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Knife River (NYSE:KNF – Get Free Report) and Anhui Conch Cement (OTCMKTS:AHCHY – Get Free Report) are both materials companies, but which is the better business? We will contrast the two companies based on the strength of their institutional ownership, valuation, profitability, analyst recommendations, risk, dividends and earnings.

Insider and Institutional Ownership 80.1% of Knife River shares are owned by institutional investors. 0.4% of Knife River shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability This table compares Knife River and Anhui Conch Cement’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Knife River 4.23% 8.73% 3.65% Anhui Conch Cement 8.02% 3.11% 2.49% Volatility & Risk Knife River has a beta of 0.42, indicating that its stock price is 58% less volatile than the S&P 500. Comparatively, Anhui Conch Cement has a beta of 0.21, indicating that its stock price is 79% less volatile than the S&P 500. Analyst Ratings This is a summary of current ratings for Knife River and Anhui Conch Cement, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Knife River 0 4 5 1 2.70 Anhui Conch Cement 0 0 0 0 0.00 Knife River presently has a consensus price target of $86.86, indicating a potential upside of 35.23%. Given Knife River’s stronger consensus rating and higher possible upside, equities research analysts plainly believe Knife River is more favorable than Anhui Conch Cement.

Valuation and Earnings This table compares Knife River and Anhui Conch Cement”s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Knife River $3.15 billion 1.16 $157.07 million $2.45 26.22 Anhui Conch Cement $11.48 billion 1.04 $1.18 billion $0.89 12.68 Anhui Conch Cement has higher revenue and earnings than Knife River. Anhui Conch Cement is trading at a lower price-to-earnings ratio than Knife River, indicating that it is currently the more affordable of the two stocks.

Summary Knife River beats Anhui Conch Cement on 12 of the 15 factors compared between the two stocks.

About Knife River (Get Free Report)

Knife River Corporation, together with its subsidiaries, provides aggregates- led construction materials and contracting services in the United States. It operates through Pacific, Northwest, Mountain, Central, and Energy Services segments. The company mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete. It also provides contracting service, such as heavy-civil construction, asphalt and concrete paving, and site development and grading. In addition, the company sells cement, merchandise, and other building materials and related services. The company sells its construction materials to public and private-sector customers, including federal, state, and municipal governments, as well as industrial, commercial and residential developers, and other private parties; and provides its contracting services to public-sector customers for the development and servicing of highways, local roads, bridges, and other public-infrastructure projects. Knife River Corporation was founded in 1917 and is based in Bismarck, North Dakota.

(Get Free Report)

Anhui Conch Cement Company Limited, together with its subsidiaries, manufactures, sells, and trades in clinker and cement products. The company operates through five segments: Eastern China, Central China, Southern China, Western China, and Overseas. It provides construction and installation services for industrial purposes; logistic services; and mining and related services. The company manufactures and sells cement packaging products, concrete products, and refractory materials; and develops and sells profile and related products, as well as exports clinker and cement products. In addition, it engages in investment and trading, and selling aggregates. Anhui Conch Cement Company Limited was founded in 1997 and is based in Wuhu, the People's Republic of China.

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Knife River (NYSE:KNF) reported second-quarter revenue growth of 13% year over year as it converted a record backlog into higher sales, while adjusted EBITDA was flat on a reported basis amid higher diesel costs, weather-related project delays and lower-margin contracting work.

President and Chief Executive Officer Brian Gray said adjusted EBITDA increased 7% from the prior-year period when excluding gains on asset sales in both quarters. He characterized the company’s underlying operating performance as solid, citing double-digit volume growth in materials, higher gross profit across aggregates, ready-mix and asphalt, and an 8% increase in aggregate pricing on a product-mix-adjusted basis.

“The fundamentals of our business are strong,” Gray said, pointing to price optimization, cost controls and operational improvement efforts.

Fuel, Weather and Project Timing Weighed on Results Gray said higher diesel prices raised costs by approximately $10 million year over year during the quarter. Knife River recovered $4 million through fuel surcharges in the second quarter and expects to recoup an additional $4 million through escalators in Department of Transportation contracts during the third quarter, reflecting a one- to two-month lag in public-agency reimbursements.

