The sharp EPS miss and margin compression signal that cost headwinds and project delays are weighing on profitability despite strong top-line growth. Monitor the West segment recovery and any further margin guidance on the conference call. The raised revenue guidance is a positive but may be overshadowed by the earnings disappointment.
Price Chart
Executive Summary
Knife River reported Q2 2026 EPS of $0.77, a 32.5% miss vs consensus of $1.14, despite revenue of $938.6M (+13% YoY) coming in slightly above estimates. Net income fell 13% YoY, Adjusted EBITDA was flat, and margins compressed across the board. The company raised its full-year revenue guidance but kept EBITDA guidance unchanged, which may not offset the earnings disappointment.
Key Financial Metrics
Key Facts
- Q2 2026 EPS $0.77 vs consensus $1.14 (miss of 32.5%)
- Revenue $938.6M vs consensus $937.1M (in-line)
- Net income fell 13% YoY to $43.9M from $50.6M
- Adjusted EBITDA essentially flat at $139.7M (down 1% YoY)
- Adjusted EBITDA margin compressed to 14.9% from 16.9%
- Full-year revenue guidance raised to $3.4B-$3.6B (from $3.3B-$3.5B)
- Full-year Adjusted EBITDA guidance unchanged at $520M-$560M
- Net leverage increased to 3.2x from 2.9x at Q1 2026
- Backlog $1.216B, up sequentially from $1.169B
Financial Impact
EPS miss of $0.37/share vs consensus implies a significant negative earnings surprise for a $4.2B market cap company
Risk Factors
- West segment revenue -9% and EBITDA -19% due to public agency delays and weather issues
- Net leverage increased to 3.2x from 2.9x after $400M Term Loan B issuance
- Lower gains on asset sales ($650K vs $10.3M) reduced EBITDA comparability
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-052184 |
| Document: knf-20260804.htm | 0001628280-26-052184 |
| Document: 0001628280-26-052184-index-headers.html | 0001628280-26-052184 |
| Document: 0001628280-26-052184-index.html | 0001628280-26-052184 |
| Document: 0001628280-26-052184.txt | 0001628280-26-052184 |
| 8-K Data (Synthetic) | 0001628280-26-052184 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 7, 2026 19d ago | SC 13G/A | $50.54 $47.98 | ▼ −5.07% | ▼ −4.08% | $54.10 (+7.04%) |
Sep 23, 2026 4w ago | 8-K | $51.43 $50.42 | ▲ +1.96% | ▲ +1.29% | $54.10 (−5.19%) |
Aug 4, 2026 12w ago | 8-K | $69.51 $68.15 | ▲ +1.96% | ▲ +1.86% | $54.10 (+22.17%) |
Jun 11, 2026 19w ago | Institutional Cluster | $75.92 $83.46 | ▲ +9.93% | ▲ +9.50% | $54.10 (−28.74%) |
May 21, 2026 22w ago | 8-K | $72.20 $78.54 | ▲ +8.78% | ▲ +7.12% | $54.10 (−25.07%) |
May 18, 2026 23w ago | 8-K | $70.83 $78.30 | ▲ +10.55% | ▲ +8.25% | $54.10 (−23.62%) |
May 5, 2026 25w ago | 8-K | $87.12 $82.41 | ▼ −5.41% | ▼ −7.39% | $54.10 (−37.90%) |
Apr 6, 2026 29w ago | DEFA14A | $74.82 $86.61 | ▲ +15.76% | ▲ +11.62% | $54.10 (−27.69%) |
US Market Status
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