Revenue growth accelerated to 12.6% YoY in 2026Q2, but gross margin contracted to 17.3% from 18.9% a year earlier, reflecting input cost inflation that partially offsets pricing gains.
Knife River Corporation (KNF) annual income statement — 5-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 |
|---|
| Sales/Revenue | 3.31B | 3.15B | 2.9B | 2.83B | 2.53B | 2.23B |
| Revenue Growth % | 12.13% | 8.52% | 2.43% | 11.66% | 13.72% | - |
| Cost of Goods Sold | 2.72B | 2.57B | 2.33B | 2.29B | 2.17B | 1.88B |
| COGS % of Revenue | - | 81.65% | 80.34% | 80.96% | 85.76% | 84.43% |
| Gross Profit | 591.46M | 577.3M | 569.83M | 538.93M | 360.89M | 346.95M |
| Gross Margin % | 17.88% | 18.35% | 19.66% | 19.04% | 14.24% | 15.57% |
| Gross Profit Growth % | - | 1.31% | 5.73% | 49.33% | 4.02% | - |
| Operating Expenses | 314.19M | 291.5M | 253.63M | 242.54M | 166.6M | 155.87M |
| OpEx % of Revenue | - | 9.27% | 8.75% | 8.57% | 6.57% | 6.99% |
| Selling, General & Admin | 311.29M | 291.5M | 253.63M | 242.54M | 166.6M | 155.87M |
| SG&A % of Revenue | - | 9.27% | 8.75% | 8.57% | 6.57% | 6.99% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 277.27M | 285.8M | 316.19M | 296.4M | 194.29M | 191.08M |
| Operating Margin % | 8.38% | 9.08% | 10.91% | 10.47% | 7.67% | 8.57% |
| Operating Income Growth % | - | -9.61% | 6.68% | 52.55% | 1.68% | - |
| EBITDA | 437.49M | 479.5M | 453.06M | 420.2M | 312.09M | 292.05M |
| EBITDA Margin % | 13.23% | 15.24% | 15.63% | 14.85% | 12.31% | 13.1% |
| EBITDA Growth % | 4.74% | 5.83% | 7.82% | 34.64% | 6.86% | - |
| D&A (Non-Cash Add-back) | 156.92M | 193.7M | 136.87M | 123.81M | 117.8M | 100.97M |
| EBIT | 280.4M | 295.1M | 326.24M | 303.4M | 188.94M | 192.43M |
| Net Interest Income | -89.54M | -81.9M | -55.24M | -58.1M | -30.12M | -19.22M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 89.5M | 81.9M | 55.24M | 58.1M | 30.12M | 19.22M |
| Other Income/Expense | -86.38M | -72.6M | -45.2M | -51.09M | -35.47M | -17.86M |
| Pretax Income | 190.9M | 213.2M | 270.99M | 245.31M | 158.82M | 173.21M |
| Pretax Margin % | 5.77% | 6.78% | 9.35% | 8.67% | 6.27% | 7.77% |
| Income Tax | 51.05M | 56.1M | 69.32M | 62.44M | 42.6M | 43.46M |
| Effective Tax Rate % | 26.74% | 26.31% | 25.58% | 25.45% | 26.82% | 25.09% |
| Net Income | 139.85M | 157.1M | 201.68M | 182.87M | 116.22M | 129.75M |
| Net Margin % | 4.23% | 4.99% | 6.96% | 6.46% | 4.59% | 5.82% |
| Net Income Growth % | -8.76% | -22.1% | 10.28% | 57.35% | -10.43% | - |
| Net Income (Continuing) | 139.91M | 157.1M | 201.68M | 182.87M | 116.22M | 129.75M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.47 | 2.76 | 3.55 | 3.23 | 2.05 | 2.29 |
| EPS Growth % | -8.92% | -22.25% | 9.91% | 57.56% | -10.48% | - |
| EPS (Basic) | - | 2.77 | 3.56 | 3.23 | 2.05 | 2.29 |
| Diluted Shares Outstanding | 56.7M | 56.9M | 56.8M | 56.7M | 56.57M | 56.57M |
| Basic Shares Outstanding | 56.7M | 56.7M | 56.6M | 56.6M | 56.57M | 56.57M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Quick answers to the most common questions about buying KNF stock.
For fiscal year 2025, Knife River Corporation (KNF) reported total revenue of $3.15B. This represents a 41.1% increase compared to $2.23B in 2021.
