Company Overview - Knife River is a leading U.S. provider of construction materials and contracting services, with a diversified presence across multiple regions [6] - The company leverages vertical integration in aggregates, asphalt, and ready-mix concrete to serve large-scale infrastructure and public works projects [6] - Primary customers include federal, state, and municipal governments, focusing on public infrastructure projects such as highways, bridges, airports, and public buildings [9] Financial Performance - Revenue for the trailing twelve months (TTM) is $3.05 billion, with a net income of $148.32 million [4] - In the latest quarter, revenue rose 9% year over year to $1.2 billion, while adjusted EBITDA climbed 11% to $272.8 million [11] - Backlog reached a record $995 million, up 32% from a year earlier, with 87% tied to public work and more than three-quarters expected to convert to revenue within 12 months [11] Investment Insights - Paradice Investment Management established a new stake in Knife River, acquiring 312,743 shares valued at $22.00 million [1][2] - This new holding represented 4.28% of Paradice's 13F reportable assets at the end of December [3] - The transaction reflects a rotation toward assets with visible demand and pricing power, with earnings increasingly driven by backlog and public funding [10] Market Position - As of January 27, Knife River shares were priced at $68.59, down 31.4% over the past year, underperforming the S&P 500 by 47.46 percentage points [3] - The company continues to invest aggressively, spending $528 million on acquisitions in the first nine months of the year [11] - Knife River maintains net leverage around 2.6 times adjusted EBITDA, targeting further improvement by year's end [11]

Group 1 - Knife River Corporation (NYSE:KNF) is highlighted as a strong infrastructure stock with significant upside potential, receiving an Equal Weight rating from Wells Fargo with a price target of $261 [1][2] - Wells Fargo's coverage of the US building materials sector indicates a preference for early-cycle beneficiaries of interest rate cuts, particularly in cement, wallboard, and home improvement [1] - Despite a cautious outlook on construction through 2026, Wells Fargo anticipates a recovery in late 2026 into 2027, with home improvement potentially recovering sooner [2] Group 2 - DA Davidson recently lowered its price target for Knife River from $105 to $95 while maintaining a Buy rating, citing weather-related challenges and market pressures in Oregon [2] - Knife River operates in the US construction materials sector, providing aggregates-led construction materials and contracting services through various segments including Pacific, Northwest, Mountain, Central, and Energy Services [3]