Knife River Corporation Sees Record-Breaking Results Amid Strong Market Conditions
February 13, 2025 - Knife River Corporation, a leading provider of aggregates, ready-mix concrete and asphalt in the United States, announced record-breaking results for its fiscal year 2024. The company's President and Chief Executive Officer, Brian Gray, highlighted the success of its Competitive EDGE strategy during the Fourth Quarter and Full Year Results Conference Call.
In a statement on the conference call, Gray expressed his excitement about the opportunities ahead for Knife River, citing the growth in adjusted EBITDA by 48% and adjusted EBITDA margins by 360 basis points over the last two years. This achievement is attributed to the company's dedication to operational excellence and cost control, as evident from its Process Improvement Teams' visits to 58 plants and efforts to optimize prices.
The company achieved record full-year revenue, adjusted EBITDA, and adjusted EBITDA margin in 2024. It implemented price increases of 7% for aggregates and 10% for ready-mix, while focusing on cost control through operational efficiencies. The contracting business saw a 160 basis point improvement in gross margins due to disciplined bidding and solid project execution.
Knife River made significant investments last year with six acquisitions totaling $131 million, with the expectation of full-year EBITDA contributions from these deals, projected to be approximately $16 million to $20 million in 2025. The company has also created the position of Chief Excellence Officer to oversee its relentless drive to become best-in-class.
Looking ahead to 2025, Knife River starts with a strong backlog of $746 million, representing a 13% increase over the same period last year. The majority of this backlog is public work, including road and highway construction projects that allow for the utilization of upstream materials. A prime example of this opportunity is the recently secured $96 million 3-year road construction project in Idaho.
The company's Chief Financial Officer, Nathan Ring, provided a product line summary, capital update, and review of its 2025 financial guidance during the conference call. He also discussed progress on the Competitive EDGE plan, including efforts to expand PIT Crews and implement standardization for best practices across the organization.
