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Knife River's 2025 Surge: Record Backlog and 7% EBITDA Growth

A year of bold moves: Knife River smashes records with a $1B backlog and strategic acquisitions. What's next for this construction powerhouse?

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1 min read
The image shows a large building under construction in the middle of a field, with stairs leading...
The image shows a large building under construction in the middle of a field, with stairs leading up to it, surrounded by grass and trees in the background, and a clear blue sky above.

Knife River's 2025 Surge: Record Backlog and 7% EBITDA Growth

Knife River Corporation has reported strong financial results for 2025, calling it a year of strategic progress. The company saw adjusted EBITDA rise by 7% to $497 million, while its backlog hit a record $1 billion. CEO Brian Gray highlighted the growth as a key achievement for the business.

The company's performance was driven by strong regional results. In the West segment, Legacy Pacific operations achieved record profitability, balancing out weaker economic conditions in Oregon. Meanwhile, the Central segment expanded through three acquisitions and the integration of Strata. The Mountain segment also saw nearly 20% growth in construction revenue during the quarter.

Financial improvements were equally notable. CFO Nathan Ring announced a 47% jump in adjusted EBITDA for the fourth quarter, alongside a 340 basis point increase in the adjusted EBITDA margin. These gains came as Knife River completed five acquisitions in 2025, including Texcrete, boosting its market position.

Looking ahead, the company has set ambitious targets for 2026. It forecasts consolidated revenue between $3.3 billion and $3.5 billion, with adjusted EBITDA expected to reach $520 million to $560 million. Management also anticipates mid-single-digit growth in aggregates volumes and mid-teens improvement in ready-mix volumes. While no new acquisitions have been announced since the Montana deal, further mergers and acquisitions remain on the agenda for the year.

Knife River enters 2026 with a $1 billion backlog, up 38% from the previous year. The company's focus on acquisitions and operational efficiency has set the stage for continued expansion. Analysts will watch closely for further deals as the main construction season approaches.

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