Knife River Corporation Reports Third Quarter 2026 Financial Results
Q3 revenue up 6% to $1,275.6M, net income down 4% to $137.9M, EPS $2.43; aggregate margin up 240 bps to 29.6%; 2026 guidance cut.
What this release says
Knife River reported third quarter 2026 revenue of $1,275.6 million, up 6% from a year earlier, driven by more asphalt paving and aggregate demand. Net income fell 4% to $137.9 million, and aggregate gross margin improved 240 basis points to a third quarter record 29.6%. The company also updated 2026 guidance to reflect near-term headwinds, which matters to shareholders because the outlook is now lower than before and the company says the headwinds are temporary.
Key figures
- Third quarter revenue
- $1,275.6 million
- Net income
- $137.9 million
- Net income per share
- $2.43
- Adjusted EBITDA
- $271.7 million
- Aggregate gross margin
- 29.6%
- Aggregate volume increase
- 10%
Positive for shareholders
- Revenue rose 6% year-over-year, driven by asphalt paving and aggregate demand.
- Aggregate gross margin improved 240 basis points to a third quarter record of 29.6%.
- Aggregate volumes rose 10% on internal pull-through and higher third-party sales.
- The company launched 'Sharper EDGE' initiatives aimed at additional margin and EBITDA growth.
Negative for shareholders
- Net income fell 4% and net income per share declined from $2.52 to $2.43.
- Adjusted EBITDA was flat, and Adjusted EBITDA margin fell from 22.7% to 21.3%.
- Full-year 2026 guidance was updated to reflect near-term headwinds such as market dynamics, project delays and higher fuel costs.
- Contracting services faced the most pressure from competition and project delays.
Written by Quantisnow AI from this release. Not financial advice.
Key terms
- Adjusted EBITDA:
- Earnings before interest, taxes, depreciation and amortization, further adjusted to exclude items such as unrealized gains and losses on benefit plan investments and stock-based compensation.
- Aggregate gross margin:
- The share of aggregate sales revenue left after the direct costs of producing and selling the aggregates, such as crushed stone and sand.
- Pull-through:
- Aggregate volume the company sells to its own asphalt and concrete operations rather than to outside customers.
FAQ
How did Knife River perform in the third quarter of 2026?
Knife River reported revenue of $1,275.6 million, up 6% from the prior year, while net income fell 4% to $137.9 million. Adjusted EBITDA was flat at $271.7 million.
Why did Knife River update its 2026 guidance?
The company said it updated guidance to reflect near-term headwinds, including market dynamics, project delays and higher fuel costs that carried over from the second quarter into the third.
What are Knife River's Sharper EDGE initiatives?
The release describes Sharper EDGE as targeted capital improvements in operational, commercial and organizational areas, building on the earlier Competitive EDGE program that lifted aggregate gross margin by 530 basis points since 2023.
Historical context for KNF
Across the 25 sessions after earlier KNF headlines, the stock closed higher 11 times and lower 14 times, with a median move of 3.4% in either direction. This shows timing only: many things move a stock in a session, and these figures do not show that any headline caused a move.
| Session | Earlier headline | KNF | SPY |
|---|---|---|---|
| Oct 30, 2026 | Starboard Delivers Letter to Knife River | -0.2% | -1.8% |
| Oct 27, 2026 | Knife River Corp. upgraded by Wolfe Research | +3.6% | +0.6% |
| Oct 15, 2026 | Knife River Corporation Announces Timing of Third Quarter 2026 Results Conference Call | +4.1% | +0.3% |
| Oct 9, 2026 | Knife River Corp. downgraded by RBC Capital Mkts with a new price target | -4.6% | +0.6% |
| Sep 24, 2026 | Knife River Reiterates Focus on Disciplined Execution and Shareholder Value Creationand 1 other headline that session | +3.8% | -0.1% |
| Sep 2, 2026 | Knife River Corp. downgraded by Analyst with a new price target | -0.9% | +0.4% |
- Market cap
- 30-day
- Sector
- Industrials
- Industry
- Mining & Quarrying of Nonmetallic Minerals (No Fuels)
- Listed since
- 2023
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