Knife River (KNF) Q1 2026 earnings summary

Executive summary

• Revenue increased 16% year-over-year to $410.1 million, driven by higher ready-mix and aggregate volumes, favorable weather, and three aggregates-based acquisitions, expanding operations in Utah and Montana.

• Adjusted EBITDA rose 16% to $(31.8) million, with margin improving by 290 basis points; EBITDA improved to $(35.4) million from $(41.5) million.

• Net loss widened to $79.2 million from $68.7 million, reflecting higher interest expense and increased SG&A costs from acquisitions.

• Record quarter backlog reached $1.2 billion, with 88% tied to public projects, providing strong visibility into future activity.

• Strong momentum heading into construction season, supported by EDGE and PIT Crew initiatives.

Financial highlights

• Aggregates volume grew 26% year-over-year to 4.88 million tons, ready-mix volumes increased 33% to 724k cubic yards, and asphalt volumes rose 42% to 283k tons.

• Adjusted EBITDA margin improved to (7.8)% from (10.7)% year-over-year; gross margin loss narrowed to (0.7)% from (2.7)%.

• Gross profit margins in aggregates improved by 390 basis points; ready-mix by 260bps, asphalt by 1,180bps, and liquid asphalt by 1,930bps.

• SG&A expenses rose 14% to $83.5 million, mainly due to costs from acquired companies and higher payroll.

• Net loss margin was (19.3)% and EBITDA margin (8.6)% for the quarter.

Outlook and guidance

• Full-year 2026 revenue expected between $3.3 billion and $3.5 billion; Adjusted EBITDA guidance of $520–$560 million.

• Aggregates and asphalt volumes and pricing projected to rise mid-single digits; ready-mix volumes to increase mid-teens.

• Contracting services and Energy Services margins anticipated to be higher or in line with 2025, supported by backlog and self-performed work.

• 2026 capital expenditures estimated at $170–$235 million for maintenance and improvement, plus $101.4 million for organic growth projects.