Knife River (NYSE: KNF) lifts 2026 outlook as Q2 revenue hits $938.6M

Rhea-AI Filing Summary

Knife River Corporation reported higher Q2 2026 sales but weaker profitability. Revenue for the three months ended June 30, 2026 grew 13% year over year to $938.6 million, while net income declined 13% to $43.9 million and net income margin narrowed to 4.7% from 6.1%. Adjusted EBITDA was $139.7 million, down 1% with margin of 14.9% versus 16.9%.

Management cited higher energy costs, delayed projects, a less favorable mix in contracting services and much smaller gains on asset sales compared with 2025. Contracting services revenue rose 20%, contributing to double‑digit volume and gross profit growth across key material product lines, and aggregate pricing improved 8% on a mix‑adjusted basis. Segment results were mixed, with revenue down in the West but up strongly in the Mountain, Central and Energy Services regions.

For full‑year 2026, Knife River projects revenue of $3.4 billion to $3.6 billion and Adjusted EBITDA of $520 million to $560 million, and noted it has raised guidance for revenue and aggregate volumes. Contracting services backlog was $1.2 billion at June 30, 2026. The company is investing heavily, with $90.1 million spent on maintenance and improvement capex and $244.5 million on growth initiatives in the first half of 2026, funded in part by a new $400 million Term Loan B that brought net leverage to 3.2x Adjusted EBITDA.

Positive

• Q2 2026 revenue increased 13% to $938.6 million, supported by 20% growth in contracting services and double‑digit volume and gross profit growth across major material product lines.
• 2026 guidance calls for revenue of $3.4–$3.6 billion and Adjusted EBITDA of $520–$560 million, with management stating that guidance for revenue and aggregate volumes has been raised.
• Contracting services backlog totaled $1.2 billion at June 30, 2026, providing visibility on future work, with approximately 85% tied to publicly funded projects.
• $244.5 million was invested in growth initiatives in the first half of 2026, including $184.4 million on acquisitions and $60.1 million on aggregate expansions and greenfield projects.

Negative

• Q2 2026 net income declined 13% to $43.9 million, and net income margin fell to 4.7% from 6.1%, pressured by energy costs, project timing and lower gains on asset sales.
• The company recorded a six‑month 2026 net loss of $35.3 million, compared with a net loss of $18.1 million for the first half of 2025.
• Net debt was $1.59 billion with net leverage of 3.2x Adjusted EBITDA after issuing an incremental $400 million Term Loan B to finance acquisitions, growth initiatives and repay revolver borrowings.

Filing Explained

As of June 30, 2026, Knife River reported $40.7 million of unrestricted cash, $1.6 billion of gross debt and $387.2 million of available revolving capacity; the disclosure adds a current liquidity-and-financing snapshot alongside reported 3.2x net leverage.

8-K Event Classification

3 items: 2.02, 7.01, 9.01

3 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 7.01 Regulation FD Disclosure Disclosure

Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 Revenue: $938.6 million Q2 2026 Net Income: $43.9 million Q2 2026 Adjusted EBITDA: $139.7 million +5 more

8 metrics

Q2 2026 Revenue $938.6 million Three months ended June 30, 2026; up 13% from $833.8 million

Q2 2026 Net Income $43.9 million Three months ended June 30, 2026; down from $50.6 million

Q2 2026 Adjusted EBITDA $139.7 million Three months ended June 30, 2026; 1% lower than $140.8 million

2026 Revenue Guidance $3,400.0–$3,600.0 million Full-year 2026 projected revenue range

2026 Adjusted EBITDA Guidance $520.0–$560.0 million Full-year 2026 projected Adjusted EBITDA range

Contracting Services Backlog $1,216.0 million Backlog as of June 30, 2026

Net Debt $1,594.5 million Total debt net of cash and equivalents at June 30, 2026

Net Leverage 3.2x Net debt to trailing-twelve-month Adjusted EBITDA at June 30, 2026

Key Terms

Adjusted EBITDA, backlog, Term Loan B facility, net leverage, +1 more

5 terms

Adjusted EBITDA financial

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

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

backlog financial

"The following table summarizes backlog for the company."

