On this page of StockholderLetter.com we present the latest annual shareholder letter from Knife River Corp — ticker symbol KNF. Reading current and past KNF letters to shareholders can bring important insights into the investment thesis.

 •  4/7/2025 Letter Continued (Full PDF)
 •  3/29/2024 KNF Stockholder Letter
 •  More "Construction Materials & Machinery" Category Stockholder Letters
 •  KNF Benford's Law Stock Score = 97

KNF Shareholder/Stockholder Letter Transcript:

5,900
4
TEAM MEMBERS
AT PEAK SEASON
1.2
billion
tons of aggregate reserves
th- largest producer of sand
and gravel in the US
People
Safety
Quality
Environment
7%
Adjusted EBITDA growth
from 2023 to 2024  
16.0%
Adj. EBITDA Margins1
Record
2024 revenue, net income,
EBITDA and Adj. EBITDA1
3-year avg ROIC of 14.4%
2
Note: All data is as of Dec. 31, 2024, unless otherwise noted.

FINANCIAL HIGHLIGHTS
Overall
2023
2024
$2,830.3M
$2,899.0M
Net Income
$182.9M
$201.7M
Adjusted EBITDA1
$432.4M
$463.0M
15.3%
16.0%
Revenue
Adjusted EBITDA Margin1
Adjusted EBITDA Margin1
Adjusted EBITDA1
25%
$500M
$400M
$463.0M
$432.4M
20%
$300M
15%
$200M
10%
$100M
5%
$0
2023
2024
20.0+%
16.0%
15.3%
0%
2023
2024
Long-Term
Goal3
Comparison of Total Stockholder Return
$100 invested June 1, 2023, in Knife River was worth $290.23 at year-end 2024.
$350
$300
$250
$200
$150
$100
$50
6/01/234
12/31/23
Knife River
S&P 500 Index
12/31/24
S&P 400 Materials Index
Company Name / Index
6/01/23
12/31/23
12/31/24
Knife River Corporation
100.00
188.98
290.23
S&P 500 Index
100.00
114.03
142.56
S&P 400 Materials Index
100.00
120.11
117.14
Knife River Corporation | 1

Northwest
Mountain
REPORTING SEGMENTS
Northwest
Mountain
Central
Central
Pacific
Energy Services
HQ
Pacific
Energy Services
HQ
Aggregate site (182 active sites)
Aggregate
site
(182
active
sites)
Northwest
Mountain
Central
Ready-Mix
plant
(106
total
plants)
Northwest
Mountain
Central
Ready-Mix
plant
total plants)
Asphalt
plant HQ
(51
total(106
plants)
Pacific
Energy Services
Asphalt
plant
(51Services
total
Pacific
Energy
HQ
Liquid
asphalt
terminal
(9 plants)
total terminals)
Liquid asphalt terminal (9 total terminals)
ggregate site (182 active sites)
Aggregate site (182 active sites)
eady-Mix plant (106 total plants)
Ready-Mix plant (106 total plants)
phalt plant (51 total plants)
Asphalt
(51 total plants)
quid asphalt terminal
(9 totalplant
terminals)
Liquid asphalt terminal (9 total terminals)
Note: As of Jan. 1, 2025, reporting segments are West, Mountain, Central and Energy Services.
PRODUCT LINES
AGGREGATES
ASPHALT
Downstream product used for smooth, durable surfaces on highways,
streets and parking lots. 51 plants across 10 states.
1.2 billion tons of reserves with strategic locations near end users and/
or multimodal transportation. Reliable supply of high-quality materials
is a competitive advantage.
LIQUID ASPHALT
READY-MIX CONCRETE
CONTRACTING SERVICES
Versatile and specialized value-added product. 106 plants across 13
states, and a fleet of delivery trucks.
Reliable pull-through demand of materials. Public works focused;
adds resiliency and contributes to ROIC.
Binding agent used with aggregates to produce asphalt. 9 terminals
across 7 states.
COMPETITIVE EDGE - 2024 Initiatives
Commercial and operational
margin-expansion initiatives
Continued to optimize pricing for
materials, leading to high-singledigit increases for aggregates.
Focused on margins for contracting
services, improving gross profit
margin by 160bps.
2 | Knife River Corporation
Strong balance sheet and
disciplined allocation of capital
Reduced net leverage to 1.0x, wellbelow long-term target of 2.5x.3,6
Strengthen position through
organic and inorganic growth
opportunities
Prudent management of our net
working capital.
Completed $131M of acquisitions
in 2024 and announced $454M
pending acquisition of Strata
Corporation (which closed in March
2025).
Ample liquidity, with $329M of
revolver capacity and $237M of
unrestricted cash.
Robust acquisition pipeline
and several organic growth
opportunities for 2025.
Be best in class in all
aspects of the business
Created new position of Chief
Excellence Officer and expanded
Process Improvement Teams (PIT
Crews) from one materials-focused
team to multiple teams focused
on three key areas: commercial
excellence, operational excellence
and standardization.

Central
Mountain
Northwest
Pacific
2024 SEGMENT RECAP
2023
2024
Change
Revenue
$462.2M
$493.1M
+7%
1
EBITDA
$56.2M
$59.9M
+7%
EBITDA Margin1
12.2%
12.1%
-10bps
2023
2024
Change
Revenue
$666.1M
$692.4M
+4%
EBITDA
1
$121.1M
$149.8M
+24%
EBITDA Margin1
18.2%
21.6%
+340bps
2023
2024
Change
Revenue
$634.0M
$663.1M
+5%
EBITDA
1
$103.2M
$113.5M
+10%
EBITDA Margin1
16.3%
17.1%
+80bps
2023
2024
Change
Revenue
$825.0M
$818.1M
-1%
EBITDA1
$116.6M
$131.6M
+13%
14.1%
16.1%
+200bps
2023
2024
Change
$292.3M
$275.7M
-6%
$78.1M
$60.2M
-23%
26.7%
21.8%
-490bps
Energy
Services
EBITDA Margin1
Revenue
EBITDA1
EBITDA Margin
1
Note: As of Jan. 1, 2025, reporting segments are West, Mountain, Central and Energy Services.
PROGRESS ON STRATEGIC OBJECTIVES
2024 Guidance
Revenue
$2.85B     $2.95B
2024 Result
'Competitive EDGE' Goals
Progress
STRONG AND BALANCED REVENUE GROWTH
$2.9B
Increasing Mix of Aggregates
CONTINUED ADJ. EBITDA MARGIN1 EXPANSION
Further growth toward long-term goal of 20%3
Adj. EBITDA1
$445M     $465M
ATTRACTIVE FREE CASH FLOW GENERATION5
$463.0M
Free Cash Flow Growth ~ in-line with Adj. EBITDA growth
SUSTAIN / IMPROVE INDUSTRY-LEADING ROIC2
3-Year Avg. ROIC 14.4%2
Capital Expenditures
$170M     $200M
$170.5M
Long-term Vision
INCREASING
AGGREGATE MIX
20%+ ADJ.
EBIDTA MARGIN3
NO. 1 IN MARKETS
OF OPERATION
Knife River Corporation | 3



 4/7/2025 Letter Continued (Full PDF)