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What changed in KIRBY CORP's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of KIRBY CORP's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+319 added−304 removedSource: 10-K (2026-02-17) vs 10-K (2025-02-18)

Top changes in KIRBY CORP's 2025 10-K

319 paragraphs added · 304 removed · 274 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

104 edited+11 added−8 removed171 unchanged
Biggest changePressurized products, including butadiene, isobutane, propylene, butane and propane, all requiring pressurized conditions to remain in stable liquid form, are transported in pressure barges. The transportation of petrochemical products represented 51% of the segment’s 2024 revenues. Customers shipping these products are petrochemical and refining companies. Black Oil.
Biggest changeBulk liquid petrochemicals transported include such products as benzene, styrene, methanol, acrylonitrile, xylene, naphtha and caustic soda. These products are consumed in the production of paper, fiber and plastics. Pressurized products, including butadiene, isobutane, propylene, butane and propane, all requiring pressurized conditions to remain in stable liquid form, are transported in pressure barges.
The Company also sells engines, transmissions, power generation systems, and rents equipment including generators, industrial compressors, high capacity lift trucks, construction equipment and refrigeration trailers for use in a variety of commercial and industrial applications.
The Company also sells engines, transmissions, and power generation systems and rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment and refrigeration trailers for use in a variety of commercial and industrial applications.
Generally, the risk of an oversupply of tank barges may be mitigated by 6 increased petrochemical, black oil and refined petroleum products volumes from increased production from current facilities, plant expansions, the opening of new facilities, and the fact that the inland tank barge industry has approximately 600 tank barges that are 30 years old or older and approximately 350 of those are 40 years old or older, which could lead to retirement of these older tank barges.
Generally, the risk of an oversupply of tank barges may be mitigated by increased petrochemical, black oil and refined petroleum products volumes from increased production from current facilities, plant expansions, the opening of new facilities, and the fact that the inland tank barge industry has approximately 600 tank barges that are 30 years old or older and approximately 350 of those are 40 years old or older, which could lead to retirement of these older tank barges.
Marine transportation services for inland movements are conducted under term contracts, which have contract terms of 12 months or longer, or spot contracts, which have contract terms of less than 12 months, with customers with whom the Company has traditionally 9 had long-standing relationships. Typically, term contracts range from one to five years, some of which have renewal options.
Marine transportation services for inland movements are conducted under term contracts, which have contract terms of 12 months or longer, or spot contracts, which have contract terms of less than 12 months, with customers with whom the Company has traditionally had long-standing relationships. Typically, term contracts range from one to five years, some of which have renewal options.
The Company’s coastal and offshore tows primarily consist of one tugboat and one tank barge or dry-bulk cargo barge. 5 Marine Transportation Industry Fundamentals The United States inland waterway system, composed of a network of interconnected rivers and canals that serve the nation as water highways, is one of the world’s most efficient transportation systems.
The Company’s coastal and offshore tows primarily consist of one tugboat and one tank barge or dry-bulk cargo barge. Marine Transportation Industry Fundamentals The United States inland waterway system, composed of a network of interconnected rivers and canals that serve the nation as water highways, is one of the world’s most efficient transportation systems.
Uninspected vessel operations, the Company’s shore-based personnel, and employees in the Company’s KDS segment are subject to OSHA regulations. The Company believes that it is in compliance with the provisions of the regulations 17 that have been adopted and does not believe that the adoption of any further regulations will impose additional material requirements on the Company.
Uninspected vessel operations, the Company’s shore-based personnel, and employees in the Company’s KDS segment are subject to OSHA regulations. The Company believes that it is in compliance with the provisions of the regulations that have been adopted and does not believe that the adoption of any further regulations will impose additional material requirements on the Company.
Medium-speed diesel engines have an engine speed of 400 to 1,000 revolutions per minute (“RPM”) with a horsepower range of 800 to 32,000. High-speed diesel engines 12 have an engine speed of over 1,000 RPM and a horsepower range of 50 to 8,375. The Company services medium-speed and high-speed diesel engines utilized in the inland and offshore barge industries.
Medium-speed diesel engines have an engine speed of 400 to 1,000 revolutions per minute (“RPM”) with a horsepower range of 800 to 32,000. High-speed diesel engines have an engine speed of over 1,000 RPM and a horsepower range of 50 to 8,375. The Company services medium-speed and high-speed diesel engines utilized in the inland and offshore barge industries.
Under VIDA, all provisions of the Vessel General Permit which became effective 16 December 19, 2013, remain in force and effect until the USCG regulations are finalized. The Company maintains Vessel General Permits and has established recordkeeping and reporting procedures in compliance with the EPA’s interim requirements.
Under VIDA, all provisions of the Vessel General Permit which became effective December 19, 2013, remain in force and effect until the USCG regulations are finalized. The Company maintains Vessel General Permits and has established recordkeeping and reporting procedures in compliance with the EPA’s interim requirements.
When the power source and freight capacity are combined, the unit is called a tow. The Company’s inland tows generally consist of one towboat and from one to up to 25 tank barges, depending upon the horsepower of the towboat, the waterway infrastructure capacity and conditions, and customer requirements.
When the power source and freight capacity are combined, the unit is called a tow. The Company’s inland tows generally consist of one 5 towboat and from one to up to 25 tank barges, depending upon the horsepower of the towboat, the waterway infrastructure capacity and conditions, and customer requirements.
In the coastal trade, tank barges are frequently used regionally 8 to transport refined petroleum products from a coastal refinery or terminals served by pipelines to the end markets. Many coastal areas rely upon access to refined petroleum products by using marine transportation in the distribution chain.
In the coastal trade, tank barges are frequently used regionally to transport refined petroleum products from a coastal refinery or terminals served by pipelines to the end markets. Many coastal areas rely upon access to refined petroleum products by using marine transportation in the distribution chain.
The Company sells OEM replacement 14 parts, and sells and services diesel engines, electric drives, motors and controls, pumps and transmissions, and offers in-house and in-field service capabilities. The Company is the largest off-highway distributor for Allison Transmission and a major distributor for MTU in North America.
The Company sells OEM replacement parts, and sells and services diesel engines, electric drives, motors and controls, pumps and transmissions, and offers in-house and in-field service capabilities. The Company is the largest off-highway distributor for Allison Transmission and a major distributor for MTU in North America.
Towboats above 3,600 horsepower are typically used on the Mississippi River System to move River fleet unit tows and provide Linehaul fleet towing. Based on the capabilities of the individual towboats used in the Mississippi River System, the tows range in size from 10,000 to 30,000 tons.