A backlog is the amount of work or orders that a company has received but hasn't completed yet. It’s like a restaurant with many dishes to serve; the backlog shows how many orders are still waiting to be finished. It matters because a large backlog can indicate strong demand or potential delays in delivering products or services.

Term Loan B facility financial

"On May 15, 2026, the company issued an incremental $400 million Term Loan B facility..."

A Term Loan B facility is a large, multi‑year loan that a company borrows from banks or institutional investors and repays on a fixed schedule, often with smaller regular payments and a larger final payment. Think of it like a commercial mortgage for a business; it matters to investors because it changes the company’s interest costs, cash flow and financial risk — affecting its ability to pay dividends, invest in growth or meet debt obligations.

net leverage financial

"Net leverage, defined as the ratio of net debt to trailing-twelve-month Adjusted EBITDA, was 3.2x..."

Net leverage measures how many years it would take for a company to pay off its outstanding debt using its annual operating cash flow, after subtracting cash on hand from total debt. Think of it like a household’s mortgage balance minus savings divided by yearly income; a lower number means the company is in a safer position to handle debt, while a higher number signals greater financial risk and potential pressure on profits or growth.

non-GAAP financial measures financial

"NON-GAAP FINANCIAL MEASURES EBITDA, EBITDA margin, Adjusted EBITDA..."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

Earnings Snapshot

Revenue: $938.6 million · Guidance included

Three months ended June 30, 2026

Revenue $938.6 million 13%

Net income $43.9 million (13)%

Adjusted EBITDA $139.7 million (1)%

Net income per share (diluted) $0.77 (13)%

Guidance

For full-year 2026, the company projects revenue of $3.4–$3.6 billion and Adjusted EBITDA of $520–$560 million, based on normal weather, economic and operating conditions.

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FAQ

How did Knife River (KNF) perform financially in Q2 2026?

Knife River reported Q2 2026 revenue of $938.6 million, up 13% from 2025. Net income was $43.9 million, down 13%, and Adjusted EBITDA was $139.7 million, a 1% decline, reflecting margin pressure despite higher volumes and pricing.

What full-year 2026 guidance did Knife River (KNF) provide?

Knife River expects 2026 revenue between $3.4 billion and $3.6 billion and Adjusted EBITDA between $520 million and $560 million. Management indicated it has raised guidance for revenue and aggregate volumes, assuming normal weather, economic and operating conditions.

What is Knife River’s (KNF) current backlog and mix of work?

At June 30, 2026, Knife River reported contracting services backlog of $1.216 billion. About 85% of this backlog relates to publicly funded projects, including street and highway construction, which provides significant exposure to government infrastructure spending.

How leveraged is Knife River (KNF) after recent financing and acquisitions?

As of June 30, 2026, Knife River had net debt of $1.5945 billion and net leverage of 3.2x trailing‑twelve‑month Adjusted EBITDA. The company added a $400 million Term Loan B to fund acquisitions, growth projects, revolver repayment and general corporate purposes.

How are Knife River’s (KNF) operating segments performing?

In Q2 2026, West segment revenue fell 9%, while Mountain, Central and Energy Services revenues grew 34%, 28% and 6%, respectively. EBITDA rose in Central and Energy Services but declined in West, with mixed margin trends across regions.

What capital spending plans does Knife River (KNF) have for 2026?

For 2026, Knife River estimates maintenance and improvement capex at 5%–7% of revenue. In the first half, it spent $90.1 million on maintenance and $244.5 million on growth initiatives, and expects to invest $76.4 million more in organic growth projects during the remainder of 2026.

0001955520false00019555202026-08-042026-08-04

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES

EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) August 4, 2026

Knife River Corporation

(Exact name of registrant as specified in its charter)

(State or other jurisdiction of			(Commission File Number)			(I.R.S. Employer Identification No.)
incorporation)
Delaware			1-41642			92-1008893

1150 West Century Avenue

P.O. Box 5568

Bismarck, North Dakota 58506-5568

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code (701) 530-1400

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

			☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
			☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
			☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
			☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

(Title of each class)			(Trading Symbol(s))			(Name of each exchange on which registered)
Common Stock, $0.01 par value			KNF			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02. Results of Operations and Financial Condition and

Item 7.01. Regulation FD Disclosure.

