Knife River (NYSE: KNF) grows Q1 2026 sales 16% and sets $3.3–3.5B outlook

Rhea-AI Filing Summary

Knife River Corporation reported higher first quarter 2026 revenue but remained unprofitable. Revenue rose 16% to $410.1 million, while net loss widened to $79.2 million, or $1.40 per share. Adjusted EBITDA was a loss of $31.8 million, an improvement from a $38.0 million loss, reflecting better margins.

The company completed three aggregates-based acquisitions and ended the quarter with record first quarter backlog of $1.2 billion. For full-year 2026, Knife River guides revenue between $3.3 billion and $3.5 billion and Adjusted EBITDA between $520 million and $560 million. Net leverage was 2.9x, with $1.4 billion of gross debt and $13.4 million of unrestricted cash as of March 31, 2026.

Insights

Equity research analyst

Solid top-line growth, margin improvement and strong guidance despite continued losses.

Knife River grew Q1 2026 revenue to $410.1 million, up 16% year over year, while narrowing operational losses via cost controls. Adjusted EBITDA loss improved to $31.8 million, and Adjusted EBITDA margin rose from (10.7)% to (7.8)%, indicating better underlying profitability despite seasonally weak activity.

Strategically, management completed three aggregates-based acquisitions and reported record first quarter backlog of $1.2 billion, with notable strength in the Mountain and Central regions. Full-year 2026 guidance of $3.3–$3.5 billion revenue and $520–$560 million Adjusted EBITDA signals confidence in demand, pricing and integration of recent deals.

Leverage remains moderate with net leverage at 2.9x based on trailing-twelve-month Adjusted EBITDA of $502.7 million. Significant 2026 capital spending plans—maintenance at 5–7% of revenue plus growth investments—are expected to be funded through cash from operations and debt, so future updates on execution versus guidance will be important in subsequent filings.

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

Q1 2026 Revenue: $410.1 million Q1 2026 Net Loss: $79.2 million Q1 2026 Adjusted EBITDA: ($31.8 million) +5 more

8 metrics

Q1 2026 Revenue $410.1 million Three months ended March 31, 2026; 16% year-over-year increase

Q1 2026 Net Loss $79.2 million Net loss for three months ended March 31, 2026; margin (19.3)%

Q1 2026 Adjusted EBITDA ($31.8 million) Improved from ($38.0 million) in Q1 2025; margin (7.8)%

Record backlog $1,168.8 million Backlog as of March 31, 2026 across West, Mountain and Central segments

2026 revenue guidance $3.3–$3.5 billion Full-year 2026 financial guidance range

2026 Adjusted EBITDA guidance $520–$560 million Full-year 2026 projected Adjusted EBITDA range

Net leverage 2.9x Net debt of $1,434.9 million vs TTM Adjusted EBITDA of $502.7 million

Growth acquisition spend Q1 2026 $174.2 million Part of $209.2 million total growth initiatives in three months ended March 31, 2026

Key Terms

Adjusted EBITDA, backlog, net leverage, non-GAAP financial measures, +1 more

5 terms

Adjusted EBITDA financial

"Knife River expects full-year 2026 financial results in the ranges noted... Adjusted EBITDA | $ | 520.0 |"

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

"While the first quarter is seasonally the lightest... including record first quarter backlog of $1.2 billion"

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.

net leverage financial

"Net leverage, defined as the ratio of net debt to trailing-twelve-month Adjusted EBITDA, was 2.9x"

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, Adjusted EBITDA margin... are considered non-GAAP financial measures"

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.

trailing-twelve-month financial

"Trailing-twelve-months ended March 31, 2026, Adjusted EBITDA | $ | 502.7"

Earnings Snapshot

Revenue: $410.1 million · Guidance included

Q1 2026

Revenue $410.1 million +16% YoY

Net loss $79.2 million ($68.7 million prior year), (15)% change

Adjusted EBITDA ($31.8 million) +16% vs prior year Adjusted EBITDA

Guidance

For full-year 2026, Knife River guides revenue of $3.3–$3.5 billion and Adjusted EBITDA of $520–$560 million, assuming normal conditions and excluding future acquisitions.

