000195552012/312025Q1falsexbrli:sharesiso4217:USDiso4217:USDxbrli:sharesknf:stateknf:reportable_segmentknf:segmentknf:businessknf:plantOperationxbrli:pure00019555202025-01-012025-03-3100019555202025-05-010001955520us-gaap:ProductMember2025-01-012025-03-310001955520us-gaap:ProductMember2024-01-012024-03-310001955520us-gaap:ServiceMember2025-01-012025-03-310001955520us-gaap:ServiceMember2024-01-012024-03-3100019555202024-01-012024-03-3100019555202025-03-3100019555202024-03-3100019555202024-12-310001955520us-gaap:CommonStockMember2024-12-310001955520us-gaap:AdditionalPaidInCapitalMember2024-12-310001955520us-gaap:RetainedEarningsMember2024-12-310001955520us-gaap:TreasuryStockCommonMember2024-12-310001955520us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001955520us-gaap:RetainedEarningsMember2025-01-012025-03-310001955520us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-310001955520us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-310001955520us-gaap:CommonStockMember2025-01-012025-03-310001955520us-gaap:CommonStockMember2025-03-310001955520us-gaap:AdditionalPaidInCapitalMember2025-03-310001955520us-gaap:RetainedEarningsMember2025-03-310001955520us-gaap:TreasuryStockCommonMember2025-03-310001955520us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-310001955520us-gaap:CommonStockMember2023-12-310001955520us-gaap:AdditionalPaidInCapitalMember2023-12-310001955520us-gaap:RetainedEarningsMember2023-12-310001955520us-gaap:TreasuryStockCommonMember2023-12-310001955520us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-3100019555202023-12-310001955520us-gaap:RetainedEarningsMember2024-01-012024-03-310001955520us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001955520us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001955520us-gaap:CommonStockMember2024-01-012024-03-310001955520us-gaap:CommonStockMember2024-03-310001955520us-gaap:AdditionalPaidInCapitalMember2024-03-310001955520us-gaap:RetainedEarningsMember2024-03-310001955520us-gaap:TreasuryStockCommonMember2024-03-310001955520us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001955520knf:StrataCorporationMember2025-03-072025-03-070001955520us-gaap:TradeAccountsReceivableMember2025-03-310001955520us-gaap:TradeAccountsReceivableMember2024-03-310001955520us-gaap:TradeAccountsReceivableMember2024-12-310001955520us-gaap:TradeAccountsReceivableMemberknf:WestSegmentMember2024-12-310001955520us-gaap:TradeAccountsReceivableMemberknf:MountainSegmentMember2024-12-310001955520us-gaap:TradeAccountsReceivableMemberknf:CentralSegmentMember2024-12-310001955520us-gaap:TradeAccountsReceivableMemberknf:EnergyServicesSegmentMember2024-12-310001955520us-gaap:TradeAccountsReceivableMemberknf:WestSegmentMember2025-01-012025-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:MountainSegmentMember2025-01-012025-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:CentralSegmentMember2025-01-012025-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520us-gaap:TradeAccountsReceivableMember2025-01-012025-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:WestSegmentMember2025-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:MountainSegmentMember2025-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:CentralSegmentMember2025-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:EnergyServicesSegmentMember2025-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:WestSegmentMember2023-12-310001955520us-gaap:TradeAccountsReceivableMemberknf:MountainSegmentMember2023-12-310001955520us-gaap:TradeAccountsReceivableMemberknf:CentralSegmentMember2023-12-310001955520us-gaap:TradeAccountsReceivableMemberknf:EnergyServicesSegmentMember2023-12-310001955520us-gaap:TradeAccountsReceivableMember2023-12-310001955520us-gaap:TradeAccountsReceivableMemberknf:WestSegmentMember2024-01-012024-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:MountainSegmentMember2024-01-012024-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:CentralSegmentMember2024-01-012024-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520us-gaap:TradeAccountsReceivableMember2024-01-012024-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:WestSegmentMember2024-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:MountainSegmentMember2024-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:CentralSegmentMember2024-03-310001955520us-gaap:TradeAccountsReceivableMemberknf:EnergyServicesSegmentMember2024-03-310001955520knf:AggregatesMemberknf:WestSegmentMember2025-01-012025-03-310001955520knf:AggregatesMemberknf:MountainSegmentMember2025-01-012025-03-310001955520knf:AggregatesMemberknf:CentralSegmentMember2025-01-012025-03-310001955520knf:AggregatesMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520knf:AggregatesMemberknf:CorporateServicesSegmentMember2025-01-012025-03-310001955520knf:AggregatesMember2025-01-012025-03-310001955520knf:ReadyMixConcreteMemberknf:WestSegmentMember2025-01-012025-03-310001955520knf:ReadyMixConcreteMemberknf:MountainSegmentMember2025-01-012025-03-310001955520knf:ReadyMixConcreteMemberknf:CentralSegmentMember2025-01-012025-03-310001955520knf:ReadyMixConcreteMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520knf:ReadyMixConcreteMemberknf:CorporateServicesSegmentMember2025-01-012025-03-310001955520knf:ReadyMixConcreteMember2025-01-012025-03-310001955520knf:AsphaltMemberknf:WestSegmentMember