Knife Riv Holding Co. · NYSE:KNF
Knife Riv — Q2 2025 Earnings Presentation
25 slides from Knife Riv's earnings presentation, Aug 5, 2025
Slide 1: Q2 2025 Results Presentation
Q2 2025 Results Presentation August 5, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements The information in this presentation highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries, including with respect to the benefits of acquisitions. Many of these highlighted statements and other statements not histor
Slide 3: Second Quarter Highlights
Second Quarter Highlights Results Slowed by Wet Weather, Oregon Economy 2025 Guidance1 Second Quarter Results Recap and Outlook Revenue Weather and Oregon impact Revenue Adjusted EBITDA3 Adjusted EBITDA first half results, full-year $3.10B - $3.30B Margin3 guidance Previously2: $3.25B - $3.45B $834M
Slide 4: Weather Rainfall Delayed Work
Weather Rainfall Delayed Work Impacted Volumes, Margin Q2 Impact to Key Markets Precipitation Departures from Average April-June 2025 Significant rainfall in Central and parts of Mountain postponed work Materials volumes and contracting services revenue impacted by lost work days Energy Services vol
Slide 5: Oregon Economy
Oregon Economy Oregon: Reduced Demand Impacts Results Public Private Long-Term Growth Market ODOT Pavement Funding Projections (Millions) Crane Count Shows Slower Construction Activity in Portland, OR $140 Source: RLB Crane Index 40 $100 Source: Oregon DOT $80 20 • KNF EBITDA Margin1 leader 0 2024 2
Slide 6: Backlog
Backlog Infrastructure Investment Drives Record Backlog Backlog Burn Rate Stable Public Funding 27% Increase % Work to be Completed < 12 Months % Public Work $1.3B 95% 91% 87% 80% $1.0B 2Q24 2Q25 2Q24 2Q25 2Q24 2Q25 Newly added backlog includes six jobs over $30M Secured backlog includes 91% dedicat
Slide 7: Infrastructure Funding
Infrastructure Funding Record DOT Budgets1 Driving Investment Funding Supports Infrastructure Roads Need Rebuilding Growth in Infrastructure Activity Development ASCE Issues 2025 Infrastructure Report2 DOT Budgets at or Near Record Levels1 TTM Highway & Paving Contract Awards Have Improved • 58% of
Slide 8: Executing on Our Competitive EDGE Strategy
Executing on Our Competitive EDGE Strategy EBITDA Margin Discipline Growth Excellence Improvement Strengthen position through Commercial and operational Strong balance sheet and Be best in class in all aspects organic and acquisition excellence initiatives disciplined allocation of capital of the bu
Slide 9: Excellence
Excellence PIT Crews Help Drive Excellence Initiatives: Q2 Update Operational Commercial Standardization • Materials team visited 17 plants in OR, ID, TX • Implemented materials-quoting tool to support ready-mix sales • Rolled out new "I Choose Safety" • Financial and operational training to all pro
Slide 10: Second Quarter: Segment Performance
Second Quarter: Segment Performance Geographic Energy West Mountain Central Consolidated3 Segments Services Revenue $317.4M $176.1M $255.2M $748.7M $97.4M $833.8M Revenue (5)% (9)% 19% 1% 28% 3% Growth Adjusted EBITDA1 $60.7M $30.9M $44.4M $136.0M $17.1M $140.8M Contracting Services $282.4M $483.4M
Slide 11: Product Line Results
Product Line Results Pricing Momentum Partially Offsets Lower Volumes Volume (in thousands) 2Q24 2Q25 Change Average Selling Price1 2Q24 2Q25 Change Aggregates (tons) 9,408 8,826 (6)% Aggregates (per ton) $16.84 $18.80 12% Ready-mix concrete (cubic yards) 975 1,041 7% Ready-mix concrete (per cubic y
Slide 12: Disciplined, Returns-Focused Capital Management
Disciplined, Returns-Focused Capital Management Capital Position Remains Healthy Available Liquidity Debt Schedule 2Q25 Net Leverage2 ($ in millions) Senior Notes $425.0 Fixed 7.75% Due 2031 $321M Term Loan A Agreement $263.0 3.1x Variable 6.05%2 Due 2030 Term Loan B Agreement $498.8 Revolver1 Varia
Slide 13: 2025 Guidance
