Knife River Posts 47% Q4 EBITDA Surge and $1B Record Backlog
Knife River entered 2026 with a record $1 billion backlog, up 38% year-over-year, about 90% tied to public work and 75% slated for completion this year. In Q4, adjusted EBITDA jumped 47% with a 340-bp margin gain, and 2026 guidance forecasts higher revenue and EBITDA supported by pricing discipline.
1. Record Backlog and Public Work Composition
Knife River began 2026 with a record backlog of approximately $1 billion, representing a 38% increase from 2025. About 90% of that backlog is tied to lower-risk public paving projects under $5 million, and management expects roughly 75% of the backlog to be completed this year.
2. Q4 Financial Performance and Margins
In the fourth quarter, adjusted EBITDA rose 47% and adjusted EBITDA margin improved by 340 basis points versus the prior year. Quarterly gross profit increased 27%, driving gross margin to a record near 19%, contributing to full-year adjusted EBITDA growth of 7% to $497 million.
3. Regional Segment Highlights
The West segment saw softness in Oregon offset by strong public and military projects in California, Hawaii and Alaska. Mountain operations delivered nearly 20% revenue growth with 400-bp margin improvements in both aggregates and ready-mix, while Central integration of the Strata acquisition and major projects in Texas and North Dakota supported volume gains.
4. 2026 Guidance and Capital Deployment
Management issued guidance for higher 2026 revenue and adjusted EBITDA, citing dynamic pricing, cost controls and Infrastructure Law funding. For aggregates, the company expects mid-single-digit volume growth and 200 bp of margin expansion, and it invested $789 million in 2025 across five acquisitions and organic projects with maintenance capex at 6% of revenue.