Understanding 8-K Material Events →

0001955520false00019555202026-05-052026-05-05

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) May 5, 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 May 5, 2026, Knife River Corporation (the "Company") issued a press release announcing first 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 May 5, 2026, regarding first 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 May 5, 2026						By /s/ Nathan W. Ring
						Nathan W. Ring
						Vice President and Chief Financial Officer

3

KNIFE RIVER CORPORATION REPORTS FIRST QUARTER 2026 FINANCIAL RESULTS

•Completed three aggregates-based acquisitions in the first quarter

•Record first quarter backlog of $1.2 billion

•Volume increases and cost controls drove margin improvement

BISMARCK, N.D. — May 5, 2026 — Knife River Corporation (NYSE: KNF), an aggregates-based, vertically integrated construction materials and contracting services company, today announced financial results for the first quarter ended March 31, 2026.

PERFORMANCE SUMMARY

			Three Months Ended March 31,
(In millions, except per share)			2026			2025			% Change
Revenue			$	410.1		$	353.5		16		%
Net loss			$	(79.2)		$	(68.7)		(15)		%
Net loss margin			(19.3)		%	(19.4)		%
Adjusted EBITDA			$	(31.8)		$	(38.0)		16		%
Adjusted EBITDA margin			(7.8)		%	(10.7)		%
Net loss per share			$	(1.40)		$	(1.21)		(16)		%
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 had a good start to 2026, improving year-over-year revenue by 16%, adjusted EBITDA by 16% and adjusted EBITDA margin by 290 basis points,” said Knife River President and CEO Brian Gray. “We realized double-digit volume increases across our product lines and we reduced our per-unit costs, which drove gross profit improvements for aggregates, ready-mix and asphalt. We also generated more contracting services revenue than the same time last year, taking advantage of better weather and more activity across our segments.

“Knife River states are enjoying some of the fastest population growth in the nation, and we are growing our business along with them,” Gray said. “We completed three acquisitions during the quarter: Morgan Asphalt in Utah; and Sparrow Enterprises and Donaldson Brothers Ready-Mix in Montana. These aggregates-based, vertically integrated additions to our Mountain Region align with our strategy of expanding into mid-sized, higher-growth markets.

“While the first quarter is seasonally the lightest activity period of the year, we enter the 2026 construction season with momentum, including record first quarter backlog of $1.2 billion,” Gray said. “With strong underlying demand, our recent acquisitions, and continued focus on price optimization and cost controls — including mitigating energy costs with our established operational practices — we expect to deliver profitable growth for our shareholders this year and beyond.”

1

2026 FINANCIAL GUIDANCE

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

2026 Financial Guidance			Low			High
			(In millions)
Revenue			$	3,300.0		$	3,500.0
Adjusted EBITDA			$	520.0		$	560.0

The company further expects:

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

•Ready-mix volumes to increase mid-teens.

•Asphalt volumes to increase mid-single digits.

•Financial results for Energy Services expected to be broadly in line with full-year 2025 results.

•Depreciation, depletion and amortization to increase mid-single digits.

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
			March 31,
			2026			2025			% Change
			(In millions)
Revenue			$	211.8		$	208.3		2%
EBITDA			$	22.2		$	24.9		(11)%
EBITDA margin			10.5		%	12.0		%

First quarter revenue increased 2% year-over-year, driven primarily by higher private market demand and project timing, which resulted in increased material volumes. EBITDA decreased 11% compared to the prior year, primarily due to the absence of a one-time gain of $3.5 million related to an acquisition recognized as a bargain purchase in the first quarter of 2025, as well as volume declines in Hawaii following significant flooding in the state.

