Knife River Corporation (KNF)
NYSE:KNF
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Knife River Corporation
(NYSE:KNF)
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Rating:56Neutral
Price Target:
$76.00
▼(-14.72% Downside)
Action:Reiterated
Date:05/22/26
The score is held back mainly by weakening cash conversion (negative free cash flow) and higher leverage, alongside bearish technicals with the stock trading below all major moving averages. Offsetting these, the latest earnings call was constructive with reaffirmed guidance tracking toward the upper half of targets and strong backlog-driven visibility, while recent financing actions modestly support liquidity.
Positive Factors
Strong backlog and revenue visibility
A $1.2B record backlog that is largely executable in 2026 materially reduces near‑term revenue volatility and improves utilization planning. This backlog supports upper‑half guidance, allows predictable plant and fleet deployment, and underpins sustained cash generation as projects are converted.
Negative Factors
Elevated leverage relative to prior year
Materially higher debt reduces financial flexibility and raises interest and refinancing sensitivity across construction cycles. Greater leverage constrains ability to fund opportunistic investment or weather slower demand, making earnings and cash flow more exposed to macro or project execution shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong backlog and revenue visibility
A $1.2B record backlog that is largely executable in 2026 materially reduces near‑term revenue volatility and improves utilization planning. This backlog supports upper‑half guidance, allows predictable plant and fleet deployment, and underpins sustained cash generation as projects are converted.
Read all positive factors
Knife River Corporation (KNF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.10B
Dividend YieldN/A
Average Volume (3M)499.39K
Price to Earnings (P/E)―
Beta (1Y)1.09
Revenue Growth9.57%
EPS Growth-18.90%
CountryUS
Employees4,761
SectorBasic Materials
Sector Strength58
IndustryConstruction Materials
Share Statistics
EPS (TTM)2.58
Shares Outstanding56,753,857
10 Day Avg. Volume630,646
30 Day Avg. Volume499,387
Financial Highlights & Ratios
PEG Ratio-1.14
Price to Book (P/B)2.43
Price to Sales (P/S)1.27
P/FCF Ratio-57.31
Enterprise Value/Market Cap1.34
Enterprise Value/Revenue1.72
Enterprise Value/Gross Profit9.40
Enterprise Value/Ebitda11.10
Forecast
1Y Price Target
$98.20Price Target Upside10.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)3.29
Revenue Forecast (FY)$3.44B
Knife River Corporation Business Overview & Revenue Model
Company Description
Knife River Corporation provides aggregates-based construction materials and contracting services in the United States. It operates through six segments: Pacific, Northwest, Mountain, North Central, South, and Energy Services. The company mines, p...
How the Company Makes Money
Knife River makes money primarily by producing, distributing, and installing construction materials used in infrastructure and building projects. Key revenue streams include: (1) Aggregates: revenue from selling crushed stone, sand, and gravel to ...
Knife River Corporation Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive tone: strong top-line and adjusted EBITDA growth, record backlog, significant aggregate and ready-mix volume gains, margin expansion initiatives, and accretive acquisitions support confidence in the 2026 outlook. Near-term challenges include contracting services margin softness in Q1, geographic mix effects on reported aggregates pricing, and emerging energy cost pressure — all of which management says are being mitigated via pricing tools, diesel pre-purchases and integration of recent acquisitions. On balance, highlights materially outweigh the lowlights.Positive Updates
Strong Top-Line and EBITDA Growth
Revenue increased 16% year-over-year and adjusted EBITDA grew 16% year-over-year, with adjusted EBITDA margins expanding by 290 basis points.
Negative Updates
Contracting Services Margin Weakness in Q1
Contracting services margins were down in the quarter; first quarter is seasonally small (~10% of revenue) and margins were impacted by project timing, geographic mix and two months of expected seasonal losses at Strata.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line and EBITDA Growth
Revenue increased 16% year-over-year and adjusted EBITDA grew 16% year-over-year, with adjusted EBITDA margins expanding by 290 basis points.
