KNF

This article first appeared on GuruFocus. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Knife River Corp (NYSE:KNF) reported strong operational performance with revenue up 13% year-over-year, driven by record backlog conversion and double-digit volume growth across all product lines. Aggregate pricing increased by 8% on a product mix adjusted basis, and gross profit improved double-digits for both aggregates and asphalt, showcasing effective price optimization. The company's self-help initiatives are yielding results, with aggregate crews lowering variable operating costs by 1% despite inflationary pressures and ready-mix crews improving cubic yards per delivery hour by 12%. Knife River Corp (NYSE:KNF) raised its full-year revenue guidance to $3.4-$3.6 billion and reaffirmed adjusted EBITDA guidance of $520-$560 million, reflecting confidence in the second-half outlook. The acquisition strategy is performing well, with Strata expected to outperform original EBITDA projections by over 15% in 2026, and Texcrete contributing to a 15% increase in ready-mix volumes. Organic investments are creating value, such as the Spokane pre-stress facility securing a substantial contract for a semiconductor facility in Idaho, and the South Dakota rail-served quarry expanding market reach. The company maintains a strong balance sheet, having amended its term loan to lower interest rates and enhance liquidity, with expectations to end 2026 near its long-term net leverage target of 2.5 times. Backlog expanded to $1.2 billion, up approximately $50 million sequentially, reinforcing confidence in future performance and providing visibility into second-half activity. Higher diesel prices drove a $10 million year-over-year cost increase, with only $4 million recouped through fuel surcharges in Q2, impacting adjusted EBITDA. Project timing shifts and weather-related delays in Texas, Hawaii, and Alaska impacted adjusted EBITDA by approximately $10 million, with some volumes pushed into 2027. Market dynamics, including the type and timing of work, reduced contracting services margins by approximately $8 million, as the company performed more lower-margin asphalt paving versus larger general contracting jobs. The company faces competitive bidding pressures, particularly in Oregon, where limited bid lettings have led contractors to travel to adjacent states, putting downward pressure on margins. Aggregate gross margins were down slightly due to increased delivery volumes and higher fuel costs, with fuel surcharges being dilutive to margins, and the company now expects margin expansion of only ~100 basis points versus a prior target of 200. The company inherited lower-margin legacy projects from recent acquisitions in the mountain segment, which will continue to weigh on contracting services margins through the third quarter. Adjusted EBITDA was flat year-over-year on an as-reported basis, impacted by external headwinds, and the company now guides toward the midpoint of its EBITDA range rather than the upper end. The West segment underperformed, with revenue down 9% due to weakness in Oregon, Hawaii, and Alaska, and the company expects full-year Oregon performance to be slightly below prior expectations. Warning! GuruFocus has detected 10 Warning Sign with IVT. Is KNF fairly valued? Test your thesis with our free DCF calculator. Q: Can you walk through the impact of prior-year gains on asset sales on Q2 SG&A and adjusted EBITDA optics, and what should we expect in the second half?A: CFO Nathan Ring explained that SG&A was up about $12.5 million in the quarter, largely due to a $10.3 million gain on asset sales in Q2 2025 (notably the Beaumont, Texas property sale) versus only $600,000 this year. Excluding these gains, SG&A costs were actually up just 3.5%. CEO Brian Gray added that on a like-for-like basis, adjusted EBITDA was up 7% year-over-year, with revenue up 13% and double-digit volume and gross profit growth across all product lines, underscoring solid underlying operational performance. Q: Given the first-half headwinds, do you still expect to reach the upper end of your 2026 guidance, and can you level-set on seasonality effects?A: CEO Brian Gray detailed the $24 million in external headwinds: $6 million from energy costs (with $3-4 million expected to be recouped in Q3 via fuel escalators), $10 million from delayed projects (Texas, Hawaii, Alaska) that will largely push into 2027, and $8 million from market dynamics and timing of project incentives. CFO Nathan Ring clarified the company is now guiding toward the midpoint of the adjusted EBITDA range, with approximately 55% of EBITDA expected to be generated in Q3, assuming normal weather and stable energy costs. Q: Should we expect contracting services margins to recover to last year's levels in the second half, or is there still overhang from lower-margin legacy projects?A: CEO Brian Gray confirmed there is some overhang from legacy projects at recent acquisitions (primarily in Utah) that will impact margins in the second half, but this should be offset by recouping diesel costs and performance/quality bonuses on asphalt paving projects. He expects contracting services margins in the second half of 2026 to be in line with the second half of 2025. Q: Can you parse out the energy impact on the aggregates segment, and is the 200 basis point margin expansion target for the year still achievable?A: CEO Brian Gray noted that higher fuel costs impacted aggregate margins, with fuel surcharges covering costs but being dilutive to margins. He stated that while margin improvement is still expected, the 200 basis point target is unlikely; a safer estimate is around 100 basis points for the year, given continued fuel surcharge impacts. He highlighted that variable operating costs in aggregates were down 1% year-to-date