Mountain
Idaho, Montana, Utah, Wyoming			Three Months Ended
			March 31,
			2026			2025			% Change
			(In millions)
Revenue			$	81.2		$	66.0		23%
EBITDA			$	(8.2)		$	(16.3)		49%
EBITDA margin			(10.1)		%	(24.6)		%

First quarter revenue increased 23% from the prior year, largely driven by increased ready-mix, aggregate and asphalt volumes and pricing. In addition, contracting services increased due to favorable weather that enabled execution on record backlog, along with contributions from acquisitions during the first quarter of 2026. EBITDA improved 49%, primarily driven by more aggregate and ready-mix volume, pricing and lower cost per unit.

2

Central
Iowa, Minnesota, North Dakota, South Dakota, Texas			Three Months Ended
			March 31,
			2026			2025			% Change
			(In millions)
Revenue			$	101.2		$	67.9		49%
EBITDA			$	(26.8)		$	(24.3)		(10)%
EBITDA margin			(26.5)		%	(35.8)		%

First quarter revenue increased 49% from the prior year, primarily driven by contributions from acquisitions completed in 2025, including more than doubling ready-mix volumes in Texas. EBITDA decreased 10%, with a majority of the decline being attributed to the two additional months of seasonal losses from the March 2025 purchase of Strata, as anticipated, partially offset by increased ready-mix sales volumes.

Energy Services
California, Iowa, Nebraska, Oregon, South Dakota, Texas, Washington, Wyoming			Three Months Ended
			March 31,
			2026			2025			% Change
			(In millions)
Revenue			$	20.4		$	13.9		47%
EBITDA			$	(4.6)		$	(7.8)		41%
EBITDA margin			(22.6)		%	(56.0)		%

First quarter revenue increased 47% from the prior year, driven by higher sales volumes primarily related to favorable weather. EBITDA improved $3.2 million, largely because of the increased sales volumes, 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, improve operations and grow the business.

The company currently estimates total 2026 capital expenditures for maintenance and improvement to be between 5% and 7% of revenue. For the three months ending March 31, 2026, the company spent $42.3 million, largely on the replacement of construction equipment and plant improvements.

Additionally, for the three months ended March 31, 2026, the company spent $209.2 million on growth initiatives, which was comprised of $174.2 million on acquisitions and $35.0 million on aggregate expansions and greenfield projects. For the remainder of 2026, the company expects to spend $101.4 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.

As of March 31, 2026, Knife River had $13.4 million of unrestricted cash and cash equivalents, $1.4 billion of gross debt and $178.2 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 2.9x at March 31, 2026.

3

FIRST QUARTER 2026 RESULTS CONFERENCE CALL

Knife River will host a conference call at 11 a.m. EDT on May 5 to discuss first quarter results and conduct a question-and-answer session. The event will be webcast at https://events.q4inc.com/attendee/317415196.

To participate in the live call:

•Domestic: 1-800-715-9871

•International: 1-646-307-1963

•Conference ID: 9769431

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
			March 31,
			2026			2025
(In millions, except per share amounts)
Revenue:
Construction materials			$	262.3		$	213.4
Contracting services			147.8			140.1
Total revenue			410.1			353.5
Cost of revenue:
Construction materials			272.9			233.8
Contracting services			140.0			129.3
Total cost of revenue			412.9			363.1
Gross loss			(2.8)			(9.6)
Selling, general and administrative expenses			83.5			73.1
Operating loss			(86.3)			(82.7)
Interest expense			20.7			15.3
Other (expense) income			(0.6)			4.6
Loss before income taxes			(107.6)			(93.4)
Income tax benefit			(28.4)			(24.7)
Net loss			$	(79.2)		$	(68.7)
Net loss per share:
Basic			$	(1.40)		$	(1.21)
Diluted			$	(1.40)		$	(1.21)
Weighted average common shares outstanding:
Basic			56.7			56.6
Diluted			56.7			56.6