Read all positive updates
Company Guidance
Knife River reaffirmed its February 2026 guidance and said results are tracking toward the upper half of its revenue and adjusted‑EBITDA ranges, citing expectations for mid‑single‑digit aggregates pricing (as‑reported), at least 200 basis points of aggregate margin expansion, mid‑teens ready‑mix volume growth, and mid‑single‑digit asphalt volume growth; the company enters the season with record backlog of about $1.2 billion (≈75% expected to be completed in 2026), expects SG&A to be comparable to 2025 as a percent of revenue before trending lower in future years, plans to end 2026 with no borrowing on its $500 million revolver and net leverage near its 2.5x target (available liquidity ~ $190 million), and highlighted Q1 capex of $42 million (maintenance/improvement) plus $209 million of growth spend (≈$174 million on three acquisitions and $35 million on aggregate expansions), while noting diesel mitigation actions cover roughly 80% of its ~20–25 million gallon annual diesel use.Knife River Corporation Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.20B | 3.15B | 2.90B | 2.83B | 2.53B | 2.23B |
| Gross Profit | 585.91M | 577.30M | 569.83M | 538.93M | 360.89M | 346.95M |
| EBITDA | 496.08M | 488.80M | 463.11M | 427.21M | 306.74M | 293.41M |
| Net Income | 146.55M | 157.10M | 201.68M | 182.87M | 116.22M | 129.75M |
Balance Sheet | ||||||
| Total Assets | 3.82B | 3.65B | 2.85B | 2.60B | 2.29B | 2.18B |
| Cash, Cash Equivalents and Short-Term Investments | 75.50M | 123.40M | 281.13M | 262.32M | 10.09M | 13.85M |
| Total Debt | 1.48B | 1.25B | 726.76M | 726.37M | 730.96M | 734.52M |
| Total Liabilities | 2.26B | 2.01B | 1.38B | 1.33B | 1.27B | 1.23B |
| Stockholders Equity | 1.56B | 1.64B | 1.48B | 1.27B | 1.03B | 952.84M |
Cash Flow | ||||||
| Free Cash Flow | -5.26M | -69.60M | 149.90M | 211.44M | 29.28M | 7.01M |
| Operating Cash Flow | 345.18M | 278.50M | 322.32M | 335.73M | 207.44M | 181.24M |
| Investing Cash Flow | -661.07M | -913.70M | -294.80M | -117.89M | -155.88M | -398.27M |
| Financing Cash Flow | 252.94M | 477.50M | -8.71M | 34.39M | -55.32M | 223.80M |
Knife River Corporation Technical Analysis
Negative
89.12
Price Trends
83.52
Negative
81.60
Negative
78.13
Negative
Market Momentum
-3.65
Positive
33.90
Neutral
18.87
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNF, the sentiment is Negative. The current price of 89.12 is above the 20-day moving average (MA) of 83.43, above the 50-day MA of 83.52, and above the 200-day MA of 78.13, indicating a bearish trend. The MACD of -3.65 indicates Positive momentum. The RSI at 33.90 is Neutral, neither overbought nor oversold. The STOCH value of 18.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KNF.
Knife River Corporation Risk Analysis
Knife River Corporation disclosed 36 risk factors in its most recent earnings report. Knife River Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Knife River Corporation Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.80B | 20.91 | 18.35% | 0.94% | 2.67% | 4.16% | |
70 Outperform | $19.09B | 1.84 | 3.40% | 0.74% | 5.01% | -67.33% | |
67 Neutral | $3.04B | 30.61 | 21.28% | 0.19% | 9.49% | 8.32% | |
66 Neutral | $1.83B | 15.59 | 20.25% | 1.12% | 9.84% | -12.68% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $4.10B | -14.61 | 9.35% | ― | 9.57% | -18.90% | |
50 Neutral | $2.36B | 38.16 | 5.26% | 1.17% | -3.76% | -63.19% |
* Basic Materials Sector Average
KNF
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Knife River Corporation Corporate Events
Executive/Board ChangesShareholder Meetings
Knife River Appoints New Chief Accounting Officer, Realigns Finance
Positive
May 21, 2026
Knife River Corporation’s board on May 20, 2026 appointed Peggy S. Rebstock, previously vice president of financial planning and analysis, as vice president, chief accounting officer and controller effective May 21, 2026, making her the comp...
Business Operations and StrategyPrivate Placements and Financing
Knife River Amends Credit Facility to Enhance Liquidity
Positive
May 18, 2026
On May 15, 2026, Knife River Corporation amended its existing credit agreement, increasing its term B loans by $400 million and reducing the interest rate margin by 0.25%, resulting in a total of $895 million outstanding in 2026 Tranche B Term Loa...
Financial DisclosuresRegulatory Filings and Compliance
Knife River Releases First Quarter 2026 Earnings Update
Neutral
May 5, 2026
Knife River Corporation, a construction materials supplier focused on aggregates, concrete and asphalt for infrastructure and building markets, continues to serve regional construction demand through its integrated operations. The company plays a ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.