Knife Riv Holding Co. · NYSE:KNF
Knife Riv — Q1 2025 Earnings Presentation
28 slides from Knife Riv's earnings presentation, May 6, 2025
Slide 1: Q1 2025 Results Presentation
Q1 2025 Results Presentation May 6, 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: First Quarter Highlights
First Quarter Highlights Investing for Long-Term Growth 2025 Guidance1 First Quarter Results 2025 Opportunities Revenue Revenue Adjusted EBITDA2 Adjusted EBITDA Infrastructure investment Margin2 supporting growth $3.25B - $3.45B Previously: $3.0B - $3.2B $353.5M Acquisition and integration $329.6M o
Slide 4: Seasonality
Seasonality Construction Activity is Influenced by Seasonality EBITDA1 Seasonality Average Temperature5 As a % of Full-Year Results January – March 2025 KNF 5-Year Avg 2 2025 Q1 with Strata/Albina 3, 4 KNF KNF 56% 31% 18% KNF Q1 Q2 Q3 Q4 (5%) (8%) 0 10 20 30 40 50 60 70 80 90 100 Degrees Fahrenheit
Slide 5: SG&A
SG&A Step-Up in SG&A: An Investment in Our Future SG&A Step-Up SG&A Step-Up $1.9M $1.7M $73.1M $5.8M $3.5M Other Investments in business development and EDGE EDGE $60.2M expected to drive growth in 2025 and beyond Business Strata / Development Albina Costs SG&A $20M step-up expected for full-year 20
Slide 6: Infrastructure Funding and Backlog
Infrastructure Funding and Backlog Public Funding Supports Healthy Backlog Funding Supports Infrastructure KNF Backlog Roads Need Rebuilding Development ($ in millions) ASCE Issues 2025 Infrastructure Report1 DOT Budgets at or Near Record Levels2 Backlog near 1Q24 record, at similar expected margins
Slide 7: 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 8: EDGE: Acquisition Growth
EDGE: Acquisition Growth Acquisition Program Contributing to Margin Expansion Strata Corporation Kalama River Quarry Closed in Q1 for $419M1 Closed in Q1 for $10M 30+ years of aggregate reserves, with rail 50 years of aggregate reserves 24 ready-mix plants, 3 asphalt plants, contracting se
Slide 9: Excellence
Excellence PIT Crews Help Drive Excellence Initiatives Operations: Improving Plant Production Commercial PIT Crew Aggregate Plant Improvements Deploying standard pricing/quoting system across materials product lines 10 plants visited 1Q25 Investments included Visibility into materials sales
Slide 10: First Quarter: Segment Performance
First Quarter: Segment Performance Geographic Energy West Mountain Central Consolidated3 Segments Services Revenue $208.3M $66.0M $67.9M $342.2M $13.9M $353.5M Revenue 5% 10% 11% 7% 9% 7% Growth Adjusted EBITDA1 $24.9M ($16.3M) ($24.3M) ($15.7M) ($7.8M) ($38.0M) Contracting $242.1M $418.3M $278.3M $
Slide 11: Product Line Results and Seasonality Trends
Product Line Results and Seasonality Trends Q1 Volumes Have Limited Influence on Full-Year Results Volume (in thousands) Q1 2025 Q1 2024 Change Average Selling Price1 Q1 2025 Q1 2024 Change Aggregates (tons) 3,867 4,255 (9%) Aggregates (per ton) $21.05 $19.80 6% Ready-mix concrete (cubic yards) 544
Slide 12: Disciplined, Returns-Focused Capital Management
Disciplined, Returns-Focused Capital Management Healthy Capital Position Supports Growth Initiatives Available Liquidity Debt Schedule 1Q25 Net Leverage2 Senior Notes $425.0M Fixed 7.75% Due 2031 Term Loan A Agreement $264.7M Floating 6.05% Due 2030 Term Loan B Agreement $500.0M 2.5x Revolver1 Float
Slide 13: 2025 Guidance
2025 Guidance Updated Full-Year Revenue and Adjusted EBITDA1 Guidance FY 2025 Guidance (in millions) Key Assumptions2 Low High Pricing Volume Revenue Mid-Single-Digit High-Single-Digit (Knife River Consolidated) $3,250M $3,450M Aggregates Increase Increase Mid-Single-Digit Adjusted EBITDA1 Ready-Mix
Slide 14: Appendix and Non-GAAP Financial Measures
Appendix and Non-GAAP Financial Measures 14
Slide 15: Attractive High-Growth Markets
Attractive High-Growth Markets Population and GSP Growth in Knife River States Population Growth in Knife River States Gross State Product2 CAGR (2014 – 2024) State 2014 –2024 Population CAGR1 % of 2024 Revenue Idaho 2.1% 13% 3.3% Texas 1.5% 7% ~65% of revenue 3.0% Washington 1.2% 1% generated in 2.