Knife River Corporation (KNF) is profitable, generating $157.1M in net income for the fiscal year ending 2025 with a net profit margin of 5.0%.
Knife River Corporation (KNF) reported an operating income of $285.8M, resulting in an operating profit margin of 9.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Knife River Corporation (KNF) generated $577.3M in gross profit for the year, representing a gross profit margin of 18.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Input cost inflation and seasonality
Metrics are mathematically derived from official filings.
Revenue Momentum Accelerates on Contracting Strength
KNF's revenue grew 12.6% year-over-year in 2026Q2, with contracting services up 20%, according to recent financial statements, indicating accelerating demand and successful integration of acquisitions.
The 12.6% growth in 2026Q2 marks an acceleration from the 3.3% growth in 2025Q2, driven by a 20% surge in contracting services. This suggests robust pull-through from public infrastructure spending and effective execution of the 'Competitive Edge' strategy. The sequential revenue pattern, with Q3 peaks, reflects seasonal construction cycles, but the year-over-year gains across all quarters indicate a durable upward trend.
Gross Margin Expansion Tempered by Cost Pressures
Gross margin improved to 17.3% in 2026Q2 from 18.9% a year earlier, as reported in financial statements, reflecting input cost inflation that partially offsets pricing gains.
Despite revenue growth, gross margin contracted by 160 basis points year-over-year, likely due to rising liquid asphalt and labor costs. The 18.35% average gross margin remains well below pure-play peers like Vulcan (27.3%) and Martin Marietta (30.0%), reflecting the lower-margin contracting mix. Management's focus on bidding discipline may support margins, but persistent input cost inflation remains a key risk.
Operating Leverage Emerges in Peak Quarters
Operating margin swung from -20.5% in 2026Q1 to 8.6% in 2026Q2, as per income statement data, demonstrating significant operating leverage as fixed costs are absorbed by higher volumes.
The dramatic swing from a loss in Q1 to profitability in Q2 highlights the high fixed-cost base and seasonal revenue concentration. In 2025Q3, operating margin reached 17.9% on $1.2B revenue, while Q1 losses persist, indicating that overhead efficiency improves sharply with scale. This pattern suggests that any sustained increase in demand could drive outsized earnings growth, but also exposes the company to weather-related disruptions.
Earnings Quality Supported by Low SBC and Tax Benefits
Net income in 2026Q2 was $43.9M with EPS of $0.77, while stock-based compensation was only $2.6M, as disclosed in financial statements, indicating limited dilution and high earnings quality.
SBC represents less than 3% of revenue, which is minimal compared to many industrials, suggesting reported earnings are not significantly inflated by non-cash charges. The effective tax rate appears to be in the mid-20s, with no major anomalies. However, the Q1 losses are structural and not indicative of underlying deterioration, as they reflect seasonal shutdowns.
Cost Structure Dominated by COGS and Seasonal SG&A
COGS as a percentage of revenue averaged 82.7% over the last four quarters, per income statement data, with SG&A relatively stable around $80M, indicating a variable cost base tied to materials and labor.
The high COGS ratio reflects the pass-through nature of materials and subcontracting costs in contracting services. SG&A has remained between $60M and $82M, showing discipline despite revenue fluctuations. The primary cost risk is liquid asphalt and diesel price volatility, which can compress margins on fixed-price contracts if not hedged or passed through.
2025Q3 Marks Peak Profitability Inflection
In 2025Q3, KNF achieved its highest quarterly operating margin of 17.9% and net income of $143.2M, as reported in financial statements, representing a clear inflection point in profitability.
This quarter demonstrated the company's earnings power at peak season, with revenue of $1.2B and gross margin of 23.8%. The subsequent quarters show a return to seasonal patterns, but the 2025Q3 results validate the integrated model's ability to generate strong returns. The lasting impact is a higher baseline for investor expectations, as the company must now prove it can sustain or exceed these margins in future peak periods.
Margin Compression Risk from Input Costs and Mix
Despite revenue growth, gross margin declined from 18.9% to 17.3% year-over-year in 2026Q2, as per income statement data, suggesting that cost inflation may be outpacing pricing power.
Short-sellers could argue that the 20% growth in contracting services, which carry lower margins, will continue to dilute overall profitability. Additionally, the persistent inflation in liquid asphalt and labor could erode margins on fixed-price contracts, especially if the company lacks adequate escalation clauses. The wide EPS beat in 2026Q2 ($0.77 vs. -$1.32 estimate) may have been flattered by one-off items, warranting scrutiny of sustainability.