Knife River Corporation Reports 1.9% Revenue Growth, Net Income Increase in Q3 2024

Knife River Corporation, a leading provider of construction materials and contracting services in the United States, reported significant financial developments in its recent 10-Q filing for the third quarter of 2024. The company operates across six segments—Pacific, Northwest, Mountain, Central, and Energy Services—serving both public and private markets, with a strong focus on infrastructure projects.

For the three months ended September 30, 2024, Knife River achieved consolidated revenues of $1,105.3 million, reflecting a 1.9% increase from $1,090.4 million in the same period of 2023. For the nine months ended September 30, 2024, revenues rose to $2,241.8 million, up from $2,183.5 million year-over-year. The growth in revenue was primarily driven by increased contracting services activity, particularly from public agency-related construction work, and higher average selling prices for aggregates and ready-mix concrete.

Gross profit for the third quarter of 2024 was $273.0 million, maintaining a gross margin of 24.7%, consistent with the prior year. For the nine-month period, gross profit increased to $455.7 million, up from $426.5 million, with an improved gross margin of 20.3%. The company noted that while prices for aggregates and ready-mix concrete rose, volume declines in these product lines were attributed to a strategic focus on quality and reduced demand for private projects.

Net income for the three months ended September 30, 2024, was reported at $148.1 million, slightly up from $146.7 million in the same quarter of 2023. For the nine-month period, net income increased to $178.4 million from $162.2 million. The company’s EBITDA for the third quarter was $244.6 million, compared to $241.4 million in the same period last year, while for the nine months, EBITDA rose to $375.4 million from $352.4 million.

Strategically, Knife River completed its separation from MDU Resources on May 31, 2023, becoming an independent publicly traded company. The company has since focused on growth through acquisitions, investing $129.3 million in six acquisitions, including the recent purchase of Albina Asphalt, which will enhance its liquid asphalt product line. The company also reported a backlog of $755.1 million as of September 30, 2024, with 87% related to publicly funded projects, supported by the Infrastructure Investment and Jobs Act.

Overall, Knife River's financial performance reflects a robust response to market conditions, with strategic initiatives aimed at enhancing operational efficiency and expanding its service offerings.