Slide 16: EBITDA and Adjusted EBITDA – Segment Reconciliation
EBITDA and Adjusted EBITDA – Segment Reconciliation Corporate Three Months Ended March 31, 2025 Geographic West Mountain Central Energy Services Services and Consolidated ($ in millions) Regions Eliminations Net income (loss) $8.0 $(23.5) $(35.5) $(51.0) $(11.0) $(6.7) $(68.7) Depreciation, depletio
Slide 17: EBITDA and Adjusted EBITDA – Segment Reconciliation
EBITDA and Adjusted EBITDA – Segment Reconciliation Twelve Months Ended December 31, Corporate Geographic Energy 2024 West Mountain Central Services and Consolidated Segments Services ($ in millions) Eliminations Net income (loss) $143.4 $87.1 $94.7 $325.2 $53.9 $(177.4) $201.7 Depreciation, depleti
Slide 18: EBITDA and Adjusted EBITDA – Historical Reconciliation
EBITDA and Adjusted EBITDA – Historical Reconciliation 2024 First Quarter Second Quarter Third Quarter Fourth Quarter Full Year ($ in millions) Net income (loss) $(47.6) $77.9 $148.1 $23.3 $201.7 Depreciation, depletion and amortization 32.2 34.5 34.8 35.4 136.9 Interest expense, net 11.1 12.8 12.1
Slide 19: EBITDA and Adjusted EBITDA – Historical Reconciliation
EBITDA and Adjusted EBITDA – Historical Reconciliation 2023 First Quarter Second Quarter Third Quarter Fourth Quarter Full Year ($ in millions) Net income (loss) $(41.3) $56.8 $146.7 $20.7 $182.9 Depreciation, depletion and amortization 29.6 31.1 31.8 31.3 123.8 Interest expense, net 9.5 17.1 14.7 1
Slide 20: EBITDA and Adjusted EBITDA – Historical Reconciliation
EBITDA and Adjusted EBITDA – Historical Reconciliation 2021 First Quarter Second Quarter Third Quarter Fourth Quarter Full Year ($ in millions) Net income (loss) $(30.8) $51.4 $96.3 $12.9 $129.8 Depreciation, depletion and amortization 23.4 25.3 25.5 26.8 101.0 Interest expense, net 4.7 4.8 4.8 4.8
Slide 21: Net Leverage Reconciliation
Net Leverage Reconciliation ($ in millions, except net leverage) As of March 31, 2025 As of December 31, 2024 As of September 30, 2024 As of June 30, 2024 Long-term debt $1,160.4 $666.9 $669.7 $672.5 Long-term debt – current portion 11.8 10.5 8.8 7.1 Total debt $1,172.2 $677.4 $678.5 $679.6 Add: Una
Slide 22: Net Leverage Reconciliation
Net Leverage Reconciliation ($ in millions, except net leverage) As of March 31, 2024 As of December 31, 2023 As of September 30, 2023 As of June 30, 2023 Long-term debt $673.5 $674.6 $675.6 $832.0 Long-term debt – current portion 7.1 7.1 7.1 7.1 Total debt $680.6 $681.7 $682.7 $839.1 Add: Unamortiz
Slide 23: Net Leverage Reconciliation
Net Leverage Reconciliation Twelve Months Ended Three Months Ended Twelve Months Ended Three Months Ended ($ in millions) March 31, 2025 March 31, 2025 December 31, 2024 March 31, 2024 Net income (loss) $180.6 $(68.7) $201.7 $(47.6) Depreciation, depletion and amortization 143.5 38.8 136.9 32.2 Inte
Slide 24: Net Leverage Reconciliation
Net Leverage Reconciliation Twelve Months Ended Nine Months Ended Twelve Months Ended Nine Months Ended ($ in millions) September 30, 2024 September 30, 2024 December 31, 2023 September 30, 2023 Net income (loss) $199.1 $178.4 $182.9 $162.2 Depreciation, depletion and amortization 132.8 101.5 123.8
Slide 25: Net Leverage Reconciliation
Net Leverage Reconciliation Twelve Months Ended Three Months Ended Twelve Months Ended Three Months Ended ($ in millions) March 31, 2024 March 31, 2024 December 31, 2023 March 31, 2023 Net income (loss) $176.6 $(47.6) $182.9 $(41.3) Depreciation, depletion and amortization 126.4 32.2 123.8 29.6 Inte
Slide 26: Net Leverage Reconciliation
Net Leverage Reconciliation Twelve Months Ended Nine Months Ended Twelve Months Ended Nine Months Ended ($ in millions) September 30, 2023 September 30, 2023 December 31, 2022 September 30, 2022 Net income (loss) $180.2 $162.2 $116.2 $98.2 Depreciation, depletion and amortization 121.7 92.5 117.8 88
Slide 27: Adjusted EBITDA Guidance Table
Adjusted EBITDA Guidance Table Full-Year Guidance 2025 (In millions) Low High Net income (loss) $200.0 $240.0 Interest expense, net 68.8 68.8 Income taxes 72.0 82.0 Depreciation, depletion and amortization 177.0 177.0 EBITDA $517.8 $567.8 Unrealized (gains) losses on benefit plan investments 0.7 0.7
Slide 28: Disclaimer
Disclaimer Our guidance for long-term Adjusted EBITDA margin, projected EBITDA contributions, 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-GA