Knife River Corporation announced second-quarter 2025 financial results that were below expectations, with consolidated revenue increasing 3% year-over-year to $833.8 million. However, net income decreased 35% to $50.6 million, and adjusted EBITDA fell 9% to $140.8 million.
The company cited unfavorable weather conditions across many states, reduced project availability in Oregon, and project timing in the Mountain segment as primary factors impacting performance. The Oregon market experienced fewer bid lettings and no new transportation funding bill, creating a headwind.
As a result of these challenges, Knife River revised its full-year 2025 guidance, projecting consolidated revenue between $3.1 billion and $3.3 billion, and adjusted EBITDA between $475 million and $525 million. This revised guidance incorporates the impacts of Texas flooding and the Oregon economy.
Despite the financial headwinds, Knife River achieved a record backlog of $1.3 billion as of June 30, 2025, representing a nearly 30% increase from the prior year. The company's net leverage stood at 3.1x at quarter-end, with management expecting it to fall below the long-term target of 2.5x by year-end.
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