Knife River makes ‘strong finish to a historic year’

By |  February 15, 2024

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Knife River, which reported its fourth-quarter and latest year-end financial results Thursday, made a variety of gains in its aggregate business late last year and throughout 2023.

In the fourth quarter, revenue produced by Knife River’s aggregate business was up 12.1 percent to $124.3 million, with gross profit related to aggregates increasing 24 percent to $19.1 million.

Companywide, Knife River reported consolidated revenue in the fourth quarter of $646.9 million – a 20 percent increase from the prior-year period. Price increases across all core product lines and an extended construction season throughout Knife River’s footprint drove the gains.

Additionally, Knife River says strong market fundamentals provided the backdrop to support pricing improvements and the company’s disciplined bidding strategy, contributing to a 15 percent year-over-year increase in net income to $20.7 million – and a 10 percent year-over-year increase in adjusted EBITDA to $72.4 million.

Knife River reported full-year 2023 consolidated revenue of $2.8 billion, a 12 percent increase from the prior-year period. Net income was $182.9 million, up 57 percent from the prior-year period. Adjusted EBITDA was $432.4 million, an increase of 38 percent versus the prior-year period, and adjusted EBITDA margin increased 290 basis points on a year-over-year basis to 15.3 percent in 2023.

“Our full-year 2023 results exceeded the high end of our revenue and adjusted EBITDA financial guidance,” says Brian Gray president and CEO of Knife River. “Our team had a strong finish to a historic year, one highlighted by three consecutive quarters of record revenue and adjusted EBITDA, resulting in full-year adjusted EBITDA margins in excess of 15 percent – an increase of nearly 300 basis points versus the prior year.

“We are proud to have surpassed our 15 percent adjusted EBITDA margin target two years ahead of plan, and we are on the path toward our long-term goal of adjusted EBITDA margins greater than 20 percent,” Gray adds.

Based on its 2023 results and the market dynamics currently at play, Knife River sees additional growth ahead in 2024.

“The fundamentals of our business are strong, and we believe our disciplined approach to pricing, bidding and operational execution will further position us to drive margin expansion in the year ahead,” says Nathan Ring, CFO at Knife River.

Knife River became an independent company in 2023.

“It has been an exciting, productive and rewarding year for us,” Gray says. “We are a people-first company, and I would like to thank our team for delivering these outstanding results. We are excited by the opportunities for our business in the year ahead and look forward to this next, exciting chapter of growth.”

Featured photo: P&Q Staff

Related: CEO reflects on Knife River’s culminating moment

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About the Author:

Kevin Yanik is editor-in-chief of Pit & Quarry. He can be reached at 216-706-3724 or

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