despite headwinds, showing the effectiveness of self-help initiatives. Q: Are you having to get more aggressive to win work, and is the competitive backdrop intensifying?A: CEO Brian Gray acknowledged competitive dynamics are pressuring contracting services margins, particularly in Oregon where bid lettings were minimal, causing mobile contractors to travel to adjacent states. However, he emphasized the company made a conscious decision to bid more aggressively on asphalt paving to secure work, knowing it would drive pull-through demand for higher-margin materials, which contributed to double-digit gross profit growth in all upstream product lines. Q: Can you clarify whether Texas volumes can be recouped by year-end, and what is the impact of the Spokane fires?A: CEO Brian Gray confirmed that the missed paving volumes in Texas on two major highway projects will mostly be pushed into 2027, as crews already have a full schedule for the rest of the year. Regarding the Spokane fires, he assured that teams are safe and production at the pre-stress facility (an indoor operation) was not impacted, though heat and smoke could affect outdoor paving projects, which has not been material in July. Q: What drove the 9% revenue decline in the West segment, and has the Oregon outlook changed?A: CEO Brian Gray attributed the West's weakness to Hawaii's delayed P209 project ($3 million impact), Alaska's late construction season start (roads closed until June 15), and competitive dynamics in Oregon affecting Northern California. He noted Oregon operations were broadly in line with expectations for the first half, but the lack of new bid lettings means the full year will likely be slightly down. Positive signs include 20-30% aggregate volume growth in Portland and a large semiconductor facility contract in Idaho expected to benefit EBITDA later this year and into 2027. Q: Can you explain the wide gap between reported and mix-adjusted aggregate pricing, and how will pricing trends evolve?A: CFO Nathan Ring explained that reported aggregate pricing was up 3.2%, but this was impacted by a 630,000-ton sale of lower-priced natural fines. On a product mix-adjusted basis, pricing was up 8%, reflecting strong underlying price increases. For the full year, he expects as-reported aggregate pricing to be up mid-single-digits. For ReadyMix, pricing was affected by geographic mix, particularly Texcrete's residential lower-spec material, which carries a different pricing profile but remains good margin work. Q: What was organic aggregate volume growth in Q2, and what are expectations for full-year organic volumes?A: CEO Brian Gray stated that approximately 75% of aggregate volume growth came from legacy operations, driven by increased asphalt paving and the pull-through benefit of vertical integration. The remaining 25% came from recent acquisitions, including Texcrete, where the company switched aggregate supply to internal sources. This demonstrates the strength of the legacy business and the strategic benefits of acquisitions. Q: Can you comment on the expected trajectory of total gross margins in Q3 and Q4?A: CFO Nathan Ring indicated that aggregates should see margin expansion of about 100 basis points for the full year, while contracting services margins should be comparable to last year. However, ReadyMix and hot mix asphalt could see some margin compression in the second half due to higher energy costs, lower-margin work, and higher depreciation from recent acquisitions. Overall, gross profit for the material product lines (aggregates, ReadyMix, hot mix) is expected to be higher year-over-year. Q: The maintained EBITDA guidance with higher D&A implies lower EBIT guidancewhat's driving the operating side?A: CFO Nathan Ring explained that the lower EBIT guidance reflects anticipated margin compression in ReadyMix and hot mix asphalt due to higher energy costs, lower-margin work, and increased depreciation from acquisitions. He also For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Knife River Corporation? Here are five stocks we like better. Second-quarter revenue rose 13% year over year as Knife River converted record backlog into sales. Reported adjusted EBITDA was flat, but increased 7% excluding prior-year asset-sale gains, despite $10 million of diesel-cost pressure and roughly $18 million of combined weather, project-timing and contract-mix headwinds. Materials performance was strong, with aggregate volumes up 14%, ready-mix volumes up 15% and asphalt volumes up 24%; product-mix-adjusted aggregate pricing increased 8%. Backlog expanded to approximately $1.2 billion, and the company expects high-single-digit aggregate volume growth for the full year. Knife River raised its 2026 revenue outlook to $3.4 billion-$3.6 billion while reaffirming adjusted EBITDA guidance of $520 million-$560 million, targeting the midpoint. Growth investments include acquisitions and an approximately $85 million rail-served quartzite quarry in South Dakota expected to begin operations in the first half of next year. 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. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “The fundamentals of our business are strong,” Gray said, pointing to price optimization, cost controls and operational improvement efforts. 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. → 3 Drone Stocks That Should Soar After the Summer Slump 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. → Why Rare Earth Processing Could Be the Real 2027 Opportunity 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. 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. 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. 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. 