Knife River Corporation, along with its subsidiaries, supplies aggregates-based construction materials and contracting services in the United States. It operates through the West, Mountain, Central, and Energy Services segments. The company mines, processes, and sells construction aggregates such as crushed stone, sand, and gravel, and produces and sells asphalt and ready-mix concrete. It also offers contracting services including heavy-civil construction, asphalt and concrete paving, and site development and grading, and sells cement, merchandise, and other building materials and related services. In addition, it produces and supplies liquid asphalt for asphalt road construction. Its construction materials are sold to public and private-sector customers, including federal, state, and municipal governments and industrial, commercial, and residential developers, while its contracting services serve public-sector customers for highways, local roads, bridges, and other public-infrastructure projects. Founded in 1917, Knife River Corporation is headquartered in Bismarck, North Dakota.
Starboard stake and raised guidance lift Knife River, but RBC cuts target
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Starboard Value takes stake, pushes for sale or margin fix Activist investor Starboard Value built a significant stake in Knife River and is pushing it to explore a sale or improve margins, arguing the 2023 spinoff failed to close the gap with peers. Shares jumped on the news, as a possible sale or margin overhaul could lift the stock.
This is the biggest new catalyst this period, directly moving KNF shares on takeover and margin-improvement hopes.
Knife River raises 2026 revenue guidance, reaffirms EBITDA Knife River lifted its 2026 revenue outlook to $3.4–$3.6 billion and kept its adjusted EBITDA target of $520–$560 million. Second-quarter EBITDA was flat on reported basis but up 7% excluding asset-sale gains, with revenue up 13%. Some cost and weather headwinds push into 2027.
Higher guidance signals a stronger business outlook, a fundamental positive for the stock.
Knife River responds to Starboard, reaffirms strategy Knife River said it first learned of Starboard's investment on September 22 and will engage with the activist. It reaffirmed its EDGE strategy of pricing, operational improvements and margin expansion, and its vertically integrated platform. No new financial or operational changes were announced.
The company's response shows engagement but no immediate change, a neutral-to-mixed signal for the stock.
RBC downgrades Knife River, slashes price target RBC Capital downgraded Knife River to Sector Perform from Outperform and cut its price target to $58 from $103, citing concerns about the company's outlook. The downgrade pressures the stock by lowering analyst expectations and signaling caution on near-term performance.
A sharp analyst downgrade and target cut is a direct negative for KNF's price.
Barclays Initiates SpaceX at Overweight With $254 Price Target
Barclays initiated coverage of SpaceX with an Overweight rating and a $254 price target, part of a broad rollout of coverage across the aerospace and defense group in which the firm said the U.S. is in the "early innings of a modern day industrial revolution." In the same sweep, Barclays started RTX, Palantir, Kratos Defense, Karman, DPC Holdings, CAE, Beta Technologies and Rocket Lab at Overweight, Planet Labs, FireFly Aerospace, AeroVironment, York Space Systems and Lockheed Martin at Equal Weight, and Northrop Grumman at Underweight. Among other calls, Baird upgraded Humana to Outperform from Neutral with a price target of $596, up from $390, citing greater confidence in the company's $35-plus of 2028 adjusted earnings per share power, while Morgan Stanley double upgraded Cboe Global Markets to Overweight from Underweight with a price target of $358, up from $258. On the downgrade side, JPMorgan cut DuPont to Neutral from Overweight with a price target of $145, down from $172, and removed the stock from its Analyst Focus List, and also downgraded Illinois Tool Works to Neutral from Overweight with a price target of $270, down from $350, both on concerns around decelerating short cycle industrial demand into 2027. Citi downgraded Pershing Square Inc. to Sell from Neutral with an unchanged price target of $45 on valuation, and RBC Capital downgraded Knife River to Sector Perform from Outperform with a price target of $58, down from $103. Other initiations included Truist starting IBM at Hold with a $240 price target, Citi starting Fortune Brands at Buy with a $48 price target, Freedom Broker starting Ultra Clean at Buy with a $127 price target, and JPMorgan resuming Trane at Overweight with a $550 price target.
BlackBerry Beats Estimates, MGM Plunges on Withdrawn Bid, Starboard Takes Knife River Stake
BlackBerry Limited reported second-quarter fiscal 2027 earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.04 per share, sending its shares up 4.2%. Darden Restaurants posted first-quarter fiscal 2027 earnings of $2.05 per share, missing the Zacks Consensus Estimate of $2.06 per share, and its shares fell 3%. MGM Resorts International shares plummeted 11% after Barry Diller's People Incorporated withdrew its takeover bid for the casino chain. Knife River Corporation shares gained 1.9% on reports that activist investor Starboard Value had acquired a significant equity stake in the company.
Knife River Responds to Starboard Value Letter, Reaffirms Strategy
Knife River Corporation issued a statement on September 24, 2026, responding to a letter it received that day from Starboard Value LP and certain of its affiliates. The company said it first learned of Starboard's investment on September 22, 2026, and will engage with the activist investor to better understand its views. Knife River said its board and management regularly review all opportunities to create value for shareholders and will continue to act in the best interests of the company and its shareholders. Since becoming an independent public company in 2023, Knife River said it has executed a clear strategy supported by its EDGE initiatives, focused on optimizing pricing, improving operational performance and capturing efficiencies to enhance margins and drive profitable growth. The company said its vertically integrated platform, combining aggregates, ready-mix concrete, asphalt, liquid asphalt and contracting services, is central to how it creates durable, long-term value, and that it remains focused on margin expansion, operational excellence, disciplined capital allocation and profitable growth.
