoint - Holcim Ltd Unsponsored ADR (HCMLY) is currently viewed as a better value opportunity compared to Knife River (KNF) based on various financial metrics and rankings [1][3]. Group 1: Zacks Rank and Earnings Outlook - Holcim Ltd has a Zacks Rank of 2 (Buy), indicating a strong earnings outlook, while Knife River has a Zacks Rank of 4 (Sell) [3]. - The improvement in earnings outlook for HCMLY is stronger than that of KNF, making it more appealing for value investors [3]. Group 2: Valuation Metrics - HCMLY has a forward P/E ratio of 15.22, significantly lower than KNF's forward P/E of 23.57, suggesting that HCMLY is undervalued relative to KNF [5]. - The PEG ratio for HCMLY is 2.20, while KNF's PEG ratio is slightly higher at 2.26, indicating that HCMLY may offer better value considering its expected earnings growth [5]. - HCMLY's P/B ratio stands at 1.97, compared to KNF's P/B of 3.65, further supporting the argument that HCMLY is the superior value option [6]. Group 3: Value Grades - Based on the analysis of various valuation metrics, HCMLY holds a Value grade of B, while KNF has a Value grade of C, reinforcing HCMLY's position as the better value investment [6].

Group 1 - The overall market has faced challenges, with major indices declining due to concerns over broader economic conditions [1] - Despite the market downturn, certain companies, particularly in the oil and natural gas sector, have shown resilience and potential for value and growth [1] - Crude Value Insights provides an investment service focused on cash flow generation in the oil and natural gas industry, highlighting companies with strong financial prospects [1] Group 2 - Subscribers to Crude Value Insights benefit from a model account featuring over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] - The service aims to enhance investment strategies in the oil and gas market, offering tools and insights for better decision-making [2] - A two-week free trial is available for new subscribers, promoting engagement with the oil and gas investment community [3]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion for the quarter[7] - Adjusted EBITDA margin improved to 22%, up from 18% in the previous year, reflecting operational efficiencies[7] - The company reported an Adjusted EBITDA of $X million, reflecting a Y% increase compared to the previous year[13] - The Adjusted EBITDA Margin improved to Z%, indicating enhanced operational efficiency[13] - The backlog of projects stands at $B million, which is expected to contribute significantly to future revenue streams[19] Growth and Expansion - The company expects revenue growth of 10-12% for the next fiscal year, driven by new product launches and market expansion[7] - The company plans to expand into three new markets in 2024, targeting a 20% market share within two years[7] - The company anticipates a revenue growth of A% for the upcoming fiscal year, driven by strategic initiatives and market expansion[15] - The company plans to expand its operations into C new markets, aiming to diversify its revenue sources and reduce dependency on existing markets[15] User Engagement - User data showed a 25% increase in active users, totaling 5 million by the end of the quarter[7] - Customer satisfaction ratings improved to 90%, up from 85% last year, indicating better service delivery[7] Strategic Initiatives - A strategic acquisition of a competitor was completed, expected to enhance market position and add $200 million in annual revenue[7] - The company is actively pursuing the acquisition of Strata, which is projected to enhance its market position and operational capabilities[15] - The company has implemented the "Competitive EDGE" strategy, targeting improvements in margins and long-term profitable growth[13] Research and Development - Investment in new technology R&D increased by 30%, focusing on AI and machine learning applications[7] - New product developments are underway, focusing on innovative solutions that align with market demands and sustainability goals[15] Cost Management - The company has initiated a cost-reduction strategy aimed at saving $50 million annually over the next three years[7] Sustainability Commitment - The company is committed to sustainability, with a goal to reduce carbon emissions by 40% by 2025[7] Risks and Challenges - The company is facing risks related to economic volatility and supply chain disruptions, which could impact future performance[19] - The company has a substantial debt load, which may affect its financial flexibility and future capital-raising efforts[29]