    On August 4, 2026, Knife River Corporation (the "Company") issued a press release announcing second quarter 2026 earnings. A copy of the press release, which the Company is furnishing to the Securities and Exchange Commission, is attached as Exhibit 99 and incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d)    Exhibits.

Exhibit Number    Description

99    Press release issued August 4, 2026, regarding second quarter 2026 earnings.

104    Cover page interactive data file (embedded within the Inline XBRL document)

2

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Knife River Corporation

Date August 4, 2026						By /s/ Nathan W. Ring
						Nathan W. Ring
						Vice President and Chief Financial Officer

3

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)			2026			2025			% Change
Revenue			$	938.6		$	833.8		13		%
Net income			$	43.9		$	50.6		(13)		%
Net income margin			4.7		%	6.1		%
Adjusted EBITDA			$	139.7		$	140.8		(1)		%
Adjusted EBITDA margin			14.9		%	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."

1

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			Low			High
			(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 Ended									Six Months Ended
			June 30,									June 30,
			2026			2025			% Change			2026			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 margin			17.0		%	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 Ended									Six Months Ended
			June 30,									June 30,
			2026			2025			% Change			2026			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 margin			13.1		%	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.

2

Central
Iowa, Minnesota, North Dakota, South Dakota, Texas			Three Months Ended									Six Months Ended
			June 30,									June 30,
			2026			2025			% Change			2026			2025			% Change
			(In millions)
Revenue			$	325.6		$	255.2		28%			$	426.8		$	323.1		32%
EBITDA			$	53.6		$	44.4		21%			$	26.8		$	20.1		33%
EBITDA margin			16.5		%	17.4		%				6.3		%	6.2		%

Second quarter revenue increased 28% from the prior year, primarily driven by increased volumes across all product lines as well as contributions from the Texcrete acquisition. EBITDA improved 21%, with a majority of the increase being attributed to aggregate sales, as well as higher margins on contracting services work. However, EBITDA margin declined as the prior-year period benefited from $7.9 million of gains on asset sales that did not recur this quarter.

Energy Services
California, Iowa, Nebraska, Oregon, South Dakota, Texas, Washington, Wyoming			Three Months Ended									Six Months Ended
			June 30,									June 30,
			2026			2025			% Change			2026			2025			% Change
			(In millions)
Revenue			$	103.0		$	97.4		6%			$	123.5		$	111.3		11%
EBITDA			$	19.8		$	17.1		16%			$	15.2		$	9.3		64%
EBITDA margin			19.2		%	17.5		%				12.3		%	8.3		%

Second quarter revenue increased 6% from the prior year, driven by increased volumes due to improved market opportunities in California. EBITDA improved 16%, largely because of the increased sales volumes in California, as well as lower railcar maintenance expenses compared to prior year.

CAPITAL ALLOCATION & LIQUIDITY

The company is committed to disciplined capital allocation, including reinvesting to maintain fixed assets, strengthening operations and growing the business.

The company currently estimates total 2026 capital expenditures for maintenance and improvement to be between 5% and 7% of revenue. For the six months ending June 30, 2026, the company spent $90.1 million, largely on the replacement of construction equipment and plant improvements.

Additionally, for the six months ended June 30, 2026, the company spent $244.5 million on growth initiatives, which was comprised of $184.4 million on acquisitions and $60.1 million on aggregate expansions and greenfield projects. For the remainder of 2026, the company expects to spend $76.4 million on organic growth projects. Capital expenditures for future acquisitions and new growth opportunities would be incremental to the outlined capital program. It is anticipated that capital expenditures for the remainder of 2026 will be funded by various sources, including cash from operations and debt.

On May 15, 2026, the company issued an incremental $400 million Term Loan B facility which was used to finance recent acquisitions and growth initiatives previously discussed, repay borrowings under the Revolving Credit Facility, and for working capital and general corporate purposes.

As of June 30, 2026, Knife River had $40.7 million of unrestricted cash and cash equivalents, $1.6 billion of gross debt and $387.2 million of available capacity under its revolving credit facility, net of outstanding letters of credit. Net leverage, defined as the ratio of net debt to trailing-twelve-month Adjusted EBITDA, was 3.2x at June 30, 2026.