The company estimated that project timing shifts and adverse weather reduced quarterly adjusted EBITDA by about $10 million. In Texas, excessive rain and schedule changes delayed asphalt production and paving on two major highway projects. In Hawaii, a modified construction schedule delayed the P-209 project, affecting concrete and cement volumes. Alaska’s unusually cold winter extended road restrictions until June 15, delaying the construction season by more than a month.

Gray said the affected projects were not canceled, but some of the expected work has shifted to later periods. In particular, most of the volume missed on the Texas highway projects is expected to move into 2027 because crews already have full schedules for the rest of the current year.

Contracting-services results also reflected a change in the type and timing of work. The company performed more asphalt paving during the quarter, which Gray described as lower-risk and generally lower-margin work than the larger general-contracting roadway expansion jobs performed a year earlier. He said performance and quality bonuses on paving jobs are typically received later in projects, and Knife River expects to recognize some of those gains during the second half.

The company estimated that these market dynamics, including the timing of project incentives, reduced second-quarter adjusted EBITDA by approximately $8 million.

Materials Volumes Rise Across Product Lines Chief Financial Officer Nathan Ring said aggregate volumes increased 14%, supported primarily by internal demand from the company’s downstream operations. About 75% of aggregate volume growth came from legacy operations and 25% from acquisitions, Gray said. Knife River now expects full-year aggregate volumes to rise by a high-single-digit percentage.

Reported aggregate pricing rose 3%, but Ring said the figure was affected by sales of 630,000 tons of lower-priced natural fines. Adjusting for product mix, aggregate pricing increased 8%. The company continues to expect aggregate pricing to rise by a mid-single-digit percentage on a reported basis for the full year.

Aggregate gross profit increased 12%, though gross margin declined slightly because of increased delivery volumes and higher fuel costs. Aggregate deliveries rose 41% year over year, and delivery revenue and fuel surcharges generally carry lower margins than materials sold at company plants.

Ready-mix volumes increased 15%, aided by the Texcrete acquisition, while gross profit rose 21% and gross margin improved 80 basis points. Asphalt volumes rose 24%, including a 44% increase in internal asphalt volumes tied to more paving activity. Gross profit also increased 24%, while gross margin improved 50 basis points. Contracting-services revenue increased 20%, although margins declined due to project mix, incentive timing and lower-margin legacy jobs acquired in the Mountain segment. Ring said the acquired legacy projects are being completed and replaced with new work, with most of the remaining impact expected to occur in the third quarter. He said Knife River expects second-half contracting-services margins to be in line with those reported in the second half of the prior year.

Backlog, Guidance and Capital Allocation Knife River expanded backlog by about $50 million sequentially to $1.2 billion at the end of the second quarter. Ring said the company expects approximately 55% of its full-year adjusted EBITDA to be generated in the third quarter, assuming normal weather and stable operating conditions.

The company raised its 2026 revenue outlook to a range of $3.4 billion to $3.6 billion and reaffirmed adjusted EBITDA guidance of $520 million to $560 million. Ring said the company is guiding toward the midpoint of that EBITDA range following the second-quarter headwinds.

During the quarter, Knife River invested $48 million in maintenance and operational improvements and $35 million in growth initiatives, including acquisitions and organic expansion. It also amended its Term Loan B agreement, increasing borrowings by $400 million while lowering its interest rate. Net leverage was 3.2 times at the end of June, compared with 3.1 times a year earlier.

Acquisitions and Organic Growth Projects Gray said acquisitions remain a central component of Knife River’s growth strategy. Since its 2023 spin-off, the company has integrated 16 acquisitions. He highlighted Strata, which expanded Knife River’s Central segment and added aggregate reserves and rail distribution sites. Supported by a record North Dakota DOT budget and full integration efforts, Knife River expects Strata to post a record year and exceed its original EBITDA projections by more than 15%.

The company has invested about $140 million in organic initiatives over the past 18 months, primarily in aggregate reserve expansions and greenfield projects. One major project is an approximately $85 million rail-served quarry near Sioux Falls, South Dakota, with roughly 70 million tons of quartzite reserves and access to two Class I railroads. The first phase is expected to become operational in the first half of next year.

