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1. They're like **Granite Construction**, providing both the materials (asphalt, concrete) and the heavy-civil construction for infrastructure projects like highways and airports.

2. Imagine **Vulcan Materials** (a major aggregates producer) that also builds highways and airport runways.

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• Construction Aggregates: Knife River mines, processes, and sells essential construction materials such as crushed stone, sand, and gravel.
• Asphalt: The company produces and sells asphalt for various construction and paving projects.
• Ready-mix Concrete: Knife River manufactures and supplies ready-mix concrete for diverse construction applications.
• Heavy-Civil Construction: This service involves large-scale infrastructure projects, including highways and airports.
• Asphalt and Concrete Paving: The company provides specialized paving services using asphalt and concrete for roads, parking lots, and other surfaces.
• Site Development and Grading: Knife River offers services for preparing construction sites through earthmoving, leveling, and other ground preparation activities.

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Knife River Corporation (KNF) primarily sells its aggregates-based construction materials and contracting services to other companies and governmental entities, rather than directly to individuals. The company's major customers fall into the following categories:

• State and Local Governmental Agencies: These agencies, such as State Departments of Transportation, county highway departments, and city public works departments, are key customers for infrastructure projects like highways, airports, bridges, and other public facilities.
• General Contractors: Knife River supplies materials and provides contracting services (such as asphalt paving, site development, and heavy-civil construction) to various general contractors engaged in large-scale construction projects.
• Residential and Commercial Developers: Developers of residential subdivisions, commercial buildings, industrial parks, and other private sector projects are also significant customers for Knife River's products and services.

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Brian R. Gray, President and Chief Executive Officer

Brian R. Gray was named President of Knife River effective January 1, 2023, and Chief Executive Officer effective March 1, 2023. Prior to these promotions, he served as president of Knife River's Northwest segment from 2012 to 2022. While leading the Northwest segment, Mr. Gray directed the acquisition of eight companies. He has 30 years of experience at Knife River, having started as a quality control technician and held various management positions.

Nathan W. Ring, Vice President and Chief Financial Officer

Nathan W. Ring is the Vice President and Chief Financial Officer for Knife River. He possesses 21 years of experience with the company, including prior roles with former affiliated businesses such as MDU Construction Services Group, Centennial Energy, and MDU Resources Group. Most recently, from 2017 to 2022, he led Knife River's acquisition strategy as vice president of business development. Mr. Ring also held positions as vice president, controller, and chief accounting officer for MDU Resources from 2014 to 2016.

Trevor J. Hastings, Vice President and Chief Operating Officer

Trevor J. Hastings serves as Vice President and Chief Operating Officer for Knife River. He has 27 years of experience with the company, including with former affiliated businesses MDU Resources Group, WBI Energy, and Centennial Energy. From 2017 to 2023, Mr. Hastings was president and CEO of WBI Energy. Before that, he spent 10 years with Knife River, where he was named vice president of business development and operations support from 2007 to 2014 and again from 2015 to 2017.

Glenn R. Pladsen, Vice President and Chief Excellence Officer

Glenn R. Pladsen is Vice President and Chief Excellence Officer at Knife River. He is responsible for information technology, safety, environmental management, training, capital budgeting, and national accounts. Mr. Pladsen joined Knife River in 2007 as director of information technology, focusing on deploying standard information systems and business processes. His role was expanded to Vice President and Chief Excellence Officer, effective January 1, 2025, to lead core elements of the company's "Competitive EDGE" strategy.

Karl A. Liepitz, Vice President, Chief Legal Officer and Secretary

Karl A. Liepitz holds the position of Vice President, Chief Legal Officer, and Secretary for Knife River. He has 19 years of experience with the company, having started as an attorney in 2003. Prior to his current role, Mr. Liepitz served as vice president, general counsel, and secretary for MDU Resources Group, Knife River's former parent company.

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The key risks to Knife River's business (KNF) are:

1. Dependency on Public-Sector Funding and Economic Cycles: A significant portion of Knife River's revenue is derived from public-sector infrastructure projects, such as highways and airports. This makes the company susceptible to fluctuations in federal and state funding levels and broader economic downturns, which can lead to reduced demand for its construction materials and services.
2. Commodity Price Volatility: Knife River is exposed to considerable commodity price risk, particularly concerning diesel fuel, liquid asphalt, and cement. Significant fluctuations in the prices of these key materials can substantially impact the company's operating results and profit margins.
3. Seasonality, Weather-Related Risks, and Labor Shortages: The company's operations are highly seasonal and vulnerable to adverse weather conditions, which can lead to inconsistent quarterly performance. Additionally, the construction industry faces a persistent shortage of skilled labor, potentially hindering Knife River's ability to execute projects efficiently and convert its backlog into revenue.

