Revenue growth of 16.0% in 2026Q1 appears heavily influenced by seasonal timing, while structural margin compression is evidenced by a gross margin decline to -0.7% during the off-season.
| Sales/Revenue | 3.2B | 3.15B | 2.9B | 2.83B | 2.53B | 2.23B |
| Revenue Growth % | 9.57% | 8.52% | 2.43% | 11.66% | 13.72% | - |
| Cost of Goods Sold | 2.62B | 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 | 585.88M | 577.3M | 569.83M | 538.93M | 360.89M | 346.95M |
| Gross Margin % | 18.29% | 18.35% | 19.66% | 19.04% | 14.24% | 15.57% |
| Gross Profit Growth % | - | 1.31% | 5.73% | 49.33% | 4.02% | - |
| Operating Expenses | 303.7M | 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 | 300.8M | 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 | 282.18M | 285.8M | 316.19M | 296.4M | 194.29M | 191.08M |
| Operating Margin % | 8.81% | 9.08% | 10.91% | 10.47% | 7.67% | 8.57% |
| Operating Income Growth % | - | -9.61% | 6.68% | 52.55% | 1.68% | - |
| EBITDA | 437.16M | 479.5M | 453.06M | 420.2M | 312.09M | 292.05M |
| EBITDA Margin % | 13.65% | 15.24% | 15.63% | 14.85% | 12.31% | 13.1% |
| EBITDA Growth % | 1.5% | 5.83% | 7.82% | 34.64% | 6.86% | - |
| D&A (Non-Cash Add-back) | 154.98M | 193.7M | 136.87M | 123.81M | 117.8M | 100.97M |
| EBIT | 373.18M | 295.1M | 326.24M | 303.4M | 188.94M | 192.43M |
| Net Interest Income | -66.64M | -81.9M | -55.24M | -58.1M | -30.12M | -19.22M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 87.34M | 81.9M | 55.24M | 58.1M | 30.12M | 19.22M |
| Other Income/Expense | -83.24M | -72.6M | -45.2M | -51.09M | -35.47M | -17.86M |
| Pretax Income | 198.94M | 213.2M | 270.99M | 245.31M | 158.82M | 173.21M |
| Pretax Margin % | 6.21% | 6.78% | 9.35% | 8.67% | 6.27% | 7.77% |
| Income Tax | 52.39M | 56.1M | 69.32M | 62.44M | 42.6M | 43.46M |
| Effective Tax Rate % | 26.33% | 26.31% | 25.58% | 25.45% | 26.82% | 25.09% |
| Net Income | 146.55M | 157.1M | 201.68M | 182.87M | 116.22M | 129.75M |
| Net Margin % | 4.58% | 4.99% | 6.96% | 6.46% | 4.59% | 5.82% |
| Net Income Growth % | -18.85% | -22.1% | 10.28% | 57.35% | -10.43% | - |
| Net Income (Continuing) | 146.61M | 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) | 2.58 | 2.76 | 3.55 | 3.23 | 2.05 | 2.29 |
| EPS Growth % | -18.93% | -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 | - | - | - | - | - | - |
Seasonal Margin Volatility
According to reported financial statements, Knife River Corporation experienced a 16.0% revenue increase in 2026Q1, though this growth appears heavily influenced by the company's inherent seasonality and the timing of project-based contracting revenue recognition rather than a sustained acceleration in underlying aggregate demand across its core markets.
The revenue trajectory remains highly sensitive to northern climate constraints, which creates significant quarterly variance. While the 16% year-over-year growth in the most recent quarter suggests robust activity, investors should monitor whether this reflects genuine market share gains or merely the timing of public infrastructure project completions.
As indicated by the income statement data, Knife River's gross margin plummeted to -0.7% in 2026Q1, highlighting the extreme impact of winter seasonality on a business model that relies on labor-intensive, weather-dependent construction services alongside its aggregate production operations.
The structural gross margin profile appears significantly lower than pure-play aggregate peers, likely due to the inclusion of lower-margin contracting services. This suggests that the company's profitability is highly vulnerable to input cost inflation, particularly in liquid asphalt and diesel, which can rapidly erode margins during periods of lower seasonal volume.
Based on the provided figures, Knife River's operating income remains highly volatile, swinging from a $215.2M profit in 2025Q3 to an $86.3M loss in 2026Q1, which suggests that the company's fixed cost base provides limited protection during the off-season months.
The company's SG&A expenses appear relatively sticky, failing to scale down proportionally with the sharp revenue declines seen in the first quarters of each year. This lack of operating leverage warrants further investigation into management's ability to optimize overhead costs during the winter months when construction activity is largely dormant.
Data from recent filings suggests that Knife River's reliance on percentage-of-completion accounting for its contracting arm introduces significant earnings uncertainty, as management's estimates of total project costs may mask underlying operational inefficiencies or potential cost overruns in the current inflationary environment.
Short-sellers might focus on the potential for 'underbillings' to accumulate on the balance sheet, which could signal that the company is struggling to convert its backlog into cash at the expected margins. The persistent volatility in quarterly EPS suggests that the market may be overestimating the stability of the company's integrated business model.
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.