Knife River Corp

Vertically integrated aggregates and construction-materials provider with quality reserves but only mid-pack margins and an earnings dip.

Strengths

• 1.3B tons of permitted, hard-to-replicate aggregate reserves underpin a real moat
• ROA in the 75th pct, revenue +8.5%, solid liquidity (current ratio 2.54)
• Diversified public-sector-weighted customer base reduces cyclicality

Risks

• Net income down 22% year-over-year; margins (net 5%, operating 9.1%) cluster near median
• Acquisition-driven growth carries integration and leverage risk (Strata $454M)
• Seasonal and cyclical demand tied to public infrastructure funding

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Revenue declineRevenue -45.7% YoY