2025-01-012025-03-310001955520knf:AsphaltMemberknf:MountainSegmentMember2025-01-012025-03-310001955520knf:AsphaltMemberknf:CentralSegmentMember2025-01-012025-03-310001955520knf:AsphaltMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520knf:AsphaltMemberknf:CorporateServicesSegmentMember2025-01-012025-03-310001955520knf:AsphaltMember2025-01-012025-03-310001955520knf:LiquidAsphaltMemberknf:WestSegmentMember2025-01-012025-03-310001955520knf:LiquidAsphaltMemberknf:MountainSegmentMember2025-01-012025-03-310001955520knf:LiquidAsphaltMemberknf:CentralSegmentMember2025-01-012025-03-310001955520knf:LiquidAsphaltMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520knf:LiquidAsphaltMemberknf:CorporateServicesSegmentMember2025-01-012025-03-310001955520knf:LiquidAsphaltMember2025-01-012025-03-310001955520knf:OtherMemberknf:WestSegmentMember2025-01-012025-03-310001955520knf:OtherMemberknf:MountainSegmentMember2025-01-012025-03-310001955520knf:OtherMemberknf:CentralSegmentMember2025-01-012025-03-310001955520knf:OtherMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520knf:OtherMemberknf:CorporateServicesSegmentMember2025-01-012025-03-310001955520knf:OtherMember2025-01-012025-03-310001955520knf:ContractingServicesPublicSectorMemberknf:WestSegmentMember2025-01-012025-03-310001955520knf:ContractingServicesPublicSectorMemberknf:MountainSegmentMember2025-01-012025-03-310001955520knf:ContractingServicesPublicSectorMemberknf:CentralSegmentMember2025-01-012025-03-310001955520knf:ContractingServicesPublicSectorMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520knf:ContractingServicesPublicSectorMemberknf:CorporateServicesSegmentMember2025-01-012025-03-310001955520knf:ContractingServicesPublicSectorMember2025-01-012025-03-310001955520knf:ContractingServicesPrivateSectorMemberknf:WestSegmentMember2025-01-012025-03-310001955520knf:ContractingServicesPrivateSectorMemberknf:MountainSegmentMember2025-01-012025-03-310001955520knf:ContractingServicesPrivateSectorMemberknf:CentralSegmentMember2025-01-012025-03-310001955520knf:ContractingServicesPrivateSectorMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520knf:ContractingServicesPrivateSectorMemberknf:CorporateServicesSegmentMember2025-01-012025-03-310001955520knf:ContractingServicesPrivateSectorMember2025-01-012025-03-310001955520us-gaap:IntersegmentEliminationMemberknf:WestSegmentMember2025-01-012025-03-310001955520us-gaap:IntersegmentEliminationMemberknf:MountainSegmentMember2025-01-012025-03-310001955520us-gaap:IntersegmentEliminationMemberknf:CentralSegmentMember2025-01-012025-03-310001955520us-gaap:IntersegmentEliminationMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520us-gaap:IntersegmentEliminationMemberknf:CorporateServicesSegmentMember2025-01-012025-03-310001955520srt:ConsolidationEliminationsMember2025-01-012025-03-310001955520knf:OperatingSegmentsExcludingIntersegmentEliminationMemberknf:WestSegmentMember2025-01-012025-03-310001955520knf:OperatingSegmentsExcludingIntersegmentEliminationMemberknf:MountainSegmentMember2025-01-012025-03-310001955520knf:OperatingSegmentsExcludingIntersegmentEliminationMemberknf:CentralSegmentMember2025-01-012025-03-310001955520knf:OperatingSegmentsExcludingIntersegmentEliminationMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520knf:CorporateNonSegmentIntersegmentEliminationsMemberknf:CorporateServicesSegmentMember2025-01-012025-03-310001955520knf:AggregatesMemberknf:WestSegmentMember2024-01-012024-03-310001955520knf:AggregatesMemberknf:MountainSegmentMember2024-01-012024-03-310001955520knf:AggregatesMemberknf:CentralSegmentMember2024-01-012024-03-310001955520knf:AggregatesMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520knf:AggregatesMemberknf:CorporateServicesSegmentMember2024-01-012024-03-310001955520knf:AggregatesMember2024-01-012024-03-310001955520knf:ReadyMixConcreteMemberknf:WestSegmentMember2024-01-012024-03-310001955520knf:ReadyMixConcreteMemberknf:MountainSegmentMember2024-01-012024-03-310001955520knf:ReadyMixConcreteMemberknf:CentralSegmentMember2024-01-012024-03-310001955520knf:ReadyMixConcreteMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520knf:ReadyMixConcreteMemberknf:CorporateServicesSegmentMember2024-01-012024-03-310001955520knf:ReadyMixConcreteMember2024-01-012024-03-310001955520knf:AsphaltMemberknf:WestSegmentMember2024-01-012024-03-310001955520knf:AsphaltMemberknf:MountainSegmentMember2024-01-012024-03-310001955520knf:AsphaltMemberknf:CentralSegmentMember2024-01-012024-03-310001955520knf:AsphaltMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520knf:AsphaltMemberknf:CorporateServicesSegmentMember2024-01-012024-03-310001955520knf:AsphaltMember2024-01-012024-03-310001955520knf:LiquidAsphaltMemberknf:WestSegmentMember2024-01-012024-03-310001955520knf:LiquidAsphaltMemberknf:MountainSegmentMember2024-01-012024-03-310001955520knf:LiquidAsphaltMemberknf:CentralSegmentMember2024-01-012024-03-310001955520knf:LiquidAsphaltMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520knf:LiquidAsphaltMemberknf:CorporateServicesSegmentMember2024-01-012024-03-310001955520knf:LiquidAsphaltMember2024-01-012024-03-310001955520knf:OtherMemberknf:WestSegmentMember2024-01-012024-03-310001955520knf:OtherMemberknf:MountainSegmentMember2024-01-012024-03-310001955520knf:OtherMemberknf:CentralSegmentMember2024-01-012024-03-310001955520knf:OtherMