Knife River pany(KNF) - 2024 Q4 - Annual Results

Financial Performance - Knife River Corporation achieved record full-year revenue of $2,899.0 million, a 2$2,830.3 million in 2023[2]. - Net income for the full year was $201.7 million, reflecting a 10$182.9 million in 2023[2]. - Adjusted EBITDA for the full year reached $463.0 million, a 7$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$646.9 million in the prior year[2][6]. - Fourth quarter net income was $23.3 million, a 12$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$253.6 million in 2024 from $242.5 million in 2023, a reduction of 4.8$316.2 million, up from $296.4 million in 2023, reflecting a growth of 6.0$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$2,851.2 million as of December 31, 2024, from $2,599.8 million in 2023, a rise of 9.7$1,375.1 million as of December 31, 2024, compared to $1,333.8 million in 2023, an increase of 3.1$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].