Gray also said Knife River’s Spokane, Washington, prestress facility secured a substantial contract during the second quarter to supply components for a semiconductor facility in Idaho. He said the company sees growing opportunities tied to data centers, advanced manufacturing, energy infrastructure and future bridge replacement work.

Gray closed by noting that the company recorded the safest second quarter in its history and said management remains focused on execution during the remainder of the construction season.

About Knife River (NYSE:KNF) Knife River Corporation, headquartered in Bismarck, North Dakota, is a leading integrated construction materials and contracting company in the western United States. The company specializes in producing and supplying aggregates, asphalt mix, ready-mixed concrete and other heavy construction materials used in highway, commercial and residential projects.

In addition to material production, Knife River offers a comprehensive suite of contracting services, including heavy civil construction, road building, underground and open-pit mining and logistics support.

Knife River NYSE: KNF reported second-quarter revenue growth of 13% year over year as it converted a record backlog into higher sales, while adjusted EBITDA was flat on a reported basis amid higher diesel costs, weather-related project delays and lower-margin contracting work.

President and Chief Executive Officer Brian Gray said adjusted EBITDA increased 7% from the prior-year period when excluding gains on asset sales in both quarters. He characterized the company’s underlying operating performance as solid, citing double-digit volume growth in materials, higher gross profit across aggregates, ready-mix and asphalt, and an 8% increase in aggregate pricing on a product-mix-adjusted basis.

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“The fundamentals of our business are strong,” Gray said, pointing to price optimization, cost controls and operational improvement efforts.

Fuel, Weather and Project Timing Weighed on Results Gray said higher diesel prices raised costs by approximately $10 million year over year during the quarter. Knife River recovered $4 million through fuel surcharges in the second quarter and expects to recoup an additional $4 million through escalators in Department of Transportation contracts during the third quarter, reflecting a one- to two-month lag in public-agency reimbursements.

The company estimated that project timing shifts and adverse weather reduced quarterly adjusted EBITDA by about $10 million. In Texas, excessive rain and schedule changes delayed asphalt production and paving on two major highway projects. In Hawaii, a modified construction schedule delayed the P-209 project, affecting concrete and cement volumes. Alaska’s unusually cold winter extended road restrictions until June 15, delaying the construction season by more than a month.

Gray said the affected projects were not canceled, but some of the expected work has shifted to later periods. In particular, most of the volume missed on the Texas highway projects is expected to move into 2027 because crews already have full schedules for the rest of the current year.

Contracting-services results also reflected a change in the type and timing of work. The company performed more asphalt paving during the quarter, which Gray described as lower-risk and generally lower-margin work than the larger general-contracting roadway expansion jobs performed a year earlier. He said performance and quality bonuses on paving jobs are typically received later in projects, and Knife River expects to recognize some of those gains during the second half.

The company estimated that these market dynamics, including the timing of project incentives, reduced second-quarter adjusted EBITDA by approximately $8 million.

Materials Volumes Rise Across Product Lines Chief Financial Officer Nathan Ring said aggregate volumes increased 14%, supported primarily by internal demand from the company’s downstream operations. About 75% of aggregate volume growth came from legacy operations and 25% from acquisitions, Gray said. Knife River now expects full-year aggregate volumes to rise by a high-single-digit percentage.

Reported aggregate pricing rose 3%, but Ring said the figure was affected by sales of 630,000 tons of lower-priced natural fines. Adjusting for product mix, aggregate pricing increased 8%. The company continues to expect aggregate pricing to rise by a mid-single-digit percentage on a reported basis for the full year.

Aggregate gross profit increased 12%, though gross margin declined slightly because of increased delivery volumes and higher fuel costs. Aggregate deliveries rose 41% year over year, and delivery revenue and fuel surcharges generally carry lower margins than materials sold at company plants.

Ready-mix volumes increased 15%, aided by the Texcrete acquisition, while gross profit rose 21% and gross margin improved 80 basis points. Asphalt volumes rose 24%, including a 44% increase in internal asphalt volumes tied to more paving activity. Gross profit also increased 24%, while gross margin improved 50 basis points. Contracting-services revenue increased 20%, although margins declined due to project mix, incentive timing and lower-margin legacy jobs acquired in the Mountain segment. Ring said the acquired legacy projects are being completed and replaced with new work, with most of the remaining impact expected to occur in the third quarter. He said Knife River expects second-half contracting-services margins to be in line with those reported in the second half of the prior year.