Towboats above 3,600 horsepower are typically used on the Mississippi River System to move River fleet unit tows and provide 9 Linehaul fleet towing. Based on the capabilities of the individual towboats used in the Mississippi River System, the tows range in size from 10,000 to 30,000 tons.
Generally, the Company endorses the anticipated additional regulations and believes it is currently operating to standards at least equal to anticipated additional regulations. When the Company does operate in foreign jurisdictions, it is subject to the legal and regulatory requirements of those jurisdictions in addition to those generally applicable to the Company's domestic operations.
Generally, the Company believes it is currently operating to standards at least equal to anticipated additional regulations. When the Company does operate in foreign jurisdictions, it is subject to the legal and regulatory requirements of those jurisdictions in addition to those generally applicable to the Company's domestic operations.
The Company maintains hull, liability, general liability, workers compensation and pollution liability insurance coverage against these hazards. The Company also maintains insurance to address liabilities arising from KDS operating activities. For shipyard operations, the Company has ship repairer’s liability and builder’s risk insurance.
The Company maintains hull, liability, general liability, workers compensation and pollution liability insurance coverage against these hazards. The Company also maintains insurance to address certain liabilities arising from KDS operating activities. For shipyard operations, the Company has ship repairer’s liability and builder’s risk insurance.
Woodruff holds a doctorate of jurisprudence from the University of Houston Law Center and a bachelor of science degree from Texas A&M University. He has served as Vice President – Public and Governmental Affairs since October 2017.
William M. Woodruff holds a doctorate of jurisprudence from the University of Houston Law Center and a bachelor of science degree from Texas A&M University. He has served as Vice President – Public and Governmental Affairs since October 2017.
The Company’s coastal tank barge fleet capacity of 2.9 million barrels equates to approximately 4,800 railroad tank cars or approximately 15,300 tractor-trailer tank trucks. Marine transportation generally involves less urban exposure than railroad or truck transportation and operates on a system with few crossing junctures and often in areas relatively remote from population centers.
The Company’s coastal tank barge fleet capacity of 2.9 million barrels equates to approximately 4,800 railroad tank cars or approximately 15,300 tractor-trailer tank trucks. Marine transportation generally involves less urban exposure than railroad or truck transportation and operates on a system with fewer crossing junctures and often in areas relatively remote from population centers.
VIDA requires the EPA to develop national performance standards for those discharges within two years of enactment and requires the USCG to develop implementation, compliance, and enforcement regulations within two years of the EPA’s promulgation of standards.
VIDA requires the EPA to develop national performance standards for those discharges 16 within two years of enactment and requires the USCG to develop implementation, compliance, and enforcement regulations within two years of the EPA’s promulgation of standards.
Culture, Engagement, and Social Responsibility. The Company recognizes the importance of employee engagement and has implemented a regular process of surveying its employees to obtain their feedback on both what is working well and areas of improvement. One of the main take-aways from the 2023 survey was 90% of employees surveyed agree that Kirby is committed to Employee Safety.
Culture, Engagement, and Social Responsibility. The Company recognizes the importance of employee engagement and has implemented a regular process of surveying its employees to obtain their feedback on both what is working well and areas of improvement. One of the main take-aways from the latest survey was 90% of employees surveyed agree that Kirby is committed to Employee Safety.
These Quality Assurance Systems and certification have enabled both shore and vessel personnel to effectively manage the changes which occur in the working environment, as well as enhancing the Company’s safety and environmental performance. Human Capital Employment. The Company has approximately 5,414 employees, the large majority of whom are in the United States.
These Quality Assurance Systems and certification have enabled both shore and vessel personnel to effectively manage the changes which occur in the working environment, as well as enhancing the Company’s safety and environmental performance. Human Capital Employment. The Company has approximately 5,233 employees, the large majority of whom are in the United States.
Contingency Plan Requirement. The OPA and several state statutes of similar intent require the majority of the vessels and terminals operated by the Company to maintain approved oil spill contingency plans as a condition of operation. The Company has approved plans that comply with these requirements. The OPA also requires development of regulations for hazardous substance spill contingency plans.
The OPA and several state statutes of similar intent require the majority of the vessels and terminals operated by the Company to maintain approved oil spill contingency plans as a condition of operation. The Company has approved plans that comply with these requirements. The OPA also requires development of regulations for hazardous substance spill contingency plans.
The increase from 2,750 tank barges in 2006 to approximately 4,000 by the end of 2019 primarily resulted from increased barge construction and deferred retirements due to strong demand and resulting capacity shortages. The number of industry tank barges has remained relatively constant from 2019 through the end of 2024.
The increase from 2,750 tank barges in 2006 to approximately 4,000 by the end of 2019 primarily resulted from increased barge construction and deferred retirements due to strong demand and resulting capacity shortages. The number of industry tank barges has remained relatively constant from 2019 through the end of 2025.
For the power generation market, the Company provides engineered products and field services, OEM replacement parts and safety-related products to power generation operators and to the nuclear industry, manufactures engine generator and pump packages for power generation operators and municipalities, offers customized power generation systems for specific commercial and industrial applications, and rents equipment including generators.
For the power generation market, the Company provides engineered products and field services, OEM replacement parts and safety-related products to power generation operators and to the nuclear industry, manufactures engine generator and pump packages for power generation operators and municipalities, offers customized power generation systems for specific commercial and industrial applications including data centers, and rents equipment including generators.
Customers include oilfield service companies, and oil and gas operators and producers. No single customer of KDS accounted for 10% or more of the Company’s revenues in 2024, 2023, or 2022. KDS also provides service to KMT, which accounted for approximately 2% of KDS’s 2024 revenues, and 3% of the segment’s 2023 and 2022 revenues.
Customers include oilfield service companies and oil and gas operators and producers. No single customer of KDS accounted for 10% or more of the Company’s revenues in 2025, 2024, or 2023. KDS also provides service to KMT, which accounted for approximately 2% of KDS’s 2025 and 2024 revenues and 3% of the segment’s 2023 revenues.
Of the 28 coastal tank barges, 20 are refined petroleum products and petrochemical barges and 8 are black oil barges. The Company operates 24 coastal tugboats ranging from 3,000 to 11,000 horsepower, of which 23 are owned by the Company and one is chartered.
The Company owns all 28 of the coastal tank barges. Of the 28 coastal tank barges, 20 are refined petroleum products and petrochemical barges and 8 are black oil barges. The Company operates 24 coastal tugboats ranging from 3,000 to 11,000 horsepower, of which 23 are owned by the Company and one is chartered.
The Company is engaged in the overhaul and repair of diesel engines and generators, and related parts sales for power generation customers. The Company is also engaged in the sale and distribution of engine parts, engine modifications, generator modifications, controls, governors and generator packages to the nuclear industry.