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520knf:OtherMemberknf:CorporateServicesSegmentMember2024-01-012024-03-310001955520knf:OtherMember2024-01-012024-03-310001955520knf:ContractingServicesPublicSectorMemberknf:WestSegmentMember2024-01-012024-03-310001955520knf:ContractingServicesPublicSectorMemberknf:MountainSegmentMember2024-01-012024-03-310001955520knf:ContractingServicesPublicSectorMemberknf:CentralSegmentMember2024-01-012024-03-310001955520knf:ContractingServicesPublicSectorMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520knf:ContractingServicesPublicSectorMemberknf:CorporateServicesSegmentMember2024-01-012024-03-310001955520knf:ContractingServicesPublicSectorMember2024-01-012024-03-310001955520knf:ContractingServicesPrivateSectorMemberknf:WestSegmentMember2024-01-012024-03-310001955520knf:ContractingServicesPrivateSectorMemberknf:MountainSegmentMember2024-01-012024-03-310001955520knf:ContractingServicesPrivateSectorMemberknf:CentralSegmentMember2024-01-012024-03-310001955520knf:ContractingServicesPrivateSectorMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520knf:ContractingServicesPrivateSectorMemberknf:CorporateServicesSegmentMember2024-01-012024-03-310001955520knf:ContractingServicesPrivateSectorMember2024-01-012024-03-310001955520us-gaap:IntersegmentEliminationMemberknf:WestSegmentMember2024-01-012024-03-310001955520us-gaap:IntersegmentEliminationMemberknf:MountainSegmentMember2024-01-012024-03-310001955520us-gaap:IntersegmentEliminationMemberknf:CentralSegmentMember2024-01-012024-03-310001955520us-gaap:IntersegmentEliminationMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520us-gaap:IntersegmentEliminationMemberknf:CorporateServicesSegmentMember2024-01-012024-03-310001955520srt:ConsolidationEliminationsMember2024-01-012024-03-310001955520knf:OperatingSegmentsExcludingIntersegmentEliminationMemberknf:WestSegmentMember2024-01-012024-03-310001955520knf:OperatingSegmentsExcludingIntersegmentEliminationMemberknf:MountainSegmentMember2024-01-012024-03-310001955520knf:OperatingSegmentsExcludingIntersegmentEliminationMemberknf:CentralSegmentMember2024-01-012024-03-310001955520knf:OperatingSegmentsExcludingIntersegmentEliminationMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520knf:CorporateNonSegmentIntersegmentEliminationsMemberknf:CorporateServicesSegmentMember2024-01-012024-03-310001955520knf:RevenueDescriptionOfTiming12MonthsMember2025-04-012025-03-310001955520knf:RevenueDescriptionOfTiming13To24MonthsMember2025-04-012025-03-3100019555202025-04-01knf:RevenueDescriptionOfTiming13To24MonthsMembersrt:MinimumMember2025-03-3100019555202025-04-01knf:RevenueDescriptionOfTiming13To24MonthsMembersrt:MaximumMember2025-03-310001955520knf:RevenueDescriptionOfTiming25MonthsOrMoreMember2025-04-012025-03-310001955520knf:StrataCorporationMember2025-03-310001955520knf:StrataCorporationMemberus-gaap:OrderOrProductionBacklogMember2025-03-070001955520knf:StrataCorporationMemberknf:PermitsMember2025-03-070001955520knf:AggregateQuarryOperationMember2025-01-012025-03-310001955520knf:AggregateQuarryOperationInWashingtonMember2025-03-310001955520knf:AggregateQuarryOperationInWashingtonMember2025-01-012025-03-3100019555202024-01-012024-12-310001955520us-gaap:DiscontinuedOperationsDisposedOfBySaleMemberknf:StrataReadyMixPlantOperationsMember2025-03-070001955520us-gaap:DiscontinuedOperationsDisposedOfBySaleMemberknf:StrataReadyMixPlantOperationsMember2025-03-072025-03-070001955520knf:WestSegmentMember2024-12-310001955520knf:WestSegmentMember2025-01-012025-03-310001955520knf:WestSegmentMember2025-03-310001955520knf:MountainSegmentMember2024-12-310001955520knf:MountainSegmentMember2025-01-012025-03-310001955520knf:MountainSegmentMember2025-03-310001955520knf:CentralSegmentMember2024-12-310001955520knf:CentralSegmentMember2025-01-012025-03-310001955520knf:CentralSegmentMember2025-03-310001955520knf:EnergyServicesSegmentMember2024-12-310001955520knf:EnergyServicesSegmentMember2025-01-012025-03-310001955520knf:EnergyServicesSegmentMember2025-03-310001955520knf:WestSegmentMember2023-12-310001955520knf:WestSegmentMember2024-01-012024-03-310001955520knf:WestSegmentMember2024-03-310001955520knf:MountainSegmentMember2023-12-310001955520knf:MountainSegmentMember2024-01-012024-03-310001955520knf:MountainSegmentMember2024-03-310001955520knf:CentralSegmentMember2023-12-310001955520knf:CentralSegmentMember2024-01-012024-03-310001955520knf:CentralSegmentMember2024-03-310001955520knf:EnergyServicesSegmentMember2023-12-310001955520knf:EnergyServicesSegmentMember2024-01-012024-03-310001955520knf:EnergyServicesSegmentMember2024-03-310001955520knf:WestSegmentMember2024-01-012024-12-310001955520knf:MountainSegmentMember2024-01-012024-12-310001955520knf:CentralSegmentMember2024-01-012024-12-310001955520knf:EnergyServicesSegmentMember2024-01-012024-12-310001955520us-gaap:CustomerRelationshipsMember2025-03-310001955520us-gaap:CustomerRelationshipsMember2024-03-310001955520us-gaap:CustomerRelationshipsMember2024-12-310001955520us-gaap:NoncompeteAgreementsMember2025-03-310001955520us-gaap:NoncompeteAgreementsMember2024-03-310001955520us-gaap:NoncompeteAgreementsMember2024-12-310001955520us-gaap:TradeNamesMember2025-03-310001955520us-gaap:TradeNamesMember2024-03-310001955520us-gaap:TradeNamesMember2024-12-310001955520us-gaap:OrderOrProductionBacklogMember2025-03-310001955