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Q2 2026 Earnings Presentation August 4 , 2026 KNIFE RIVER KNIFE RIVER KNF LISTED NYSE KNIFE RIVER 7747
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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 historical in nature are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Although the company believes that its expectations are expressed in good faith and based on reasonable assumptions, there is no assurance the company’s statements with respect to its EDGE initiatives, shareholder value creation, financial guidance, expected long-term goals, expected backlog margin, gross profit multiplication, acquisitions, financing plans, expected federal and state funding for infrastructure or other proposed strategies will be achieved. Please refer to assumptions contained in this presentation, as well as the various important factors listed in Part I, Item 1A - Risk Factors in the company’s most recent Form 10-K and subsequent filings with the Securities and Exchange Commission (SEC). Changes in such assumptions and factors could cause actual future results to differ materially from those expressed in the forward-looking statements. All forward-looking statements in this presentation are expressly qualified by such cautionary statements and by reference to the underlying assumptions. Undue reliance should not be placed on forward-looking statements, which speak only as of the date they are made. Except as required by law, the company does not undertake to update forward-looking statements, whether as a result of new information, future events or otherwise. Throughout this presentation, the company presents financial information prepared in accordance with GAAP, as well as EBITDA, EBITDA margin, Adjusted EBITDA, Adjusted EBITDA margin, as well as total segment measures, as applicable, net debt, and net leverage, which are considered non-GAAP financial measures. The use of these non-GAAP financial measures should not be construed as alternatives to net income, net income margin, operating income and total debt, as applicable. Please refer to the "Non-GAAP Financial Measures" section contained in this document, our most recent earnings release and our most recent filings with the SEC for additional information.
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1 See Appendix for reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure. 2 Aggregate ASP up 3% on an as-reported basis. Operational Momentum Continues Despite Q2 Headwinds Financial Highlights Operational Highlights Double-digit volume and gross profit growth across materials product lines Raised 2026 revenue guidance $141M $140M 16.9% 14.9% Revenue Adjusted EBITDA1 Adjusted EBITDA Margin1 20% growth in contracting services revenue Product mix-adjusted aggregate ASP increase of 8%2 3 $834M $939M 2025 2026 2025 2026 2025 2026 +13% (1%) +290bps(200)bps Q2 2026 Highlights
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4 1 See Appendix for reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure. Adj. EBITDA1 and External Headwinds Fuel Costs: ~$6M Type/Timing of Work: ~$8M Project Delays: ~$10M and external headwinds Q2 2026 Impacts 2Q25 2Q26 $130.5M $139.1M $10.3M $0.6M $140.8M $139.7M gains on asset sales gains on asset sales gains on asset sales .. Strong Operational Results Largely Overcame the Impact of ... Prior Year Gains on Asset Sales
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$32M $39M Average Selling Price1 2Q25 2Q26 Change Aggregates (per ton) $18.80 $19.41 3% Ready-Mix Concrete (per cubic yard) $197.91 $198.45 —% Asphalt (per ton) $67.45 $65.77 (3)% Gross Profit Volume and Gross Profit Improvement on Materials Q2 2026 Product Line Results $35M $39M $17M $21M $15M $17M $41M $31M Contracting ServicesAsphaltReady-Mix Volume (in thousands) 2Q25 2Q26 Change Aggregates (tons) 8,826 10,031 14% Ready-Mix Concrete (cubic yards) 1,041 1,193 15% Asphalt (tons) 1,643 2,030 24% 5 2Q25 2Q26 Aggregates Liquid Asphalt +50 bps 1 Average selling price includes freight, delivery and other revenue. 2 Product mix-adjusted aggregate ASP increased 8%. 2Q25 2Q262Q25 2Q262Q25 2Q26 2Q25 2Q26 2 +12% +21% +24% +11% (24)%
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• Through 1H26: $244M - including $184M on acquisitions and $60M in aggregate expansion/greenfields • 2H26: Expect to invest $76M on organic growth projects. CapEx for future acquisitions would be incremental to our capital program. • Through 2Q26: $90M for replacement of construction equipment and plant improvements • 2026: Expect to invest between 5% and 7% of revenue Capital Allocation Priorities Leverage Profile Disciplined Capital Management Maintenance and Improvement Organic and Acquisition Growth 3.2x Net Debt / TTM Adj. EBITDA1,2 $427.8M in available liquidity1 2.5x LT Target3 6 1 As of June 30, 2026. 2 See Appendix for reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure. 3 Long-Term Net Debt/TTM Adj. EBITDA Target.
