Knife River (NYSE:KNF) today reported a blowout fourth quarter to end fiscal 2025, as higher aggregates pricing and a string of strategic acquisitions drove a double-digit revenue climb and massive margin expansion.
The Bismarck, North Dakota-based construction materials giant posted consolidated revenue of $755.1 million for the quarter, a 15% increase year-over-year.
The results were powered by robust volume growth in ready-mix and aggregates, alongside successful price optimization efforts that offset earlier-year headwinds.
Adjusted EBITDA for the period soared 47% to $119.4 million, with the company’s "Competitive EDGE" initiatives helping to drive significant margin gains in its core West and Mountain segments.
While the fourth quarter was record-breaking, the full-year results told a story of a transformative and volatile transition.
For the 12 months ended Dec. 31, 2025, Knife River generated record revenue of $3.15 billion, up 9%.
However, full-year net income fell 22% to $157.1 million, or $2.76 per share, reflecting the impact of severe flooding in the Central region and funding delays in Oregon that hampered the first half of the year.
Looking ahead, the company initiated full-year 2026 guidance that reflects continued optimism.
Knife River expects to invest heavily in its future, with capital expenditures for maintenance and organic growth projects—including aggregate reserve additions—projected to be approximately $130 million.
Analysts expect the company to benefit from a 14% projected increase in Department of Transportation budgets across its primary operating regions.