Knife River Q3 revenue misses estimates on contracting services headwinds
KNF•Knife River's third-quarter revenue rose 6% year over year to $1.28 billion, below the $1.30 billion estimate, while adjusted EBITDA was flat at $271.7 million and missed expectations. The company forecasts 2026 revenue of $3.38 billion to $3.43 billion and adjusted EBITDA of $475 million to $505 million.
1. Quarterly results
Knife River reported third-quarter revenue of $1.28 billion, up 6% year over year and below the $1.30 billion analyst estimate. Adjusted EBITDA was flat year over year at $271.7 million, below the $280.09 million estimate; net income was $137.9 million and earnings per share were $2.43.
2. Demand and outlook
The company said aggregate volumes rose 10%, driven by internal pull-through and higher third-party sales. Mid-single-digit aggregate price increases and lower per-unit production costs improved aggregate gross margin, while project delays, market dynamics and higher fuel costs weighed on contracting services. For 2026, Knife River expects revenue of $3.38 billion to $3.43 billion and adjusted EBITDA of $475 million to $505 million, with aggregates, ready-mix and asphalt volumes expected to rise by high-single to low-double digits.