520us-gaap:OrderOrProductionBacklogMember2024-03-310001955520us-gaap:OrderOrProductionBacklogMember2024-12-310001955520us-gaap:OtherIntangibleAssetsMember2025-03-310001955520us-gaap:OtherIntangibleAssetsMember2024-03-310001955520us-gaap:OtherIntangibleAssetsMember2024-12-310001955520us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2025-03-310001955520us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2025-03-310001955520us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2025-03-310001955520us-gaap:FairValueMeasurementsRecurringMember2025-03-310001955520us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001955520us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001955520us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-03-310001955520us-gaap:FairValueMeasurementsRecurringMember2024-03-310001955520us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001955520us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001955520us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001955520us-gaap:FairValueMeasurementsRecurringMember2024-12-310001955520us-gaap:CarryingReportedAmountFairValueDisclosureMember2025-03-310001955520us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-03-310001955520us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-12-310001955520us-gaap:EstimateOfFairValueFairValueDisclosureMember2025-03-310001955520us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-03-310001955520us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-12-310001955520knf:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2025-03-060001955520knf:CreditAgreementMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2025-03-070001955520knf:A6.05TermLoanAgreementDue2030Memberus-gaap:SecuredDebtMemberus-gaap:LineOfCreditMember2025-03-070001955520knf:A6.29TermLoanAgreementDue2032Memberus-gaap:SecuredDebtMemberus-gaap:LineOfCreditMember2025-03-070001955520knf:A6.05TermLoanAgreementDue2030Memberus-gaap:SecuredDebtMemberus-gaap:LineOfCreditMember2025-03-072025-03-070001955520knf:A6.29TermLoanAgreementDue2032Memberus-gaap:SecuredDebtMemberus-gaap:LineOfCreditMember2025-03-072025-03-070001955520knf:CreditAgreementMemberus-gaap:LineOfCreditMember2025-03-072025-03-070001955520knf:A6.05TermLoanAgreementDue2030Memberus-gaap:LineOfCreditMember2025-03-310001955520knf:A6.05TermLoanAgreementDue2030Memberus-gaap:LineOfCreditMember2024-03-310001955520knf:A6.05TermLoanAgreementDue2030Memberus-gaap:LineOfCreditMember2024-12-310001955520knf:A6.29TermLoanAgreementDue2032Memberus-gaap:LineOfCreditMember2025-03-310001955520knf:A6.29TermLoanAgreementDue2032Memberus-gaap:LineOfCreditMember2024-03-310001955520knf:A6.29TermLoanAgreementDue2032Memberus-gaap:LineOfCreditMember2024-12-310001955520knf:A7.75SeniorNotesDue2031Memberus-gaap:SeniorNotesMember2025-03-310001955520knf:A7.75SeniorNotesDue2031Memberus-gaap:SeniorNotesMember2024-03-310001955520knf:A7.75SeniorNotesDue2031Memberus-gaap:SeniorNotesMember2024-12-310001955520us-gaap:NotesPayableToBanksMember2025-03-310001955520us-gaap:NotesPayableToBanksMember2024-03-310001955520us-gaap:NotesPayableToBanksMember2024-12-310001955520knf:OperatingSegmentsExcludingIntersegmentEliminationMember2025-01-012025-03-310001955520knf:OperatingSegmentsExcludingIntersegmentEliminationMember2024-01-012024-03-310001955520us-gaap:IntersegmentEliminationMember2025-01-012025-03-310001955520us-gaap:IntersegmentEliminationMember2024-01-012024-03-310001955520us-gaap:OperatingSegmentsMemberknf:WestSegmentMember2025-01-012025-03-310001955520us-gaap:OperatingSegmentsMemberknf:MountainSegmentMember2025-01-012025-03-310001955520us-gaap:OperatingSegmentsMemberknf:CentralSegmentMember2025-01-012025-03-310001955520us-gaap:OperatingSegmentsMemberknf:EnergyServicesSegmentMember2025-01-012025-03-310001955520us-gaap:OperatingSegmentsMember2025-01-012025-03-310001955520us-gaap:OperatingSegmentsMemberknf:WestSegmentMember2024-01-012024-03-310001955520us-gaap:OperatingSegmentsMemberknf:MountainSegmentMember2024-01-012024-03-310001955520us-gaap:OperatingSegmentsMemberknf:CentralSegmentMember2024-01-012024-03-310001955520us-gaap:OperatingSegmentsMemberknf:EnergyServicesSegmentMember2024-01-012024-03-310001955520us-gaap:OperatingSegmentsMember2024-01-012024-03-310001955520us-gaap:CorporateNonSegmentMember2025-01-012025-03-310001955520us-gaap:CorporateNonSegmentMember2024-01-012024-03-310001955520us-gaap:OperatingSegmentsMemberknf:WestSegmentMember2025-03-310001955520us-gaap:OperatingSegmentsMemberknf:MountainSegmentMember2025-03-310001955520us-gaap:OperatingSegmentsMemberknf:CentralSegmentMember2025-03-310001955520us-gaap:OperatingSegmentsMemberknf:EnergyServicesSegmentMember2025-03-310001955520us-gaap:OperatingSegmentsMember2025-03-310001955520us-gaap:OperatingSegmentsMemberknf:WestSegmentMember2024-03-310001955520us-gaap:OperatingSegmentsMemberknf:MountainSegmentMember2024-03-310001955520us-gaap:OperatingSegmentsMemberknf:CentralSegmentMember2024-03-310001955520us-gaap:OperatingSegmentsMemberknf:EnergyServicesSegmentMember2024-03-310001955520us-gaap:OperatingSegmentsMember2024-03-310001955520srt:ConsolidationEliminationsMember2025-03-310001955520srt:ConsolidationEliminationsMember2024-03-310001955520us-gaap:LetterOfCreditMember2025-03-310001955520us-gaap:RelatedPartyMember2024-01-012024-03-310001955520us-gaap:RelatedPartyMember2025-01-012025-03-31

