BISMARCK, N.D. - Knife River Corporation (NYSE: KNF), a leading construction materials and contracting services firm, reported a narrower-than-expected loss for the first quarter, with revenue surpassing analyst projections.
Shares edged up 2.2% as the market responded positively to the earnings beat.
For the first quarter ended March 31, 2024, Knife River reported a loss per share of -$0.84, which was $0.06 better than the analyst estimate of -$0.90. Revenue rose to $329.6 million, a 7% increase compared to $307.9 million in the same quarter last year, and exceeded the consensus estimate of $311.44 million.
President and CEO Brian Gray attributed the record revenue to pricing strategies, disciplined bidding for higher-margin work, and strategic growth investments.
Despite a seasonal net loss, typical for the company due to reduced construction activity in northern markets during the first quarter, Knife River's backlog increased to $959.5 million with higher expected margins.
The company also noted a 66% increase in backlog additions compared to the previous year, driven by increased spending authority from transportation departments across Knife River's 14 states.
Looking ahead, Knife River reaffirmed its full-year 2024 guidance, expecting revenue in the range of $2.75 billion to $2.95 billion, aligning with the market consensus of $2.881 billion. The company anticipates mid-to-high single-digit price growth and flat to low-single-digit volume declines.
Gray expressed confidence in the company's position as they head into the construction season, saying, "We believe we have solid footing heading into the heart of the construction season, and I would like to thank our entire Knife River team for all of their efforts."
Investors are encouraged by the company's performance and strategic growth initiatives, including the recent acquisition of a ready-mix operation in South Dakota, marking Knife River's 85th acquisition. This move, along with an active acquisition pipeline, underscores the company's commitment to bolstering its portfolio and enhancing shareholder value.
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