3

SECOND QUARTER 2026 RESULTS CONFERENCE CALL

Knife River will host a conference call at 11 a.m. EDT today to discuss second quarter results and conduct a question-and-answer session. The event will be webcast at investors.kniferiver.com.

To participate in the live call:

•Domestic: 1-585-542-9983

•International: 1-833-461-5787

•Conference ID: 137711168

After the conclusion of the call, an on-demand replay of the webcast will be made available.

ABOUT KNIFE RIVER CORPORATION

Knife River Corporation, a member of the S&P MidCap 400 index, mines aggregates and markets crushed stone, sand, gravel and related construction materials, including ready-mix concrete, asphalt and other value-added products. Knife River also performs vertically integrated contracting services, specializing in publicly funded DOT projects and private projects across the industrial, commercial and residential space. For more information about the company, visit www.kniferiver.com.

CORPORATE CONTACTS

IR Contact: Dara Dierks, Vice President of Investor Relations, IR@kniferiver.com
Media Contact: Tony Spilde, Vice President of Communications, Media@kniferiver.com

4

Knife River Corporation
Consolidated Statements of Operations
(Unaudited)
			Three Months Ended						Six Months Ended
			June 30,						June 30,
			2026			2025			2026			2025
			(In millions, except per share amounts)
Revenue:
Construction materials			$	532.1		$	493.6		$	794.4		$	707.0
Contracting services			406.5			340.2			554.3			480.2
Total revenue			938.6			833.8			1,348.7			1,187.2
Cost of revenue:
Construction materials			400.2			377.1			673.2			610.9
Contracting services			375.6			299.4			515.5			428.7
Total cost of revenue			775.8			676.5			1,188.7			1,039.6
Gross profit			162.8			157.3			160.0			147.6
Selling, general and administrative expenses			81.7			69.2			165.1			142.2
Operating income (loss)			81.1			88.1			(5.1)			5.4
Interest expense			24.5			22.3			45.3			37.6
Other income			3.3			2.2			2.6			6.8
Income (loss) before income taxes			59.9			68.0			(47.8)			(25.4)
Income tax expense (benefit)			16.0			17.4			(12.5)			(7.3)
Net income (loss)			$	43.9		$	50.6		$	(35.3)		$	(18.1)
Net income (loss) per share:
Basic			$	0.77		$	0.89		$	(0.62)		$	(0.32)
Diluted			$	0.77		$	0.89		$	(0.62)		$	(0.32)
Weighted average common shares outstanding:
Basic			56.8			56.7			56.7			56.6
Diluted			56.9			56.9			56.7			56.6

5

Knife River Corporation
Consolidated Balance Sheets
(Unaudited)
			June 30, 2026						June 30, 2025						December 31, 2025
			(In millions, except shares and per share amounts)
Assets
Current assets:
Cash, cash equivalents and restricted cash			$	102.0					$	77.7					$	123.4
Receivables, net			468.4						428.1						278.1
Contract assets			121.9						64.0						77.5
Inventories			507.3						479.5						435.7
Prepayments and other current assets			72.0						54.0						46.2
Total current assets			1,271.6						1,103.3						960.9
Noncurrent assets:
Net property, plant and equipment			2,176.7						1,924.3						2,028.9
Goodwill			584.0						464.1						519.7
Other intangible assets, net			33.7						38.1						32.7
Operating lease right-of-use assets			51.4						49.1						52.6
Investments and other			60.4						52.6						55.3
Total noncurrent assets			2,906.2						2,528.2						2,689.2
Total assets			$	4,177.8					$	3,631.5					$	3,650.1
Liabilities and Stockholders' Equity
Current liabilities:
Long-term debt - current portion			$	17.2					$	11.8					$	11.7
Accounts payable			228.0						172.1						145.6
Contract liabilities			26.6						36.3						33.8
Accrued compensation			38.4						31.4						44.3
Current operating lease liabilities			16.5						14.3						15.9
Other taxes payable			18.8						18.0						11.3
Accrued interest			11.8						7.7						7.3
Other accrued liabilities			119.9						105.6						108.1
Total current liabilities			477.2						397.2						378.0
Noncurrent liabilities:
Long-term debt			1,600.1						1,341.2						1,153.8
Deferred income taxes			296.5						257.5						287.9
Noncurrent operating lease liabilities			34.8						34.8						36.7
Other			163.3						139.7						152.8
Total liabilities			2,571.9						2,170.4						2,009.2
Commitments and contingencies
Stockholders' equity:
Common stock, 300,000,000 shares authorized, $0.01 par value, 57,194,556 shares issued and 56,763,420 shares outstanding at June 30, 2026; 57,095,301 shares issued and 56,664,165 shares outstanding at June 30, 2025; 57,095,301 shares issued and 56,664,165 shares outstanding at December 31, 2025			0.6						0.6						0.6
Other paid-in capital			629.6						623.9						629.6
Retained earnings			989.3						849.4						1,024.6
Treasury stock held at cost - 431,136 shares			(3.6)						(3.6)						(3.6)
Accumulated other comprehensive loss			(10.0)						(9.2)						(10.3)
Total stockholders' equity			1,605.9						1,461.1						1,640.9
Total liabilities and stockholders' equity			$	4,177.8					$	3,631.5					$	3,650.1

