Knife River Q2 revenue slightly beats estimates, lifts outlook

Knife River

04/08/2026 12:19

Overview
U.S. construction materials supplier's Q2 revenue grew 13%, slightly beating analyst expectations
Q2 adjusted EBITDA missed analyst estimates; net income and EPS declined year-over-year
Company raised full-year revenue and aggregate volume guidance, citing strong backlog and growth projects

Outlook
Knife River raises 2026 revenue guidance to $3.4 bln-$3.6 bln
Company expects 2026 Adjusted EBITDA of $520 mln-$560 mln
Aggregates volumes seen up high-single digits, pricing up mid-single digits in 2026

Result Drivers
VOLUME AND CONTRACTING SERVICES GROWTH - Co said double-digit volume and gross profit growth across material product lines and 20% growth in contracting services revenue drove Q2 results
ACQUISITIONS AND PRICING - Acquisitions and an 8% increase in aggregate pricing contributed to revenue and volume growth, per CEO Brian Gray
MARGIN PRESSURES - Higher energy costs, delayed project impacts, and the mix and timing of contracting services weighed on adjusted EBITDA and margins

Company press release: ID:nBw8L5LSza

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Beat*
$938.60 mln
$931.43 mln (7 Analysts)
Q2 EPS
 
$0.77
 
Q2 Net Income
 
$43.90 mln
 
Q2 Adjusted EBITDA
Miss
$139.70 mln
$161.74 mln (8 Analysts)
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the construction materials peer group is "buy"
Wall Street's median 12-month price target for Knife River Corp is $105.00, about 33.2% above its August 3 closing price of $78.84
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 27 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)