Strategies for Sustainable Growth and Resilience
Tailwinds and Expected EDGE Drivers by Region (Cont'd)
3.1%
NORTH CENTRAL
2022 Revenue Mix¹1
11.9%
O
43.9%
Aggregates
19.6%
Ready Mix
Asphalt
Contracting Services
21.5%
Other
Strong economic tailwinds:
North Dakota is the fourth fastest growing state (2010-
2020) with population growth over 20%
■ Sioux Falls had a record year of building permit valuations
in 2022
■ The Bakken is getting busier and is a steady source of
demand
EDGE - Key Expected Drivers:
New region president has brought renewed emphasis on
bid strategies and to properly capitalize on our vertical
integration capabilities
2018 acquisition of high-quality reserves in Sioux Falls
market positions us for future growth
■ Increase exposure to aggregates and materials mix through
targeted strategic partnerships to supply external
contractors
46.8%
ALL OTHER
2022 Revenue Mix¹
13.4%
O
14.9%
6.8%
18.1%
Strong economic tailwinds:
Aggregates
Ready Mix
Asphalt
Contracting Services
Other
Population growth of ~16% in Texas over the past decade
(2010-2020) has pressured infrastructure
■ Texas has one of the largest DOT budgets in the US
Public work including those from State Highway
departments insulates region from economic downturns
EDGE - Key Expected Drivers:
-
Improve operating efficiencies and increase volumes from
greenfield Honey Creek quarry which became operational
in 2023
Utilize second unit train of aggregate cars for higher market
share
Leverage strong relationships, reputation for high quality
and service to increase share in liquid asphalt
All Other segment consists of Energy Services, Texas operations and
corporate services
Note: Pie chart numbers are rounded and may not sum to 100%. Other includes merchandise, transportation services and other products that individually are not considered to be a major line of
business for the segment. 1 Reflects gross revenue breakdown by materials, contracting services and other.
KNIFE RIVER
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