Backlog, Guidance and Capital Allocation Knife River expanded backlog by about $50 million sequentially to $1.2 billion at the end of the second quarter. Ring said the company expects approximately 55% of its full-year adjusted EBITDA to be generated in the third quarter, assuming normal weather and stable operating conditions.

The company raised its 2026 revenue outlook to a range of $3.4 billion to $3.6 billion and reaffirmed adjusted EBITDA guidance of $520 million to $560 million. Ring said the company is guiding toward the midpoint of that EBITDA range following the second-quarter headwinds.

During the quarter, Knife River invested $48 million in maintenance and operational improvements and $35 million in growth initiatives, including acquisitions and organic expansion. It also amended its Term Loan B agreement, increasing borrowings by $400 million while lowering its interest rate. Net leverage was 3.2 times at the end of June, compared with 3.1 times a year earlier.

Acquisitions and Organic Growth Projects Gray said acquisitions remain a central component of Knife River’s growth strategy. Since its 2023 spin-off, the company has integrated 16 acquisitions. He highlighted Strata, which expanded Knife River’s Central segment and added aggregate reserves and rail distribution sites. Supported by a record North Dakota DOT budget and full integration efforts, Knife River expects Strata to post a record year and exceed its original EBITDA projections by more than 15%.

The company has invested about $140 million in organic initiatives over the past 18 months, primarily in aggregate reserve expansions and greenfield projects. One major project is an approximately $85 million rail-served quarry near Sioux Falls, South Dakota, with roughly 70 million tons of quartzite reserves and access to two Class I railroads. The first phase is expected to become operational in the first half of next year.

Gray also said Knife River’s Spokane, Washington, prestress facility secured a substantial contract during the second quarter to supply components for a semiconductor facility in Idaho. He said the company sees growing opportunities tied to data centers, advanced manufacturing, energy infrastructure and future bridge replacement work.

Gray closed by noting that the company recorded the safest second quarter in its history and said management remains focused on execution during the remainder of the construction season.

About Knife River (NYSE:KNF)Knife River Corporation, headquartered in Bismarck, North Dakota, is a leading integrated construction materials and contracting company in the western United States. The company specializes in producing and supplying aggregates, asphalt mix, ready-mixed concrete and other heavy construction materials used in highway, commercial and residential projects.

In addition to material production, Knife River offers a comprehensive suite of contracting services, including heavy civil construction, road building, underground and open-pit mining and logistics support.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Knife River (KNF - Free Report) reported $938.6 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 12.6%. EPS of $0.77 for the same period compares to $0.89 a year ago.

The reported revenue represents a surprise of +1.61% over the Zacks Consensus Estimate of $923.71 million. With the consensus EPS estimate being $1.11, the EPS surprise was -30.63%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Knife River performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Average selling price - Aggregates: $19.41 million compared to the $19.9 million average estimate based on two analysts.Average selling price - Ready-mix concrete: $198.45 million versus the two-analyst average estimate of $202.25 million.Sales Volumes - Asphalt: 2,030.00 K ton compared to the 1,712.50 K ton average estimate based on two analysts.Sales Volumes - Ready-mix concrete (cubic yards): 1,193.00 K ton versus 1,277.00 K ton estimated by two analysts on average.Sales Volumes - Aggregates: 10,031.00 K ton versus the two-analyst average estimate of 9,262.50 K ton.Revenue- Contracting services: $406.5 million versus the three-analyst average estimate of $366.74 million.Revenues- Aggregates: $194.7 million versus the three-analyst average estimate of $188.46 million.Revenues- Ready-mix concrete: $236.7 million versus the three-analyst average estimate of $260.68 million.Revenues- Asphalt: $133.5 million compared to the $115.13 million average estimate based on three analysts.Revenues- Internal sales: $-207.9 million compared to the $-174 million average estimate based on three analysts.Revenues- Liquid asphalt: $91.4 million versus the two-analyst average estimate of $82.5 million.Revenues- Other: $83.7 million versus the two-analyst average estimate of $81.5 million.View all Key Company Metrics for Knife River here>>>

Shares of Knife River have returned -7.3% over the past month versus the Zacks S&P 500 composite's +1.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

BISMARCK, N.D.--(BUSINESS WIRE)--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."

