Knife Riv Holding Co. · NYSE:KNF
Knife Riv — Knife River — Investor Presentation (September 2025)
39 slides from Knife Riv's investor presentation, September 2025
Slide 1: Investor Presentation September 2025
Investor Presentation September 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: Today's Presenters
Today’s Presenters Brian Gray Nathan Ring Zane Karimi President and Chief Vice President and Chief Director of Investor Relations Executive Officer Financial Officer and Executive Support 3
Slide 4: Our History of Execution and Growth
Our History of Execution and Growth 1992: Acquired first aggregate site 2022: Announced spin off from MDU Resources 2008: Introduced Knife River branding 2023: Future of Independent Knife River Build to Scale Operational Excellence Sustainable Growth EDGE 1992 – 2007 2008 – 2017 2018 – 2022 2023 + E
Slide 5: Leading Vertically Integrated Materials and Services Provider
Leading Vertically Integrated Materials and Services Provider Revenue Mix by Product3 Aggregates – 16% of Revenue • 1.2 billion tons of reserves with strategic locations near end users and/or multi-modal transportation. Reliable supply of high-quality materials is a competitive advantage. Ready-Mix
Slide 6: Oregon Economy: Reduced Demand Impacts Results
Oregon Economy Oregon: Reduced Demand Impacts Results Public Private Long-Term Growth Market Source: Oregon DOT • KNF EBITDA Margin1 leader ‒ Accretive for the past 9 years ‒ Expect to be accretive in 2025 • DOT construction budget diverted from • Legislature expected to address transportation aspha
Slide 7: Oregon Update: Positioned for Long-Term Success; Navigating Current Headwinds
Oregon Update Positioned for Long-Term Success; Navigating Current Headwinds Oregon Strengths Oregon News and Updates Northwest Performance Provides a Proven Blueprint1 Current Economic and Operational News 750 $692 $200 Oregon Economy Revenue $150 550 $150 EBITDA2 “Oregon economy will take $888 m
Slide 8: Infrastructure Industry Demand and Healthy Funding Leads to Record Backlog
Infrastructure Industry Demand and Healthy Funding Leads to Record Backlog Industry Backdrop Funding Environment KNF Backlog ASCE Issues 2025 Infrastructure Report1 Record DOT Funding in FY262,3 Record Backlog of $1.3 Billion; +27% Y/Y4 2025 2026 % Chg. West $30.2 $31.0 +2% “D+” grade for roads and
Slide 9: Data Centers: Growing End Market With Activity Across Each Segment
Data Centers Growing End Market With Activity Across Each Segment Current Data Center Projects Trusted Partner Key Markets Trusted by industry leaders across 19 current data center multiple regions and multiple services projects Opportunity to benefit from repeat Multiple ways KNF business a
Slide 10: 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) State 2014 –2024 Population CAGR1 % of 2024 Revenue 13% 7% ~65% of revenue 1% generated in 7% states growing 6% faster than the 8% US average
Slide 11: Attractive Industry with Structural Growth Drivers
Attractive Industry with Structural Growth Drivers US Aggregates Volumes1 US Aggregates Values1 (in mmT) (in mm USD) 3,500 100 $40,000 $800 Knife River Aggregates Volume Knife River Aggregates Revenue Total US Aggregates Volume Total US Aggregates Value 90 $35,000 $700 3,000 80 2,500 $30,000 $600 70
Slide 12: Backlog: Infrastructure Investment Drives Record 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 Newly added backlog includes six jobs over $30M Secured backlog includes 91% dedicated public Record backlog at sl
Slide 13: Designed for Resilience Across Cycles
Designed for Resilience Across Cycles Strategically Diversified Customer Base Designed to Ensure Resilience Through Down Cycles Revenue Growth, Peak to Trough (2007-2012)1 EBITDA Margin, Peak to Trough (2007-2012)1 (750)bps (23%) Peer Range Peer Range (1,450)bps (43%) 1 Figures represent the differe
