Knife River is a construction materials and contracting company operating across 14 states, primarily in the western and central U.S. The company mines and processes aggregates (crushed stone, sand, and gravel), produces ready-mix concrete and asphalt, and performs contracting services — primarily highway and road paving. Aggregates are the foundation of the business: Knife River holds 1.3B tons of permitted reserves across 208 active aggregate sites, and roughly 35% of aggregates volume is consumed internally, creating a vertically integrated supply chain from raw material extraction through final installation. Contracting services are the largest revenue contributor at ~37% of gross revenue, but materials businesses carry higher margins (15-18% gross margin vs. 11% for contracting). Contracting work also "pulls through" higher-margin upstream materials — every paving project drives demand for Knife River's own asphalt and aggregates. About 81% of contracting revenue comes from public-sector customers (state DOTs, municipalities, federal agencies), which management argues provides a durable, lower-volatility earnings base. Knife River operates four segments: West, Central, Mountain, and Energy Services, the last of which produces and distributes liquid asphalt from nine terminals. The business is highly seasonal, concentrated in Q2 and Q3. Since spinning out of MDU Resources in mid-2023, Knife River has completed 11 acquisitions, including the $454M purchase of Strata Corporation in early 2025. Knife River targets aggregates-led, vertically integrated companies in mid-size, high-growth markets and entered 2026 with a record ~$1B backlog, up 38% YoY.