The Company is engaged in the overhaul and repair of natural gas and diesel engines and generators, and related parts sales for power generation customers. The Company is also engaged in the sale and distribution of engine parts, engine modifications, generator modifications, controls, governors and generator packages to the nuclear industry.
The number of coastal tank barges that operate in the 195,000 barrels or less category is approximately 260, of which the Company operates 28 or approximately 11%. The average age of the nation’s coastal tank barge fleet is approximately 15 years.
The number of coastal tank barges that operate in the 195,000 barrels or less category is approximately 260, of which the Company operates 28 or approximately 11%. The average age of the nation’s coastal tank barge fleet is approximately 17 years.
Agricultural chemicals transported represented 3% of the segment’s 2024 revenues. Agricultural chemicals include anhydrous ammonia and nitrogen-based liquid fertilizer, as well as industrial ammonia. Agricultural chemical customers consist mainly of domestic and foreign producers of such products.
Agricultural chemicals transported represented 3% of the segment’s 2025 revenues. Agricultural chemicals include anhydrous ammonia and nitrogen-based liquid fertilizer, as well as industrial ammonia. Agricultural chemical customers consist mainly of domestic and foreign producers of such products.
At this time, the Company does not believe such impact will be material to its business, but to the extent such rules may apply to other vessels in the Company’s fleet or other states adopt similar measures, it could result in increased compliance costs, additional operating restrictions or changes in demand for the Company’s services, which could have a material adverse effect on the Company’s business, financial condition and results of operations.
At this time, the Company does not believe such impact will be material to its business, but to the extent such rules may apply to other vessels in the Company’s fleet or other states adopt similar measures, it could result in increased compliance costs, additional operating restrictions or changes in demand for the Company’s services, which could have a material adverse effect on the Company’s business, financial condition and results of operations. 17 Contingency Plan Requirement.
During 2022 through 2024, the Company continued to transport crude oil and natural gas condensate produced from the Eagle Ford and Permian Basin shale formations in Texas, both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of America with coastal equipment, and continued to transport Utica crude oil and natural gas condensate downriver from the Mid-Atlantic to the Gulf Coast, albeit, at reduced levels as some of the product was transported by newly constructed pipelines.
During 2023 through 2025, the Company continued to transport crude oil and natural gas condensate produced from the Eagle Ford and Permian Basin shale formations in Texas, both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of America with coastal equipment, and continued to transport Utica crude oil and natural gas condensate downriver from the Mid-Atlantic to the Gulf Coast, albeit, at reduced levels as some of the product was transported by newly constructed pipelines.
Approximately 204 Kirby Offshore Marine vessel crew members are subject to a collective bargaining agreement with the Richmond Terrace Bargaining Unit in effect through August 31, 2026.
Approximately 214 Kirby Offshore Marine vessel crew members are subject to a collective bargaining agreement with the Richmond Terrace Bargaining Unit in effect through August 31, 2026.
The commercial and industrial operations represented approximately 46% of the segment’s 2024 revenues. The Company is engaged in the overhaul and repair of medium-speed and high-speed marine diesel engines and reduction gears, line boring, block welding services and related parts sales for customers in the marine industry.
The commercial and industrial operations represented approximately 46% of the segment’s 2025 revenues. 12 The Company is engaged in the overhaul and repair of medium-speed and high-speed marine diesel engines and reduction gears, line boring, block welding services and related parts sales for customers in the marine industry.
Such user taxes are designed to help defray the costs associated with replacing major components of the inland waterway system, such as locks and dams. A significant portion of the inland waterways on which the Company’s vessels operate is maintained by the Army Corps of Engineers.
Such user taxes are intended to defray the costs associated with replacing major components of the inland waterway system, such as locks and dams. A significant portion of the inland waterways on which the Company’s vessels operate is maintained by the Army Corps of Engineers.
In addition, approximately 113 vessel crew members of Penn Maritime Inc., a wholly owned subsidiary of Kirby Offshore Marine, are represented by the Seafarers International Union under a collective bargaining agreement in effect through April 30, 2027. KDS has approximately 2,190 employees. None of the United Holdings and Kirby Engine Systems operations are subject to collective bargaining agreements.
In addition, approximately 125 vessel crew members of Penn Maritime Inc., a wholly owned subsidiary of Kirby Offshore Marine, are represented by the Seafarers International Union under a collective bargaining agreement in effect through April 30, 2027. KDS has approximately 2,072 employees. None of the United Holdings and Kirby Engine Systems operations are subject to collective bargaining agreements.
Approximately 49 S&S employees in New Jersey are subject to a collective bargaining agreement with the Local 15C, International Union of Operating Engineers, AFL-CIO that expires in October 2028. The remaining S&S employees are not subject to collective bargaining agreements. Training and Development.
Approximately 48 S&S employees in New Jersey are subject to a collective bargaining agreement 18 with the Local 15C, International Union of Operating Engineers, AFL-CIO that expires in October 2028. The remaining S&S employees are not subject to collective bargaining agreements. Training and Development.
No single customer of KMT accounted for 10% or more of the Company’s revenues in 2024, 2023, or 2022. 11 DISTRIBU TION AND SERVICES The Company, through its wholly owned subsidiary Kirby Distribution & Services, Inc. and its wholly owned subsidiaries Kirby Engine Systems LLC, (“Kirby Engine Systems”), Stewart & Stevenson LLC (“S&S”), United Holdings LLC (“United”), and Diesel Dash LLC and through Kirby Engine Systems’ wholly owned subsidiaries Marine Systems, Inc.
No single customer of KMT accounted for 10% or more of the Company’s revenues in 2025, 2024, or 2023. 11 DISTRIBU TION AND SERVICES The Company, through its wholly owned subsidiary Kirby Distribution & Services, Inc. and its wholly owned subsidiaries Kirby Engine Systems LLC, (“Kirby Engine Systems”), Stewart & Stevenson LLC (“S&S”), United Holdings LLC (“United”), and through Kirby Engine Systems’ wholly owned subsidiaries Marine Systems, Inc.
In addition to standard health and welfare benefits, the Company offers wellness incentives and initiatives that encourages employees to receive an annual wellness checkup. 19 Information about the Company’s Executive Officers The executive officers of the Company are as follows: Name Age Positions and Offices David W. Grzebinski 63 Chief Executive Officer Christian G.
In addition to standard health and welfare benefits, the Company offers wellness incentives and initiatives that encourages employees to receive an annual wellness checkup and age appropriate exams. 19 Information about the Company’s Executive Officers The executive officers of the Company are as follows: Name Age Positions and Offices David W. Grzebinski 64 Chief Executive Officer Christian G.