6

Knife River Corporation
Consolidated Statements of Cash Flows
(Unaudited)
			Six Months Ended
			June 30,
			2026						2025
			(In millions)
Operating activities:
Net loss			$	(35.3)					$	(18.1)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation, depletion and amortization			108.5						89.0
Deferred income taxes			0.3						(0.1)
Provision for credit losses			0.7						0.4
Amortization of debt issuance costs			2.0						1.8
Employee stock-based compensation costs			5.4						5.7
Pension and postretirement benefit plan net periodic benefit cost			0.9						0.7
Unrealized gains on investments			(2.3)						(1.1)
Gains on sales of assets			(2.6)						(12.7)
Gains on bargain purchases			(0.2)						(3.6)
Equity in earnings of unconsolidated affiliates			(0.7)						(0.2)
Changes in current assets and liabilities, net of acquisitions:
Receivables			(233.2)						(177.4)
Inventories			(66.2)						(59.9)
Other current assets			(22.5)						(18.1)
Accounts payable			87.6						36.2
Other current liabilities			16.7						(15.6)
Pension and postretirement benefit plan contributions			(0.3)						(0.3)
Other noncurrent changes			7.6						5.5
Net cash used in operating activities			(133.6)						(167.8)
Investing activities:
Capital expenditures			(150.2)						(228.6)
Acquisitions, net of cash acquired			(184.4)						(501.9)
Net proceeds from sale or disposition of property and other			4.8						31.4
Investments			(2.8)						(2.8)
Net cash used in investing activities			(332.6)						(701.9)
Financing activities:
Issuance of long-term debt			461.0						683.0
Repayment of long-term debt			(6.9)						(3.0)
Debt issuance costs			(3.9)						(11.1)
Tax withholding on stock-based compensation			(5.4)						(2.6)
Net cash provided by financing activities			444.8						666.3
Decrease in cash, cash equivalents and restricted cash			(21.4)						(203.4)
Cash, cash equivalents and restricted cash -- beginning of year			123.4						281.1
Cash, cash equivalents and restricted cash -- end of period			$	102.0					$	77.7

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Segment Financial Data and Highlights (Unaudited)