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]. The article "Knife River Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Knife River (KNF) shares came under pressure after the company reported second quarter 2026 results on 4 August, with higher revenue alongside lower net income, and issued full year revenue guidance. See our latest analysis for Knife River. The earnings release and new 2026 revenue guidance have coincided with a sharp reset in sentiment toward Knife River, with the share price down 12% over the past week and 24% over the past quarter, while the 3 year total shareholder return remains positive at 34.97%. If the latest move in Knife River has you rethinking your watchlist, this can be a good moment to look at infrastructure exposed opportunities in the Simply Wall St 36 power grid technology and infrastructure stocks Knife River now sits at a crossroads, with a long-established infrastructure business and a sharply lower share price after earnings. The key issue for investors is whether the recent reset leaves the stock fairly valued or still mispriced. Knife River last closed at $69.51 compared with a most followed fair value estimate of $104.11 per share. That gap is built on a detailed story about future projects, margins and capital allocation rather than short term sentiment. Read the complete narrative. Want to understand why this backlog and funding profile underpin that fair value for Knife River? The narrative leans on specific revenue paths, margin targets and a premium earnings multiple that are all explained in detail. Result: Fair Value of $104.11 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Knife River's heavy reliance on public infrastructure funding and exposure to weather disruption in key regions could challenge project timing, margins, and the narrative that it is 33.2% undervalued. Find out about the key risks to this Knife River narrative. The fair value narrative for Knife River points to $104.11 per share, yet today the stock trades on a P/E of 28.2x. That is higher than the Global Basic Materials industry at 13.9x, the peer average at 27.8x, and the fair ratio of 22x. This gap implies investors are already paying a premium. The key question is whether that premium still looks comfortable if growth or margins come in below expectations. See what the numbers say about this price — find out in our valuation breakdown. With sentiment on Knife River so divided, it helps to look past headlines and review the full mix of concerns and potential upsides yourself. To see how those trade offs stack up in one place, take a closer look at the 2 key rewards and 1 important warning sign If Knife River has sharpened your focus on opportunities, do not stop there. Use the Simply Wall St Screener to quickly surface fresh ideas that fit your style. Target reliable cash generators by scanning a universe of companies with the solid balance sheet and fundamentals stocks screener (49 results) that can support operations through different conditions. Spot potential bargains early by checking the screener containing 18 high quality undiscovered gems before they attract wider attention and pricing becomes less forgiving. Prioritise sleep at night holdings by focusing on companies in the 82 resilient stocks with low risk scores that may help smooth out the rougher patches in your portfolio. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KNF. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Knife River (KNF) 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Knife River Corporation (KNF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Knife River (KNF) came out with quarterly earnings of $0.77 per share, missing the Zacks Consensus Estimate of $1.11 per share. This compares to earnings of $0.89 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -30.63%. A quarter ago, it was expected that this construction materials company would post a loss of $1.42 per share when it actually produced a loss of $1.4, delivering a surprise of +1.41%. 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 $938.6 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.61%. This compares to year-ago revenues of $833.8 million. The company has topped consensus revenue estimates four 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 12.1% since the beginning of the year versus the S&P 500's gain of 11%. 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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $3.03 on $1.3 billion in revenues for the coming quarter and $3.32 on $3.39 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 top 40% 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. One other stock from the same industry, Argan (AGX), is yet to report results for the quarter ended July 2026. This builder of energy plants is expected to post quarterly earnings of $2.68 per share in its upcoming report, which represents a year-over-year change of +7.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Argan's revenues are expected to be $297.78 million, up 25.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Knife River Corporation (KNF) : Free Stock Analysis Report Argan, Inc. (AGX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Double-digit volume and gross profit growth across material product lines 20% growth in contracting services revenue Sequentially increased backlog from the first quarter, to $1.2 billion Raised guidance for revenue and aggregate volumes BISMARCK, N.D., August 04, 2026--(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. "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. 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. 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. 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. 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. 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. The following table summarizes backlog for the company. 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. 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. The following table provides the reconciliation of consolidated net income (loss) to total segment EBITDA. The following tables provide the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA. The following table provides the reconciliation of the net leverage calculation of net debt to Adjusted EBITDA. 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. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804756159/en/ Contacts COPRORATE CONTACTSIR Contact: Dara Dierks, Vice President of Investor Relations, [email protected] Media Contact: Tony Spilde, Vice President of Communications, [email protected]