5

Knife River Corporation
Consolidated Balance Sheets
(Unaudited)
			March 31, 2026						March 31, 2025						December 31, 2025
			(In millions, except shares and per share amounts)
Assets
Current assets:
Cash, cash equivalents and restricted cash			$	75.5					$	138.5					$	123.4
Receivables, net			227.3						238.0						278.1
Contract assets			77.2						28.5						77.5
Inventories			480.5						467.1						435.7
Prepayments and other current assets			81.8						74.6						46.2
Total current assets			942.3						946.7						960.9
Noncurrent assets:
Net property, plant and equipment			2,158.4						1,743.5						2,028.9
Goodwill			573.1						449.6						519.7
Other intangible assets, net			38.2						42.0						32.7
Operating lease right-of-use assets			49.6						46.5						52.6
Investments and other			56.3						52.4						55.3
Total noncurrent assets			2,875.6						2,334.0						2,689.2
Total assets			$	3,817.9					$	3,280.7					$	3,650.1
Liabilities and Stockholders' Equity
Current liabilities:
Long-term debt - current portion			$	11.7					$	11.8					$	11.7
Accounts payable			131.4						112.0						145.6
Contract liabilities			30.3						42.0						33.8
Accrued compensation			23.1						19.0						44.3
Current operating lease liabilities			15.6						13.4						15.9
Other taxes payable			14.3						14.2						11.3
Accrued interest			16.2						15.9						7.3
Other accrued liabilities			109.7						93.7						108.1
Total current liabilities			352.3						322.0						378.0
Noncurrent liabilities:
Long-term debt			1,421.6						1,160.4						1,153.8
Deferred income taxes			292.3						221.6						287.9
Noncurrent operating lease liabilities			34.0						33.1						36.7
Other			158.3						136.0						152.8
Total liabilities			2,258.5						1,873.1						2,009.2
Commitments and contingencies
Stockholders' equity:
Common stock, 300,000,000 shares authorized, $0.01 par value, 57,184,991 shares issued and 56,753,855 shares outstanding at March 31, 2026; 57,083,497 shares issued and 56,652,361 shares outstanding at March 31, 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			627.1						621.0						629.6
Retained earnings			945.4						798.8						1,024.6
Treasury stock held at cost - 431,136 shares			(3.6)						(3.6)						(3.6)
Accumulated other comprehensive loss			(10.1)						(9.2)						(10.3)
Total stockholders' equity			1,559.4						1,407.6						1,640.9
Total liabilities and stockholders' equity			$	3,817.9					$	3,280.7					$	3,650.1

6

Knife River Corporation
Consolidated Statements of Cash Flows
(Unaudited)
			Three Months Ended
			March 31,
			2026						2025
			(In millions)
Operating activities:
Net loss			$	(79.2)					$	(68.7)
Adjustments to reconcile net income to net cash provided by operating activities			51.8						38.2
Changes in current assets and liabilities, net of acquisitions:
Receivables			52.5						41.1
Inventories			(41.1)						(50.4)
Other current assets			(33.5)						(35.5)
Accounts payable			(5.3)						(12.8)
Other current liabilities			(8.5)						(40.3)
Pension and postretirement benefit plan contributions			(0.1)						(0.1)
Other noncurrent changes			4.8						3.2
Net cash used in operating activities			(58.6)						(125.3)
Investing activities:
Capital expenditures			(77.3)						(75.0)
Acquisitions, net of cash acquired			(174.2)						(443.4)
Net proceeds from sale or disposition of property and other			3.1						17.5
Investments			(2.6)						(2.7)
Net cash used in investing activities			(251.0)						(503.6)
Financing activities:
Issuance of long-term debt			270.0						500.0
Repayment of long-term debt			(2.9)						—
Debt issuance costs			—						(11.1)
Tax withholding on stock-based compensation			(5.4)						(2.6)
Net cash provided by financing activities			261.7						486.3
Decrease in cash, cash equivalents and restricted cash			(47.9)						(142.6)
Cash, cash equivalents and restricted cash -- beginning of year			123.4						281.1
Cash, cash equivalents and restricted cash -- end of period			$	75.5					$	138.5

