Knife River Holding Co 2024年度报告

5,900 TEAM MEMBERSAT PEAK SEASON 1.2billiontons of aggregate reserves 4largest producer of sandand gravel in the USth- Adj. EBITDA Margins116.0% 3-year avg ROIC of 14.4%2 Note: All data is as of Dec. 31, 2024, unless otherwise noted. REPORTING SEGMENTSNorthwestPacificNorthwest Mix plant(106 total plants)plant(51 total plants)asphalt terminal(9 total terminals)Aggregate site(182 active sites)Ready-Mix plant(106 total plants)Asphalt plant(51 total plants)Liquid asphalt terminal(9 total terminals) PRODUCT LINES ASPHALT Downstream product used for smooth, durable surfaces on highways,streets and parking lots. 51 plants across 10 states. AGGREGATES LIQUID ASPHALT 1.2 billion tons of reserves with strategic locations near end users and/or multimodal transportation. Reliable supply of high-quality materialsis a competitive advantage. Binding agent used with aggregates to produce asphalt. 9 terminalsacross 7 states. READY-MIX CONCRETE CONTRACTING SERVICES Versatile and specialized value-added product. 106 plants across 13states, and a fleet of delivery trucks. Reliable pull-through demand of materials. Public works focused;adds resiliency and contributes to ROIC. COMPETITIVE EDGE - 2024 Initiatives Strengthen position throughorganic and inorganic growthopportunities Strong balance sheet anddisciplined allocation of capital Be best in class in allaspects of the business Commercial and operationalmargin-expansion initiatives Completed $131M of acquisitionsin 2024 and announced $454Mpending acquisition of StrataCorporation (which closed in March2025). Reduced net leverage to 1.0x, well-below long-term target of 2.5x.3,6 Continued to optimize pricing formaterials, leading to high-single-digit increases for aggregates. Created new position of ChiefExcellence Officer and expandedProcess Improvement Teams (PITCrews) from one materials-focusedteam to multiple teams focusedon three key areas: commercialexcellence, operational excellenceand standardization. Prudent management of our networking capital. Focused on margins for contractingservices, improving gross profitmargin by 160bps. Ample liquidity, with $329M ofrevolver capacity and $237M ofunrestricted cash. Robust acquisition pipelineand several organic growthopportunities for 2025. 2| Knife River Corporation 2024 SEGMENT RECAP PROGRESS ON STRATEGIC OBJECTIVES “REPORT TO SHAREHOLDERS Combined, these EDGE efforts helped us achieve recordresults, and we improved our Adjusted EBITDA margin1toward our long-term goal of exceeding 20 percent.3In 2025,we expect EDGE will continue to accelerate our growth. Dear Shareholders, As we approach our second anniversary as a publicly tradedcompany in June 2025, we are proud to have already deliveredtwo years of record results. 2025 EDGE UpdateAs a reminder, the letters in “EDGE” stand for EBITDA We followed up our record 2023 performance with an evenbetter 2024 – a testament to the success of our CompetitiveEDGE strategy and the dedication of the entire Knife Riverteam. Margin1Improvement, Discipline, Growth and Excellence. Wehave several line-of-sight opportunities to help us reach ourgoals and drive profitable growth. As we look to 2025 and beyond, I’m excited about theopportunities we have to grow and create long-term value forour shareholders. Knife River is an aggregates-led, verticallyintegrated construction materials and contracting servicescompany, and we believe we are uniquely positioned tosupport the infrastructure buildout across our markets. E:Our adjusted EBITDA margin1of 16 percent in 2024represents a 360-basis-point improvement from 2022. We arecommitted to our long-term goal of reaching and exceeding20 percent, which we expect to do by optimizing our prices,controlling our costs, growing (both organically and throughacquisitions) and becoming best in class in all areas of ourbusiness.3 Record ResultsIn 2024, Knife River achieved record revenue, net income, D:In 2024, we mostly completed the hard work of resettingour customer base – and we expect aggregate, ready-mix andasphalt volumes and prices to increase in 2025. In contractingservices, we remain committed to our “quality over quantity”approach of pursuing higher margins on bid day and thenexecuting in the field. We also have maintained a strongbalance sheet, putting us in a good position to reinvest in ourbusiness through growth initiatives. adjusted EBITDA1and adjusted EBITDA margin.1In additionto a strong funding backdrop, we believe our EDGE initiativesdirectly contributed to our success: • Our efforts to optimize prices drove annual priceincreases of 7 percent for aggregates and 10 percent forready-mix. G:In March 2025, we closed on the acquisition of StrataCorporation, an aggregates-led, vertically integrated companybased in our home state of North Dakota. Strata adds well • At the same time, we focused on controlling our costs.Our Process Improvement Teams (PIT Crews) visited 58plants, continuing to improve ou