Activist Starboard Prepares to Nominate Directors at Knife River, Sources Say

3-line summary

• Activist hedge fund Starboard Value is preparing to nominate board candidates at Knife River, a Bismarck, North Dakota-based construction materials company that supplies crushed stone, sand, gravel, and ready-mix concrete for commercial, residential, and large public projects, sources said; Starboard disclosed a significant stake and sent a letter last month, and Jeffrey Smith told CEO Brian Gray and the board the company needs a 'clear plan, defined accountability, and decisive action to address years of underperformance.'
• Starboard is pushing for margin improvement or a sale of the company, demanding margins reach 22% by fiscal 2029; Knife River's quarterly margin was about 15% in the quarter ended June 30, versus roughly 30% at competitors, according to the report. The company has said in filings it is confident in current management and strategy while expanding margins, but Starboard says it lacks a concrete execution plan.
• Knife River has a market capitalization of about $2.8 billion and its stock has fallen 24% over the past 12 months; Smith is expected to present the investment case at a 13D Monitor event this Tuesday. Starboard has previously pushed board changes at Kenvue (Smith joined in early 2025, since sold) and BILL Holdings (Peter Feld joined about a year ago).

This summary is our own processing of the source article; see the source link below for full context.