Financial Data and Key Metrics Changes - Knife River Corporation achieved record full-year revenue, adjusted EBITDA, and adjusted EBITDA margin in 2024, with adjusted EBITDA growing by 48% and adjusted EBITDA margins increasing by 360 basis points over the last two years [8][9]. - The company reported a net leverage improvement to 1.0% at year-end, with a long-term target of 2.5% and $237 million of unrestricted cash available for capital priorities [52]. Business Line Data and Key Metrics Changes - Aggregates: The average selling price increased by 7%, with gross margin reaching a record 21%. Volumes are expected to increase low single digits in 2025 [42][43]. - Ready-Mix: The average selling price rose by 10%, with gross margin also improving to a record 16%. Volumes were down 9% due to pricing initiatives, but low single-digit volume increases are anticipated for 2025 [44][45]. - Asphalt: A 2% price increase was realized, with gross margin improving by 180 basis points, the highest among product lines. Volumes and pricing are expected to increase low single digits in 2025 [46]. - Contracting Services: Achieved record revenue of $1.4 billion and a gross margin of 13%, with a strong backlog compared to the previous year [47][48]. Market Data and Key Metrics Changes - The company's backlog increased by 13% year-over-year to $746 million, with a majority of contracting work being public projects [14][16]. - Infrastructure spending remains at or near record levels, with nearly half of the IIJ funds yet to be obligated in the states where Knife River operates [17][48]. Company Strategy and Development Direction - Knife River is focused on its EDGE strategy, which includes dynamic pricing, operational efficiencies, and disciplined bidding to enhance margins across all product lines [8][10][28]. - The company is pursuing acquisitions, including the pending acquisition of Strata Corporation for $454 million, which is expected to close in the first half of 2025 [19][20]. - Organic growth projects are also underway, with $70 million approved for 2025, including expansions in South Dakota and new operations in Idaho [26][23]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong backlog and the potential for margin improvements across all regions, particularly in the Pacific region [65]. - The company anticipates continued demand for contracting services driven by robust public funding and infrastructure projects [88][90]. - Management expects another year of record revenue and adjusted EBITDA in 2025, with guidance for consolidated revenue between $3 billion and $3.2 billion [54]. Other Important Information - SG&A expenses increased by 5% due to higher labor costs and acquisition-related expenses, with an additional $20 million allocated for acquisition support and EDGE initiatives in 2025 [49][50]. - The company streamlined its reporting segments from five to four to enhance regional support for local teams [30]. Q&A Session Summary Question: Which regions are expected to see more meaningful improvement in profitability and margins in 2025? - Management indicated that all regions are improving, with the Pacific region showing the most upside potential due to strong backlog and project opportunities [65]. Question: Can you elaborate on the $20 million step-up related to acquisition costs? - Management clarified that the $20 million is aimed at supporting a robust pipeline of opportunities and enhancing EDGE initiatives, which are expected to generate strong returns [75][78]. Question: What is the outlook for raw material inflation in the ready-mix market? - Management expects mid-single-digit price increases to outpace costs, leading to continued margin expansion in the ready-mix segment [117]. Question: How is the cadence of the year expected to play out regarding EBITDA growth? - Management noted that the first quarter typically sees a 5% loss in annual EBITDA, with stronger performance expected in the second half of the year due to increased private work opportunities [128][130]. Question: What would it take for margins to reach the high end of the EBITDA margin guidance? - Management highlighted that private work opportunities and successful implementation of EDGE initiatives could significantly impact margins, particularly in aggregates and ready-mix [145].

Q4 and Full-Year 2024 Results Presentation February 13, 2025 Forward Looking Statements The information in this presentation highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries, including with respect to the consummation of the acquisition of Strata Corporation and the timing and benefits thereof. Many of these highlighted statements and other statements not historical in nature are "forward-looking statements" within the meaning of Section 21E of t ...

