Revenue was up 3 percent in the second quarter at Knife River Corp., which reported decreases in net income (down 35 percent) and adjusted EBITDA (down 9 percent) upon releasing its latest financial results.
Knife River says above-average precipitation in the quarter impacted its ability to get into the field while delaying projects in much of its footprint – particularly in the Central, Mountain and Energy Services segments.
In the Central segment, the company says key markets experienced rain on nearly 40 percent of available workdays. Additionally, Knife River says flooding in Texas last month limited truck and rail access to its Honey Creek Quarry.
In the Mountain segment, Knife River had rain on nearly 40 percent of the second quarter’s workdays in Cheyenne, Wyoming, and Billings, Montana.
“While we had a slower start to the construction season than anticipated – primarily due to wet weather throughout many of our states, project availability in Oregon and project timing in Mountain – these are challenges we have seen before and successfully managed,” says Brian Gray, president and CEO of Knife River. “Knife River is built to deliver shareholder value through growth and resiliency over the long term.”
A $1.3 billion backlog gives Knife River reason for optimism. The backlog is nearly 30 percent higher than the same period last year.
“While second-quarter financial results were below our expectations, we built our backlog to an all-time record of $1.3 billion and continued to invest in Knife River’s long-term success, including two new acquisitions since the first quarter and additional process improvements,” Gray says. “We believe these investments, along with a laser focus on our Competitive EDGE strategy, our proven business model and the nation’s clear demand for infrastructure development, will continue to drive meaningful growth at Knife River for years to come.
“We remain focused on price optimization, cost control and executing on our record backlog,” Gray adds. “Our nation’s roads need repair, funding levels are at or near record levels in most of our markets and we continue to improve our business through our EDGE initiatives. Knife River is resilient, and we believe we are well-positioned for long-term success.”
