Shares of Knife River Corp fell to a 52-week low of $58.72 on Wednesday, erasing roughly a third of their value from a year-ago high of $96.28, after the construction materials company reported a second-quarter earnings miss and an analyst downgraded its stock.
The Portland, Oregon-headquartered firm reported second-quarter earnings per share of $0.77, well below Wall Street’s consensus estimate of $1.75. Revenue rose 13% to $938.6 million, but the profit shortfall stemmed from elevated fuel costs and weather-related delays that weighed on margins.
JPMorgan downgraded Knife River to Underweight from Neutral, lowering its price target to $73 from $80, citing concerns about margin compression — particularly in Oregon, the company’s largest market. The bank’s assessment underscores investor unease about the path for profitability even as top-line growth holds up.
Despite the quarterly stumble, Knife River raised its full-year 2026 revenue guidance to $3.4 billion–$3.6 billion and reaffirmed adjusted EBITDA guidance of $520 million–$560 million. DA Davidson initiated coverage with a Buy rating and an $85 price target, underpinned by a fiscal year 2027 EBITDA forecast of $575 million.
The stock, which carries a market capitalization of approximately $3.49 billion, remains profitable over the trailing twelve months, but analysts are split on whether the current valuation already reflects the near-term headwinds. Knife River shares have shed 25.09% over the past year, and Wednesday’s low brings them closest to that mark in more than a decade.
