Knife River Q2 Revenue Tops Estimates, but Margin Pressure Tempers the Beat; Guidance Lifted on Robust Backlog
KNF sits 23% above its 52-week low of $58.72.
Summary
Knife River reported Q2 revenue of $938.6M (a beat) and Adjusted EBITDA of $139.7M (a miss), raised full-year guidance, and highlighted a $1.2B backlog. Margins were pressured by energy costs and tough comps, but volume growth and pricing gains support the raised outlook.
Key Events · Earnings and Guidance · KNF
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Q2 Revenue Beat, EBITDA Miss
Revenue of $938.6M (+13% YoY) topped the $931.4M consensus, but Adjusted EBITDA of $139.7M missed estimates as margins compressed to 14.9% from 16.9% a year ago, partly due to a $9.7M swing in asset sale gains.
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Full-Year Guidance Raised
Knife River lifted its 2026 outlook to revenue of $3.4B–$3.6B and Adjusted EBITDA of $520M–$560M, up from prior implied ranges, driven by strong volume trends and a $1.2B contracting services backlog.
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Backlog Grows to $1.2B
Contracting services backlog increased sequentially from Q1 to $1.2B, with 85% tied to publicly funded projects, providing visibility into the second half of 2026.
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Leverage at 3.2x After Acquisition Spending
Net leverage stood at 3.2x at quarter-end, reflecting $184.4M in acquisition spending and $60.1M in organic growth capex during the first half, funded in part by a $400M incremental Term Loan B in May 2026.
Analysis · KNF · Energy & Transportation
Knife River posted a 13% revenue increase to $938.6M, edging past consensus, yet Adjusted EBITDA of $139.7M fell short of expectations as higher energy costs and a tough comparison against last year's asset sale gains compressed margins. Management raised the full-year revenue and Adjusted EBITDA guidance, pointing to a $1.2B backlog and solid volume trends across materials and contracting. While net leverage remains elevated at 3.2x following recent acquisition spending, the upgraded outlook signals confidence in converting the backlog into earnings through the remainder of the construction season.
At the time of this filing, KNF was trading at $72.51 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $4.5B. The 52-week trading range was $58.72 to $96.28. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.