v3.26.1
Business Segment Data
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Business Segment Data Business Segment Data
We focus on the vertical integration of our products and services by offering customers a single source for construction materials and related contracting services. We operate in 15 states across the United States through our 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 preceding information follows the same accounting policies as described in the audited financial statements and notes included in the Company's 2025 Annual Report. Information on our segments was as follows:
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
WestMountainCentralEnergy ServicesTotalWestMountainCentralEnergy ServicesTotal
(In thousands)
Revenues from external customers$210,984 $81,236 $101,194 $16,579 $409,993 $208,018 $65,994 $67,841 $11,545 $353,398 
Intersegment revenues793 — 13 3,870 4,676 274 — 13 2,398 2,685 
Total segment revenue211,777 81,236 101,207 20,449 414,669 208,292 65,994 67,854 13,943 356,083 
Other revenues1
512 530 
Less: Elimination of intersegment revenue5,050 3,142 
Total consolidated revenue$410,131 $353,471 
Cost of revenue excluding depreciation, depletion and amortization166,014 77,766 104,776 21,336 165,013 72,955 73,655 17,617 
Selling, general and administrative expenses excluding depreciation, depletion and amortization23,090 11,663 23,270 3,713 21,646 9,299 18,470 4,099 
Other segment items2
(461)(29)5 (29)3,281 (7)(21)(29)
Total segment EBITDA$22,212 $(8,222)$(26,834)$(4,629)$(17,473)$24,914 $(16,267)$(24,292)$(7,802)$(23,447)
Consolidated loss before income taxes
(107,606)(93,349)
Plus:
Depreciation, depletion and amortization52,150 38,762 
Interest expense, net3
20,066 13,123 
Less unallocated amounts:
Other corporate revenue
139 73 
Other corporate expenses
(18,056)(18,090)
Total segment EBITDA$(17,473)$(23,447)
Capital expenditures$10,396 $19,243 $29,350 $2,198 $61,187 $26,921 $13,929 $25,893 $1,617 $68,360 
Assets$1,483,533 $564,497 $1,348,898 $272,557 $3,669,485 $1,265,438 $350,259 $1,138,931 $285,681 $3,040,309 
Other assets5,478,819 4,778,400 
Elimination of intercompany receivables and investment in subsidiaries5,330,441 4,538,002 
Total consolidated assets$3,817,863 $3,280,707 
1 Other revenues is comprised of revenue included within our corporate services.
2 Other segment items is comprised of other income (expense) items on the income statement.
3 Interest expense, net is interest expense net of interest income.