Knife River

Q2 FY2026 EarningsQ2 FY26 revenue of $938.6M slightly beat the $937.1M consensus, driven by 20% growth in contracting services and strong material volumes. However, bottom-line results significantly missed expectations: GAAP EPS of $0.77 fell far short of the $1.13 mean estimate, and Adjusted EBITDA margin contracted 200bps YoY to 14.9%. Management raised FY26 revenue guidance to $3.4B-$3.6B, but the persistent margin pressure from energy costs and lower-margin contracting work remains a key concern for investors.