Knife River Corporation (KNF) saw its stock surge 6.37% in pre-market trading on Tuesday, following the release of its third-quarter 2025 financial results and an analyst upgrade. The construction materials company reported solid earnings and narrowed its full-year guidance, signaling confidence in its near-term outlook.

Knife River announced Q3 net income of $143.2 million, or $2.52 per share, on revenue of $1.2 billion. While revenue slightly missed analyst expectations of $1.21 billion, the company's adjusted EBITDA of $272.8 million showed a robust 11.3% year-over-year increase. The strong performance was attributed to recent strategic acquisitions, effective price optimization, and stringent cost controls, despite challenges such as rainy weather and economic uncertainty in some markets.

Adding to the positive sentiment, Wells Fargo analyst Timna Tanners upgraded Knife River to Overweight from Equal Weight, maintaining a price target of $75. This upgrade, coupled with the company's record backlog driven by public infrastructure projects, has bolstered investor confidence in Knife River's growth prospects. The company narrowed its 2025 revenue guidance to $3.1-$3.15 billion and expects adjusted EBITDA between $475 million and $500 million, further supporting the optimistic outlook for the remainder of the year and into 2026.