Knife River Corp., an aggregates-led, vertically integrated construction materials and contracting services company, announced financial results for the fourth quarter and full-year ended Dec. 31, 2024.
“For the second consecutive year, we delivered record financial results – a testament to our 6,000 team members and their commitment to our Competitive EDGE strategy,” said Brian Gray, Knife River president and CEO. “We achieved record full-year revenue, net income and adjusted EBITDA. We also improved our adjusted EBITDA margin for the year to a record 16%, continuing our progress toward our long-term goal of exceeding 20%.
“In 2024, we built on our prior success by continuing to execute on our EDGE initiatives,” Gray continued. “We implemented dynamic pricing in more of our markets, which resulted in high-single-digit price increases for our aggregates. We continued to practice disciplined bidding, helping us achieve a 160 basis-point improvement in our contracting services gross margin. Our Process Improvement Teams (PIT Crews) visited 58 additional plants, finding more operational efficiencies. We also invested $131 million on six acquisitions and announced our definitive agreement to acquire Strata Corporation for $454 million.”
For the three months ended Dec. 31, 2024, Knife River reported record consolidated revenue of $657.2 million, a 2% increase from the prior-year record revenue. This was primarily driven by price increases in aggregates, ready-mix and asphalt product lines, partially offset by declines in material volumes, which were directly related to the company’s quality-over-quantity initiatives.
Knife River reported fourth quarter net income of $23.3 million, compared to $20.7 million in the prior-year period, and record fourth quarter adjusted EBITDA of $81.2 million, a 12% increase from the prior-year period.
For 2025, Knife River expects price increases of mid-single digits for aggregates and ready-mix and low-single digits for asphalt. It expects low-single-digit volume increases for all product lines. The guidance is based on normal weather and normal economic and operating conditions, and does not include the expected impact of the Strata acquisition or any other potential acquisitions.