Starboard presses Knife River for margin improvements and strategic alternatives

Starboard Value urged Knife River ($KNF) to adopt a plan targeting at least a 22% adjusted EBITDA margin by fiscal 2029 and to evaluate strategic alternatives. The shareholder argues that stronger aggregates pricing and meaningful cost reductions could improve performance. Those are Starboard’s proposals and assessment of the business, not newly adopted company guidance.

Knife River acknowledged the investment and said it would engage with Starboard while continuing its disciplined execution strategy. Management defended the value of its vertically integrated aggregates, materials and contracting operations. The exchange brings activist pressure into the company’s strategic discussion, but neither a sale process nor a transaction agreement was announced. A shareholder’s request to consider alternatives should not be reported as confirmation that the company is for sale.

Sources:

• Starboard — shareholder letter announcement, Business Wire reprint
• Knife River — company response