BISMARCK, N.D. - Knife River Corporation (NYSE:KNF) reported record third quarter revenue on Wednesday, despite missing analyst estimates, as the construction materials company benefited from higher pricing and increased contracting services. The stock rose 2.6% following the earnings release.
The aggregates-led company posted Q3 revenue of $1.11 billion, up 1% YoY but below the consensus estimate of $1.17 billion. Adjusted earnings per share came in at $2.60, missing expectations of $2.71.
Net income rose 1% to $148.1 million, marking a quarterly record. Adjusted EBITDA dipped slightly to $245.2 million from $247.5 million a year ago.
"Our third quarter results demonstrate the fundamental strength of our business and the benefits of our segment diversity," said Knife River President and CEO Brian Gray. He noted the company achieved record quarterly revenue, gross profit and net income.
Knife River narrowed its full-year 2024 guidance, now expecting revenue between $2.85 billion and $2.95 billion, compared to the previous range of $2.8 billion to $3.0 billion. The midpoint of $2.9 billion aligns with analyst estimates.
The company highlighted recent acquisitions totaling $129.3 million across six deals year-to-date, focused on aggregate reserves and construction materials. Gray said these investments are expected to "enhance our long-term profitability."
Backlog stood at $755 million, higher than the same period last year with improved expected margins. Knife River noted continued opportunities from record or near-record budgets at most state departments of transportation across its footprint.
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