Knife River Corporation Reports $2.9 Billion Revenue and $385.7 Million Net Income for Fiscal Year 2024

Knife River Corporation reported a total revenue of $2.9 billion for the fiscal year ending December 31, 2024, marking an increase of 2.4% from $2.83 billion in 2023. The company's net income for the year was $385.7 million, up from $367.5 million in the previous year, reflecting a net income margin of 13.3%. The increase in revenue was primarily driven by higher pricing across all product lines, particularly in ready-mix concrete and asphalt, which saw price increases of low-double-digits and high-single-digits, respectively. However, the company experienced a decline in sales volumes, attributed to strategic initiatives focusing on quality over quantity and lower demand in private projects.

In terms of operational developments, Knife River completed six acquisitions in 2024, investing a total of $131 million to enhance its aggregates, ready-mix, and liquid asphalt operations. Notably, the company announced its intention to acquire Strata Corporation for $454 million, a deal expected to close in the first half of 2025. This acquisition will add 28 ready-mix plants and three asphalt plants to Knife River's existing operations, further expanding its footprint in the construction materials market.

The company operates across 14 states with a total of 182 active aggregate sites, 106 ready-mix plants, and 51 asphalt plants. As of December 31, 2024, Knife River employed 4,761 people, with a peak workforce of over 5,900 during the construction season. The company reported a backlog of $745.6 million, a 13% increase from the previous year, with approximately 86% of this backlog related to public-sector projects, which tend to provide more stability across economic cycles.

Looking ahead, Knife River's management expressed optimism about the ongoing infrastructure development, particularly with the Infrastructure Investment and Jobs Act (IIJA) providing $1.2 trillion in funding from 2022 to 2026. The company anticipates that strong state Department of Transportation budgets will favorably impact its bidding opportunities in 2025. However, management also acknowledged potential risks, including economic volatility and supply chain disruptions, which could affect future revenues and margins. The company plans to continue its focus on margin improvement through its EDGE strategy, which emphasizes operational excellence and disciplined capital allocation.