Knife River pany(US:KNF)2025-08-05 15:00Financial Performance & Guidance - Q2 2025 revenue was $833.8 million[42], while adjusted EBITDA was $140.8 million[42], and adjusted EBITDA margin was 16.9%[8] - 2025 full-year revenue guidance is $3.10 billion to $3.30 billion[8], revised down from the previous guidance of $3.25 billion to $3.45 billion[8] - 2025 full-year adjusted EBITDA guidance is $475 million to $525 million[8], revised down from the previous guidance of $530 million to $580 million[8] - 2025 adjusted EBITDA margin guidance is 15.6%[8], revised down from the previous guidance of 16.6%[8] Factors Affecting Results - Wet weather impacted volumes and margins in Q2 2025, particularly in the Central and Mountain regions[7, 12] - The Oregon economy's reduced demand impacted results, with DOT construction budget diverted from asphalt paving to megaprojects[7, 15, 20] Backlog & Infrastructure Funding - Record backlog driven by infrastructure investment, with a 27% increase from Q2 2024 to Q2 2025, reaching $1.3 billion[22] - Secured backlog includes 91% dedicated public funding[22] - DOT budgets in KNF states are growing 14% for fiscal year 2026[32] Segment Performance - West segment revenue was $317.4 million, down 5%[42], with adjusted EBITDA of $60.7 million[42] and a TTM adjusted EBITDA margin of 17.6%[42] - Mountain segment revenue was $176.1 million, down 9%[42], with adjusted EBITDA of $30.9 million[42] and a TTM adjusted EBITDA margin of 14.0%[42] - Central segment revenue was $255.2 million, up 19%[42], with adjusted EBITDA of $44.4 million[42] and a TTM adjusted EBITDA margin of 15.5%[42] - Energy Services revenue was $97.4 million, up 28%[42], with adjusted EBITDA of $17.1 million[42] and a TTM adjusted EBITDA margin of 17.6%[42] Capital Management - Net debt is $1.3434 billion[51], with a net leverage ratio of 3.1x[51] - Available liquidity is $321 million, including $294 million from the revolver[51] Product Line Results - Aggregates volume decreased by 6% from 9.408 million tons in Q2 2024 to 8.826 million tons in Q2 2025, but average selling price increased by 12% from $16.84 per ton to $18.80 per ton[45] - Asphalt volume decreased by 9% from 1.813 million tons in Q2 2024 to 1.643 million tons in Q2 2025, but average selling price increased by 3% from $65.82 per ton to $67.45 per ton[45]