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Full Year 2026 Guidance1 Updated Range Previous Range Low High Low High Revenue $3,400M $3,600M $3,300M $3,500M Adjusted EBITDA $520M $560M $520M $560M 1 The guidance ranges are based on normal weather, economic and operating conditions, and do not include the expected impact of future acquisitions. Raising 2026 Revenue Guidance 7 Aggregates volumes are now expected to increase high-single digits and pricing to increase mid-single digits Ready-mix volumes to increase mid-teens Asphalt volumes are now expected to increase high-single digits Depreciation, depletion and amortization to increase mid-teens Assumptions
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We have built the right team, we operate in the right markets, and are executing the right strategy to drive solid growth Diverse Markets 8 Vertical Integration Self-Help Opportunities Life @ Knife Knife River Growth Strategy
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Acquisition and Growth History Materials-Focused Building an aggregates-based, vertically integrated platform Proven Acquisition Platform 100 acquisitions completed since 1992 Disciplined Approach Strategic fit, valuation discipline, attractive multiples, successful integration 9 Hundreds of Opportunities Highly fragmented markets
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M&A: Proven Playbook Build Pipeline Due Diligence Integration • Determine strategic fit • Materials-based • Right markets • Attractive multiples • Cultural fit 10 • Disciplined Approach • Proven Process • Repeatable program • Adopt KNF systems • Synergy opportunities • Optimize returns • Leverage local relationships • Rigorous evaluation • Synergy potential • Operational opportunities • Accretive returns
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• Aggregates-based, vertically integrated platform • Leading supplier in ND and northwestern MN • Expands position in core markets • Rail distribution assets • Directly negotiated transaction with the owner • Current projects: Public and private work, including military and data centers Strata: Growing Scale in the Central Region 11
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Operational Excellence Enhancing efficiency through network and asset optimization Growth & Expansion Expanding reserves and capacity in higher-growth markets Value Creation Driving strong returns through disciplined investment Organic Investments Drive Long Term Growth 12
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Organic Investments: Proven Playbook Identify Evaluate Execute • Review expected returns and long-term growth potential • Locally sourced • Driven by customer demand and market conditions • Leverage purchasing power 13 • Tightly manage budget/schedules
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Midwest Aggregates Expansion Premier Resource • High-quality quartzite • 70 million tons of reserves Expanded Distribution • Planned reserve replacement in Sioux Falls • Supply KNF operations in Sioux City • Allows expansion to new markets utilizing multiple Class I railroads Long-Term Growth • High-capacity, scalable operation • Completion targeted for mid-2027 14
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Spokane Prestress Expand Capacity • State-of-the-art prestress facility • Increased production capabilities • Broader geographic reach Improve Efficiency • Modern enclosed operation • Streamlined manufacturing process • Quick-fabrication capability Create Growth • Custom and standardized product offerings • Lower-carbon solutions • Strengthens market position and supports long-term growth 15
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Compelling Long-Term Investment Mid-Sized, Higher-Growth Markets Proven Growth Strategy with Self-Help Opportunities Unique Life @ Knife Culture 16 Vertical Integration Driving Opportunities and Resiliency
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Appendix and Non-GAAP Financial Measures 17
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Revenue $290M $237M $326M $103M $939M % Change (9)% 34% 28% 6% 13% Adjusted EBITDA1 $49M $31M $54M $20M $140M % Change (19)% —% 21% 16% (1)% TTM Adjusted EBITDA Margin1,2 18.5% 15.0% 15.0% 17.4% 15.2% Mountain Central Consolidated3 Q2 2026 Segment Performance Energy ServicesWest 18 1 See Appendix for a reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure. 2 TTM refers to trailing twelve months. 3 Consolidated results include Corporate Services and Eliminations.