2025 Guidance Updated Full-Year Revenue and Adjusted EBITDA1 Guidance FY 2025 Guidance Key Assumptions2 Low High Pricing Volume Revenue High-Single-Digit Mid-Single-Digit (Knife River Consolidated) $3,100M $3,300M Aggregates Increase Increase Mid-Single-Digit Low-Double-Digit Adjusted EBITDA1 Ready-
Slide 14: Guidance Detail
Guidance Detail $55M Guidance Revision1: 75% Weighted to First Half 2025 First-Half Actual 2025 Second-Half Anticipated Softer Oregon market Continued softness in Oregon Headwind Headwind Unfavorable weather impacting volumes Energy Services Energy Services Lack of paving in Montana Lack of asphalt
Slide 15: Appendix and Non-GAAP Financial Measures
Appendix and Non-GAAP Financial Measures 15
Slide 16: Attractive High-Growth Markets
Attractive High-Growth Markets Population and GSP Growth in Knife River States Population Growth in Knife River States Gross State Product2 CAGR (2014 – 2024) 1 State 2014 –2024 Population CAGR % of 2024 Revenue 13% 7% ~65% of revenue 1% generated in 7% states growing 6% faster than the 8% US averag
Slide 17: EBITDA and Adjusted EBITDA – Segment Reconciliation
EBITDA and Adjusted EBITDA – Segment Reconciliation Corporate Three Months Ended June 30, 2025 Geographic Energy Services and ($ in millions) West Mountain Central Regions Services Eliminations Consolidated Net income (loss) $43.5 $23.2 $22.7 $89.4 $13.9 ($52.7) $50.6 Depreciation, depletion and amo
Slide 18: EBITDA and Adjusted EBITDA – Segment Reconciliation
EBITDA and Adjusted EBITDA – Segment Reconciliation Corporate Six Months Ended June 30, 2025 Geographic Energy Services and ($ in millions) West Mountain Central Regions Services Eliminations Consolidated Net income (loss) $51.6 ($0.3) ($12.7) $38.6 $2.9 ($59.6) ($18.1) Depreciation, depletion and a
Slide 19: EBITDA and Adjusted EBITDA – Segment Reconciliation
EBITDA and Adjusted EBITDA – Segment Reconciliation Corporate Twelve Months Ended December 31, 2024 Geographic Energy Services and ($ in millions) West Mountain Central Regions Services Eliminations Consolidated Net income (loss) $143.4 $87.1 $94.7 $325.2 $53.9 ($177.4) $201.7 Depreciation, depletio
Slide 20: Net Leverage Reconciliation
Net Leverage Reconciliation ($ in millions, except net leverage) As of June 30, 2025 As of March 31, 2025 As of Dec. 31, 2024 As of Sept. 30, 2024 As of June 30, 2024 As of March 31, 2024 Long-term debt $1,341.2 $1,160.4 $666.9 $669.7 $672.5 $673.5 Long-term debt – current portion 11.8 11.8 10.5 8.8
Slide 21: Net Leverage Reconciliation
Net Leverage Reconciliation ($ in millions) Twelve Months Ended Six Months Ended Twelve Months Ended Six Months Ended June 30, 2025 June 30, 2025 December 31, 2024 June 30, 2024 Net income (loss) $153.3 ($18.1) $201.7 $30.3 Depreciation, depletion and amortization 159.1 88.9 136.9 66.7 Interest expe
Slide 22: Net Leverage Reconciliation
Net Leverage Reconciliation ($ in millions) Twelve Months Ended December 31, 2024 Net income (loss) $201.7 Depreciation, depletion and amortization 136.9 Interest expense, net 46.4 Income taxes 69.3 EBITDA $ 454.3 Unrealized (gains) losses on benefit plan investments (2.9) Stock-based compensation e
Slide 23: Net Leverage Reconciliation
Net Leverage Reconciliation ($ in millions) Twelve Months Ended Six Months Ended Twelve Months Ended Six Months Ended June 30, 2024 June 30, 2024 December 31, 2023 June 30, 2023 Net income (loss) $197.7 $ 30.3 $182.9 $15.5 Depreciation, depletion and amortization 129.8 66.7 123.8 60.7 Interest expen
Slide 24: Adjusted EBITDA Guidance Table
Adjusted EBITDA Guidance Table Full-Year Guidance 2025 (In millions) Low High Net income (loss) $143.4 $182.6 Interest expense, net 79.0 79.0 Income taxes 51.7 62.5 Depreciation, depletion and amortization 190.5 190.5 EBITDA $464.6 $514.6 Unrealized (gains) losses on benefit plan investments (1.0) (
Slide 25: Disclaimer
Disclaimer Our guidance for long-term Adjusted EBITDA margin, projected EBITDA contributions, long-term net leverage and year-end net leverage are non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from our U.S. GAAP financial statements. When we p