KNFHIGH SIGNALFINANCIAL10-K

KNF completed a major acquisition that significantly increased debt levels and interest expense while reducing profitability and cash position.

The Strata Corporation acquisition appears to be a transformative deal that doubled interest expense and added substantial debt, while operating cash flow declined and net income fell 22%. The company's market value held by non-affiliates increased to $4.6B despite weaker financial performance, suggesting investor confidence in the strategic rationale, but the leverage increase warrants close monitoring.

Comparing 2026-02-20 vs 2025-02-21View on EDGAR →
FINANCIAL ANALYSIS

KNF's financial profile changed dramatically with total debt increasing 72% to $1.2B while cash declined 69% to $73.8M, resulting in interest expense nearly doubling and net income falling 22% to $157.1M. Total assets grew 28% to $3.7B and stockholders equity increased modestly by 11%, but operating cash flow declined 14% despite the larger asset base. The financial changes reflect a major acquisition strategy that has significantly increased leverage and reduced liquidity while pressuring profitability in the near term.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
+92.9%
$30.1M→$58.1M

Interest expense surged 92.9% — significant debt increase or rising rates materially impacting earnings.

Total Debt
Balance Sheet
+72.1%
$677.4M→$1.2B

Debt increased 72.1% — substantial leverage increase; assess whether deployed for growth or covering losses.

Cash & Equivalents
Balance Sheet
-68.8%
$236.8M→$73.8M

Cash declined 68.8% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Total Liabilities
Balance Sheet
+46.1%
$1.4B→$2.0B

Liabilities grew 46.1% — significant increase in debt or obligations, assess impact on financial flexibility.

Total Assets
Balance Sheet
+28%
$2.9B→$3.7B

Asset base grew 28% — expansion through organic growth, acquisitions, or capital deployment.

Net Income
P&L
-22.1%
$201.7M→$157.1M

Net income declined 22.1% — review whether driven by operations, interest costs, or non-recurring items.

SG&A Expense
P&L
+14.9%
$253.6M→$291.5M

SG&A increased modestly — likely reflects growth-related hiring or sales expansion investment.

Inventory
Balance Sheet
+14.6%
$380.3M→$435.7M

Inventory built 14.6% — monitor whether demand supports this build or if write-downs may follow.

Operating Cash Flow
Cash Flow
-13.6%
$322.3M→$278.5M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Stockholders Equity
Balance Sheet
+11.2%
$1.5B→$1.6B

Equity base grew 11.2% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-20
PRIOR — 2025-02-21
ADDED
State the aggregate market value of the voting common stock held by non-affiliates of the registrant as of June 30, 2025: $ 4,626,062,431 .
Forward-looking statements are all statements other than statements of historical fact, including without limitation those statements that are identified by the words "anticipates," "estimates," "expects," "intends," "plans," "predicts" and similar expressions, and include statements concerning plans, projections, objectives, goals, strategies, future events or performance, and underlying assumptions (many of which are based, in turn, upon further assumptions) and other statements that are other than statements of historical facts.
From time to time, the Company ("we," "our," or "us") may publish or otherwise make available forward-looking statements of this nature, including statements related to its EDGE strategy implemented to improve margins and to execute on other strategic initiatives aimed at generating long-term profitable growth, shareholder value creation, expected long-term goals, expected backlog margin, acquisitions, financing plans, expected federal and state funding for infrastructure or other proposed strategies.
Any forward-looking statement contained in this document speaks only as of the date on which the statement is made, and we undertake no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.
Through our network of 208 active aggregate sites, 135 ready-mix plants, 55 asphalt plants and 9 liquid asphalt terminals, we supply construction materials and contracting services to customers across 14 states.
+7 more — sign up free →
REMOVED
State the aggregate market value of the voting common stock held by non-affiliates of the registrant as of June 28, 2024: $ 3,970,815,129 .
From time to time, the Company may publish or otherwise make available forward-looking statements of this nature.
Undo reliance should not be placed on forward-looking statements and any forward-looking statement contained in this document speaks only as of the date on which the statement is made, and the Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances that occur after the date on which the statement is made or to reflect the occurrence of unanticipated events, except as required by law.
v Index Summary of Risk Factors An investment in Knife River is subject to a number of risks.
Set forth below is a high-level summary of some, but not all, of these risks.
+7 more — sign up free →
MORE FINANCIAL SIGNALS
PNRGHIGHPNRG achieved exceptional profitability improvement with net income surging 2,21...
2026-04-16
BNAIHIGHBNAI underwent a dramatic reverse stock split that reduced share count by 86% wh...
2026-04-16
LAKEHIGHLAKE's financial performance deteriorated significantly with operating losses wo...
2026-04-16
NXXTHIGHNextNRG experienced massive financial deterioration with operating losses explod...
2026-04-16
ANALYZE ANY FILING FREE

See what changed in your portfolio's filings

500+ US-listed companies analyzed. Language delta, financial analysis, instant signal scoring.

Try Tracenotes free →