Knife River Stock Earnings Reports

Knife River reported a strong start to 2026: revenue and adjusted EBITDA each rose 16% year-over-year and adjusted EBITDA margin expanded ~290 basis points. The company saw double-digit volume growth across aggregates, ready-mix and asphalt, ended the quarter with a record contracting-services backlog of ~$1.2 billion (≈75% expected to be completed in 2026), and completed three aggregates-focused acquisitions (including entry into Salt Lake City). Management emphasized their growth strategy centered on midsized higher-growth markets, vertical integration (the "profit multiplier"), operational self-help (PIT Crew initiatives and dynamic pricing) and a people-first culture. They reiterated full-year guidance issued in February and said results are tracking toward the upper half of the revenue and adjusted EBITDA ranges. Capital allocation in Q1 included $42 million of maintenance CapEx and $209 million of growth spend (≈$174 million for acquisitions and $35 million on aggregate expansions/greenfield projects). Balance-sheet commentary: management expects to pay down borrowing as seasonal working capital normalizes and target year-end net leverage near their long-term target of ~2.5x, preserving capacity for additional M&A. Key risks/mitigants: diesel/energy cost pressure exists, but Knife River cites fuel surcharges, contract escalation clauses, diesel pre-purchases and dynamic daily pricing as primary protections. Investors should watch construction-season execution, backlog conversion (especially asphalt paving that pulls through higher-margin materials), integration and synergies from recent acquisitions, and actual energy cost pass-through in coming quarters.