Free cash flow remains highly volatile due to seasonal working capital requirements, as evidenced by a -56.6% FCF margin in 2025Q1 and significant acquisition-related outflows of $443.4 million in the same period.
| Cash from Operations | 345.18M | 278.5M | 322.32M | 335.73M | 207.44M | 181.24M |
| Operating CF Margin % | - | 8.85% | 11.12% | 11.86% | 8.18% | 8.13% |
| Operating CF Growth % | 79.92% | -13.6% | -3.99% | 61.84% | 14.46% | - |
| Net Income | 146.55M | 157.1M | 201.68M | 182.87M | 116.22M | 129.75M |
| Depreciation & Amortization | 156.94M | 0 | 139.63M | 123.81M | 117.8M | 93.47M |
| Stock-Based Compensation | 400K | -2.6M | 7.83M | 2.89M | 1.27M | 1.85M |
| Deferred Taxes | 0 | 0 | 0 | -1.61M | 2.08M | 32.86M |
| Other Non-Cash Items | 83.56M | 212.1M | -2.73M | 7.68M | -909K | -12.06M |
| Working Capital Changes | -42.27M | -88.1M | -24.09M | 20.09M | -29.02M | -64.64M |
| Change in Receivables | -32.58M | -44M | 14.06M | -38.77M | -40.51M | 15.36M |
| Change in Inventory | -4.14M | -13.4M | -44.3M | 3.65M | -31.03M | -42.44M |
| Change in Payables | -56.5M | -15M | 0 | 33.09M | 17.49M | -13.9M |
| Cash from Investing | -661.07M | -913.7M | -294.8M | -117.89M | -155.88M | -398.27M |
| Capital Expenditures | -350.44M | -348.1M | -172.43M | -124.28M | -178.16M | -174.23M |
| CapEx % of Revenue | 10.94% | 11.06% | 5.95% | 4.39% | 7.03% | 7.82% |
| Acquisitions | -331.53M | -610M | -130.98M | 0 | 1.75M | -235.22M |
| Investments | - | - | - | - | - | - |
| Other Investing | 21.02M | 44.4M | 8.61M | 6.39M | 22.88M | -162.21M |
| Cash from Financing | 252.94M | 477.5M | -8.71M | 34.39M | -55.32M | 223.8M |
| Debt Issued (Net) | -8.81M | 480.1M | -7.04M | 901.62M | 695K | 281.76M |
| Equity Issued (Net) | 0 | 0 | -1.67M | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -1.67M | 0 | 0 | 0 |
| Other Financing | 261.75M | -2.6M | 0 | -867.23M | -56.02M | -57.96M |
| Net Change in Cash | -62.98M | -157.7M | 18.81M | 252.23M | -3.76M | 6.78M |
| Free Cash Flow | -5.26M | -69.6M | 149.9M | 211.44M | 29.28M | 7.01M |
| FCF Margin % | -0.16% | -2.21% | 5.17% | 7.47% | 1.16% | 0.31% |
| FCF Growth % | -114.4% | -146.43% | -29.11% | 622.09% | 317.66% | - |
| FCF per Share | -0.09 | -1.22 | 2.64 | 3.73 | 0.52 | 0.12 |
| FCF Conversion (FCF/Net Income) | -0.04x | 1.77x | 1.60x | 1.84x | 1.78x | 1.40x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Seasonal Working Capital Volatility
As reported in financial statements, Knife River's operating cash flow frequently diverges from net income, with OCF/NI ratios swinging from 7.41 in 2024Q4 to -0.84 in 2025Q2, illustrating the extreme impact of seasonal working capital requirements on the company's ability to convert accounting profits into actual cash.
The significant variance between net income and operating cash flow suggests that headline earnings are heavily influenced by non-cash accruals and the timing of project-based revenue recognition. Investors should monitor whether the company can maintain positive cash conversion during peak construction quarters, as the current volatility complicates the assessment of underlying earnings quality.
Based on the provided cash flow data, Knife River's free cash flow trajectory is highly cyclical, with quarterly FCF margins fluctuating between -56.6% in 2025Q1 and 22.4% in 2023Q4, reflecting the structural reality of a business model that requires significant cash outflows during winter months.
The recurring negative FCF in the first and second quarters appears to be a structural feature of the company's northern geographic footprint rather than a sign of operational distress. However, the inability to generate consistent FCF throughout the year suggests that the company must maintain a robust liquidity buffer to fund operations during the off-season.
According to recent SEC filings, Knife River's capital expenditures as a percentage of revenue reached as high as 21.2% in 2025Q1, indicating that the firm remains in a capital-intensive phase to maintain its quarrying equipment and asphalt production fleet across its decentralized operational segments.
The high level of CapEx relative to revenue suggests that a significant portion of cash flow is consumed by maintenance requirements to keep the vertical integration model functional. Analysts should investigate whether these expenditures are primarily for asset replacement or if they represent growth-oriented investments intended to expand the company's aggregate reserve base.
As indicated by the reported figures, Knife River experiences massive swings in working capital, with changes ranging from a $218.2M inflow in 2023Q4 to a $183.8M outflow in 2025Q2, highlighting the company's reliance on efficient receivables management during the peak construction season.
These dramatic shifts in working capital appear to be driven by the timing of public infrastructure project payments and the seasonal buildup of inventory. The company's cash position is clearly sensitive to the speed of collections, and any delays in project milestones could lead to temporary liquidity constraints.
Based on the provided cash flow data, Knife River has prioritized inorganic growth, with net acquisition outflows totaling $443.4M in 2025Q1 alone, suggesting that management is actively utilizing its balance sheet to consolidate regional aggregate producers and expand its geographic footprint.
The significant cash deployment toward acquisitions indicates a strategic focus on securing long-term aggregate reserves, which is essential for the company's vertical integration moat. Investors should monitor the return on these investments, as the high acquisition spend may pressure near-term cash balances if the integration of these assets does not yield immediate margin improvements.
Quick answers to the most common questions about buying KNF stock.
Knife River Corporation (KNF) generated $278.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Knife River Corporation (KNF) reported negative free cash flow of $69.6M in 2025, indicating capital requirements exceeded cash from operations.
Knife River Corporation (KNF) spent $348.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.