KNF · · Neutral Knife River responds to Starboard Value's activist letter, reaffirming its existing strategy with no new operational or financial development.
Starboard Value LP · · Neutral Starboard Value sent a letter to Knife River; the article does not disclose the letter's contents or demands.
MGM Shares Tumble 9% as Diller's People Withdraws Buyout Proposal
Barry Diller's People withdrew its proposal to buy MGM Resorts International, sending the casino giant's shares down more than 9% in premarket trading. Diller said, "We didn't feel the mix was coming together in the way we had hoped," but expressed his faith in the company, in which he still holds 66.8 million shares. Darden Restaurants shed 6.6% after its fiscal first-quarter earnings of $2.05 per share came in line with estimates, while revenue of $3.20 billion fell just shy of the $3.21 billion expected from analysts polled by FactSet; the company also reaffirmed its full-year guidance. BlackBerry added 2% after reporting adjusted earnings of 7 cents per share, topping the 4 cents expected, on revenue of $163.3 million versus the $142.5 million consensus estimate. Meta slipped 2% following its nearly 12% move higher so far this week on optimism around its Muse AI agent, after CEO Mark Zuckerberg introduced the company's $1,299 Meta VR Glasses and Muse Charm, its handheld device that works with Muse, late Wednesday. Knife River rose 5% following a Wall Street Journal report that activist investor Starboard Value has acquired a substantial equity interest in the construction materials and contracting services company, reportedly pushing for improved margins or a potential sale, while Everpure moved 6.7% higher on positive takeaways from its financial analyst meeting and preliminary 2028 guidance of $7 billion to $7.3 billion in revenue, topping the $6.19 billion anticipated from analysts polled by FactSet.
MGM · Capital · Negative Barry Diller's People withdrew its buyout proposal for MGM Resorts, sending shares down more than 9%.
BB · Capital · Positive BlackBerry reported adjusted EPS of 7 cents and revenue of $163.3M, both topping consensus estimates.
DRI · Capital · Negative Darden's fiscal Q1 revenue of $3.20B fell just shy of the $3.21B expected, though EPS matched estimates.
KNF · Capital · Positive Activist investor Starboard Value acquired a substantial equity interest in Knife River, pushing for improved margins or a potential sale.
P · Capital · Positive Everpure rose 6.7% on positive takeaways from its analyst meeting and preliminary 2028 revenue guidance of $7-7.3B, topping the $6.19B consensus.
META · Capital · Negative Meta slipped 2% after its nearly 12% weekly gain tied to optimism around its Muse AI agent and new VR/handheld devices.
Starboard Value Builds Stake in Knife River, Urges Sale or Margin Fix
Activist investor Starboard Value has built a significant stake in Knife River and plans to push the construction company to explore a sale or improve its margins, The Wall Street Journal reported. Starboard reportedly believes the 2023 spinoff of Knife River from MDU Resources failed to improve the company's margins and wants it to commit to narrowing the gap between its EBITDA margins and those of its peers in the coming years. The activist also wants Knife River to evaluate strategic alternatives including a potential sale, arguing the business has a high barrier to entry and could be attractive to suitors. Shares of Knife River rose 5.3% post-market Wednesday on the report, after falling 7.8% in regular trading Wednesday when the company said in an investor presentation that headwinds including delayed jobs and higher fuel costs are expected to persist through the fiscal year. Construction stocks have underperformed the broader market year to date as the sector faces a pullback in residential and private commercial building.
KNF · Capital · Positive Starboard Value built a significant stake and is pushing Knife River to explore a sale or fix margins, a valuation/activist catalyst.
Starboard Value LP · Capital · Positive Starboard Value is the activist subject of the report, building a stake in Knife River and urging a sale or margin improvement.
Knife River Raises Revenue Guidance Despite Flat EBITDA and Margin Pressures
Knife River Corp reported a 13% year-over-year revenue increase in the second quarter of 2026, driven by record backlog conversion and double-digit volume growth across all product lines. The company raised its full-year revenue guidance to $3.4 billion to $3.6 billion and reaffirmed adjusted EBITDA guidance of $520 million to $560 million, though it now expects results near the midpoint rather than the upper end. Adjusted EBITDA was flat year-over-year on an as-reported basis, impacted by approximately $24 million in external headwinds including higher diesel costs, project delays in Texas, Hawaii, and Alaska, and lower contracting services margins. Aggregate pricing rose 8% on a product mix-adjusted basis, and the company's self-help initiatives reduced variable operating costs in aggregates by 1% despite inflationary pressures. Backlog expanded to $1.2 billion, up about $50 million sequentially, reinforcing confidence in second-half performance.
KNF · Demand · Positive Record backlog conversion and double-digit volume growth across all product lines drive 13% revenue increase and raised guidance.
EMCOR Group Outperforms Construction Sector With 35.3% Year-to-Date Gain
EMCOR Group has returned 35.3% so far this year, outpacing the average 14.8% gain for the 88-stock Construction sector. The company holds a Zacks Rank of 2, or Buy, and its full-year consensus earnings estimate has risen 3.5% over the past 90 days. Within the Building Products - Heavy Construction industry, which has gained 37.4% year to date, EMCOR is slightly underperforming its eight-member peer group. Knife River, another Construction stock, has returned 18.6% this year and also carries a Zacks Rank of 2, with its current-year EPS estimate up 3.3% over three months.
EME · Capital · Positive EMCOR's year-to-date gain of 35.3% and Zacks Buy rating with rising earnings estimates indicate positive analyst sentiment and financial performance.
KNF · Capital · Positive Knife River's 18.6% year-to-date return and Zacks Buy rating with rising EPS estimates reflect positive analyst outlook.
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