Slide 14: Industry-Leading Returns on Invested Capital
Industry-Leading Returns on Invested Capital Disciplined Capital Allocation Designed to Sustain Attractive Industry Leading ROIC 3-Year Average ROIC (2022-2024)1 14.3% Peer Range 7.4% 1 ROIC is a non-GAAP measure, see Appendix for reconciliation. Note: Peers used for comparison: Construction Partner
Slide 15: Northwest Region Provides Proven Roadmap to Execute our EDGE Plan
Northwest Region Provides Proven Roadmap to Execute our EDGE Plan Execution of the Pre-EDGE “PLAN-GROW-ENJOY” Strategy Led to Rapid Profitable Growth and Strong ROIs 1 EDGE - Key Expected Drivers: 1 • Deliver strong growth from newly completed state-of-the-art Spokane prestress manufacturing facilit
Slide 16: Executing on Our Competitive EDGE Strategy
Executing on Our Competitive EDGE Strategy EBITDA Margin Discipline Growth Excellence Improvement Strong balance sheet and Strengthen position through Commercial and operational Be best in class in all aspects disciplined allocation of organic and acquisition excellence initiatives of the business c
Slide 17: EDGE: EBITDA Margin Growth
EDGE: EBITDA Margin Growth Actively Pursuing Self-Help Initiatives to Drive Margin Improvement Commercial and Operational Process Improvements World-Class Training Center Process Improvement Teams (PIT Crews) and Best-In-Class Initiatives are Expected to Improve Margins Focus on Recruiting, Training
Slide 18: Disciplined Growth
Disciplined Growth Acquistion and Organic Opportunities Across our Footprint Acquistion Strategy Organic Strategy M&A opportunities remain materials-focused and located within our high growth, Disciplined allocation of capital towards organic investments mid-sized markets supplements our robust M&A
Slide 19: Investing for Growth
Investing for Growth Expanded Corp Development Team | Robust Pipeline | Compelling Growth Opportunities Corporate Development Update Organic Investments • Expanded Corporate Development team at HQ and regions Quarry With Rail Service in South Dakota to review deals, manage diligence, support integra
Slide 20: Capital Allocation
Capital Allocation Investments Support Operations and Drive Growth Maintenance Improvements Organic Acquisition Plant & equipment and EDGE-related upgrades to Greenfield growth in new Target mid-sized, high-growth aggregate reserve replacement existing operations to increase markets or new operation
Slide 21: Disciplined, Returns-Focused Capital Management
Disciplined, Returns-Focused Capital Management Capital Position Remains Healthy Available Liquidity Debt Schedule 2Q25 Net Leverage ($ in millions) Senior Notes $425.0 Fixed 7.75% Due 2031 $321M Term Loan A Agreement $263.0 Variable 6.05%2 Due 2030 Term Loan B Agreement $498.8 Revolver1 Variable 6.
Slide 22: 2025 Guidance
2025 Guidance1 Updated Full-Year Revenue and Adjusted EBITDA2 Guidance FY 2025 Guidance Key Assumptions3 Low High Pricing Volume Revenue High-Single-Digit Mid-Single-Digit (Knife River Consolidated) $3,100M $3,300M Aggregates Increase Increase Mid-Single-Digit Adjusted EBITDA1 Ready-Mix Increase Low
Slide 23: Guidance Detail
Guidance Detail1 $55M Guidance Revision2: 75% Weighted to First Half 2025 First-Half Actual 2025 Second-Half Anticipated1 Softer Oregon market Continued softness in Oregon Headwind Headwind Unfavorable weather impacting volumes Energy Services Energy Services Lack of paving in Montana Lack of asphal
Slide 24: Second Quarter Highlights
Second Quarter Highlights Results Slowed by Wet Weather, Oregon Economy 2025 Guidance1,2 Second Quarter Results Recap & Outlook1 Revenue Weather and Oregon impact Revenue Adjusted EBITDA4 Adjusted EBITDA first half results, full-year $3.10B - $3.30B Margin4 guidance Previously2: $3.25B - $3.45B Reco