			Three Months Ended																		Six Months Ended
			June 30,																		June 30,
			2026									2025									2026									2025
			Dollars			Margin						Dollars			Margin						Dollars			Margin						Dollars			Margin
			(Dollars in millions)
Revenues by segment:
West			$	290.4								$	317.4								$	502.2								$	525.7
Mountain			236.5									176.1									317.7									242.1
Central			325.6									255.2									426.8									323.1
Energy Services			103.0									97.4									123.5									111.3
Total segment revenues			955.5									846.1									1,370.2									1,202.2
Corporate Services and Eliminations			(16.9)									(12.3)									(21.5)									(15.0)
Consolidated revenues			$	938.6								$	833.8								$	1,348.7								$	1,187.2
EBITDA by segment:
West			$	49.2		17.0%						$	60.7		19.1%						$	71.4		14.2%						$	85.7		16.3%
Mountain			31.0			13.1%						30.9			17.6%						22.8			7.2%						14.6			6.0%
Central			53.6			16.5%						44.4			17.4%						26.8			6.3%						20.1			6.2%
Energy Services			19.8			19.2%						17.1			17.5%						15.2			12.3%						9.3			8.3%
Total segment EBITDA (a)			153.6			16.1%						153.1			18.1%						136.2			9.9%						129.7			10.8%
Corporate Services and Eliminations (b)			(13.4)			N.M.						(13.4)			N.M.						(31.4)			N.M.						(31.5)			N.M.
Consolidated EBITDA (a)			$	140.2		14.9%						$	139.7		16.8%						$	104.8		7.8%						$	98.2		8.3%

(a)Consolidated EBITDA, total segment EBITDA, Consolidated EBITDA margin and total segment EBITDA margin are non-GAAP financial measures. For more information and a reconciliation to the nearest GAAP measure, see the section entitled "Non-GAAP Financial Measures."

(b)N.M. - not meaningful

The following table summarizes backlog for the company.

			June 30, 2026						June 30, 2025
			(In millions)
West			$	235.7					$	282.4
Mountain			449.3						483.4
Central			531.0						487.6
			$	1,216.0					$	1,253.4

Margins on backlog at June 30, 2026, are expected to be slightly lower than the margins on backlog at June 30, 2025. Approximately 85% of the company's contracting services backlog relates to publicly funded projects, including street and highway construction projects. Period over period increases or decreases should not be used as an indicator of future revenues or earnings.

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			Three Months Ended									Six Months Ended
			June 30,									June 30,
			2026			2025						2026			2025
Sales (thousands):
Aggregates (tons)			10,031			8,826						14,909			12,693
Ready-mix concrete (cubic yards)			1,193			1,041						1,917			1,585
Asphalt (tons)			2,030			1,643						2,313			1,842
Average selling price:*
Aggregates (per ton)			$	19.41		$	18.80					$	20.00		$	19.49
Ready-mix concrete (per cubic yard)			$	198.45		$	197.91					$	198.95		$	198.37
Asphalt (per ton)			$	65.77		$	67.45					$	66.79		$	68.92

*The average selling price includes freight and delivery and other revenues.

			Three Months Ended																		Six Months Ended
			June 30,																		June 30,
			2026									2025									2026									2025
			Dollars			Margin						Dollars			Margin						Dollars			Margin						Dollars			Margin
			(Dollars in millions)
Revenues by product line:
Aggregates			$	194.7								$	165.9								$	298.2								$	247.4
Ready-mix concrete			236.7									206.0									381.3									314.4
Asphalt			133.5									110.8									154.5									127.0
Liquid asphalt			91.4									85.9									109.5									98.1
Other*			83.7									79.6									130.3									123.0
Contracting services			406.5									340.2									554.3									480.2
Internal sales			(207.9)									(154.6)									(279.4)									(202.9)
Total revenues			$	938.6								$	833.8								$	1,348.7								$	1,187.2
Gross profit by product line:
Aggregates			$	38.8		19.9%						$	34.6		20.8%						$	35.1		11.8%						$	28.6		11.6%
Ready-mix concrete			39.1			16.5%						32.4			15.7%						54.6			14.3%						41.1			13.1%
Asphalt			20.9			15.7%						16.8			15.2%						16.0			10.3%						11.2			8.8%
Liquid asphalt			16.5			18.1%						14.9			17.4%						13.7			12.6%						10.7			10.9%
Other*			16.6			19.8%						17.8			22.3%						1.8			1.4%						4.5			3.7%
Contracting services			30.9			7.6%						40.8			12.0%						38.8			7.0%						51.5			10.7%
Total gross profit			$	162.8		17.3%						$	157.3		18.9%						$	160.0		11.9%						$	147.6		12.4%

*Other includes cement, merchandise, fabric and spreading, and other products and services that individually are not considered to be a core line of business.