Movements of refined petroleum products such as various blends of gasoline are strongest during the summer driving season while heating oil generally increases during the winter months. The coastal fleet consists of 28 tank barges with 2.9 million barrels of capacity, primarily transporting refined petroleum products, black oil and petrochemicals. The Company owns all 28 of the coastal tank barges.
Movements of refined petroleum products such as various blends of gasoline are strongest during the summer driving season while heating oil generally increases during the winter months. 10 The coastal fleet consists of 28 tank barges with 2.9 million barrels of capacity, primarily transporting refined petroleum products, black oil and petrochemicals.
The Maritime Transportation Security Act of 2002 requires, among other things, submission to and approval by the USCG of vessel and waterfront facility security plans (“VSP” and “FSP”, respectively). The Company maintains approved VSP and FSP and is operating in compliance with the plans for all of its vessels and facilities that are subject to the requirements.
The Maritime Transportation Security Act of 2002 requires, among other things, submission to and approval by the USCG of vessel and waterfront facility security plans (“VSP” and “FSP”, respectively). The Company maintains approved VSPs and FSPs and is operating in compliance with the plans for all of its vessels and facilities that are subject to the requirements.
Refined petroleum products transported include the various blends of finished gasoline, gasoline blendstocks, jet fuel, No. 2 oil, heating oil and diesel fuel, and represented 21% of the segment’s 2024 revenues. The Company also classifies ethanol in the refined petroleum products category. Customers are oil and refining companies, marketers and ethanol producers. Agricultural Chemicals.
Refined petroleum products transported include the various blends of finished gasoline, gasoline blendstocks, jet fuel, No. 2 oil, heating oil and diesel fuel, and represented 23% of the segment’s 2025 revenues. The Company also classifies ethanol in the refined petroleum products category. Customers are oil and refining companies, marketers and ethanol producers. Agricultural Chemicals.
Furthermore, barging is much more energy efficient. One ton of bulk product can be carried 675 miles by inland barge on one gallon of fuel on a typical tow, compared to 472 miles by railcar or 151 miles by truck for typical transits.
Furthermore, barging is much more energy efficient when compared to other modes of transportation. One ton of bulk product can be carried 675 miles by inland barge on one gallon of fuel on a typical tow, compared to 472 miles by railcar or 151 miles by truck for typical transits.
The Company is also the marine distributor for Falk and Lufkin reduction gears throughout the United States. Power Generation Operations The Company is engaged in the manufacturing, installation and servicing of new power generation units, and also provides standby and rental backup power generation units. The power generation operations represented approximately 36% of the segment’s 2024 revenues.
The Company is also the marine distributor for Falk and Lufkin reduction gears throughout the United States. Power Generation Operations The Company is engaged in the manufacturing, installation and servicing of new power generation units, and also provides standby and rental backup power generation units. The power generation operations represented approximately 43% of the segment’s 2025 revenues.
The oil and gas operations represented approximately 18% of the segment’s 2024 revenues. The Company offers custom fabricated oilfield service equipment that is fully tested and field ready. The Company manufactures and remanufactures oilfield service equipment, including pressure pumping units, nitrogen pumping units, cementers, hydration equipment, mud pumps and blenders, coil tubing, and well intervention equipment.
The oil and gas operations represented approximately 11% of the segment’s 2025 revenues. The Company offers custom fabricated oilfield service equipment that is fully tested and field ready. The Company manufactures and remanufactures oilfield service equipment, including pressure pumping units, nitrogen pumping units, cementers, 14 hydration equipment, mud pumps and blenders, coil tubing, and well intervention equipment.
The large majority of non-vessel employees work full-time. Vessel employees work varying schedules according to their assignments. The Company has approximately 105 general corporate employees. The Company supports its employees by providing competitive pay and benefits, training, and a respectful and inclusive culture. KMT has approximately 3,119 employees, of which approximately 2,380 are vessel crew members.
The large majority of non-vessel employees work full-time. Vessel employees work varying schedules according to their assignments. The Company has approximately 107 general corporate employees. The Company supports its employees by providing competitive pay and benefits, training, and a respectful and inclusive culture. KMT has approximately 3,054 employees, of which approximately 2,337 are vessel crew members.
In addition, the Company is subject to environmental laws and regulations that establish engine emission standards under the CAA that allow California to establish new engine emission standards and requirements for commercial harbor crafts operating in the state.
In addition, the Company is subject to environmental laws and regulations that establish engine emission standards under the CAA that permits California to establish new engine emission standards and requirements for commercial harbor crafts operating in the state, subject to EPA authorization.
Time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented approximately 61% of the marine transportation’s inland revenues under term contracts during 2024, 63% during 2023, and 58% during 2022.
Time charters, which help insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented approximately 59% of the marine transportation’s inland revenues under term contracts during 2025, 61% during 2024, and 63% during 2023.
Coastal time charters represented approximately 90% of the marine transportation’s coastal revenues under term contracts in 2022 and 2023 and approximately 98% of coastal revenues under term contracts in 2024.
Coastal time charters represented approximately 90% of the marine transportation’s coastal revenues under term contracts in 2023, approximately 98% in 2024 and approximately 100% in 2025.
During 2023 and 2024, coastal refined petroleum products tank barge utilization averaged in the high 90% range as activity levels continued to improve. Demand for marine transportation of domestic and imported agricultural fertilizer is seasonal and directly related to domestic nitrogen-based liquid fertilizer consumption, driven by the production of corn, cotton and wheat.
During both 2024 and 2025, coastal refined petroleum products tank barge utilization averaged in the high 90% range as activity levels remained stable. Demand for marine transportation of domestic and imported agricultural fertilizer is seasonal and directly related to domestic nitrogen-based liquid fertilizer consumption, driven by the production of corn, cotton and wheat.
The Company’s inland division of KMT also owns a shifting operation and fleeting facility for dry cargo barges and tank barges on the Houston Ship Channel, in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana, and a shipyard for building inland towboats and providing routine maintenance on marine vessels.
The Company’s inland division of KMT also operates shifting and fleeting facilities for dry cargo barges and tank barges on the Houston Ship Channel, in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana, and a shipyard for building inland towboats and providing routine maintenance on marine vessels near the Houston Ship Channel.
The Company is the largest inland tank barge carrier, both in terms of number of barges and total fleet barrel capacity. The Company’s inland tank barge fleet has grown from 71 tank barges in 1988 to 1,094 tank barges as of December 31, 2024, or approximately 27% of the estimated total number of domestic inland tank barges.