"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."

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.

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.

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.

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.

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.

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

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

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

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

%

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.

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

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

%

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.

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

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 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.

Posted by Defense World Staff on Jul 28th, 2026

Dimensional Fund Advisors LP lifted its holdings in Knife River Corporation (NYSE:KNF – Free Report) by 5.2% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 1,464,690 shares of the company’s stock after purchasing an additional 73,028 shares during the period. Dimensional Fund Advisors LP owned 2.58% of Knife River worth $119,579,000 as of its most recent filing with the SEC.

Several other large investors have also made changes to their positions in KNF. McMillan Office Inc. acquired a new position in Knife River during the 4th quarter valued at $36,000. Hantz Financial Services Inc. raised its position in shares of Knife River by 66.3% during the fourth quarter. Hantz Financial Services Inc. now owns 567 shares of the company’s stock valued at $40,000 after buying an additional 226 shares during the last quarter. Caitong International Asset Management Co. Ltd lifted its stake in shares of Knife River by 1,088.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 594 shares of the company’s stock valued at $42,000 after buying an additional 544 shares during the period. GAMMA Investing LLC lifted its stake in shares of Knife River by 34.8% in the fourth quarter. GAMMA Investing LLC now owns 685 shares of the company’s stock valued at $48,000 after buying an additional 177 shares during the period. Finally, Larson Financial Group LLC lifted its stake in shares of Knife River by 198.5% in the fourth quarter. Larson Financial Group LLC now owns 806 shares of the company’s stock valued at $57,000 after buying an additional 536 shares during the period. Institutional investors and hedge funds own 80.11% of the company’s stock.

Wall Street Analysts Forecast Growth KNF has been the topic of several research reports. Oppenheimer started coverage on Knife River in a research note on Thursday, May 28th. They set an “outperform” rating and a $95.00 price target on the stock. Royal Bank Of Canada reduced their price objective on Knife River from $109.00 to $107.00 and set an “outperform” rating for the company in a research report on Tuesday, June 30th. JPMorgan Chase & Co. upped their target price on Knife River from $90.00 to $95.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Weiss Ratings raised Knife River from a “hold (c-)” rating to a “hold (c)” rating in a research report on Wednesday, May 27th. Finally, Wells Fargo & Company lifted their price target on shares of Knife River from $80.00 to $81.00 and gave the stock an “underweight” rating in a research note on Wednesday, July 8th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $97.14.

View Our Latest Analysis on KNF

Knife River Trading Up 0.3% KNF stock opened at $78.33 on Tuesday. Knife River Corporation has a 1-year low of $58.72 and a 1-year high of $96.28. The firm has a market cap of $4.45 billion, a P/E ratio of 30.48, a P/E/G ratio of 1.40 and a beta of 0.37. The business’s 50 day moving average is $80.14 and its 200-day moving average is $81.46. The company has a current ratio of 2.67, a quick ratio of 1.31 and a debt-to-equity ratio of 0.91.

Knife River (NYSE:KNF – Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported ($1.40) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($1.42) by $0.02. The business had revenue of $410.13 million during the quarter, compared to analysts’ expectations of $387.06 million. Knife River had a return on equity of 9.35% and a net margin of 4.58%.Knife River’s quarterly revenue was up 16.0% compared to the same quarter last year. During the same period in the prior year, the firm posted ($1.21) EPS. Equities analysts anticipate that Knife River Corporation will post 3.32 earnings per share for the current fiscal year.

About Knife River (Free Report)

Knife River Corporation, headquartered in Bismarck, North Dakota, is a leading integrated construction materials and contracting company in the western United States. The company specializes in producing and supplying aggregates, asphalt mix, ready-mixed concrete and other heavy construction materials used in highway, commercial and residential projects.

In addition to material production, Knife River offers a comprehensive suite of contracting services, including heavy civil construction, road building, underground and open-pit mining and logistics support.

