Knife River Corporation

Knife River Corp reported a 13% year-over-year revenue increase in the second quarter of 2026, driven by record backlog conversion and double-digit volume growth across all product lines. The company raised its full-year revenue guidance to $3.4 billion to $3.6 billion and reaffirmed adjusted EBITDA guidance of $520 million to $560 million, though it now expects results near the midpoint rather than the upper end. Adjusted EBITDA was flat year-over-year on an as-reported basis, impacted by approximately $24 million in external headwinds including higher diesel costs, project delays in Texas, Hawaii, and Alaska, and lower contracting services margins. Aggregate pricing rose 8% on a product mix-adjusted basis, and the company's self-help initiatives reduced variable operating costs in aggregates by 1% despite inflationary pressures. Backlog expanded to $1.2 billion, up about $50 million sequentially, reinforcing confidence in second-half performance.

EMCOR Group has returned 35.3% so far this year, outpacing the average 14.8% gain for the 88-stock Construction sector. The company holds a Zacks Rank of 2, or Buy, and its full-year consensus earnings estimate has risen 3.5% over the past 90 days. Within the Building Products - Heavy Construction industry, which has gained 37.4% year to date, EMCOR is slightly underperforming its eight-member peer group. Knife River, another Construction stock, has returned 18.6% this year and also carries a Zacks Rank of 2, with its current-year EPS estimate up 3.3% over three months.