Knife River Corporation has forecast the potential for its “most profitable year in history” after releasing its first quarter results.
The US-based aggregates-led company confirmed closing the acquisition of Strata Corporation as part of its results.
“Our typical seasonal loss in the first quarter was in line with our expectations, and Knife River remains on track to have our most profitable year in history — including record revenue, net income and adjusted EBITDA,” Knife River president and chief executive officer Brian Gray said.
“We made substantial investments in the first quarter to prepare for a successful 2025. That includes closing on the acquisition of Strata Corporation, which we expect will positively impact our financial results starting in the second quarter.
“We anticipate a $45 million EBITDA contribution from Strata for the full year, at margins accretive to Knife River. Additionally, our corporate development team is pursuing other strategic targets and moving them toward completion.”
The company noted that the eight per cent seasonal loss it experienced in the first quarter to be reflective of its first quarter results in the future, following the Strata and Albina acquisitions.
The company’s pre-production activities and site improvements from its PIT crews are expected to drive increased profit across the business. The revenue from its contracting services was higher than the first quarter of last year but its gross profit was lower due to the type of work and timing of incentive payments.
Based on its current results, the company has forecast a strong performance across the remainder of the year.
“Our business fundamentals remain strong, and we anticipate record financial results in 2025,” Gray said.
“In the current economic environment, our business has been relatively insulated from any direct impact from tariffs. It is unclear at this time how economic uncertainties will affect downstream private work, as project owners evaluate interest rates and trade policy.
“However, Knife River has a resilient business model, with the ability to flex between public and private work, along with a proven record of successfully navigating through business cycles.
“Our outlook for the year does not include any significant impacts related to uncertainty in the private market, and we expect to have more clarity when we report our second quarter results. For the full year 2025, we anticipate revenue of $3.25 billion to $3.45 billion and adjusted EBITDA of $530 million to $580 million.
“America’s roads, bridges and runways need to be repaired. The funding is there to support these efforts, and we are well-positioned to execute on the opportunities in our markets. Additionally, we are committed to our EDGE plan and our self-help initiatives to improve our margins and deliver long-term, profitable growth for our shareholders.”