The market expects Installed Building Products (IBP) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This residential insulation installer is expected to post quarterly earnings of $2.57 per share in its upcoming report, which represents a year-over-year change of -12.9%. Revenues are expected to be $740.43 million, down 2.6% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.71% lower over the last 30 days to the current level. 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 Estimate 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). For Installed Building Products, 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 -0.39%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Installed Building Products will beat the consensus EPS estimate. 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 Installed Building Products would post earnings of $2.09 per share when it actually produced earnings of $1.79, delivering a surprise of -14.35%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An 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. Installed Building Products 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. Knife River (KNF), another stock in the Zacks Building Products - Miscellaneous industry, is expected to report earnings per share of $1.11 for the quarter ended June 2026. This estimate points to a year-over-year change of +24.7%. Revenues for the quarter are expected to be $923.71 million, up 10.8% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Knife River has been revised 3.1% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.57%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Knife River will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Installed Building Products, Inc. (IBP) : Free Stock Analysis Report Knife River Corporation (KNF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wall Street expects a year-over-year increase in earnings on higher revenues when Knife River (KNF) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This construction materials company is expected to post quarterly earnings of $1.11 per share in its upcoming report, which represents a year-over-year change of +24.7%. Revenues are expected to be $923.71 million, up 10.8% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 3.06% higher over the last 30 days to the current level. 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 Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. 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). For Knife River, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.57%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Knife River will most likely beat the consensus EPS estimate. 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 a loss of$1.42 per share when it actually produced a loss of -$1.40, delivering a surprise of +1.41%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An 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 appears 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. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Knife River Corporation (KNF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Armstrong World Industries (AWI) came out with quarterly earnings of $2.36 per share, beating the Zacks Consensus Estimate of $2.33 per share. This compares to earnings of $2.09 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +1.29%. A quarter ago, it was expected that this ceiling and wall systems manufacturer would post earnings of $1.82 per share when it actually produced earnings of $1.69, delivering a surprise of -7.14%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Armstrong World Industries, which belongs to the Zacks Building Products - Miscellaneous industry, posted revenues of $472 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.97%. This compares to year-ago revenues of $424.6 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. Armstrong World Industries shares have lost about 13.5% since the beginning of the year versus the S&P 500's gain of 8.3%. While Armstrong World Industries has underperformed 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 Armstrong World Industries was mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $2.34 on $464.8 million in revenues for the coming quarter and $8.31 on $1.76 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 top 38% 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. One other stock from the same industry, Knife River (KNF), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This construction materials company is expected to post quarterly earnings of $1.11 per share in its upcoming report, which represents a year-over-year change of +24.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Knife River's revenues are expected to be $923.71 million, up 10.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Armstrong World Industries, Inc. (AWI) : Free Stock Analysis Report Knife River Corporation (KNF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research