For the quarterly period ended March 31, 2025

For the transition period from _____________ to ______________

Commission file number 1-41642

(Exact name of registrant as specified in its charter)

1150 West Century Avenue

P.O. Box 5568

Bismarck, North Dakota 58506-5568

(Address of principal executive offices)

(Zip Code)

(701) 530-1400

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒.

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of May 1, 2025: 56,652,361 shares.

Unless otherwise stated or the context otherwise requires, references in this report to “Knife River,” the “Company,” “we,” “our,” or “us” refer to Knife River Corporation and its consolidated subsidiaries.

Knife River is an aggregates-led construction materials and contracting services provider in the United States. Our 1.2 billion tons of aggregate reserves, as of December 31, 2024, provide the foundation for our vertically integrated business strategy, with approximately 37 percent of our aggregates being used internally to support value-added downstream products (ready-mix concrete and asphalt) and contracting services (heavy-civil construction, asphalt paving, concrete construction, site development and grading services, and in some segments the manufacturing of prestressed concrete products). We are strategically focused on being the provider of choice in mid-size, high-growth markets and are committed to our plan for continued growth and to delivering for our stakeholders — customers, communities, employees and stockholders — by executing on our four core values: People, Safety, Quality and the Environment.

We supply construction materials to customers from 14 states and also provide related contracting services, which are primarily to public-sector customers for the development and servicing of highways, local roads, bridges and other public-infrastructure projects. We have broad access to high-quality aggregates in most of our markets, which forms the foundation of our vertically integrated business model. We share resources, including plants, equipment and people, across our various locations to maximize efficiency. We also transport our products by truck, rail and barge, depending on the particular market, to complete the vertical value chain. Our strategically located aggregate sites, ready-mix plants and asphalt plants, along with our fleet of ready-mix and dump trucks, enable us to better serve our customers. We believe our integrated and expansive business model is a strong competitive advantage that provides scale, efficiency and operational excellence for the benefit of customers, stockholders and the broader communities that we serve.

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. All periods have been recast to conform to the current reportable segment presentation.

Three of the reportable segments are aligned by key geographic areas, West, Mountain and Central, due to the production of construction materials and related contracting services and one is based on product line. 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, which has locations throughout our geographic footprint, produces and supplies liquid asphalt and related services, primarily for use in asphalt road construction. We also provide the details of Corporate Services, which includes accounting, legal, treasury, information technology, human resources, corporate development costs and certain corporate expenses that support our operating segments. For more information on our business segments, see Note 15 of the Notes to Consolidated Financial Statements.

At Knife River, we are a people-first construction materials and contracting services company. We provide construction materials and contracting services to build safe roads, bridges, airport runways and other critical infrastructure needs that connect people with where they want to go and with the supplies they need. We are one of the leading providers of crushed stone and sand and gravel in the United States and operate across 14 states. We conduct our operations through four reportable segments: West, Mountain, Central and Energy Services.

The accompanying consolidated interim financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Interim financial statements do not include all disclosures provided in annual financial statements and, accordingly, these financial statements should be read in conjunction with the Company's 2024 Annual Report on Form 10-K (Annual Report). The information is unaudited but includes adjustments that are, in the opinion of management, necessary for a fair presentation of the accompanying consolidated interim financial statements and are of a normal recurring nature.

All revenues and costs, as well as assets and liabilities, directly associated with our business activities are included in the consolidated financial statements. General corporate expenses are included in the Consolidated Statements of Operations within selling, general and administrative expenses and other income.

On March 7, 2025, we acquired Strata Corporation (Strata), a leading construction materials and contracting services provider in North Dakota and northwestern Minnesota. The purchase price for Strata totaled $454.0 million and is subject to post-closing adjustments. The results of operations and balance sheet accounts for Strata are included in the consolidated financial statements from the date of acquisition.

