Knife River Corporation (KNF) AI Stock Analysis

• Market Cap: $5.14B
• Dividend Yield: N/A
• Average Volume (3M): 672.38K
• Price to Earnings (P/E): 32.1
• Beta (1Y): 1.09
• Revenue Growth: 5.52%
• EPS Growth: -25.56%
• Country: US
• Employees: 4,761
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): 0.56
• Shares Outstanding: 56,664,165
• 10 Day Avg. Volume: 775,224
• 30 Day Avg. Volume: 672,375
• 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 Cap: 1.22
• Enterprise Value/Revenue: 1.99
• Enterprise Value/Gross Profit: 10.83
• Enterprise Value/Ebitda: 12.86
• 1Y Price Target: $99.57
• Price Target Upside: 9.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: $87.00 ▼(-4.08% Downside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven by mixed fundamentals: solid growth and a constructive 2026 outlook/backlog, but offset by weakened 2025 cash generation (negative free cash flow) and softer margins with rising leverage. Technical trends are supportive, while valuation appears demanding given the P/E and no dividend yield data.

Positive Factors

Record backlog and constructive 2026 guidance

A record $1.0B backlog and explicit 2026 revenue/EBITDA guidance materially increase near-term revenue visibility and execution runway. High backlog skewed to public work (≈90%) and expected completion in 2026 provides durable demand support and reduces short-term revenue volatility for the year.

Segment diversification and durable margin expansion

Broad-based improvement across aggregates, ready-mix and asphalt reflects structural margin tailwinds from vertical integration, dynamic pricing and operational best practices. Multi-segment strength reduces reliance on any single product cycle and supports sustainable higher margins as business scales.

Disciplined M&A and capital capacity to grow reserves

Proven ability to execute bolt-on acquisitions and invest in reserves while maintaining sub-target leverage shows scalable capital deployment. Availability on the revolver plus cash provides structural flexibility to pursue accretive M&A and organic projects that expand footprint and long-term cash generation.

Negative Factors

Weakened cash generation and negative free cash flow

Negative FCF and declining operating cash flow signal reduced internal funding for capex, reserves and deal activity. Persistent cash conversion weakness increases reliance on external liquidity, raises sensitivity to cyclical downturns, and constrains steady deleveraging or shareholder returns.

Rising leverage and cooling returns on equity

Material increase in leverage and lower ROE reflect heavier debt-funded expansion and softer profitability. Higher leverage reduces financial flexibility, raises interest-cost sensitivity, and increases covenant and refinancing risks during downturns, limiting strategic optionality over multiple quarters.

Contracting margins pressured and higher SG&A from M&A

Lower contracting margins and elevated SG&A from consolidation and growth initiatives compress operating leverage. If integration and bidding mix effects persist, they can structurally cap margin recovery and slow improvement in profitability despite revenue gains over several quarters.

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, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete, as well as provides contracting services to support the aggregate-based product lines, including heavy-civil construction, asphalt and concrete paving, and site development and grading. It serves federal, state, and municipal governments for various projects, such as highways, bridges, airports, schools, public buildings, and other public-infrastructure projects. The company was founded in 1917 and is based in Bismarck, North Dakota.

How the Company Makes Money

Knife River Corporation generates revenue through multiple key streams, primarily from the sale of construction materials such as aggregates, asphalt, and ready-mix concrete. The company earns substantial income from its construction services, which include road construction, paving, and other infrastructure projects. Additionally, Knife River often engages in long-term contracts with government entities and private sector clients, providing a steady flow of income. Strategic partnerships with local and state governments, as well as ongoing projects in road and highway maintenance, contribute significantly to its earnings. The company also benefits from fluctuations in construction demand and infrastructure investment trends, which can enhance its revenue potential during periods of economic growth.

Knife River Corporation Financial Statement Overview

Summary

Revenue growth remains solid, but 2025 profitability softened (lower net and gross margins) and financial flexibility weakened as free cash flow turned negative. Balance sheet is manageable yet trending more leveraged (higher debt-to-equity) with lower ROE.

