Knife Riv Holding Co. · NYSE:KNF

Knife Riv — Knife River — Q3 2026 Earnings Presentation

19 slides from Knife Riv's earnings presentation, Nov 3, 2026

  1. Slide 1: Q3 2026 Earnings Presentation

    Q3 2026 Earnings Presentation November 3, 2026

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS The information in this presentation highlights the key growth strategies, projections and certain assumptions for the company and its subsidiaries. Many of these highlighted statements and other statements not historica

  3. Slide 3: Q3 2026 Highlights

    Q3 2026 Highlights Strong Aggregates Performance; Announced Sharper EDGE Initiatives Financial Highlights Operational Highlights Strong aggregates performance supported Revenue Adjusted EBITDA1 Adjusted EBITDA by EDGE initiatives: Margin1 • 10% higher volumes • Average selling price increased 4.3% •

  4. Slide 4: Q3 2026 Performance: Aggregates

    Q3 2026 Performance: Aggregates EDGE Initiatives Provide Blueprint for Measurable Improvements Commercial Volume (in millions of tons) Average Sales Price 12.7 • Targeted more external sales 11.6 • More asphalt paving +10% • Enhanced quoting tools Y/Y +5.9% • Dynamic pricing Y/Y, product mix-adjuste

  5. Slide 5: Q3 2026 Headwinds and Actions

    Q3 2026 Headwinds and Actions Taking Strategic Actions to Help Manage Short-Term Headwinds Short-Term Headwinds Actions We Are Taking Market Dynamics • Fewer public lettings and late-season jobs • Expanding private work • Growing third-party sales • Lower-margin mix of work • Right-sizing crews and

  6. Slide 6: Sharper EDGE: Self-Help Improvements

    Sharper EDGE: Self-Help Improvements Sharper EDGE Expected to Drive the Next Phase of EBITDA and EBITDA Margin Growth SHARPER EDGE Operational • Improve productivity/costs EBITDA Growth / Discipline Growth Excellence Margin Expansion Commercial Disciplined capital • Full value for products Adj. EBIT

  7. Slide 7: Sharper EDGE: Operational Excellence

    Sharper EDGE: Operational Excellence Improving Productivity, Reducing Costs and Making the Best Use of Our Assets EDGE Sharper EDGE PIT Crews • Improved plant efficiency, throughput and product mix • 2% lower aggregate variable production costs1 • 7% lower asphalt variable production costs1 Cost Dis

  8. Slide 8: Sharper EDGE: Commercial Excellence

    Sharper EDGE: Commercial Excellence Getting Full Value for our Materials and Services EDGE Sharper EDGE Dynamic Pricing • Added pricing/quoting tools with real-time analytics • Fuel surcharges to recover costs • 4% increase in aggregate pricing1 Planned Commercial Improvements Commercial Technology

  9. Slide 9: Sharper EDGE: Organizational Excellence

    Sharper EDGE: Organizational Excellence Improvements Designed to Support our Operations and Reduce SG&A Sharper EDGE Standardization • Streamline certain administrative processes to remove inefficiencies and speed up decision making. • Further leverage buying power Finance Modernization • Shorter ti

  10. Slide 10: Q3 2026 Segment Performance

    Q3 2026 Segment Performance Energy West Mountain Central Consolidated3 Services Revenue $366M $308M $462M $168M $1,276M % Change (8)% 34% 6% —% 6% Adjusted EBITDA1 $91M $56M $102M $32M $272M % Change (1)% 10% 2% (18)% —% TTM Adjusted EBITDA 19.0% 14.1% 14.8% 15.3% 14.8% Margin1,2 1 See Appendix for

  11. Slide 11: Q3 2026 Product Line Results

    Q3 2026 Product Line Results Volume Improvement on Materials Volume (in thousands) 3Q25 3Q26 Change Average Selling Price1 3Q25 3Q26 Change 2 Aggregates (tons) 11,610 12,747 10% Aggregates (per ton) $18.78 $19.59 4% Ready-Mix Concrete (cubic yards) 1,331 1,338 1% Ready-Mix Concrete (per cubic yard)

  12. Slide 12: Capital Allocation

    Capital Allocation Disciplined Capital Deployment; Strong Balance Sheet Capital Allocation Priorities Leverage Profile Reinvest in Operations Organic & Acquisition Growth $566.2M in available liquidity1 $37M $21M 2.9x maintenance & improvement capex (Q3) growth investment (Q3) Net Debt / TTM Adj. EB

  13. Slide 13: FY 2026 Guidance

    FY 2026 Guidance FY FY 2026 2026 Guidance 1 Guidance1 Low High Revenue $3,375M $3,425M Adjusted EBITDA $475M $505M Assumptions • Aggregates volumes to increase high-single digits to low-double digits and pricing to increase mid-single digits • Ready-mix volumes to increase high-single digits to low-

  14. Slide 14: Positioned Well for 2027 and Beyond

    Positioned Well for 2027 and Beyond Multiple Levers to Drive Sustainable Growth and Long-Term Value Creation • Margin expansion Significant runway through operational, commercial and organizational self-help initiatives • Organic growth investments Major aggregates-focused organic projects in South

  15. Slide 15: Appendix and Non-GAAP Financial Measures

    Appendix and Non-GAAP Financial Measures

  16. Slide 16: EBITDA and Adjusted EBITDA – Reconciliation

    EBITDA and Adjusted EBITDA – Reconciliation Three Months Ended (in millions) September 30, 2026 September 30, 2025 Net income $137.9 $143.2 Depreciation, depletion and amortization 55.7 53.4 Interest expense, net 23.9 22.4 Income taxes 50.7 50.2 EBITDA $268.2 $269.2 Unrealized (gains) losses on bene

  17. Slide 17: Adjusted EBITDA TTM Reconciliation

    Adjusted EBITDA TTM1 Reconciliation Twelve Months Ended Nine Months Ended Twelve Months Ended Nine Months Ended September 30, 2026 September 30, 2026 December 31, 2025 September 30, 2025 (In millions) Net income $134.6 $102.6 $157.1 $125.1 Depreciation, depletion and amortization 215.4 164.1 193.7 1

  18. Slide 18: Net Leverage Reconciliation

    Net Leverage Reconciliation Net Leverage Reconciliation ($ in millions, except net leverage) As of September 30, 2026 Long-term debt $1,534.4 Long-term debt – current portion 18.9 Total debt $1,553.3 Add: Unamortized debt issuance costs 17.1 Total debt, gross $1,570.4 Less: Cash and cash equivalents

  19. Slide 19: Disclaimer

    Disclaimer Our projections for 2026 Adjusted EBITDA, 2026 year-end net leverage target and long-term net leverage target are non-GAAP financial measures that exclude or otherwise have been adjusted for non-GAAP adjustment items from our financial statements. When we provide our forward-looking 2026

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