v3.26.3
Business Segment Data
 9 Months Ended
Sep. 30, 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 aggregates-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 consolidated financial statements.
The information that follows uses 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 September 30, 2026Three Months Ended September 30, 2025
WestMountainCentralEnergy ServicesTotalWestMountainCentralEnergy ServicesTotal
(In thousands)
Revenues from external customers$364,618 $308,056 $458,225 $144,655 $1,275,554 $395,552 $229,670 $434,327 $144,004 $1,203,553 
Intersegment revenues1,167 — 3,783 23,763 28,713 482 141 22 25,208 25,853 
Total segment revenue365,785 308,056 462,008 168,418 1,304,267 396,034 229,811 434,349 169,212 1,229,406 
Other revenues1
72 228 
Less: Elimination of intersegment revenue28,738 25,917 
Total consolidated revenue$1,275,601 $1,203,717 
Cost of revenue excluding depreciation, depletion and amortization251,406 240,452 340,150 132,498 282,478 171,640 317,012 126,212 
Selling, general and administrative expenses excluding depreciation, depletion and amortization22,490 11,782 19,770 3,454 21,413 7,557 17,729 3,405 
Other segment items2
(534)(12)16 (25)(274)89 119 54 
Total segment EBITDA$91,355 $55,810 $102,104 $32,441 $281,710 $91,869 $50,703 $99,727 $39,649 $281,948 
Consolidated income before income taxes$188,647 $193,396 
Plus:
Depreciation, depletion and amortization55,642 53,473 
Interest expense, net3
23,945 22,369 
Less unallocated amounts:
Other corporate revenue47 163 
Other corporate expenses(13,523)(12,873)
Total segment EBITDA$281,710 $281,948 
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.
Nine Months Ended September 30, 2026Nine Months Ended September 30, 2025
WestMountainCentralEnergy ServicesTotalWestMountainCentralEnergy ServicesTotal
(In thousands)
Revenues from external customers$865,124 $625,777 $884,787 $248,149 $2,623,837 $920,766 $471,785 $757,231 $240,696 $2,390,478 
Intersegment revenues2,816 — 3,999 43,768 50,583 961 141 164 39,840 41,106 
Total segment revenue867,940 625,777 888,786 291,917 2,674,420 921,727 471,926 757,395 280,536 2,431,584 
Other revenues1
1,028 1,095 
Less: Elimination of intersegment revenue51,129 41,731 
Total consolidated revenue$2,624,319 $2,390,948 
Cost of revenue excluding depreciation, depletion and amortization636,242 512,011 693,818 233,333 682,126 381,570 586,487 221,090 
Selling, general and administrative expenses excluding depreciation, depletion and amortization68,231 35,287 66,701 11,035 64,881 25,213 51,513 10,623 
Other segment items2
(678)135 602 99 2,832 202 438 104 
Total segment EBITDA$162,789 $78,614 $128,869 $47,648 $417,920 $177,552 $65,345 $119,833 $48,927 $411,657 
Consolidated income before income taxes$140,885 $167,995 
Plus:
Depreciation, depletion and amortization164,149 142,439 
Interest expense, net3
68,026 57,038 
Less unallocated amounts:
Other corporate revenue482 470 
Other corporate expenses(45,342)(44,655)
Total segment EBITDA$417,920 $411,657 
Capital expenditures$46,533 $40,389 $103,490 $7,868 $198,280 $151,553 $33,270 $83,510 $5,954 $274,287 
Assets$1,614,661 $674,093 $1,507,632 $280,712 $4,077,098 $1,590,257 $422,227 $1,363,097 $284,233 $3,659,814 
Other assets6,038,287 5,281,180 
Elimination of intercompany receivables and investment in subsidiaries5,828,904 5,237,677 
Total consolidated assets$4,286,481 $3,703,317 
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.