7

Segment Financial Data and Highlights (Unaudited)

			Three Months Ended
			March 31,
			2026									2025
			Dollars			Margin						Dollars			Margin
			(Dollars in millions)
Revenues by segment:
West			$	211.8								$	208.3
Mountain			81.2									66.0
Central			101.2									67.9
Energy Services			20.4									13.9
Total segment revenues			414.6									356.1
Corporate Services and Eliminations			(4.5)									(2.6)
Consolidated revenues			$	410.1								$	353.5
EBITDA by segment:
West			$	22.2		10.5%						$	24.9		12.0%
Mountain			(8.2)			(10.1)%						(16.3)			(24.6)%
Central			(26.8)			(26.5)%						(24.3)			(35.8)%
Energy Services			(4.6)			(22.6)%						(7.8)			(56.0)%
Total segment EBITDA (a)			(17.4)			(4.2)%						(23.5)			(6.6)%
Corporate Services and Eliminations (b)			(18.0)			N.M.						(18.0)			N.M.
Consolidated EBITDA (a)			$	(35.4)		(8.6)%						$	(41.5)		(11.7)%

(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.

			March 31, 2026						March 31, 2025
			(In millions)
West			$	180.3					$	242.1
Mountain			500.4						418.3
Central			488.1						278.3
			$	1,168.8					$	938.7

Margins on backlog at March 31, 2026, are expected to be lower than the margins on backlog at March 31, 2025. Approximately 88% 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.

8

			Three Months Ended
			March 31,
			2026			2025
Sales (thousands):
Aggregates (tons)			4,878			3,867
Ready-mix concrete (cubic yards)			724			544
Asphalt (tons)			283			199
Average selling price:*
Aggregates (per ton)			$	21.22		$	21.05
Ready-mix concrete (per cubic yard)			$	199.76		$	199.26
Asphalt (per ton)			$	74.06		$	81.05

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

			Three Months Ended
			March 31,
			2026									2025
			Dollars			Margin						Dollars			Margin
			(Dollars in millions)
Revenues by product line:
Aggregates			$	103.5								$	81.4
Ready-mix concrete			144.5									108.5
Asphalt			21.0									16.1
Liquid asphalt			18.2									12.2
Other*			46.6									43.5
Contracting services			147.8									140.1
Internal sales			(71.5)									(48.3)
Total revenues			$	410.1								$	353.5
Gross profit (loss) by product line:
Aggregates			$	(3.7)		(3.5)%						$	(6.0)		(7.4)%
Ready-mix concrete			15.5			10.7%						8.7			8.1%
Asphalt			(4.9)			(23.6)%						(5.7)			(35.4)%
Liquid asphalt			(2.7)			(15.0)%						(4.2)			(34.3)%
Other*			(14.8)			(31.8)%						(13.2)			(30.3)%
Contracting services			7.8			5.3%						10.8			7.7%
Total gross loss			$	(2.8)		(0.7)%						$	(9.6)		(2.7)%

*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 loss to EBITDA and Adjusted EBITDA.

			Three Months Ended
			March 31,
			2026			2025
			(In millions)
Net loss			$	(79.2)		$	(68.7)
Depreciation, depletion and amortization			52.2			38.8
Interest expense, net			20.0			13.1
Income taxes			(28.4)			(24.7)
EBITDA			$	(35.4)		$	(41.5)
Unrealized (gains) losses on benefit plan investments			0.7			0.7
Stock-based compensation expense			2.9			2.8
Adjusted EBITDA			$	(31.8)		$	(38.0)
Revenue			$	410.1		$	353.5
Net loss margin			(19.3)		%	(19.4)		%
EBITDA margin			(8.6)		%	(11.7)		%
Adjusted EBITDA margin			(7.8)		%	(10.7)		%