Recommended Stories Five stocks we like better than Knife River AirJoule’s Kubota Deal Is a Major Validation—But the Hard Part Comes Next Dividend Stocks May Be the Quiet Rotation Trade Investors Are Missing Now Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Verizon May Be an AI Infrastructure Stock Hiding in Plain Sight Want to see what other hedge funds are holding KNF? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Knife River Corporation (NYSE:KNF – Free Report).

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Knife River Corporation remains a compelling 'buy' as robust revenue growth and expanding backlog outpace recent share price weakness. KNF's vertically integrated model, regional reach, and strategic acquisitions drive volume growth across aggregates, ready-mix concrete, and asphalt. Public infrastructure funding and record DOT budgets underpin strong forward demand, with management guiding 2026 revenue of $3.3–$3.5 billion and EBITDA of $520–$560 million.

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BISMARCK, N.D.--(BUSINESS WIRE)--Knife River Corporation (NYSE: KNF) announced today that it has acquired the assets of Donaldson Brothers Ready Mix Inc., an aggregates-based ready-mix supplier in western Montana. This is Knife River’s third acquisition in its Mountain Segment in 2026.

Donaldson is a leading supplier of aggregates and ready-mix in the growing Bitterroot Valley, south of Missoula. In addition to three aggregates sources that provide the business with over 30 years of supply, Donaldson operates a ready-mix plant and manufactures precast concrete products.

Last month, Knife River acquired Morgan Asphalt Inc., based in Salt Lake City, Utah. In January, Knife River acquired the assets of Sparrow Enterprises Inc., in Helena, Mont.

“These three acquisitions in the Mountain Segment support our strategy of targeting aggregates-based, vertically integrated opportunities in mid-size, higher-growth markets,” said Knife River President and CEO Brian Gray. “The Donaldson assets provide strategic aggregate reserves in western Montana while establishing a foothold in a new market. Montana is growing, and we are now in an even better position to support that growth.”

About Knife River

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.

Forward-Looking Statement

The information in this release includes certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained in this release, including, but not limited to, statements about the growth potential in Montana, aggregate reserves and strategic expansion, are expressed in good faith and are believed by Knife River to have a reasonable basis. Nonetheless, actual results may differ materially from the projected results expressed in the forward-looking statements. There can be no assurance that the actual results or developments anticipated by Knife River will be realized or, even if substantially realized, that they will have the expected consequences to or effects on Knife River or its business or operations. For a discussion of important factors that could cause actual results to differ materially from those expressed in the forward-looking statements, refer to Item 1A-Risk Factors in Knife River’s Form 10-K. All forward-looking statements in this 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, Knife River does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise.

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Knife River Corporation is outperforming the S&P 500 and remains a compelling 'Buy' due to robust growth and attractive valuation. KNF delivered strong Q4 2025 results, with revenue up 14.9% and significant gains in aggregates and ready-mix concrete volumes and pricing. An aggressive acquisition strategy, including the $454 million Strata purchase, is driving backlog growth and expanding geographic and operational scale.

Holcim (OTCMKTS:HCMLY – Get Free Report) and Knife River (NYSE:KNF – Get Free Report) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their risk, profitability, earnings, analyst recommendations, institutional ownership, dividends and valuation.

Profitability This table compares Holcim and Knife River’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Holcim N/A N/A N/A Knife River 4.99% 10.27% 4.41% Risk & Volatility Holcim has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Knife River has a beta of 0.41, suggesting that its share price is 59% less volatile than the S&P 500.

Institutional & Insider Ownership 0.0% of Holcim shares are held by institutional investors. Comparatively, 80.1% of Knife River shares are held by institutional investors. 0.4% of Knife River shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Analyst Recommendations This is a summary of current recommendations and price targets for Holcim and Knife River, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Holcim 0 5 5 3 2.85 Knife River 1 3 6 0 2.50 Holcim presently has a consensus price target of $16.80, indicating a potential downside of 9.58%. Knife River has a consensus price target of $97.29, indicating a potential upside of 9.03%. Given Knife River’s higher probable upside, analysts clearly believe Knife River is more favorable than Holcim.

