Strong demand for construction materials and contracting services continued to support business activity during the second quarter, prompting Knife River Corporation to increase its financial outlook for 2026. The company reported higher revenue, expanding materials volumes and a larger project backlog despite lower quarterly net income and adjusted EBITDA margins.
The results reflect continued activity across public infrastructure and private construction markets, supported by acquisitions and ongoing investments in production capacity.
Knife River generated second-quarter revenue of $938.6 million, a 13% increase from the same period last year. Contracting services revenue rose 20%, while aggregates, ready-mix concrete and asphalt operations recorded double-digit volume and gross profit growth. Aggregate pricing also increased 8% on a product mix adjusted basis.
Net income declined 13% to $43.9 million, primarily reflecting higher operating costs and the absence of significant asset sale gains recorded during the prior-year period. Adjusted EBITDA totaled $139.7 million, compared with $140.8 million a year earlier.
Regional performance varied across the company's operating footprint. The Central region posted 28% revenue growth, supported by higher materials volumes and contributions from the Texcrete acquisition. The Mountain region recorded a 34% revenue increase driven by acquisitions and contracting work, while the Energy Services segment benefited from improved activity in California. Revenue in the West region declined because of lower public agency work in Oregon and project delays in Hawaii and Alaska.
Knife River ended the quarter with approximately $1.2 billion in contracting services backlog, representing an increase from the first quarter of 2026. About 85% of the backlog is tied to publicly funded transportation projects, including street and highway construction.
The company continued investing in both acquisitions and organic expansion during the first half of the year. It spent approximately $184 million on acquisitions and more than $60 million on aggregate reserve expansions and greenfield projects, with additional capital investments planned through the remainder of 2026.
Knife River also completed a $400 million incremental Term Loan B financing during May to support acquisitions, repay revolving credit borrowings and provide additional funding for corporate purposes.
Construction owners, contractors and materials suppliers continue to monitor demand across infrastructure and private development markets. Knife River's expanding backlog, higher construction materials volumes and increased capital investment indicate continued activity in transportation and building projects. The company's updated financial guidance also signals expectations for sustained demand across aggregates, ready-mix concrete, asphalt and contracting services during the remainder of the 2026 construction season.
Source: Knife River.
