Knife River sees record growth in third quarter

By |  November 7, 2023

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Knife River Corp. saw record results in the third quarter, with increases in revenue, gross profit and EBITDA.

According to Knife River, its net revenue in construction materials was up nearly 14.5 percent in the third quarter to $553.1 million. Company-wide revenue increased 12 percent to $1.09 billion.

Knife River’s gross profit reached $269.4 million – a 46 percent increase from the third quarter of 2022. The company’s EBITDA grew 40 percent in the quarter to $241.4 million.

“We have achieved record financial results in consecutive quarters, driven in part by our ‘Competitive EDGE’ strategy and in part by the strong markets where we operate,” says Brian Gray, Knife River president and CEO. “Our third quarter 2023 revenue, net income, EBITDA and Adjusted EBITDA were better than any quarter in Knife River history.

According to the company, strong results in each region and double-digit price increases across all core product lines – aggregates, ready-mix concrete, asphalt and contracting services – drove its third-quarter growth.

“Price increases outpaced costs for the quarter and positively contributed to our margins, as we made further progress toward our previously stated margin-expansion goals,” Gray says.

He adds that local, state and federal funding is fueling long-term optimism.

“As of August, nearly $80 billion in funding from the Infrastructure Investment & Jobs Act has been allocated to projects in states where Knife River operates,” Gray says. “Additionally, states are also approving their own infrastructure spending, with Texas and Minnesota each recently announcing significant new funding for transportation infrastructure.”

Related: CEO reflects on Knife River’s culminating moment

Jack Kopanski

About the Author:

Jack Kopanski is the Managing Editor of Pit & Quarry and Editor-in-Chief of Portable Plants. Kopanski can be reached at 216-706-3756 or jkopanski@northcoastmedia.net.

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