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NON-GAAP FINANCIAL MEASURES

EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, as well as total segment measures, as applicable, net debt and net leverage are considered non-GAAP measures of financial performance. These non-GAAP financial measures are not measures of financial performance under GAAP. The items excluded from these non-GAAP financial measures are significant components in understanding and assessing financial performance. Therefore, these non-GAAP financial measures should not be considered substitutes for the applicable GAAP metric.

EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin are most directly comparable to the corresponding GAAP measures of net income and net income margin. Net debt and net leverage are most directly comparable to the corresponding GAAP measures of total debt. We believe these non-GAAP financial measures, in addition to corresponding GAAP measures, are useful to investors by providing meaningful information about operational efficiency compared to our peers by excluding the impacts of differences in tax jurisdictions and structures, debt levels and capital investment. We believe Adjusted EBITDA and Adjusted EBITDA margin are useful performance measures because they allow for an effective evaluation of our operating performance by excluding unrealized gains and losses on benefit plan investments, stock-based compensation, and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting, as they are considered non-cash and not part of our core operations. We believe EBITDA and Adjusted EBITDA assist rating agencies and investors in comparing operating performance across operating periods on a consistent basis by excluding items management does not believe are indicative of the company's operating performance, including using EBITDA and Adjusted EBITDA to calculate Knife River’s leverage as a multiple of EBITDA and Adjusted EBITDA. Additionally, EBITDA and Adjusted EBITDA are important financial metrics for debt investors who utilize debt to EBITDA and debt to Adjusted EBITDA ratios. We believe EBITDA, EBITDA margin, Adjusted EBITDA and Adjusted EBITDA margin, including those measures by segment, are useful performance measures because they provide clarity as to the operational results of the company. Management believes net debt and net leverage are useful performance measures because they provide a measure of how long it would take the company to pay back its debt if net debt and Adjusted EBITDA were constant. Net leverage also allows management to assess our borrowing capacity and optimal leverage ratio. Our management uses these non-GAAP financial measures in conjunction with GAAP results when evaluating our operating results internally and calculating employee incentive compensation, and leverage as a multiple of Adjusted EBITDA to determine the appropriate method of funding our operations.

EBITDA is calculated by adding back income taxes, interest expense (net of interest income) and depreciation, depletion and amortization expense to net income. EBITDA margin is calculated by dividing EBITDA by revenues. Adjusted EBITDA is calculated by adding back unrealized gains and losses on benefit plan investments, stock-based compensation and the impact of selling acquired inventory after markup to fair value as part of acquisition accounting to EBITDA. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues. Net debt is calculated by adding unamortized debt issuance costs to the total debt balance presented on the balance sheet, less any unrestricted cash. Net leverage is calculated by dividing net debt by trailing-twelve-month Adjusted EBITDA. These non-GAAP financial measures are calculated the same for both the segment and consolidated metrics and should not be considered as alternatives to, or more meaningful than, GAAP financial measures such as net income, net income margin and total debt and are intended to be helpful supplemental financial measures for investors’ understanding of our operating performance. Our non-GAAP financial measures are not standardized; therefore, it may not be possible to compare these financial measures with other companies’ EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, net debt and net leverage measures having the same or similar names.

The following information reconciles segment and consolidated net income (loss) to EBITDA and Adjusted EBITDA and provides the calculation of EBITDA margin, Adjusted EBITDA margin, net debt and net leverage. Interest expense, net, is net of interest income that is included in other income (expense) on the Consolidated Statements of Operations.

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The following table provides the reconciliation of net income (loss) to EBITDA and Adjusted EBITDA.