Management has also evaluated the impact of events occurring after March 31, 2025, up to the date of issuance of these consolidated interim financial statements on May 6, 2025, that would require recognition or disclosure in the Consolidated Financial Statements.

For all periods, the consolidated financial statements were prepared in accordance with GAAP and include the accounts of Knife River and its wholly owned subsidiaries. All intercompany accounts and transactions between the businesses comprising Knife River have been eliminated in the accompanying audited consolidated financial statements.

The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the consolidated financial statements, as well as the reported amounts of revenues and expenses during the reporting period. Estimates are used for items such as long-lived assets and goodwill; fair values of acquired assets and liabilities under the acquisition method of accounting; aggregate reserves; property depreciable lives; tax provisions; revenue recognized using the cost-to-cost measure of progress for contracts; expected credit losses; environmental and other loss contingencies; costs on contracting services contracts; actuarially determined benefit costs; asset retirement obligations; present value of right-of-use assets and lease liabilities; and the valuation of stock-based compensation. These estimates are based on management’s best knowledge of current events, historical experience, actions that we may undertake in the future and on various other assumptions that are believed to be reasonable under the circumstances. As additional information becomes available, or actual amounts are determinable, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates.

We consider all highly liquid investments with an original maturity of three months or less, when purchased, to be cash and cash equivalents. Restricted cash represents deposits held by our captive insurance company that is required by state insurance regulations to remain in the captive insurance company. Cash, cash equivalents and restricted cash on the Consolidated Balance Sheets is comprised of:

Some of our operations are seasonal and revenues from, and certain expenses for, such operations may fluctuate significantly among quarterly periods, with lower activity in the winter months and higher activity in the summer months. Accordingly, the interim results for particular segments, and for Knife River as a whole, may not be indicative of results for the full fiscal year or other future periods.

The following table provides a brief description of the accounting pronouncements applicable to Knife River and the potential impact on its consolidated financial statements and/or disclosures:

Receivables consist primarily of trade and contract receivables for the sale of goods and services net of expected credit losses. A majority of our receivables are due in 30 days or less. The total balance of receivables past due 90 days or more was $27.3 million, $12.6 million and $14.3 million at March 31, 2025, March 31, 2024 and December 31, 2024, respectively. Receivables were as follows:

Our expected credit losses are determined through a review using historical credit loss experience; changes in asset specific characteristics; current conditions; and reasonable and supportable future forecasts, among other specific account data, and is performed at least quarterly. We develop and document our methodology to determine our allowance for expected credit losses. Risk characteristics used by management may include customer mix, knowledge of customers and general economic conditions of the various local economies, among others. Specific account balances are written off when management determines the amounts to be uncollectible. Management has reviewed the balance reserved through the allowance for expected credit losses and believes it is reasonable.

Details of our expected credit losses were as follows:

Inventories on the Consolidated Balance Sheets were as follows:

Inventories are valued at the lower of cost or net realizable value using the average cost method. Inventories include production costs incurred as part of our aggregate mining activities. These inventoriable production costs include all mining and processing costs associated with the production of aggregates. Stripping costs incurred during the production phase, which represent costs of removing overburden and waste materials to access mineral deposits, are a component of inventoriable production costs.

Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the applicable period. Diluted earnings per share is computed by dividing net income by the total of the weighted average number of shares of common stock outstanding during the applicable period, plus the effect of non-vested performance shares and restricted stock units. Our potentially dilutive securities have been excluded from the computation of diluted net loss per share as the effect would reduce the net loss per share and is considered antidilutive. Weighted average common shares outstanding is comprised of issued shares of 57,083,497 less shares held in treasury of 431,136. Basic and diluted net loss per share are calculated as follows, based on a reconciliation of the weighted-average common shares outstanding on a basic and diluted basis:

			Three Months Ended
			March 31,
			2025			2024
			(In thousands, except per share amounts)
Net loss			$	(68,710)		$	(47,629)
Weighted average common shares outstanding - basic			56,626			56,590
Effect of dilutive performance shares and restricted stock units			—			—
Weighted average common shares outstanding - diluted			56,626			56,590
Shares excluded from the calculation of diluted loss per share			274			179
Net loss per share - basic			$	(1.21)		$	(.84)
Net loss per share - diluted			$	(1.21)		$	(.84)

Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). The only component of other comprehensive income (loss) is the amortization of postretirement liability losses for our benefit plans. As of March 31, 2025 and 2024, and December 31, 2024, accumulated other comprehensive loss was $9.2 million, $11.2 million and $9.3 million, respectively.

For the three months ended March 31, 2025 and 2024, we amortized $63,000 and $78,000, respectively, of expense into other income, and $20,000 and $25,000, respectively, into income taxes.

Revenue is recognized when a performance obligation is satisfied by transferring control over a product or service to a customer. Revenue includes revenue from the sales of construction materials and contracting services. Revenue is measured based on consideration specified in a contract with a customer and excludes any sales incentives and amounts collected on behalf of third parties. Knife River is considered an agent for certain taxes collected from customers. As such, we present revenues net of these taxes at the time of sale to be remitted to governmental authorities, including sales and use taxes. Revenue for construction materials is recognized at a point in time when delivery of the products has taken place. Contracting revenue is recognized over time using an input method based on the cost-to-cost measure of progress on a project.

In the following tables, revenue is disaggregated by category for each segment and includes sales of materials to both third parties and internal customers. Due to consolidation requirements, the internal sales revenues must be eliminated against the construction materials product used in downstream materials and contracting services to arrive at the external operating revenues. We believe this level of disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. For more information on the Company’s reportable segments, see Note 15.