The Company is the largest inland tank barge carrier, both in terms of number of barges and total fleet barrel capacity. The Company’s inland tank barge fleet has grown from 71 tank barges in 1988 to 1,105 tank barges as of December 31, 2025, or approximately 28% of the estimated total number of domestic inland tank barges.
A typical Company lower Mississippi River linehaul tow of 15 barges has the carrying capacity of approximately 216 railroad tank cars plus six locomotives, or approximately 1,050 tractor-trailer tank trucks. The Company’s inland tank barge fleet capacity of 24.2 million barrels equates to approximately 40,500 railroad tank cars or approximately 127,000 tractor-trailer tank trucks.
A typical Company lower Mississippi River linehaul tow of 15 barges has the carrying capacity of approximately 216 railroad tank cars plus six locomotives, or approximately 1,050 tractor-trailer tank trucks. The Company’s inland tank barge fleet capacity of 24.5 million barrels equates to approximately 41,000 railroad tank cars or approximately 128,000 tractor-trailer tank trucks.
Coastal marine transportation services are typically conducted under term contracts, some of which have renewal options, for customers with which the Company has traditionally had long-standing relationships. During 2022, approximately 75% of the coastal marine transportation revenues were under term contracts and 25% were under spot contracts.
Coastal marine transportation services are typically conducted under term contracts, some of which have renewal options, for customers with which the Company has traditionally had long-standing relationships. During 2023, approximately 85% of the coastal marine transportation revenues were under term contracts and 15% were under spot contracts.
None of the segment’s inland operations are subject to collective bargaining agreements. The segment’s coastal operations include approximately 413 vessel employees, some of which are subject to collective bargaining agreements in certain geographic areas.
None of the segment’s inland operations are subject to collective bargaining agreements. The segment’s coastal operations include approximately 436 vessel employees, many of which are subject to collective bargaining agreements in certain geographic areas.
Black oil customers are refining companies, marketers, and end users that require the transportation of black oil between refineries and storage terminals, to other refineries and to power plants. Ship bunker customers are oil companies and oil traders in the bunkering business. Refined Petroleum Products.
Such products represented 26% of the segment’s 2025 revenues. Black oil customers are refining companies, marketers, and end users that require the transportation of black oil between refineries and storage terminals, to other refineries and to power plants. Ship bunker customers are oil companies and oil traders in the bunkering business. Refined Petroleum Products.
Kirby Ocean Transport is also engaged in the transportation of coal, fertilizer, sugar and other bulk cargoes on a spot basis between domestic ports and occasionally the transportation of grain from domestic ports to ports primarily in the Caribbean Basin.
Kirby Ocean Transport operates primarily under term contracts of affreightment. Kirby Ocean Transport is also engaged in the transportation of coal, fertilizer and other bulk cargoes on a spot basis between domestic ports and occasionally the transportation of grain from domestic ports to ports primarily in the Caribbean Basin.
During 2022 and 2023, approximately 60% of inland marine transportation revenues were under term contracts and 40% were under spot contracts. During 2024, approximately 65% of inland marine transportation revenues were under term contracts and 35% were under spot contracts.
During 2023, approximately 60% of inland marine transportation revenues were under term contracts and 40% were under spot contracts. During 2024, approximately 65% of inland marine transportation revenues were under term contracts and 35% were under spot contracts. During 2025, approximately 70% of inland marine transportation revenues were under term contracts and 30% were under spot contracts.
During 2024, approximately 1,663 certificates were issued for the completion of courses at the training facility, of which approximately 883 were USCG approved classes and the balance were employee development and Company required classes, including leadership, communication, and navigation courses. The Company uses the Seaman’s Church Institute as an additional training resource for its wheelhouse crewmembers.
During 2025, approximately 2,017 certificates were issued for the completion of courses at the training facility, of which approximately 582 were USCG approved classes and the balance were employee development and Company required classes, including leadership, communication, and navigation courses. The Company uses the Seaman’s Church Institute as an additional training resource for its wheelhouse crewmembers.
San Jac Marine, LLC (“San Jac”), a subsidiary of Kirby Inland Marine, owns and operates a shipyard in Channelview, Texas which builds marine vessels for both inland and coastal applications, and provide maintenance and repair services. Kirby Inland Marine also builds inland towboats and performs routine maintenance and repairs at the San Jac shipyard.
San Jac Marine, LLC (“San Jac”), a subsidiary of Kirby Inland Marine, owns and operates a shipyard in Channelview, Texas which builds marine vessels for both inland and coastal applications, and provide maintenance and repair services. Kirby Inland Marine also utilizes San Jac to construct inland towboats and perform routine maintenance and repairs.
Marine Tra nsportation Operations KMT operated a fleet of 1,094 inland tank barges and an average of 281 inland towboats during the 2024 fourth quarter, as well as 28 coastal tank barges and 24 coastal tugboats. The segment also operated four offshore dry-bulk cargo barges, three offshore tugboats and one docking tugboat transporting dry-bulk commodities in United States coastal trade.
Marine Tra nsportation Operations KMT operated a fleet of 1,105 inland tank barges and an average of 266 inland towboats during the 2025 fourth quarter, as well as 28 coastal tank barges and 24 coastal tugboats. The segment also operated two offshore dry-bulk cargo barges, two offshore tugboats and one docking tugboat transporting dry-bulk commodities in United States coastal trade.
As of December 31, 2024, the equipment owned or operated by KMT consisted of 1,094 inland tank barges with 24.2 million barrels of capacity, and an average of 281 inland towboats during the fourth quarter of 2024, as well as 28 coastal tank barges with 2.9 million barrels of capacity, 24 coastal tugboats, four offshore dry-bulk cargo barges, three offshore tugboats and one docking tugboat with the following specifications and capacities: Class of equipment Number in class Average age (in years) Barrel capacities Inland tank barges (owned and leased): Regular double hull: 20,000 barrels and under 430 18.7 5,207,000 Over 20,000 barrels 664 15.9 19,016,000 Total inland tank barges 1,094 17.0 24,223,000 Inland towboats (owned and chartered): 800 to 1300 horsepower 28 35.2 1400 to 1900 horsepower 32 22.8 2000 to 2400 horsepower 165 13.8 2500 to 3200 horsepower 39 11.8 3300 to 4800 horsepower 10 21.0 Greater than 5000 horsepower 7 23.6 Total inland towboats 281 17.2 Coastal tank barges (owned): 30,000 barrels and under 2 30.1 37,000 50,000 to 70,000 barrels 3 19.3 111,000 80,000 to 90,000 barrels 8 20.9 677,000 100,000 to 110,000 barrels 6 18.5 630,000 120,000 to 150,000 barrels 3 23.0 416,000 Over 150,000 barrels 6 9.1 1,046,000 Total coastal tank barges 28 18.6 2,917,000 Coastal tugboats (owned and chartered): 3000 to 3900 horsepower 2 22.0 4000 to 4900 horsepower 6 16.2 5000 to 6900 horsepower 10 8.8 Greater than 7000 horsepower 6 14.5 Total coastal tugboats 24 12.8 Deadweight Tonnage Offshore dry-bulk cargo barges (owned) 4 26.1 67,000 Offshore tugboats and docking tugboat (owned and chartered) 4 28.1 The 281 inland towboats, 24 coastal tugboats, three offshore tugboats and one docking tugboat provide the power source and the 1,094 inland tank barges, 28 coastal tank barges and four offshore dry-bulk cargo barges provide the freight capacity for KMT.
