Knife River Corporation Reports $410.1 Million Revenue in Q1 2026, 16% Increase Year-Over-Year

Knife River Corporation reported a total revenue of $410.1 million for the first quarter of 2026, marking a 16% increase from $353.5 million in the same period of 2025. The growth was primarily driven by a rise in ready-mix concrete volumes, which contributed $35.8 million to the revenue increase, alongside a $21.5 million boost from aggregate volumes. However, the company experienced a gross loss of $2.8 million, an improvement from a gross loss of $9.6 million in the prior year, attributed to higher revenues and reduced maintenance costs.

The company's operating loss for the quarter was $86.2 million, slightly higher than the $82.7 million loss reported in the previous year. This increase was influenced by a 14% rise in selling, general, and administrative expenses, which totaled $83.5 million, largely due to costs associated with recent acquisitions. Interest expenses also rose significantly, increasing by 35% to $20.7 million, primarily due to higher average debt balances following the issuance of a Term Loan B in March 2025.

In terms of strategic developments, Knife River completed three acquisitions in the Mountain region during the first quarter of 2026, totaling $174.2 million. These acquisitions included operations in Montana and Utah, enhancing the company's ability to supply aggregates and ready-mix concrete in these expanding markets. The company also reported a backlog of $1.2 billion as of March 31, 2026, with approximately 88% of this backlog related to publicly funded projects, indicating a stable outlook for future revenue.

Operationally, Knife River's employee headcount and customer engagement metrics remained stable, with the company continuing to focus on enhancing its workforce through training and safety initiatives. The company operates across 15 states, with significant contributions from its West, Mountain, Central, and Energy Services segments. The Energy Services segment reported a revenue increase of 47% to $20.4 million, driven by higher sales volumes of liquid asphalt.

Looking ahead, Knife River anticipates continued growth driven by strong public-sector funding, particularly from federal and state infrastructure programs. The company is committed to improving profitability through its Competitive EDGE strategy, which aims to enhance margins and operational efficiencies. Despite facing potential downward pressure on margins due to fluctuating raw material prices, Knife River remains optimistic about its growth trajectory, supported by ongoing investments in both organic projects and strategic acquisitions.