Knife River Holding Co 2025年度报告

Annual Report | Proxy Statement | Form 10-K 6,900 Team Membersat peak season 1.3Billiontons of aggregate reserves 4 largest producer of sandand gravel in the USth- Record year-end backlog of $1.0B Note: All data is as of Dec. 31, 2025, unless otherwise noted. PRODUCT LINES AGGREGATES ASPHALT LIQUID ASPHALT CONTRACTINGSERVICES READY-MIXCONCRETE Downstream productused for smooth,durable surfaces onhighways, streets andparking lots. 55 plantsacross 10 states. 1.3 billion tons of reserveswith strategic locationsnear end users and/ormultimodal transportation.Reliable supply of high-quality materials is acompetitive advantage. Binding agent used withaggregates to produceasphalt. 9 terminalsacross 7 states. Versatile and specializedvalue-added product.135 plants across 13states, and a fleet ofdelivery trucks. Reliable pull-throughdemand of materials.Public works focused;adds resiliency andcontributes to ROIC.2 “Dear Fellow Shareholders, Knife River made meaningful progress on our strategic initiativesin 2025, positioning us for growth in 2026 and beyond. Weinvested in our growth through acquisitions, reserve expansionand high value organic initiatives, while reinforcing a culture ofcontinuous improvement to drive margin expansion and help usbecome better at everything we do. 29 ready mix plants, five asphalt plants and a talented groupof professionals. We believe these transactions, combinedwith targeted organic investments, have positioned us wellfor continued expansion. Already in 2026, we have completedthree additional aggregates-based, vertically integratedacquisitions through March. In addition to population growth in our markets, KnifeRiver stands to benefit from the demonstrated need forinfrastructure development – and the record funding tosupport it. The American Society of Civil Engineers gives thenation’s roads a “D+” and estimates it will take over $2 trillionto bring the roads to a passing grade. In 2026, considerablefederal funding remains to be reimbursed to states from theInfrastructure Investment and Jobs Act, which we expectwill support funding consistency while Congress works toreauthorize transportation funding. Meanwhile, departmentof transportation budgets across Knife River’s 15 states3remain at or near record levels. Strong public budgets providemulti-year visibility. Despite a weather impacted start to the year, our teamsexecuted with discipline and focus, finishing 2025 with arecord fourth quarter and delivering our most profitableyear to date. It was also our safest year ever, as our teamembraced our “I Choose Safety” culture. We enter 2026 withmomentum, confidence and a clear strategy designed to drivelong term, profitable growth. Knife River Growth Strategy There are four components to our growth strategy that webelieve differentiate Knife River as the employer, supplier andacquirer of choice: Vertical Integration Our diverse markets. Knife River is an aggregates based, vertically integratedcompany. Vertical integration can act as a profit multiplier andprovide more resiliency through economic cycles. We believeour mix of aggregates, ready-mix, asphalt, liquid asphalt andcontracting services enhances our value in multiple ways,including providing the opportunity for: Vertical integration. Pull-through of higher-margin materials on ourcontracting jobs.Multiple chances to engage in projects – as a generalcontractor, subcontractor or materials provider.Greater supply-chain reliability and improved jobsitecoordination.More acquisition opportunities. Continuous improvementsto drive margin growth. Our Life at Knife culture andrelentless drive for excellence. Continuous Improvement Markets Knife River’s Competitive EDGE remains the engine of our longterm value creation strategy. EDGE stands for EBITDA MarginImprovement, Discipline, Growth and Excellence. We believein continuous improvement in all aspects of our business todrive EBITDA growth and margin expansion. Two key EDGEinitiatives are controlling costs and optimizing prices. Knife River operates in mid sized markets that are forecastedto grow twice as fast as non-Knife River states. These highergrowth markets create compelling opportunities for organicexpansion and disciplined acquisitions. In 2025, we completedfive aggregates based acquisitions, adding aggregate reserves, 4POPULATION GROWTH development. This contributed to our safest year ever in2025, as well as advancements in our dynamic pricing andcost-control initiatives. Actively engaging with our teamalso helped us continue to be an industry leader in employeeretention. Knife River is committed to being an employerof choice and a responsible operator in the communities weserve, and we look forward to the ideas, improvements andgrowth opportunities that our engaged team will help usachieve in 2026 and beyond. Our team advanced these initiatives throughout 2025,delivering a 9% improvement in aggregate pricing throughdisciplined dynamic pricing,