Shares of Knife River Corp (KNF) plummeted 5.74% in pre-market trading on Tuesday following the release of its second-quarter 2025 financial results, which fell short of analyst expectations. The construction materials company reported weaker-than-anticipated earnings and revenue, citing weather-related delays and regional economic challenges.

Knife River's Q2 earnings per share came in at $0.89, significantly below the FactSet consensus estimate of $1.40 and down 35% from $1.37 in the same period last year. Revenue for the quarter rose 3% to $833.8 million, but still missed the analyst consensus of $893 million. The company attributed the underperformance to above-average precipitation, which delayed construction projects, and funding challenges in Oregon that impacted contracting services demand.

In response to the challenging quarter, Knife River revised its fiscal 2025 guidance downward. The company now expects full-year revenue between $3.10 billion and $3.30 billion, down from its previous forecast of $3.25 billion to $3.45 billion. Additionally, the adjusted EBITDA guidance was lowered to a range of $475 million to $525 million. Despite these setbacks, Knife River reported a record backlog of $1.3 billion, which it expects to drive volume growth in the second half of 2025. The company also anticipates high-single-digit price increases for aggregates, potentially offsetting some of the current headwinds.