			Three Months Ended									Six Months Ended
			June 30,									June 30,
			2026			2025						2026			2025
			(In millions)
Net income (loss)			$	43.9		$	50.6					$	(35.3)		$	(18.1)
Depreciation, depletion and amortization			56.4			50.2						108.5			88.9
Interest expense, net			23.9			21.5						44.1			34.7
Income taxes			16.0			17.4						(12.5)			(7.3)
EBITDA			$	140.2		$	139.7					$	104.8		$	98.2
Unrealized (gains) losses on benefit plan investments			(3.2)			(1.8)						(2.4)			(1.1)
Stock-based compensation expense			2.6			2.9						5.4			5.7
Impact of selling acquired inventory after markup to fair value as part of acquisition accounting			0.1			—						0.1			—
Adjusted EBITDA			$	139.7		$	140.8					$	107.9		$	102.8
Revenue			$	938.6		$	833.8					$	1,348.7		$	1,187.2
Net income (loss) margin			4.7		%	6.1		%				(2.6)		%	(1.5)		%
EBITDA margin			14.9		%	16.8		%				7.8		%	8.3		%
Adjusted EBITDA margin			14.9		%	16.9		%				8.0		%	8.7		%

The following table provides the reconciliation of consolidated net income (loss) to total segment EBITDA.

			Three Months Ended									Six Months Ended
			June 30,									June 30,
			2026			2025						2026			2025
			(In millions)
Net income (loss)			$	43.9		$	50.6					$	(35.3)		$	(18.1)
Depreciation, depletion and amortization			56.4			50.2						108.5			88.9
Interest expense, net			23.9			21.5						44.1			34.7
Income taxes			16.0			17.4						(12.5)			(7.3)
EBITDA			$	140.2		$	139.7					$	104.8		$	98.2
Less corporate services EBITDA			(13.4)			(13.4)						(31.4)			(31.5)
Total segment EBITDA			$	153.6		$	153.1					$	136.2		$	129.7

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The following tables provide the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA.

			Twelve Months Ended  June 30, 2026						Six Months Ended June 30, 2026			Twelve Months Ended December 31, 2025			Six Months Ended June 30, 2025
			(In millions)
Net income (loss)			$	139.9					$	(35.3)		$	157.1		$	(18.1)
Depreciation, depletion and amortization			213.3						108.5			193.7			88.9
Interest expense, net			86.8						44.1			77.4			34.7
Income taxes			50.9						(12.5)			56.1			(7.3)
EBITDA			$	490.9					$	104.8		$	484.3		$	98.2
Unrealized (gains) losses on benefit plan investments			(4.2)						(2.4)			(2.9)			(1.1)
Stock-based compensation expense			11.1						5.4			11.4			5.7
Impact of selling acquired inventory after markup to fair value as part of acquisition accounting			3.8						.1			3.7			—
Adjusted EBITDA			$	501.6					$	107.9		$	496.5		$	102.8

The following table provides the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA.

			Twelve Months Ended  June 30, 2026
			(In millions)
Long-term debt			$	1,600.1
Long-term debt - current portion			17.2
Total debt			1,617.3
Add: Unamortized debt issuance costs			17.9
Total debt, gross			1,635.2
Less: Cash and cash equivalents, excluding restricted cash			40.7
Total debt, net			$	1,594.5
Trailing-twelve-months ended June 30, 2026, Adjusted EBITDA			$	501.6
Net leverage			3.2			x

Knife River’s projections for 2026 Adjusted EBITDA is a non-GAAP financial measure that excludes or otherwise has been adjusted for non-GAAP adjustment items from Knife River’s financial statements. When the company provides its forward-looking 2026 Adjusted EBITDA, it does not provide a reconciliation of these non-GAAP financial measures as Knife River is unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results, including, but not limited to, the potentially high variability, complexity and low visibility with respect to the items that would be excluded from the applicable GAAP measure in the relevant future period, such as unusual gains and losses, the impact and timing of potential acquisitions and divestitures, certain financing costs and other structural changes or their probable significance. Therefore, Knife River is unable to provide a reconciliation of these measures without unreasonable efforts.

FORWARD-LOOKING STATEMENTS

The information in this news release highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries. Many of these highlighted statements and other statements not historical in nature are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that its expectations are expressed in good faith and based on

12

reasonable assumptions, there is no assurance the company’s statements with respect to its EDGE strategy, shareholder value creation, financial guidance, expected long-term goals, expected backlog margin, or other proposed strategies will be achieved. Please refer to assumptions contained in this news release, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company's most recent Form 10-K and subsequent filings with the Securities and Exchange Commission.

Changes in such assumptions and factors could cause actual future results to differ materially from those expressed in the forward-looking statements. All forward-looking statements in this news release are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.

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