As of December 31, 2025, the equipment owned or operated by KMT consisted of 1,105 inland tank barges with 24.5 million barrels of capacity, and an average of 266 inland towboats during the fourth quarter of 2025, as well as 28 coastal tank barges with 2.9 million barrels of capacity, 24 coastal tugboats, four offshore dry-bulk cargo barges, three offshore tugboats and one docking tugboat with the following specifications and capacities: Class of equipment Number in class Average age (in years) Barrel capacities Inland tank barges (owned and leased): Regular double hull: 20,000 barrels and under 433 19.5 5,257,000 Over 20,000 barrels 672 16.7 19,257,000 Total inland tank barges 1,105 17.8 24,514,000 Inland towboats (owned and chartered): 800 to 1300 horsepower 24 35.3 1400 to 1900 horsepower 27 19.0 2000 to 2400 horsepower 160 14.6 2500 to 3200 horsepower 38 12.4 3300 to 4800 horsepower 10 12.4 Greater than 5000 horsepower 7 19.7 Total inland towboats 266 16.7 Coastal tank barges (owned): 30,000 barrels and under 2 31.0 37,000 50,000 to 70,000 barrels 3 20.3 111,000 80,000 to 90,000 barrels 8 21.9 677,000 100,000 to 110,000 barrels 6 19.5 630,000 120,000 to 150,000 barrels 3 24.0 416,000 Over 150,000 barrels 6 10.0 1,046,000 Total coastal tank barges 28 19.6 2,917,000 Coastal tugboats (owned and chartered): 3000 to 3900 horsepower 2 23.0 4000 to 4900 horsepower 6 17.2 5000 to 6900 horsepower 10 9.8 Greater than 7000 horsepower 6 15.5 Total coastal tugboats 24 13.8 Deadweight Tonnage Offshore dry-bulk cargo barges (owned) 2 12.3 37,000 Offshore tugboats and docking tugboat (owned) 3 24.1 The 266 inland towboats, 24 coastal tugboats, two offshore tugboats and one docking tugboat provide the power source and the 1,105 inland tank barges, 28 coastal tank barges and two offshore dry-bulk cargo barges provide the freight capacity for KMT.
Competition in this business is based on price and reliability, with many of the industry’s customers emphasizing enhanced vetting requirements, an increased emphasis on safety, the environment, and high-quality service consistent with the customer’s operational standards.
Competition in the Ta nk Barge Industry The tank barge industry is very competitive. Competition in this business is based on price and reliability, with many of the industry’s customers emphasizing enhanced vetting requirements, an increased emphasis on safety, the environment, and high-quality service consistent with the customer’s operational standards.
Coastal tank barge utilization for the transportation of petrochemicals increased from the mid-80% range in 2023 to the mid to high 80% range during 2024 due to improved economic conditions. The demand for black oil, including ship bunkers, varies by type of product transported.
Coastal tank barge utilization for the transportation of petrochemicals averaged in the mid to high 80% range during both 2024 and 2025 due to stable economic conditions. The demand for black oil, including ship bunkers, varies by type of product transported.
During 2023, the Company’s inland barge utilization averaged in the low 90% range as improved activity levels were offset by lock closures and several refinery outages. During 2024, the Company’s inland barge utilization remained in the low 90% range as strong activity levels were offset by an increase in delay days as compared to 2023.
During 2024, the Company’s inland barge utilization remained in the low 90% range as strong activity levels were offset by an increase in delay days as compared to 2023.
The Company is aware of no specialized coastal articulated tank barge and tugboat units (“ATB”) that were delivered in 2024 and no further ATBs currently under construction. The coastal tank barge fleet has approximately 20 tank barges that are over 25 years old industry-wide.
The Company is aware of no specialized coastal articulated tank barge and tugboat units (“ATB”) that were delivered in 2025 and no further ATBs currently under construction. The coastal tank barge fleet has approximately 22 tank barges that are over 25 years old industry-wide, which could lead to retirement of these older tank barges.
The Company sells genuine replacement parts, provides service mechanics to overhaul and repair engines, transmissions, reduction gears and related oilfield service equipment, rebuilds component parts or entire diesel engines, transmissions and reduction gears, electrical motors, drives, and controls, specialized electrical distribution and control systems, and related equipment used in oilfield services, marine, power generation, on-highway, and other commercial and industrial applications.
The Company operations include service mechanics to overhaul and repair engines, transmissions, reduction gears and related equipment used in marine, oilfield services, on-highway and other commercial and industrial applications, as well as rebuilding component parts or entire diesel engines, transmissions and reduction gears, electrical motors, drives, and controls, specialized electrical distribution and control systems, and related equipment.
The following table sets forth the revenues for KDS (dollars in thousands): Year Ended December 31, 2024 % 2023 % 2022 % Service and parts $ 1,081,725 80 % $ 1,071,297 78 % $ 962,187 82 % Manufacturing 271,101 20 298,406 22 205,600 18 $ 1,352,826 100 % $ 1,369,703 100 % $ 1,167,787 100 % Commercial and Ind ustrial Operations The Company serves the marine, on-highway, power generation, and other commercial and industrial markets primarily in the United States.
The following table sets forth the revenues for KDS (dollars in thousands): Year Ended December 31, 2025 % 2024 % 2023 % Service and parts $ 1,190,547 83 % $ 1,081,725 80 % $ 1,071,297 78 % Manufacturing 238,198 17 271,101 20 298,406 22 $ 1,428,745 100 % $ 1,352,826 100 % $ 1,369,703 100 % Commercial and Ind ustrial Operations The Company serves the marine, on-highway, power generation, and other commercial and industrial markets primarily in the United States.
During 2023, the Company’s inland barge utilization improved to the low 90% range as improved activity levels were partially offset by lock closures and several refinery outages. During 2024, the Company’s inland barge utilization remained in the low 90% range as strong activity levels were offset by an increase in delay days as compared to 2023.