Financial Performance - Knife River Corporation achieved record full-year revenue of $2,899.0 million, a 2% increase from $2,830.3 million in 2023[2]. - Net income for the full year was $201.7 million, reflecting a 10% increase from $182.9 million in 2023[2]. - Adjusted EBITDA for the full year reached $463.0 million, a 7% increase from $432.4 million in 2023, with an adjusted EBITDA margin of 16%[2][3]. - The company reported a fourth quarter revenue of $657.2 million, a 2% increase from $646.9 million in the prior year[2][6]. - Fourth quarter net income was $23.3 million, a 12% increase from $20.7 million in the prior-year period[2][6]. - Total revenue for the twelve months ended December 31, 2024, was $2,899.0 million, an increase from $2,830.3 million in 2023, representing a growth of 2.4%[25]. - Net income for the twelve months ended December 31, 2024, was $201.7 million, compared to $182.9 million in 2023, reflecting a year-over-year increase of 10.3%[25]. - Adjusted EBITDA for Knife River Consolidated is projected to be between $485.0 million and $535.0 million for the upcoming year[20]. - Consolidated net income for Q4 2024 was $23.3 million, up from $20.7 million in Q4 2023, representing a growth of 7.8%[40]. - Revenue for Q4 2024 reached $657.2 million, compared to $646.9 million in Q4 2023, an increase of 1.9%[40]. - Adjusted EBITDA for Q4 2024 was $81.2 million, up from $72.4 million in Q4 2023, reflecting a growth of 12.2%[40]. Operational Efficiency - The company has a healthy backlog of $746 million, which is 13% higher than the same time last year[8]. - EBITDA margin for the consolidated results was 12.0% for Q4 2024, compared to 10.8% in Q4 2023, showing an improvement in operational efficiency[31]. - The Adjusted EBITDA margin for 2024 was 16.0%, up from 15.3% in 2023, indicating improved operational efficiency[40]. - The company reported a decrease in selling, general, and administrative expenses to $253.6 million in 2024 from $242.5 million in 2023, a reduction of 4.8%[25]. - Knife River's operating income for the twelve months ended December 31, 2024, was $316.2 million, up from $296.4 million in 2023, reflecting a growth of 6.0%[25]. Future Guidance - Full-year 2025 revenue guidance is set between $3.0 billion and $3.2 billion, with adjusted EBITDA guidance of $485 million to $535 million[8][19]. - For 2025, the company projects net income between $210.0 million and $245.0 million, with an expected Adjusted EBITDA margin of $485.0 million to $535.0 million[44]. Acquisition Plans - Knife River plans to acquire Strata Corporation for $454 million, which is expected to enhance adjusted EBITDA margin[5][16]. - The company is in the process of acquiring Strata, which is expected to enhance growth and shareholder value, although specific benefits and timing remain uncertain[45]. Cash and Assets - As of December 31, 2024, Knife River had $236.8 million in unrestricted cash and a net leverage ratio of 1.0x[18]. - Cash, cash equivalents, and restricted cash at the end of 2024 were $281.1 million, up from $262.3 million at the end of 2023, indicating a 7.0% increase[27]. - Knife River's total assets increased to $2,851.2 million as of December 31, 2024, from $2,599.8 million in 2023, a rise of 9.7%[27]. - Knife River's total liabilities increased to $1,375.1 million as of December 31, 2024, compared to $1,333.8 million in 2023, an increase of 3.1%[27]. Backlog and Sales - The company reported a total gross profit of $114.1 million for the three months ended December 31, 2024, with a gross profit margin of 17.4%, consistent with the margin in Q4 2023[34]. - Backlog as of December 31, 2024, was $745.6 million, up from $662.2 million in 2023, indicating a 12.6% increase[32]. - The average selling price of aggregates increased to $17.14 per ton in Q4 2024, up from $16.43 per ton in Q4 2023, reflecting a 4.3% increase[33]. - Contracting services revenue remained stable at $301.4 million for Q4 2024, slightly down from $301.6 million in Q4 2023[34]. - Ready-mix concrete sales volume decreased to 831 thousand cubic yards in Q4 2024 from 893 thousand cubic yards in Q4 2023, a decline of 7.0%[33]. Conference Call - The company plans to host a conference call on February 13, 2025, to discuss fourth quarter and full-year 2024 results and 2025 guidance[21].