Income Statement

Revenue has grown steadily from $2.23B (2021) to $3.15B (2025), indicating continued demand and scale gains. Profitability is solid but has softened recently: net margin fell to ~5.0% in 2025 from ~7.0% in 2024, and gross margin also compressed (18.4% vs 19.7%). EBITDA margin remains positive but also declined versus prior years, pointing to cost pressure and/or mix effects.

Balance Sheet

Leverage is moderate with debt-to-equity at ~0.74 in 2025, but it increased meaningfully versus 2024 (~0.49) as total debt rose to ~$1.25B. Equity has grown over time, supporting the capital base, but returns also cooled (return on equity ~9.6% in 2025 vs ~13.7% in 2024), reflecting lower earnings and/or higher capital intensity.

Cash Flow

Cash generation weakened in 2025: operating cash flow declined to ~$279M (from ~$322M in 2024) and free cash flow turned negative (~-$70M) after being positive in prior years. Operating cash flow covered a smaller portion of accounting profit in 2025 (~0.74x), and free cash flow was negative relative to net income, suggesting heavier investment needs and/or working-capital drag that reduces financial flexibility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.15B	2.90B	2.83B	2.53B	2.23B
Gross Profit	577.30M	569.83M	538.93M	360.89M	346.95M
EBITDA	479.50M	463.11M	427.21M	306.74M	293.41M
Net Income	157.10M	201.68M	182.87M	116.22M	129.75M
Balance Sheet
Total Assets	3.65B	2.85B	2.60B	2.29B	2.18B
Cash, Cash Equivalents and Short-Term Investments	123.40M	281.13M	262.32M	10.09M	13.85M
Total Debt	1.25B	726.76M	726.37M	730.96M	734.52M
Total Liabilities	2.01B	1.38B	1.33B	1.27B	1.23B
Stockholders Equity	1.64B	1.48B	1.27B	1.03B	952.84M
Cash Flow
Free Cash Flow	-69.60M	149.90M	211.44M	29.28M	7.01M
Operating Cash Flow	278.50M	322.32M	335.73M	207.44M	181.24M
Investing Cash Flow	-913.70M	-294.80M	-117.89M	-155.88M	-398.27M
Financing Cash Flow	477.50M	-8.71M	34.39M	-55.32M	223.80M

Knife River Corporation Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KNF, the sentiment is Positive. The current price of 90.7 is above the 20-day moving average (MA) of 78.02, above the 50-day MA of 76.75, and above the 200-day MA of 79.13, indicating a bullish trend. The MACD of 3.93 indicates Negative momentum. The RSI at 65.60 is Neutral, neither overbought nor oversold. The STOCH value of 70.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KNF.

Knife River Corporation Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TGLS	74 Outperform	$2.45B	13.69	26.21%	1.12%	15.70%	19.92%
TTAM	74 Outperform	$3.41B	18.80	―	0.94%	0.28%	-1.57%
CX	71 Outperform	$18.94B	18.91	3.14%	0.74%	-6.34%	210.97%
KNF	65 Neutral	$5.14B	32.07	9.71%	―	5.52%	-25.56%
BCC	64 Neutral	$3.17B	16.93	9.05%	1.17%	-4.25%	-50.60%
USLM	63 Neutral	$3.03B	22.66	23.80%	0.19%	20.27%	31.94%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Knife River Corporation Corporate Events

Knife River Releases Fourth-Quarter and Full-Year 2025 Earnings

On February 17, 2026, Knife River Corporation announced its earnings results for the fourth quarter and full year 2025, formalizing the disclosure in a press release furnished to regulators. The announcement provides investors and other stakeholders with updated financial performance information for the company’s most recently completed fiscal year, which may influence assessments of its operational trends and market positioning.

The disclosure of full-year 2025 earnings offers greater transparency into Knife River’s recent financial trajectory and supports comparative analysis against prior periods. By formally furnishing the release to the Securities and Exchange Commission, the company underscores its adherence to public reporting standards, reinforcing governance practices that are important for shareholders and the broader market.

The most recent analyst rating on (KNF) stock is a Hold with a $75.00 price target. To see the full list of analyst forecasts on Knife River Corporation stock, see the KNF Stock Forecast page.