Knife River CorpKNF
Knife River Corp Segments Disclosure
Business Segment Data
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In January 2025, we made a change to our organizational structure to better align with our business strategy. We reorganized our business segments to reflect changes in the way our chief operating decision maker evaluates performance, makes operating decisions and allocates resources. Our former Pacific and Northwest operating segments were combined to form the new West operating segment. Our former North Central and South operating segments were combined to form the new Central operating segment. The reorganization resulted in four operating segments: West, Mountain, Central and Energy Services, each of which is also a reportable segment. Each segment’s performance is evaluated based on segment results without allocating corporate expenses, which include corporate costs associated with accounting, legal, treasury, business development, information technology, human resources, and other corporate expenses that support the operating segments.
Three of our reportable segments are aligned by key geographic areas due to the production of construction materials and related contracting services and one is based on product line. Each segment is led by a segment manager who reports to our chief operating officer, who is also our chief operating decision maker, along with the chief executive officer. Our chief operating decision maker uses EBITDA to evaluate the performance of the segments, perform analytical comparisons to budget and uses historical and projected EBITDA to allocate resources, including capital allocations.
Each geographic segment offers a vertically integrated suite of products and services, including aggregates, ready-mix concrete, asphalt and contracting services, while the Energy Services segment produces and supplies liquid asphalt, primarily for use in asphalt road construction, and is a supplier to some of the other segments. Each geographic segment mines, processes and sells construction aggregates (crushed stone and sand and gravel); produces and sells asphalt; and produces and sells ready-mix concrete as well as vertically integrating its contracting services to support the aggregate-based product lines including heavy-civil construction, asphalt and concrete paving, and site development and grading. Although not common to all locations, the geographic segments also sell cement, merchandise and other building materials and related services.
Corporate Services represents the unallocated costs of certain corporate functions, such as accounting, legal, treasury, business development, information technology, human resources and other corporate expenses that support the operating segments. Corporate Services also includes an immaterial amount of external revenue from the Knife River Training Center. We account for intersegment sales and transfers as if the sales or transfers were to third parties. The accounting policies applicable to each segment are consistent with those used in the audited consolidated financial statements.
The information below follows the same accounting policies as described in Note 2. Prior periods presented have been recast to conform to the current reportable segment presentation. Information on our segments as of December 31, and for the years then ended was as follows:
For the year ended December 31, 2025 | West | Mountain | Central | Energy Services | Total | |||||||||||||||||||||||||||
| Revenues from external customers | $ | 1,208,713 | $ | 643,842 | $ | 1,004,554 | $ | 288,279 | $ | 3,145,388 | ||||||||||||||||||||||
| Intersegment revenues | 1,329 | 198 | 274 | 49,758 | 51,559 | |||||||||||||||||||||||||||
| Total segment revenue | 1,210,042 | 644,040 | 1,004,828 | 338,037 | 3,196,947 | |||||||||||||||||||||||||||
Other revenues1 | 1,343 | |||||||||||||||||||||||||||||||
| Less: Elimination of intersegment revenue | 52,278 | |||||||||||||||||||||||||||||||
| Total consolidated revenue | $ | 3,146,012 | ||||||||||||||||||||||||||||||
Cost of revenue excluding depreciation, depletion and amortization | 890,176 | 512,618 | 774,540 | 267,702 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses excluding depreciation, depletion and amortization | 88,346 | 32,089 | 71,194 | 15,577 | ||||||||||||||||||||||||||||
Other segment items2 | 2,591 | 242 | 534 | 132 | ||||||||||||||||||||||||||||
| Total segment EBITDA | $ | 234,111 | $ | 99,575 | $ | 159,628 | $ | 54,890 | $ | 548,204 | ||||||||||||||||||||||
| Consolidated income before income taxes | $ | 213,210 | ||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 193,740 | |||||||||||||||||||||||||||||||
Interest expense, net3 | 77,366 | |||||||||||||||||||||||||||||||
Less unallocated amounts: | ||||||||||||||||||||||||||||||||
Other corporate revenue | 623 | |||||||||||||||||||||||||||||||
Other corporate expenses | (64,511) | |||||||||||||||||||||||||||||||
| Total segment EBITDA | $ | 548,204 | ||||||||||||||||||||||||||||||
| Capital Expenditures | $ | 187,208 | $ | 44,011 | $ | 111,252 | $ | 9,596 | $ | 352,067 | ||||||||||||||||||||||
| Assets | $ | 1,516,719 | $ | 384,868 | $ | 1,394,257 | $ | 241,522 | $ | 3,537,366 | ||||||||||||||||||||||
| Other assets | 5,463,594 | |||||||||||||||||||||||||||||||
| Elimination of intercompany receivables and investment in subsidiaries | 5,350,847 | |||||||||||||||||||||||||||||||
| Total consolidated assets | $ | 3,650,113 | ||||||||||||||||||||||||||||||
1Other revenues is comprised of revenue included within our corporate services.
2Other segment items is comprised of other income (expense) items on the income statement.
3Interest expense, net is interest expense net of interest income.