Slide 25: 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 26: 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 27: Appendix and Non-GAAP Financial Measures
Appendix And Non-GAAP Financial Measures
Slide 28: 2024 Segment Performance
2024 Segment Performance Record Adjusted EBITDA1 | Adjusted EBITDA Margin1 of 16% Geographic Energy Pacific Northwest Mountain Central Consolidated3 Segments2 Services 2024 Revenue $493.1M $692.4M $663.1M $818.1M $2,666.7M $275.7M $2,899M 2024 Revenue 7% 4% 5% (1%) 3% (6%) 2% Growth 2024 Adjusted $5
Slide 29: 2024 Full-Year Product Line Results
2024 Full-Year Product Line Results Aggregate and Ready-Mix Pricing Momentum Continues Volume 2023 2024 Change Average Selling Price1 2023 2024 Change Aggregates (tons) 33,637 31,832 (5%) Aggregates (per ton) $16.29 $17.47 7% Ready-mix concrete (cubic yards) 3,837 3,484 (9%) Ready-mix concrete (per
Slide 30: EBITDA and Adjusted EBITDA – Segment Reconciliation
EBITDA and Adjusted EBITDA – Segment Reconciliation Corporate Three Months Ended June 30, 2025 Geographic Energy Services and ($ in millions) West Mountain Central Regions Services Eliminations Consolidated Net income (loss) $43.5 $23.2 $22.7 $89.4 $13.9 ($52.7) $50.6 Depreciation, depletion and amo
Slide 31: EBITDA and Adjusted EBITDA – Segment Reconciliation
EBITDA and Adjusted EBITDA – Segment Reconciliation Corporate Six Months Ended June 30, 2025 Geographic Energy Services and ($ in millions) West Mountain Central Regions Services Eliminations Consolidated Net income (loss) $51.6 ($0.3) ($12.7) $38.6 $2.9 ($59.6) ($18.1) Depreciation, depletion and a
Slide 32: EBITDA and Adjusted EBITDA – Segment Reconciliation
EBITDA and Adjusted EBITDA – Segment Reconciliation Corporate Twelve Months Ended December 31, 2024 Geographic Energy Services and ($ in millions) West Mountain Central Regions Services Eliminations Consolidated Net income (loss) $143.4 $87.1 $94.7 $325.2 $53.9 ($177.4) $201.7 Depreciation, depletio
Slide 33: Net Leverage Reconciliation
Net Leverage Reconciliation ($ 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 $673.5 Long-term debt – current portion 11.8 11.8 10.5 8.8
Slide 34: Net Leverage Reconciliation
Net Leverage Reconciliation Twelve Months Ended Six Months Ended Twelve Months Ended Six Months Ended ($ in millions) June 30, 2025 June 30, 2025 December 31, 2024 June 30, 2024 Net income (loss) $153.3 ($18.1) $201.7 $30.3 Depreciation, depletion and amortization 159.1 88.9 136.9 66.7 Interest expe
Slide 35: Net Leverage Reconciliation
Net Leverage Reconciliation Twelve Months Ended ($ in millions) 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 36: Net Leverage Reconciliation
Net Leverage Reconciliation Twelve Months Ended Six Months Ended Twelve Months Ended Six Months Ended ($ in millions) June 30, 2024 June 30, 2024 December 31, 2023 June 30, 2023 Net income (loss) $197.7 $ 30.3 $182.9 $15.5 Depreciation, depletion and amortization 129.8 66.7 123.8 60.7 Interest expen
Slide 37: Return on Invested Capital (ROIC)
Return on Invested Capital (ROIC) Twelve Months Twelve Months Twelve Months ($ in millions, except for ROIC Ended Ended Ended value) December 31, December 31, December 31, 2024 2023 2022 Operating Income $316.2 $296.4 $194.3 Average Shareholders’ Equity 1,371.1 1,147.3 990.7 Average Debt (ex. Operat
Slide 38: 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 39: Disclaimer
Disclaimer Our guidance for long-term Adjusted EBITDA margin and 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 provide guidance for these non-GAAP metrics described above, we do