KNF

EX-99

2 a2026q3ex99.htm

KNIFE RIVER CORORATION EX-99

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KNIFE RIVER CORPORATION REPORTS THIRD QUARTER 2026 FINANCIAL RESULTS

•Revenue increased 6% year-over-year, driven by more asphalt paving and aggregate demand

•Aggregate margin improved by 240 basis points to a third quarter record 29.6%

•Announced 'Sharper EDGE' initiatives, focused on targeted improvements to drive meaningful growth

•Updated 2026 guidance to reflect near-term headwinds

BISMARCK, N.D. — November 3, 2026 — Knife River Corporation (NYSE: KNF), an aggregates-based, vertically integrated construction materials and contracting services company, today announced financial results for the third quarter ended September 30, 2026.

PERFORMANCE SUMMARY

Three Months Ended September 30,

(In millions, except per share)20262025% Change

Revenue$1,275.6 $1,203.7 6 %

Net income$137.9 $143.2 (4)%

Net income margin10.8 %11.9 %

Adjusted EBITDA$271.7 $272.8 — %

Adjusted EBITDA margin21.3 %22.7 %

Net income per share$2.43 $2.52 (4)%

Note: Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures."

MANAGEMENT COMMENTARY

"We delivered a solid third quarter in a challenging operating environment, increasing revenue 6% and improving the profitability of our aggregates business," said Knife River President and CEO Brian Gray. "Internal pull-through and higher third-party sales drove a 10% increase in aggregate volumes for the quarter. We raised aggregate pricing mid-single digits and reduced per-unit variable production costs, leading to a 240-basis-point improvement in aggregate gross margin, to 29.6%.

"The external headwinds we faced in the second quarter — market dynamics, project delays and higher fuel costs — carried into the third. The impact was most pronounced in contracting services. We believe these headwinds are temporary, and we have successfully managed through similar environments before," Gray said. "Our teams are controlling what they can control. We're targeting more third-party materials sales, right-sizing crews and equipment where market conditions call for it, and pursuing more private-work opportunities.

“Meanwhile, we are building upon our Competitive EDGE program to drive EBITDA growth and margin improvement through self-help initiatives,” Gray said. “Since launching EDGE in 2023, we have delivered a 530 basis point improvement in aggregate gross margin. Our EDGE efforts have contributed to EBITDA growth and Adjusted EBITDA margin expansion, and while these efforts will continue, we have begun implementing ‘Sharper EDGE’ initiatives to drive additional value. Sharper EDGE is rooted in line-of-sight opportunities, focused on targeted capital improvements that deliver meaningful benefits in key operational, commercial and organizational areas. Together with our organic investments and an active M&A pipeline, we have multiple paths to Adjusted EBITDA growth and margin expansion. We look forward to discussing the details of Sharper EDGE at an investor day in the coming months.

“We have built a strong foundation, and we see substantial opportunity ahead," Gray said. "We remain focused on disciplined execution and investing in the areas where we believe we can create the greatest long-term value for our shareholders.”

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2026 FINANCIAL GUIDANCE

Knife River is updating its full-year 2026 guidance to reflect continued near-term headwinds and now expects financial results to be in the ranges noted in the following table.

2026 Financial Guidance LowHigh

(In millions)

Revenue $3,375.0 $3,425.0

Adjusted EBITDA $475.0 $505.0

For full-year 2026 guidance, the company now expects:

•Aggregates volumes to increase high-single digits to low-double digits and pricing to increase mid-single digits.

•Ready-mix volumes to increase high-single digits to low-double digits.

•Asphalt volumes to increase high-single digits to low-double digits.

•Depreciation, depletion and amortization to increase mid-teens.

The guidance ranges are based on normal weather, economic and operating conditions, and do not include the expected impact of future acquisitions.

REPORTING SEGMENT PERFORMANCE

West

Alaska, California, Hawaii, Oregon, Washington Three Months EndedNine Months Ended

Sept. 30,Sept. 30,

20262025% Change20262025% Change

(In millions)

Revenue$365.8 $396.0 (8)%$867.9 $921.7 (6)%

EBITDA$91.4 $91.8 (1)%$162.8 $177.5 (8)%

EBITDA margin25.0 %23.2 %18.8 %19.3 %

Third quarter revenue decreased 8% from the prior year, primarily due to less available contracting services work in Oregon and California. EBITDA decreased 1% compared to the prior year, reflecting decreased lower-margin contracting services work related to competitive market dynamics, partially offset by higher aggregate and ready-mix pricing across the region. EBITDA margin improved 180 basis points, dr

EX-99

2 a2026q2ex99.htm

KKNIFE RIVER CORPORATION EX-99

Document

KNIFE RIVER CORPORATION REPORTS SECOND QUARTER 2026 FINANCIAL RESULTS

•Double-digit volume and gross profit growth across material product lines

•20% growth in contracting services revenue

•Sequentially increased backlog from the first quarter, to $1.2 billion

•Raised guidance for revenue and aggregate volumes

BISMARCK, N.D. — August 4, 2026 — Knife River Corporation (NYSE: KNF), an aggregates-based, vertically integrated construction materials and contracting services company, today announced financial results for the second quarter ended June 30, 2026.

