Knife River (KNF) is facing pressure from activist investor Starboard Value to improve its profit margins or consider a sale, the Wall Street Journal reported late Wednesday, citing unnamed people familiar with the matter.

Starboard has taken a significant stake in the construction-materials firm and wants Knife River to narrow the gap between its adjusted EBITDA margin and those of peers over the next few years, the report said.

Sources also told WSJ that Starboard believes the 2023 spinoff of Knife River from MDU Resources did not meaningfully improve margins. Starboard also wants Knife River to evaluate strategic alternatives, including a potential sale, the report added.

Knife River did not immediately respond to MT Newswires' request for comment.

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