Is the business good?
How good a business is KNF?
Knife River Corporation earns 7.5% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
7.5%
Return on invested capital · cost of capital 9.0% · 1.5 points below what the capital costs: growth destroys value
- Operating margin
- 8.8%
Operating margin · Building Materials median 18% · 12 months to Q1 2026
- Cash conversion
- −0.04×
Cash conversion · 0.20× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- +0.15%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 8.6% |
| FY2022 | 7.7% |
| FY2023 | 10% |
| FY2024 | 11% |
| FY2025 | 9.1% |
Details›
- Gross margin12 months to Q1 2026
- 18%
- Operating margin12 months to Q1 2026
- 8.8%
- Net margin12 months to Q1 2026
- 4.6%
- Free cash flow margin
- −0.16%
- Revenue, trailing twelve months
- $3.20B
- Free cash flow, trailing twelve months
- −$5.2M
- Net income, trailing twelve months
- $147M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 7.5%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.