Year ended December 31, 2024 | West | Mountain | Central | Energy Services | Total | |||||||||||||||||||||||||||
Revenues from external customers | $ | 1,182,959 | $ | 662,892 | $ | 817,872 | $ | 234,652 | $ | 2,898,375 | ||||||||||||||||||||||
Intersegment revenues | 2,381 | 173 | 193 | 41,041 | 43,788 | |||||||||||||||||||||||||||
Total segment revenue | 1,185,340 | 663,065 | 818,065 | 275,693 | 2,942,163 | |||||||||||||||||||||||||||
Other revenues1 | 1,149 | |||||||||||||||||||||||||||||||
Elimination of intersegment revenue | 44,307 | |||||||||||||||||||||||||||||||
Total consolidated revenue | $ | 2,899,005 | ||||||||||||||||||||||||||||||
Cost of revenue excluding depreciation, depletion and amortization | 889,626 | 516,292 | 630,499 | 205,423 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses excluding depreciation, depletion and amortization | 84,714 | 33,377 | 56,459 | 10,208 | ||||||||||||||||||||||||||||
Other segment items2 | (1,331) | 108 | 502 | 104 | ||||||||||||||||||||||||||||
Total segment EBITDA | $ | 209,669 | $ | 113,504 | $ | 131,609 | $ | 60,166 | $ | 514,948 | ||||||||||||||||||||||
Consolidated income before income taxes | $ | 270,994 | ||||||||||||||||||||||||||||||
Plus: | ||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 136,871 | |||||||||||||||||||||||||||||||
Interest expense, net3 | 46,409 | |||||||||||||||||||||||||||||||
Less unallocated amounts: | ||||||||||||||||||||||||||||||||
Other corporate revenue | 630 | |||||||||||||||||||||||||||||||
Other corporate expenses | (61,304) | |||||||||||||||||||||||||||||||
Total segment EBITDA | $ | 514,948 | ||||||||||||||||||||||||||||||
Capital Expenditures | $ | 91,412 | $ | 48,322 | $ | 55,365 | $ | 117,730 | $ | 312,829 | ||||||||||||||||||||||
Assets | $ | 1,276,458 | $ | 355,078 | $ | 706,795 | $ | 252,130 | $ | 2,590,461 | ||||||||||||||||||||||
Other assets | 4,560,924 | |||||||||||||||||||||||||||||||
Elimination of intercompany receivables and investment in subsidiaries | 4,300,183 | |||||||||||||||||||||||||||||||
Total consolidated assets | $ | 2,851,202 | ||||||||||||||||||||||||||||||
1Other revenues is comprised of revenue included within our corporate services.
2Other segment items is comprised of other income (expense) items on the income statement.
3Interest expense, net is interest expense net of interest income.
Year ended December 31, 2023 | West | Mountain | Central | Energy Services | Total | |||||||||||||||||||||||||||
| Revenues from external customers | $ | 1,125,843 | $ | 633,617 | $ | 824,908 | $ | 245,186 | $ | 2,829,554 | ||||||||||||||||||||||
| Intersegment revenues | 2,445 | 409 | 49 | 47,168 | 50,071 | |||||||||||||||||||||||||||
| Total segment revenue | 1,128,288 | 634,026 | 824,957 | 292,354 | 2,879,625 | |||||||||||||||||||||||||||
Other revenues1 | 1,267 | |||||||||||||||||||||||||||||||
| Elimination of intersegment revenue | 50,542 | |||||||||||||||||||||||||||||||
| Total consolidated revenue | $ | 2,830,350 | ||||||||||||||||||||||||||||||
Cost of revenue excluding depreciation, depletion and amortization | 860,254 | 500,677 | 657,586 | 204,463 | ||||||||||||||||||||||||||||
Selling, general and administrative expenses excluding depreciation, depletion and amortization | 89,496 | 30,264 | 51,049 | 9,809 | ||||||||||||||||||||||||||||
Other segment items2 | (1,234) | 57 | 331 | 42 | ||||||||||||||||||||||||||||
| Total segment EBITDA | $ | 177,304 | $ | 103,142 | $ | 116,653 | $ | 78,124 | $ | 475,223 | ||||||||||||||||||||||
| Consolidated income before income taxes | $ | 245,308 | ||||||||||||||||||||||||||||||
| Plus: | ||||||||||||||||||||||||||||||||
| Depreciation, depletion and amortization | 123,805 | |||||||||||||||||||||||||||||||
Interest expense, net3 | 52,891 | |||||||||||||||||||||||||||||||
Less unallocated amounts: | ||||||||||||||||||||||||||||||||
Other corporate revenues | 796 | |||||||||||||||||||||||||||||||
Other corporate expenses | (54,015) | |||||||||||||||||||||||||||||||
| Total segment EBITDA | $ | 475,223 | ||||||||||||||||||||||||||||||
| Capital Expenditures | $ | 53,165 | $ | 25,506 | $ | 39,302 | $ | 4,099 | $ | 122,072 | ||||||||||||||||||||||
| Assets | $ | 1,214,460 | $ | 315,661 | $ | 663,134 | $ | 128,383 | $ | 2,321,638 | ||||||||||||||||||||||
| Other assets | 4,049,800 | |||||||||||||||||||||||||||||||
| Elimination of intercompany receivables and investment in subsidiaries | 3,771,625 | |||||||||||||||||||||||||||||||
| Total consolidated assets | $ | 2,599,813 | ||||||||||||||||||||||||||||||
1Other revenues is comprised of revenue included within our corporate services.
2Other segment items is comprised of other income (expense) items on the income statement.
3Interest expense, net is interest expense net of interest income.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 27, 2024 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.