On this page of StockholderLetter.com we present the latest annual shareholder letter from Knife River Corp — ticker symbol KNF. Reading current and past KNF letters to shareholders can bring important insights into the investment thesis.

 •  4/6/2026 Letter Continued (Full PDF)
 •  3/29/2024 KNF Stockholder Letter
 •  4/7/2025 KNF Stockholder Letter
 •  More "Construction Materials & Machinery" Category Stockholder Letters
 •  KNF Benford's Law Stock Score = 86

KNF Shareholder/Stockholder Letter Transcript:

2025
Annual Report | Proxy Statement | Form 10-K

6,900
4
Team Members
at peak season
1.3
Billion
tons of aggregate reserves
th-largest producer of sand
and gravel in the US
Safest
year ever
7%
Adjusted EBITDA growth
from 2024 to 2025  
15.8%
Adj. EBITDA Margin1
Record
Revenue, EBITDA and
Adj. EBITDA1 in 2025
Record year-end backlog of $1.0B
Note: All data is as of Dec. 31, 2025, unless otherwise noted.

West
Mountain
Central
Central
Energy Services
REPORTING
SEGMENTS
& RECAP
Mountain
Central
Energy Services
Energy Services
Aggregate site
(208 active sites)
Ready-Mix plant
(135 total plants)
Aggregate site
(208 active sites)
Ready-Mix plant
(135 total plants)
Asphalt plant
(55 total plants)
Ready-Mix plant
(135 total plants)
Asphalt plant
(55 total plants)
Asphalt plant
(55 total plants)
Liquid asphalt terminal
(9 total terminals)
Liquid asphalt terminal
(9 total terminals)
Liquid asphalt terminal
(9 total terminals)
Liquid asphalt terminal
(9 total terminals)
Mountain
West
Asphalt plant
(55 total plants)
Central
nt
ts)
Mountain
West
Energy
Services

West
2024
2025
Revenue
$1,186M
$1,210M
+2%
EBITDA1
$210M
$234M
+12%
EBITDA Margin1
17.7%
19.3%
160bps
2024
2025
Change
Revenue
$663M
$644M
(3)%
1
EBITDA
$114M
$100M
(12)%
EBITDA Margin1
17.1%
15.5%
(160)bps
2024
2025
Change
Revenue
$818M
$1,005M
+23%
1
EBITDA
$132M
$160M
+21%
EBITDA Margin1
16.1%
15.9%
(20)bps
2024
2025
Change
Revenue
$276M
$338M
+23%
EBITDA1
$60M
$55M
(9)%
21.8%
16.2%
(560)bps
EBITDA Margin
1
Change
PRODUCT LINES
AGGREGATES
1.3 billion tons of reserves
with strategic locations
near end users and/or
multimodal transportation.
Reliable supply of highquality materials is a
competitive advantage.
READY-MIX
CONCRETE
Versatile and specialized
value-added product.
135 plants across 13
states, and a fleet of
delivery trucks.
ASPHALT
LIQUID ASPHALT
Downstream product
used for smooth,
durable surfaces on
highways, streets and
parking lots. 55 plants
across 10 states.
Binding agent used with
aggregates to produce
asphalt. 9 terminals
across 7 states.
CONTRACTING
SERVICES
Reliable pull-through
demand of materials.
Public works focused;
adds resiliency and
contributes to ROIC.2
Knife River Corporation | 1