The timing of revenue recognition may differ from the timing of invoicing to customers. The timing of invoicing to customers does not necessarily correlate with the timing of revenues being recognized under the cost-to-cost method of accounting. Contracts from contracting services are billed as work progresses in accordance with agreed upon contractual terms. Generally, billing to the customer occurs contemporaneous to revenue recognition. A variance in timing of the billings may result in a contract asset or a contract liability. A contract asset occurs when revenues are recognized under the cost-to-cost measure of progress, which exceeds amounts billed on uncompleted contracts. Such amounts will be billed as standard contract terms allow, usually based on various measures of performance or achievement. A contract liability occurs when there are billings in excess of revenues recognized under the cost-to-cost measure of progress on uncompleted contracts. Contract liabilities decrease as revenue is recognized from the satisfaction of the related performance obligation.

The changes in contract assets and liabilities were as follows:

We recognized $28.2 million in revenue for the three months ended March 31, 2025, which was previously included in contract liabilities at December 31, 2024. We recognized $30.5 million in revenue for the three months ended March 31, 2024, which was previously included in contract liabilities at December 31, 2023.

We recognized a net increase in revenues of $8.0 million and $9.2 million for the three months ended March 31, 2025 and 2024, respectively, from performance obligations satisfied in prior periods.

The remaining performance obligations, also referred to as backlog, include unrecognized revenues that we reasonably expect to be realized. These unrecognized revenues can include: projects that have a written award, a letter of intent, a notice to proceed, an agreed upon work order to perform work on mutually accepted terms and conditions, and change orders or claims to the extent management believes additional contract revenues will be earned and are deemed probable of collection. The majority of our contracts for contracting services have an original duration of less than one year.

At March 31, 2025, our remaining performance obligations were $938.7 million. We expect to recognize the following revenue amounts in future periods related to these remaining performance obligations: $820.6 million within the next 12 months or less; $91.5 million within the next 13 to 24 months; and $26.6 million in 25 months or more.

The following acquisitions were accounted for as business combinations in accordance with ASC 805 - Business Combinations. The results of the business combinations have been included in the Company's Consolidated Financial Statements beginning on the acquisition dates. Pro forma financial amounts reflecting the effects of the business combinations are not presented, as none of these business combinations, individually or in the aggregate, were material to our financial position or results of operations.

Acquisitions are also subject to customary adjustments based on, among other things, the amount of cash, debt and working capital in the business as of the closing date. The amounts included in the Consolidated Balance Sheets for these adjustments are considered provisional until final settlement has occurred.

On March 7, 2025, we completed the acquisition of Strata Corporation, a leading construction materials and contracting services provider in North Dakota and northwestern Minnesota. The purchase of Strata includes operations that expand our aggregates, ready-mix and asphalt operations, as well as our trucking fleet, locomotives and railcars, in our current geographic locations. The purchase price for Strata totaled $454.0 million and is subject to post-closing adjustments. The results of Strata are included in our Central segment.

The estimated fair value of the assets acquired and liabilities assumed are preliminary, as we continue to gather information to finalize the valuation of these assets and liabilities. The fair values are considered provisional until final fair values are determined, or the measurement period has passed. We expect to record adjustments as we accumulate the information needed to estimate the fair value of assets acquired and liabilities assumed, including working capital balances, estimated fair value of identifiable intangible assets, property, plant and equipment, total consideration and goodwill. We utilized market and cost approaches to estimate the fair value of the property, plant and equipment, excluding aggregate reserves. The fair value of aggregate reserves and intangible assets were determined using the income approach. All estimates, key assumptions, and forecasts were either provided by or reviewed by management. We engaged third-party valuation firms to assist in the analysis and valuation of the assets of Strata. While we chose to utilize third-party valuation firms, the fair value analysis and related valuations represent the conclusions of management and not the conclusions or statements of any third party.

The excess of the total purchase price over the fair value of assets acquired and liabilities assumed was allocated to goodwill. We believe that the goodwill relates to several factors, including potential synergies related to market opportunities for multiple product offerings and economies of scale expected from combining our operations with the business acquired.

The final fair value of the net assets acquired may result in adjustments to the assets and liabilities, including goodwill, and will be made as soon as practical, but no later than one year from the respective acquisition dates. However, any subsequent measurement period adjustments are not expected to have a material impact on our results of operations.

The preliminary allocation of the purchase price for Strata is as follows:

Intangible assets for Strata include $9.5 million for customer backlog, which has an amortization period of 10 months, and $4.1 million for permits, which has an amortization period of 10 years upon commencement of operations.

During the first quarter of 2025, we completed the acquisition of an aggregate quarry operation in Washington for $10.1 million, which will supply aggregates to Southern Washington and Northern Oregon. The acquisition resulted in the recognition of $15.1 million of assets in property, plant and equipment, $1.3 million deferred income tax liability and $202,000 in noncurrent liabilities - other. We have reviewed the fair values of the assets and liabilities and determined that the purchase would result in a gain being recognized at the time of the acquisition. We believe the bargain purchase gain was primarily the result of the sellers’ desire to exit quickly due to cash flow constraints which were limiting their ability to operate the business efficiently. The gain on the purchase was $3.5 million, net of deferred taxes of $1.3 million, and was recorded in other income on the Consolidated Statement of Operations. The results of this acquisition are included in our West segment.