PERFORMANCE SUMMARY

Three Months Ended June 30,

(In millions, except per share)20262025% Change

Revenue$938.6 $833.8 13 %

Net income$43.9 $50.6 (13)%

Net income margin4.7 %6.1 %

Adjusted EBITDA$139.7 $140.8 (1)%

Adjusted EBITDA margin14.9 %16.9 %

Net income per share$0.77 $0.89 (13)%

Note: Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. For more information on all non-GAAP measures and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures."

MANAGEMENT COMMENTARY

"During the quarter, we delivered 13% year-over-year revenue growth, including 20% revenue growth in contracting services," said Knife River President and CEO Brian Gray. "That pull-through demand, combined with contributions from acquisitions, helped us generate double-digit volume and gross profit growth across our material product lines. Aggregate pricing also improved by 8% on a product mix-adjusted basis. The fundamentals of our business are strong. During the quarter, headwinds related to energy costs, delayed impact projects, and the type and timing of contracting services impacted Adjusted EBITDA and margins. Last year, we also benefited in the second quarter from $10.3 million in gains on asset sales, compared to just $650,000 this quarter. Despite these factors, we delivered strong operational results year-over-year.

"With the majority of the construction season still ahead of us, we have opportunities to execute on our $1.2 billion contracting services backlog, driving volume and gross profit improvement in all of our product lines," Gray said. "Additionally, we continue to implement our self-help initiatives to improve margins — including price optimization and operational efficiencies.

"The acquisitions we have completed over the last two years also continue to perform as expected, and we have several targets in our pipeline that align with our growth strategy," Gray said. "In addition, we have multiple organic growth projects underway across our footprint, including aggregates reserve expansions designed to strengthen our position, support future earnings growth and create long-term shareholder value."

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2026 FINANCIAL GUIDANCE

Knife River expects its full-year 2026 financial results to be in the ranges noted in the following table.

2026 Financial Guidance LowHigh

(In millions)

Revenue $3,400.0 $3,600.0

Adjusted EBITDA $520.0 $560.0

The company further expects:

•Aggregates volumes to increase high-single digits and pricing to increase mid-single digits.

•Ready-mix volumes to increase mid-teens.

•Asphalt volumes to increase high-single digits.

•Depreciation, depletion and amortization to increase mid-teens.

The guidance ranges are based on normal weather, economic and operating conditions, and do not include the expected impact of future acquisitions.

REPORTING SEGMENT PERFORMANCE

West

Alaska, California, Hawaii, Oregon, Washington Three Months EndedSix Months Ended

June 30,June 30,

2026 2025 % Change2026 2025 % Change

(In millions)

Revenue$290.4 $317.4 (9)%$502.2 $525.7 (4)%

EBITDA$49.2 $60.7 (19)%$71.4 $85.7 (17)%

EBITDA margin17.0 %19.1 %14.2 %16.3 %

Second quarter revenue decreased 9% year-over-year, primarily due to less available public-agency work in Oregon, as well as delays in Hawaii and Alaska related to project phasing and weather. EBITDA decreased 19% compared to the prior year, reflecting decreased activity and lower-margin contracting services work, partially offset by higher aggregate and ready-mix pricing across the region.

Mountain

Idaho, Montana, Utah, Wyoming Three Months EndedSix Months Ended

June 30,June 30,

2026 2025 % Change2026 2025 % Change

(In millions)

Revenue$236.5 $176.1 34%$317.7 $242.1 31%

EBITDA$31.0 $30.9 —%$22.8 $14.6 56%

EBITDA margin13.1 %17.6 %7.2 %6.0 %

Second quarter revenue increased 34% from the prior year, largely driven by an increase in contracting services as well as acquisitions completed in the first quarter. EBITDA was flat, as the revenue growth was primarily offset by the timing of project performance gains and lower-margin contracting services work.

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Central

Iowa, Minnesota, North Dakota, South Dakota, Texas Three Months EndedSix Months Ended

June 30,June 30,

2026 2025 % Change2026 2025 % Change

(In millions)

Revenue$325.6 $255.2 28%$426.8 $

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