Starboard Plans Knife River Board Challenge

Starboard Value announced on October 19-20, 2026 that it is preparing to nominate directors to Knife River's board. The activist has urged the construction-materials company to raise margins to 22% by fiscal 2029, compared with about 15% for the quarter ended June 30, and says some peers achieve margins closer to 30%. Knife River has a market value of $2.8 billion. Its stock dropped 24% over the last 12 months and last closed at $49.58. Contested: Starboard is pressing the 22% margin target and a board challenge meant to push operational changes, a clearer improvement plan or a strategic review, in a campaign aimed at improved profitability or consideration of a sale. Knife River says it is focused on margin expansion and profitable growth but has not detailed how it would meet Starboard's target. Knife River spun off from MDU Resources Group in 2023 and is set to report third-quarter earnings on November 3. GuruFocus cites a GF Value intrinsic estimate of $89.74, a GF Score of 69/100, and a TTM P/E of 20.2x versus a five-year median of 26.06x.