During 6 2024, the Company’s inland barge utilization remained in the low 90% range as strong activity levels were offset by an increase in delay days as compared to 2023.
Prior to joining the Company, he was employed by Baker Hughes Incorporated. Jennifer N. “Jenny” McCauley holds a Master of Science in Human Development from the University of Texas at Dallas and Bachelor of Arts degree from Saint Mary’s College. She has served the Company as Chief Human Resources Officer since February 2025.
“Jenny” McCauley holds a Master of Science in Human Development from the University of Texas at Dallas and Bachelor of Arts degree from Saint Mary’s College. She has served the Company as Chief Human Resources Officer since February 2025.
The Company typically maintains a higher mix of term contracts to spot contracts to provide the Company with a reasonably predictable revenue stream while maintaining spot market exposure to take advantage of new business opportunities and customers’ peak demands.
The Company typically maintains a higher mix of term contracts to spot contracts to provide the Company with a reasonably predictable revenue stream while maintaining spot market exposure to take advantage of new business opportunities and customers’ peak demands. During 2023, approximately 60% of inland marine transportation revenues were under term contracts and 40% were under spot contracts.
The Company strives to provide its employees with a rewarding work environment, including the opportunity for success and an opportunity for personal and professional development. The development of its people is a key factor in the Company’s employee retention and satisfaction.
The Company strives to provide its employees with a rewarding work environment, including the opportunity for success and an opportunity for personal and professional development. The development of its people is a key factor in the Company’s employee retention and satisfaction. Its technical and skill training has always been a differentiator and has facilitated the recruitment of new trainees.
The fleet of 281 inland towboats for the 2024 fourth quarter ranges from 800 to 6,100 horsepower. Of the 281 inland towboats, 216 are owned by the Company and 65 are chartered.
The fleet of 266 inland towboats for the 2025 fourth quarter ranges from 800 to 6,100 horsepower. Of the 266 inland towboats, 200 are owned by the Company and 66 are chartered.
Of the 1,094 inland tank barges currently operated, 839 are petrochemical and refined petroleum products barges, 160 are black oil barges, 85 are pressure barges and 10 are refrigerated anhydrous ammonia barges. Of the 1,094 inland tank barges, 1,062 are owned by the Company and 32 are leased.
Of the 1,105 inland tank barges currently operated, 851 are petrochemical and refined petroleum products barges, 157 are black oil barges, 87 are pressure barges and 10 are refrigerated anhydrous ammonia barges. Of the 1,105 inland tank barges, 1,073 are owned by the Company and 32 are leased.
The Company provides anti-corruption training to all of its employees. 15 Jones Act. The Jones Act is a federal cabotage law that restricts domestic marine transportation in the United States to vessels built and registered in the United States and manned, owned and operated by United States citizens.
The Jones Act is a federal cabotage law that restricts domestic marine transportation in the United States to vessels built and registered in the United States and manned, owned and operated by United States citizens.
The Company manufactures and remanufactures power generation equipment, railcar moving equipment, and oilfield service equipment, including pressure pumping units, for North American as well as for international oilfield service companies, and oil and gas operator and producer markets.
The Company manufactures and remanufactures power generation equipment, including behind the meter power systems and emergency backup systems for data center and other businesses, railcar moving equipment, and oilfield service equipment, including pressure pumping units and electric fracturing systems, for North American as well as for international oilfield service companies, and oil and gas operator and producer markets.
Through its distribution and services segment (“KDS”), the Company provides after-market services and genuine replacement parts for engines, transmissions, reduction gears and related equipment used in oilfield services, marine, power generation, on-highway, and other industrial applications.
Through its distribution and services segment (“KDS”), the Company provides equipment, after-market parts and services for power generation systems in applications that include behind the meter power systems and emergency backup systems, after-market and genuine replacement parts and services for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and controls systems, and related equipment used in power generation, marine, on-highway, oilfield services, and other industrial applications.
The Company’s 1,094 inland tank barges represent approximately 27% of the industry’s approximately 4,003 inland tank barges. For 2023, the Company estimates that industry-wide 27 new tank barges were placed in service and 48 tank barges were retired. For 2024, the Company estimates that industry-wide 34 new tank barges were placed in service and 38 tank barges were retired.
The Company’s 1,105 inland tank barges represent approximately 28% of the industry’s approximately 4,004 inland tank barges. For 2024, the Company estimates that industry-wide 34 new tank barges were placed in service and 38 tank barges were retired. For 2025, the Company estimates that industry-wide 66 new tank barges were placed in service and 65 tank barges were retired.
The Seattle, Washington operation concentrates on the offshore commercial fishing industry, the offshore barge industry, the United States government, and other customers in Alaska, Hawaii and the Pacific Rim.
The Paducah, Kentucky operation concentrates on the inland river towboat and barge operators and the Great Lakes carriers. The Seattle, Washington operation concentrates on the offshore commercial fishing industry, the offshore barge industry, the United States government, and other customers in Alaska, Hawaii and the Pacific Rim.
Black oil transported includes such products as residual fuel oil, No. 6 fuel oil, coker feedstock, vacuum gas oil, asphalt, carbon black feedstock, crude oil, natural gas condensate and ship bunkers (engine fuel). Such products represented 25% of the segment’s 2024 revenues.
The transportation of petrochemical products represented 48% of the segment’s 2025 revenues. Customers shipping these products are petrochemical and refining companies. Black Oil. Black oil transported includes such products as residual fuel oil, No. 6 fuel oil, coker feedstock, vacuum gas oil, asphalt, carbon black feedstock, crude oil, natural gas condensate and ship bunkers (engine fuel).
The Midwest is a net importer of such products. Volumes were also driven by diesel fuel transported to terminals along the Gulf Coast for export to South America. Ethanol, produced in the Midwest, is moved from the Midwest to the Gulf Coast.
Generally, gasoline and No. 2 oil are exported from the Gulf Coast where refining capacity exceeds demand. The Midwest is a net importer of such products. Volumes were also driven by diesel fuel transported to terminals along the Gulf Coast for export to South America. Ethanol, produced in the Midwest, is moved from the Midwest to the Gulf Coast.
Its technical and skill training has always been a differentiator and has facilitated the recruitment of new trainees. 18 For the marine business, the Company’s training facility includes state-of-the-art equipment and instruction aids, including a full bridge wheelhouse simulator, a working towboat, two tank barges, and a tank barge simulator for tankermen training.
For the marine business, the Company’s training facility includes state-of-the-art equipment and instruction aids, including a full bridge wheelhouse simulator, a working towboat, two tank barges, and a tank barge simulator for tankermen training.
