Is Knife River Corporation (KNF) Trading at an Attractive Valuation?

Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q2 2025 investor letter. A copy of the letter can be downloaded here. The Small Cap Core Strategy underperformed the Russell 2000 in Q2 2025, primarily due to the portfolio’s more defensive holdings and the market’s preference for low-quality companies. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Riverwater Small Cap Strategy highlighted stocks such as Knife River Corporation (NYSE:KNF). Knife River Corporation (NYSE:KNF) is a US-based aggregates-led construction materials and contracting services provider. The one-month return of Knife River Corporation (NYSE:KNF) was -13.76%, and its shares gained 4.14% of their value over the last 52 weeks. On September 08, 2025, Knife River Corporation (NYSE:KNF) stock closed at $80.18 per share, with a market capitalization of $4.543 billion.

Riverwater Small Cap Strategy stated the following regarding Knife River Corporation (NYSE:KNF) in its second quarter 2025 investor letter:

“Knife River Corporation (NYSE:KNF): KNF is a vertically integrated construction materials and contracting firm operating across 14 U.S. states, with leadership positions in aggregates, ready-mix concrete, and asphalt production. Backed by 1.2 billion tons of aggregate reserves and a network of over 360 material sites, KNF plays a critical role in supplying infrastructure projects such as roads, bridges, and airport runways. The company benefits from durable demand trends driven by the Infrastructure Investment and Jobs Act, with 62% of allocated funds yet to be spent in its core markets and a $938.7 million backlog heavily skewed toward public-sector projects. Since its 2023 spin-off from MDU Resources Group, Inc. (MDU), KNF has expanded EBITDA margins by 460 bps, with further upside guided by The EDGE program’s pricing, throughput, and efficiency initiatives as well as accretive M&A activity. With stable public revenue exposure, significant operating leverage, and improving margins versus peers, KNF offers compelling long-term value amid the nation’s urgent infrastructure upgrade cycle.”

In another article, we covered Knife River Corporation (NYSE:KNF) and shared the list of best mid-cap materials stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.