Valuation & Earnings This table compares Holcim and Knife River”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Holcim $18.97 billion 2.78 $15.91 billion N/A N/A Knife River $3.15 billion 1.61 $157.07 million $2.76 32.33 Holcim has higher revenue and earnings than Knife River.

Summary Knife River beats Holcim on 7 of the 13 factors compared between the two stocks.

About Holcim (Get Free Report)

Holcim AG, together with its subsidiaries, operates as a building materials and solutions company worldwide. It operates through North America; Latin America; Europe; Asia, Middle East & Africa; and Solutions & Products segments. The company offers cement, clinker, and other cementitious materials; ready-mix concrete; aggregates, such as crushed stone, gravel, and sand; and precast, concrete products, asphalts, mortars, roofing systems, insulation tile adhesives, facade solutions, and contracting and services. It also engages in distribution and retail activities comprising product availability and deliveries, in-store animation and shopping experience, one-stop retail shop, digital services and solutions, and financing and cash-flow solutions; and waste management services. The company's products are used in infrastructure projects, such as tunnels, railways and train stations, airports and ports, and bridges; housing projects, including individual and collective housing; commercial projects comprising offices, retail, and public buildings; and industrial projects consisting of renewable energy, oil and gas, and mining. It sells under the ECOPact, ECOPlanet, ECOCycle, Airium, DYNAMax, Aggneo, Ductal, Hydromedia, TectorPrint, Aggregate Industries, Disensa, Duro-Last, Elevate, Geocycle, Holcim, Lafarge, Malarkey Roofing Products, and PRB Group brands. The company was formerly known as LafargeHolcim Ltd and changed its name to Holcim AG in May 2021. The company was founded in 1833 and is headquartered in Zug, Switzerland.

About Knife River (Get Free Report)

Knife River Corporation, together with its subsidiaries, provides aggregates- led construction materials and contracting services in the United States. It operates through Pacific, Northwest, Mountain, Central, and Energy Services segments. The company mines, processes, and sells construction aggregates, including crushed stone and sand, and gravel; and produces and sells asphalt and ready-mix concrete. It also provides contracting service, such as heavy-civil construction, asphalt and concrete paving, and site development and grading. In addition, the company sells cement, merchandise, and other building materials and related services. The company sells its construction materials to public and private-sector customers, including federal, state, and municipal governments, as well as industrial, commercial and residential developers, and other private parties; and provides its contracting services to public-sector customers for the development and servicing of highways, local roads, bridges, and other public-infrastructure projects. Knife River Corporation was founded in 1917 and is based in Bismarck, North Dakota.

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Knife River (KNF - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on May 5. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis construction materials company is expected to post quarterly loss of $1.14 per share in its upcoming report, which represents a year-over-year change of +5.8%.

Revenues are expected to be $386.59 million, up 9.4% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Knife River?For Knife River, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -26.32%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Knife River will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Knife River would post earnings of $0.41 per share when it actually produced earnings of $0.56, delivering a surprise of +36.59%.

Over the last four quarters, the company has beaten consensus EPS estimates two times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Knife River doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Knife River (KNF - Free Report) came out with a quarterly loss of $1.4 per share versus the Zacks Consensus Estimate of a loss of $1.42. This compares to a loss of $1.21 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +1.18%. A quarter ago, it was expected that this construction materials company would post earnings of $0.41 per share when it actually produced earnings of $0.56, delivering a surprise of +36.59%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Knife River, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $410.1 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 6.08%. This compares to year-ago revenues of $353.5 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Knife River shares have added about 28.4% since the beginning of the year versus the S&P 500's gain of 5.2%.

What's Next for Knife River?While Knife River has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Knife River was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.11 on $896.16 million in revenues for the coming quarter and $3.21 on $3.37 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Building Products - Miscellaneous is currently in the bottom 23% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Owens Corning (OC - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 6.

This construction materials company is expected to post quarterly earnings of $1.01 per share in its upcoming report, which represents a year-over-year change of -66%. The consensus EPS estimate for the quarter has been revised 3.9% lower over the last 30 days to the current level.

Owens Corning's revenues are expected to be $2.16 billion, down 14.8% from the year-ago quarter.

Knife River Corporation (KNF) Q1 2026 Earnings Call Transcript