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

			Three Months Ended
			March 31,
			2026			2025
			(In millions)
Net loss			$	(79.2)		$	(68.7)
Depreciation, depletion and amortization			52.2			38.8
Interest expense, net			20.0			13.1
Income taxes			(28.4)			(24.7)
EBITDA			$	(35.4)		$	(41.5)
Less corporate services EBITDA			(18.0)			(18.0)
Total segment EBITDA			$	(17.4)		$	(23.5)

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

			Twelve Months Ended  March 31, 2026						Three Months Ended March 31, 2026			Twelve Months Ended December 31, 2025			Three Months Ended March 31, 2025
			(In millions)
Net income (loss)			$	146.6					$	(79.2)		$	157.1		$	(68.7)
Depreciation, depletion and amortization			207.1						52.2			193.7			38.8
Interest expense, net			84.3						20.0			77.4			13.1
Income taxes			52.4						(28.4)			56.1			(24.7)
EBITDA			$	490.4					$	(35.4)		$	484.3		$	(41.5)
Unrealized (gains) losses on benefit plan investments			(2.9)						0.7			(2.9)			0.7
Stock-based compensation expense			11.5						2.9			11.4			2.8
Impact of selling acquired inventory after markup to fair value as part of acquisition accounting			3.7						—			3.7			—
Adjusted EBITDA			$	502.7					$	(31.8)		$	496.5		$	(38.0)

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

			Twelve Months Ended  March 31, 2026
			(In millions)
Long-term debt			$	1,421.6
Long-term debt - current portion			11.7
Total debt			1,433.3
Add: Unamortized debt issuance costs			14.9
Total debt, gross			1,448.2
Less: Cash and cash equivalents, excluding restricted cash			13.3
Total debt, net			$	1,434.9
Trailing-twelve-months ended March 31, 2026, Adjusted EBITDA			$	502.7
Net leverage			2.9			x

Knife River’s projections for 2026 Adjusted EBITDA, 2026 Adjusted EBITDA margin and long-term net leverage target are non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from Knife River’s financial statements. When the company provides its forward-looking 2026 Adjusted EBITDA, 2026 Adjusted EBITDA margin and long-term net leverage target, 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 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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FAQ

How did Knife River Corporation (KNF) perform in Q1 2026?

Knife River grew Q1 2026 revenue to $410.1 million, up 16% year over year. The company reported a net loss of $79.2 million, or $1.40 per share, but improved its Adjusted EBITDA loss to $31.8 million, with better overall margins.

What 2026 financial guidance did Knife River (KNF) provide?

Knife River expects full-year 2026 revenue between $3.3 billion and $3.5 billion. It also projects Adjusted EBITDA in the range of $520 million to $560 million, assuming normal weather, economic and operating conditions and excluding the impact of future acquisitions.

What was Knife River’s backlog at March 31, 2026?

Knife River reported record first quarter backlog of $1,168.8 million at March 31, 2026. Backlog included $180.3 million in the West, $500.4 million in the Mountain region, and $488.1 million in Central, with most tied to publicly funded projects.

How leveraged is Knife River Corporation as of Q1 2026?

As of March 31, 2026, Knife River had total debt, net, of $1,434.9 million and trailing-twelve-month Adjusted EBITDA of $502.7 million. This resulted in a reported net leverage ratio of 2.9x, indicating moderate use of debt financing.

What capital investments did Knife River (KNF) make in Q1 2026?

In Q1 2026, Knife River spent $42.3 million on maintenance and improvement capital, mainly for equipment and plant upgrades. It also invested $209.2 million in growth initiatives, including $174.2 million on acquisitions and $35.0 million on aggregate expansions and greenfield projects.

How did Knife River’s operating segments perform in Q1 2026?

In Q1 2026, revenue rose across all segments. Mountain revenue increased 23% to $81.2 million, Central rose 49% to $101.2 million, West grew 2% to $211.8 million, and Energy Services climbed 47% to $20.4 million, reflecting higher volumes and acquisitions.

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