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Knife River Corporation operates within several addressable markets in the United States related to construction materials and contracting services. The estimated market sizes for its main products and services are as follows:

• Aggregates (Crushed Stone, Sand, and Gravel): The U.S. aggregates market was valued at approximately USD 164.65 billion in 2024 and is projected to reach USD 222.24 billion by 2033.
• Asphalt: The U.S. asphalt market size was valued at USD 261.91 million in 2024 and is expected to grow to USD 389.9 million by 2032.
• Ready-Mix Concrete: The U.S. ready-mix concrete market was worth over USD 130 billion in 2024 and is projected to reach an estimated value of USD 475.30 billion by 2032.
• Contracting Services (Heavy-Civil Construction, Asphalt and Concrete Paving, Site Development and Grading): The market size of Heavy Engineering Construction in the U.S. is estimated at USD 42.5 billion in 2026.

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Here are 3-5 expected drivers of future revenue growth for Knife River (KNF) over the next 2-3 years:

1. Increased Infrastructure Spending: A significant driver for Knife River's future revenue growth is the ongoing federal funding from the Infrastructure Investment and Jobs Act (IIJA). A substantial portion of these funds remains to be dispersed in Knife River's 14 operating states, providing multi-year visibility and supporting strong public budgets for infrastructure projects. This sustained investment in highways, airports, and other public infrastructure directly benefits Knife River's core construction materials and services segments.
2. Strategic Acquisitions and Market Expansion: Knife River is actively pursuing and completing strategic acquisitions, particularly those focused on aggregates, to expand its geographical footprint and market presence in mid-sized, high-growth U.S. markets. This disciplined approach to M&A aims to increase market penetration and grow the company's addressable customer base, thereby driving inorganic revenue growth. The company completed five acquisitions in 2025 and anticipates an equally active year in 2026.
3. Dynamic Pricing Strategies and Operational Efficiencies: The company's "Competitive EDGE" initiatives are designed to improve margins and enhance profitability, which also contributes to revenue growth through optimized pricing and cost management. These initiatives include dynamic pricing strategies that drove an 8% increase in aggregates pricing in Q4 2025 and operational process improvements across its product lines.
4. Organic Growth in Aggregates and Ready-Mix Volumes: Knife River expects mid-single-digit growth in aggregates volumes and mid-teens growth in ready-mix volumes for 2026. This anticipated organic growth in its foundational construction materials, coupled with expected price increases, indicates a healthy demand environment for its core products.
5. Strong and Growing Backlog: The company entered 2026 with a record backlog of approximately $1 billion, representing a 38% increase from the prior year. Approximately 75% of this backlog is expected to be completed in 2026, primarily consisting of lower-risk public paving projects, which provides significant revenue visibility and a solid base for future growth.

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Share Issuance

• Knife River Corporation became an independent public company on May 31, 2023, through a tax-free spin-off from MDU Resources Group, Inc..
• Approximately 90% of the outstanding shares of Knife River common stock were distributed pro rata to MDU Resources' stockholders, with one share of KNF received for every four shares of MDU common stock held.
• MDU Resources initially retained about 10% of Knife River's common stock but disposed of all 5,656,621 retained shares in an underwritten public offering in November 2023, from which Knife River did not receive any proceeds.

Outbound Investments

• Knife River completed five aggregates-based acquisitions in 2025.
• The company acquired Strata Corporation for $454 million, a transaction completed in March 2025, representing its largest acquisition to date. Strata is an aggregates-led, vertically integrated company in North Dakota and northwestern Minnesota.
• In December 2025, Knife River acquired the assets of Texcrete Operations LLC and TexAgg LLC ("Texcrete"), enhancing its presence in the Texas Triangle with six ready-mix plants and a sand and gravel site.

Capital Expenditures

• Capital expenditures for maintenance and improvement in 2024 amounted to $170.5 million, primarily used for replacing depleting aggregate reserves, construction equipment, plant improvements, and buildings.
• In 2025, the company spent $169.5 million on maintenance capital expenditures (replacement of construction equipment and plant improvements) and $788.6 million on growth initiatives, including $610.0 million for acquisitions and $178.6 million for aggregate expansions and greenfield projects.
• For 2026, Knife River anticipates capital expenditures for maintenance and improvement to range between 5% and 7% of revenue guidance, with approximately $130 million to $131 million allocated for organic growth projects and aggregate reserve additions.