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Momentum Supports 2H26 Performance 19 $102.8M $107.9M +5% 1H25 1H26 • $12.7M Asset Sales • $3.5M Bargain Purchase • $2.5M Asset Sales $392.2M $432.1M1 +10% 2H25 2H26 • $9.0M Asset Sales 2H26 Tailwinds Strong backlog of asphalt paving Margin expansion in aggregates Continued demand for materials Adj. EBITDA2 1 $432.1M represents the 2H26 adjusted EBITDA contribution needed to reach the midpoint of guidance. 2 See Appendix for reconciliation of this non-GAAP financial measure to the most directly comparable GAAP financial measure.
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EBITDA and Adjusted EBITDA – Reconciliation Three Months Ended (in millions) June 30, 2026 June 30, 2025 Net income $43.9 $50.6 Depreciation, depletion and amortization 56.4 50.2 Interest expense, net 23.9 21.5 Income taxes 16.0 17.4 EBITDA $140.2 $139.7 Unrealized (gains) losses on benefit plan investments (3.2) (1.8) Stock-based compensation expense 2.6 2.9 Impact of selling acquired inventory after markup to fair value as part of acquisition accounting 0.1 — Adjusted EBITDA $139.7 $140.8 Revenue $938.6 $833.8 Net loss margin 4.7 % 6.1 % EBITDA margin 14.9 % 16.8 % Adjusted EBITDA margin 14.9 % 16.9 % 20 Six Months Ended (in millions) June 30, 2026 June 30, 2025 Net loss ($35.3) ($18.1) Depreciation, depletion and amortization 108.5 88.9 Interest expense, net 44.1 34.7 Income taxes (12.5) (7.3) EBITDA $104.8 $98.2 Unrealized (gains) losses on benefit plan investments (2.4) (1.1) Stock-based compensation expense 5.4 5.7 Impact of selling acquired inventory after markup to fair value as part of acquisition accounting 0.1 — Adjusted EBITDA $107.9 $102.8 Revenue $1,348.7 $1,187.2 Net loss margin (2.6) % (1.5) % EBITDA margin 7.8 % 8.3 % Adjusted EBITDA margin 8.0 % 8.7 %
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Adjusted EBITDA TTM Reconciliation ($ in millions) Twelve Months Ended June 30, 2026 Six Months Ended June 30, 2026 Twelve Months Ended December 31, 2025 Six Months Ended June 30, 2025 Net income (loss) $139.9 ($35.3) $157.1 ($18.1) Depreciation, depletion and amortization 213.3 108.5 193.7 88.9 Interest expense, net 86.8 44.1 77.4 34.7 Income taxes 50.9 (12.5) 56.1 (7.3) EBITDA $490.9 $104.8 $484.3 $98.2 Unrealized (gains) losses on benefit plan investments (4.2) (2.4) (2.9) (1.1) Stock-based compensation expense 11.1 5.4 11.4 5.7 Impact of selling acquired inventory after markup to fair value as part of acquisition accounting 3.8 0.1 3.7 Adjusted EBITDA $501.6 $107.9 $496.5 $102.8 21
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Net Leverage Reconciliation Net Leverage Reconciliation ($ in millions, except net leverage) As of June 30, 2026 Long-term debt $1,600.1 Long-term debt – current portion 17.2 Total debt $1,617.3 Add: Unamortized debt issuance costs 17.9 Total debt, gross $1,635.2 Less: Cash and cash equivalents, excluding restricted cash 40.7 Total debt, net $1,594.5 TTM1 Adjusted EBITDA $501.6 Net leverage 3.2x 1 TTM refers to trailing twelve-month. 22
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Disclaimer Our projections for 2026 Adjusted EBITDA 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 Adjusted EBITDA and long-term net leverage target, we do not provide reconciliations of these non-GAAP financial measures as we are unable to predict with a reasonable degree of certainty the actual impact of the non-GAAP adjustment items. By their very nature, non-GAAP adjustment items are difficult to anticipate with precision because they are generally associated with unexpected and unplanned events that impact our company and its financial results, including, but not limited to, the potentially high variability, complexity and low visibility with respect to the items that would be excluded from the applicable GAAP measure in the relevant future period, such as unusual gains and losses, the impact and timing of potential acquisitions and divestitures, certain financing costs and other structural changes or their probable significance. Therefore, we are unable to provide a reconciliation of these measures without unreasonable efforts. 23