Knife River Corporation Reports Third Quarter 2026 Financial Results
Key Highlights
- ➤Q3 revenue $1,275.6M, up 6% year-over-year
- ➤Aggregate gross margin rose 240 basis points to record 29.6%
- ➤2026 guidance now targets revenue of $3,375M-$3,425M
- ➤2026 Adjusted EBITDA guidance now targets $475M-$505M
- ➤Backlog declined to $857.2M from $994.6M year-over-year
Expert Statements
Brian Gray, President and CEO of Knife River Corporation
“We delivered a solid third quarter in a challenging operating environment, increasing revenue 6% and improving the profitability of our aggregates business.”
Brian Gray, President and CEO of Knife River Corporation
“Internal pull-through and higher third-party sales drove a 10% increase in aggregate volumes for the quarter.”
Brian Gray, President and CEO of Knife River Corporation
“We raised aggregate pricing mid-single digits and reduced per-unit variable production costs, leading to a 240-basis-point improvement in aggregate gross margin, to 29.6%.”
Brian Gray, President and CEO of Knife River Corporation
“The external headwinds we faced in the second quarter — market dynamics, project delays and higher fuel costs — carried into the third.”
Brian Gray, President and CEO of Knife River Corporation
“We believe these headwinds are temporary, and we have successfully managed through similar environments before.”
Brian Gray, President and CEO of Knife River Corporation
“Our teams are controlling what they can control.”
Brian Gray, President and CEO of Knife River Corporation
“We're targeting more third-party materials sales, right-sizing crews and equipment where market conditions call for it, and pursuing more private-work opportunities.”
Brian Gray, President and CEO of Knife River Corporation
“Meanwhile, we are building upon our Competitive EDGE program to drive EBITDA growth and margin improvement through self-help initiatives.”
Brian Gray, President and CEO of Knife River Corporation
“Since launching EDGE in 2023, we have delivered a 530 basis point improvement in aggregate gross margin.”
Brian Gray, President and CEO of Knife River Corporation
“Our EDGE efforts have contributed to EBITDA growth and Adjusted EBITDA margin expansion, and while these efforts will continue, we have begun implementing ‘Sharper EDGE’ initiatives to drive additional value.”
Brian Gray, President and CEO of Knife River Corporation
“Sharper EDGE is rooted in line-of-sight opportunities, focused on targeted capital improvements that deliver meaningful benefits in key operational, commercial and organizational areas.”
Brian Gray, President and CEO of Knife River Corporation
“Together with our organic investments and an active M&A pipeline, we have multiple paths to Adjusted EBITDA growth and margin expansion.”
Brian Gray, President and CEO of Knife River Corporation
“We look forward to discussing the details of Sharper EDGE at an investor day in the coming months.”
Brian Gray, President and CEO of Knife River Corporation
“We have built a strong foundation, and we see substantial opportunity ahead.”
Brian Gray, President and CEO of Knife River Corporation
“We remain focused on disciplined execution and investing in the areas where we believe we can create the greatest long-term value for our shareholders.”
Knife River Corporation Reports Third Quarter 2026 Financial Results
* Revenue increased 6% year-over-year, driven by more asphalt paving and aggregate demand
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