Shares of Knife River Corp (KNF) plummeted 7.65% in pre-market trading on Tuesday following the release of its first-quarter 2025 financial results. The construction materials company reported a wider-than-expected loss, overshadowing its revenue beat and increased full-year guidance.

Knife River posted a quarterly loss of $1.21 per share, significantly higher than the analyst consensus estimate of a $0.92 loss. This represents a 44.05% increase in losses compared to the same period last year when the company reported a loss of $0.84 per share. Despite the disappointing bottom line, the company's revenue rose 7.25% year-over-year to $353.50 million, surpassing analysts' expectations of $338.82 million.

In a surprising move, Knife River raised its 2025 revenue guidance to a range of $3.25 billion to $3.45 billion, up from the previous forecast of $3 billion to $3.2 billion. However, this positive outlook failed to offset investor concerns about the company's widening losses. The sharp stock decline suggests that market participants are focusing on the company's profitability challenges rather than its top-line growth and optimistic revenue projections for the year ahead.