Dear Fellow Shareholders,
Knife River made meaningful progress on our strategic initiatives
in 2025, positioning us for growth in 2026 and beyond. We
invested in our growth through acquisitions, reserve expansion
and high value organic initiatives, while reinforcing a culture of
continuous improvement to drive margin expansion and help us
become better at everything we do.
29 ready mix plants, five asphalt plants and a talented group
of professionals. We believe these transactions, combined
with targeted organic investments, have positioned us well
for continued expansion. Already in 2026, we have completed
three additional aggregates-based, vertically integrated
acquisitions through March.
Despite a weather impacted start to the year, our teams
executed with discipline and focus, finishing 2025 with a
record fourth quarter and delivering our most profitable
year to date. It was also our safest year ever, as our team
embraced our    I Choose Safety    culture. We enter 2026 with
momentum, confidence and a clear strategy designed to drive
long term, profitable growth.
In addition to population growth in our markets, Knife
River stands to benefit from the demonstrated need for
infrastructure development     and the record funding to
support it. The American Society of Civil Engineers gives the
nation   s roads a    D+    and estimates it will take over $2 trillion
to bring the roads to a passing grade. In 2026, considerable
federal funding remains to be reimbursed to states from the
Infrastructure Investment and Jobs Act, which we expect
will support funding consistency while Congress works to
reauthorize transportation funding. Meanwhile, department
of transportation budgets across Knife River   s 15 states3
remain at or near record levels. Strong public budgets provide
multi-year visibility.
Knife River Growth Strategy
There are four components to our growth strategy that we
believe differentiate Knife River as the employer, supplier and
acquirer of choice:
Our diverse markets.
Vertical integration.
Continuous improvements
to drive margin growth.
Our Life at Knife culture and
relentless drive for excellence.
Markets
Knife River operates in mid sized markets that are forecasted
to grow twice as fast as non-Knife River states. These higher
growth markets create compelling opportunities for organic
expansion and disciplined acquisitions. In 2025, we completed
five aggregates based acquisitions, adding aggregate reserves,
2 | Knife River Corporation
Vertical Integration
Knife River is an aggregates based, vertically integrated
company. Vertical integration can act as a profit multiplier and
provide more resiliency through economic cycles. We believe
our mix of aggregates, ready-mix, asphalt, liquid asphalt and
contracting services enhances our value in multiple ways,
including providing the opportunity for:
   Pull-through of higher-margin materials on our
   contracting jobs.
   Multiple chances to engage in projects     as a general
   contractor, subcontractor or materials provider.
   Greater supply-chain reliability and improved jobsite
  coordination.
   More acquisition opportunities.
Continuous Improvement
Knife River   s Competitive EDGE remains the engine of our long
term value creation strategy. EDGE stands for EBITDA Margin
Improvement, Discipline, Growth and Excellence. We believe
in continuous improvement in all aspects of our business to
drive EBITDA growth and margin expansion. Two key EDGE
initiatives are controlling costs and optimizing prices.

REPORT TO SHAREHOLDERS
POPULATION GROWTH
Our team advanced these initiatives throughout 2025,
delivering a 9% improvement in aggregate pricing through
disciplined dynamic pricing, as well as production efficiencies
identified by our Process Improvement Teams (PIT Crews).
We will continue to focus on these essential efforts as we strive
to be best in class in all aspects of our business.
Life at Knife: Our Culture in Action
Knife River   s success is rooted in our team and our Life at
Knife values     People, Safety, Quality and Environment. Our
team members bring these values to life every day. We believe
that putting people first and being intentional with our values
creates a culture of engagement where people want to be here
and make a difference     supporting our drive to be excellent
in everything we do.
As part of this drive, we provide training in all aspects of
our business, from safety and skills training to leadership
4
development. This contributed to our safest year ever in
2025, as well as advancements in our dynamic pricing and
cost-control initiatives. Actively engaging with our team
also helped us continue to be an industry leader in employee
retention. Knife River is committed to being an employer
of choice and a responsible operator in the communities we
serve, and we look forward to the ideas, improvements and
growth opportunities that our engaged team will help us
achieve in 2026 and beyond.
Strong Corporate Governance
In addition to having an engaged team, Knife River benefits
from having an engaged Board of Directors. We believe strong
corporate governance and active board oversight are central to
our ability to create sustainable long-term value.
Our Board brings diverse experience and perspectives
and remains deeply engaged in overseeing strategy, capital
Knife River Corporation | 3

4/6/2026 Letter Continued (Full PDF)

 

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