During 2024, we completed four acquisitions with an aggregated purchase price of $120.7 million, subject to future post-closing adjustments. As of March 31, 2025, the purchase accounting for Albina Asphalt is considered preliminary and will be completed in the second quarter of 2025.

For the three months ended March 31, 2025, we incurred acquisition-related costs on completed and other potential acquisitions of $5.3 million. These costs are included in our Corporate Services in selling, general and administrative expenses on the Consolidated Statement of Operations.

On March 7, 2025, we sold four ready-mix plant operations for total proceeds of $14.5 million. The ready-mix plant operations were acquired by us as part of the Strata acquisition and subsequently sold to a third-party. The ready-mix plants were included in assets held for sale on the opening balance sheet for Strata at the time of the acquisition.

The changes in the carrying amount of goodwill were as follows:

Other amortizable intangible assets were as follows:

The previous tables include goodwill and intangible assets associated with the business combinations completed in the first quarter of 2025. For more information related to these business combinations, see Note 10.

Amortization expense for amortizable intangible assets for the three months ended March 31, 2025, and 2024 was $1.1 million and $545,000, respectively. Estimated amortization expense for identifiable intangible assets as of March 31, 2025, was:

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The fair value guidance establishes a hierarchy for grouping assets and liabilities, based on the significance of inputs. The estimated fair values of the assets and liabilities measured on a recurring basis are determined using the market approach.

We measure our investments in certain fixed-income and equity securities at fair value with changes in fair value recognized in income. We anticipate using these investments, which consist of insurance contracts, to satisfy our obligations under our unfunded, nonqualified defined benefit and defined contribution plans for our executive officers and certain key management employees, and invest in these fixed-income and equity securities for the purpose of earning investment returns and capital appreciation. These investments, which totaled $30.5 million, $27.1 million and $28.4 million at March 31, 2025 and 2024, and December 31, 2024, respectively, are classified as investments on the Consolidated Balance Sheets. These investments had a net unrealized loss of $692,000 and a net unrealized gain of $1.2 million for the three months ended March 31, 2025 and 2024, respectively. The change in fair value, which is considered part of the cost of the plan, is classified in other income on the Consolidated Statements of Operations.

The Company's assets measured at fair value on a recurring basis were as follows:

Our Level 2 money market funds are valued at the net asset value of shares held at the end of the period, based on published market quotations on active markets, or using other known sources including pricing from outside sources. The estimated fair value of the Level 2 insurance contracts is based on contractual cash surrender values that are determined primarily by investments in managed separate accounts of the insurer. These amounts approximate fair value. The managed separate accounts are valued based on other observable inputs or corroborated market data.

Though we believe the methods used to estimate fair value are consistent with those used by other market participants, the use of other methods or assumptions could result in a different estimate of fair value.

We apply the provisions of the fair value measurement standard to our nonrecurring, non-financial measurements, including long-lived asset impairments. These assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments only in certain circumstances. We review the carrying value of our long-lived assets, excluding goodwill, whenever events or changes in circumstances indicate that such carrying amounts may not be recoverable.

The assets and liabilities of the acquisitions that occurred during the first quarter of 2025 were calculated using a market or cost approach. The fair value of some of the assets was determined based on Level 3 inputs including estimated future cash flows, discount rates, growth rates and sales projections, all of which require significant management judgment. For more information on these Level 2 and 3 fair value measurements, see Note 10.

Our long-term debt is not measured at fair value on the Consolidated Balance Sheets and the fair value is being provided for disclosure purposes only. The fair value was categorized as Level 2 in the fair value hierarchy and was based on discounted cash flows using current market interest rates. The estimated fair value of our Level 2 long-term debt was as follows:

The carrying amounts of our remaining financial instruments included in current assets and current liabilities approximate their fair values.

Certain debt instruments of ours contain restrictive covenants and cross-default provisions. In order to borrow under the debt agreements, we must be in compliance with the applicable covenants and certain other conditions, all of which management believes we, as applicable, were in compliance with at March 31, 2025. In the event we do not comply with the applicable covenants and other conditions, alternative sources of funding may need to be pursued.

On March 7, 2025, we entered into an amendment to the senior secured credit agreement to, among other things, increase our revolving credit facility from $350.0 million to $500.0 million and extend the maturity to March 7, 2030, refinance the existing $275.0 million Term Loan A to extend the maturity to March 7, 2030, and provide for a new Term Loan B in an aggregate principal amount of $500.0 million with a maturity of March 8, 2032. The Term Loan B was funded on March 7, 2025. Each facility has a SOFR-based interest rate. The Term Loan A has a mandatory annual amortization of 2.50 percent for years one and two, 5.00 percent for years three and four, and 7.50 percent in the fifth year. The Term Loan B has a mandatory annual amortization of $5.0 million. The agreement contains customary covenants and provisions, including a covenant of Knife River not to permit, at any time, the ratio of total debt to trailing twelve month earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) to be greater than 4.75 to 1.00. The covenants also include restrictions on the sale of certain assets, loans and investments.

Long-term Debt Outstanding Long-term debt outstanding was as follows:

Schedule of Debt Maturities Long-term debt maturities, which excludes unamortized debt issuance costs, at March 31, 2025, were as follows:

Cash expenditures for interest and income taxes were as follows:

Noncash investing and financing transactions were as follows:

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 the Company’s chief operating officer, who is also the Company's 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 proceeding information follows the same accounting policies as described in the audited financial statements and notes included in the Company's 2024 Annual Report. Prior periods presented have been recast to conform to the current reportable segment presentation.