Knife River Corporation Reports 12.6% Revenue Growth to $938.6 Million in Q2 2026

Knife River Corporation reported significant financial performance in its latest 10-Q filing for the second quarter of 2026, with total revenue reaching $938.6 million, a 12.6% increase from $833.8 million in the same period of 2025. The company's revenue from construction materials was $532.1 million, up from $493.6 million, while contracting services revenue rose to $406.5 million from $340.2 million. Despite the increase in revenue, Knife River experienced a net income of $43.9 million, a decrease from $50.6 million in the prior year, primarily due to higher costs of revenue and increased interest expenses.

The company’s cost of revenue also increased, totaling $775.8 million compared to $676.5 million in the previous year, leading to a gross profit of $162.8 million, slightly higher than $157.2 million in 2025. Selling, general, and administrative expenses rose to $81.7 million from $69.2 million, contributing to a decline in operating income to $81.1 million from $88.1 million. The interest expense increased to $24.6 million from $22.3 million, reflecting the company's higher debt levels following recent acquisitions.

In terms of strategic developments, Knife River completed four acquisitions in the first half of 2026, totaling $184.4 million. These acquisitions included operations in Montana, Utah, and Oregon, which expanded the company's geographic footprint and service offerings. The acquisitions contributed $25.1 million in revenue for the second quarter and $27.6 million for the first half of the year. The company also reported a backlog of $1.2 billion in remaining performance obligations, indicating a strong pipeline of future work.

Operationally, Knife River's total assets increased to $4.18 billion as of June 30, 2026, compared to $3.63 billion a year earlier. The company’s employee headcount rose to 5,200, reflecting its growth strategy and expansion efforts. The company continues to focus on public-sector infrastructure projects, which represent a significant portion of its business, and aims to leverage its vertically integrated model to enhance efficiency and customer service.

Looking ahead, Knife River remains optimistic about its growth prospects, driven by ongoing investments in infrastructure and strategic acquisitions. The company anticipates continued revenue growth in the coming quarters, supported by its strong backlog and the expected recognition of revenue from its recent acquisitions. However, management acknowledged the challenges posed by rising costs and interest rates, which may impact profitability in the near term.