This is primarily applicable to the coastal business of the KMT segment and Colombia branches in the KDS segment. Further, to the extent the Company does business with foreign counterparties, it is subject to additional rules and regulations, in particular, with regard to import and export compliance and the Foreign Corrupt Practices Act (“FCPA”), or similar local applicable anti-bribery laws.
Further, to the extent the Company does business with foreign counterparties, it is subject to additional rules and regulations, in particular, with regard to import and export compliance and the Foreign 15 Corrupt Practices Act (“FCPA”), or similar local applicable anti-bribery laws. The Company provides anti-corruption training to all of its employees. Jones Act.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThere has been public discussion that climate change may be associated with rising sea levels as well as extreme weather conditions such as more intense hurricanes, thunderstorms, tornadoes, drought, and snow or ice storms. Extreme weather conditions may increase the Company’s costs or cause damage to its facilities, and any damage resulting from extreme weather may not be fully insured.
Biggest changeKMT is subject to weather condition volatility. Physical impacts of climate change could have a material adverse effect on the Company's costs and operations. There has been public discussion that climate change may be associated with rising sea levels as well as extreme weather conditions such as more intense hurricanes, thunderstorms, tornadoes, drought, and snow or ice storms.
The Company manages its exposure to losses from potential unauthorized discharges of pollutants through the use of well-maintained and equipped tank barges and towing vessels, through safety, training and environmental programs, and through the Company’s insurance 21 program, but a discharge of pollutants by the Company could have an adverse effect on the Company.
The Company manages its exposure to losses from potential unauthorized discharges of pollutants through the use of well-maintained and 21 equipped tank barges and towing vessels, through safety, training and environmental programs, and through the Company’s insurance program, but a discharge of pollutants by the Company could have an adverse effect on the Company.
In addition, adverse water and weather conditions can negatively affect a towing vessel’s performance, tow size, loading drafts, fleet efficiency, limit navigation periods and dictate horsepower requirements. KDS is also subject to tropical storms and hurricanes impacting its coastal locations and those of its customers as well as tornados impacting its Oklahoma 25 facilities.
In addition, adverse water and weather conditions can negatively affect a towing vessel’s performance, tow size, loading drafts, fleet efficiency, limit navigation periods and dictate horsepower requirements. KDS is also subject to tropical storms and hurricanes impacting its coastal locations and those of its customers as well as tornados impacting its Oklahoma facilities.
Federal or state legislation, executive or governmental orders, and/or regulations could materially impact customers’ operations and greatly reduce or eliminate demand for the Company’s pressure pumping fracturing equipment and related products. The Company is unable to predict whether future legislation or any other regulations will ultimately be enacted and, if so, the impact on KDS.
Federal or state legislation, executive or governmental orders, and/or regulations could materially impact customers’ operations and greatly reduce or eliminate demand for the Company’s pressure pumping fracturing equipment and related products. The Company is unable to predict whether future legislation or any other regulations will ultimately be enacted or repealed and, if so, the impact on KDS.
The Company's failure to protect its proprietary information and any successful challenges to the Company's intellectual property rights could have an adverse effect on the Company. A deterioration of the Company’s credit profile, disruptions of the credit markets or higher interest rates could restrict its ability to access the debt capital markets or increase the cost of debt.
The Company's failure to protect its proprietary information and any successful challenges to the Company's intellectual property rights could have an adverse effect on the Company. 27 A deterioration of the Company’s credit profile, disruptions of the credit markets or higher interest rates could restrict its ability to access the debt capital markets or increase the cost of debt.
The price of steel, economic conditions, and supply and demand 23 dynamics can significantly impact the construction cost of new tank barges and towing vessels. Over the last 20 years, the Company’s average construction price for a new 30,000 barrel capacity inland tank barge has fluctuated up or down significantly.
The price of steel, economic conditions, and supply and demand dynamics can significantly impact the construction cost of new tank barges and towing vessels. Over the last 20 years, the Company’s average construction price for a new 30,000 barrel capacity inland tank barge has fluctuated up or down significantly.
In addition, cap-and-trade proposals would likely increase the cost of energy, including purchases of diesel fuel, steam and electricity, and certain raw materials used or transported by the Company. Proposed domestic and international cap-and-trade systems could materially increase raw material and operating costs of the Company’s customer base.
In addition, cap-and-trade proposals would likely increase the cost of energy, including purchases of diesel fuel, steam and electricity, and 26 certain raw materials used or transported by the Company. Proposed domestic and international cap-and-trade systems could materially increase raw material and operating costs of the Company’s customer base.
Tariffs and other trade measures could adversely affect the Company’s business, financial condition and results of operations. Additional or new tariffs or other trade measures could adversely impact the Company’s input costs and supply chain, which could reduce availability or increase the cost of goods sold to its customers, especially in KDS.
Tariffs and other trade measures could adversely affect the Company’s business, financial condition and results of operations. Additional or new tariffs, trade restrictions, or other trade measures could adversely impact the Company’s input costs and supply chain, which could reduce availability or increase the cost of goods sold to its customers, especially in KDS.
For example, the average construction price for a new 30,000 barrel capacity tank barge in 2009 was approximately 90% higher than in 2000, with increases primarily related to higher steel costs.
For example, the 23 average construction price for a new 30,000 barrel capacity tank barge in 2009 was approximately 90% higher than in 2000, with increases primarily related to higher steel costs.
Increased competition in the distribution and services industry and 24 continued low price of natural gas, crude oil or natural gas condensate, and resulting decline in drilling for such natural resources in North American shale formations, could result in less oilfield equipment being manufactured and remanufactured, lower rates for service and parts pricing and result in less manufacturing, remanufacturing, service and repair opportunities and parts sales for the Company.
Increased competition in the distribution and services industry and continued low price or alternative sourcing of natural gas, crude oil or natural gas condensate, and resulting decline in drilling for such natural resources in North American shale formations, could result in less oilfield equipment being manufactured and remanufactured, 24 lower rates for service and parts pricing and result in less manufacturing, remanufacturing, service and repair opportunities and parts sales for the Company.
The Company’s actual or perceived failure to report accurately or achieve its ESG-related initiatives, goals, or aspirations could result in government enforcement action, negatively impact its reputation, result in ESG-focused investors not purchasing and holding Company stock, or otherwise materially harm the Company’s business. Increased prices and inflation could negatively impact the Company’s margin performance and financial results.
The Company’s actual or perceived failure to report accurately or achieve its sustainability-related initiatives, goals, or aspirations could result in government enforcement action, negatively impact its reputation, result in sustainability-focused investors not purchasing and holding Company stock, or otherwise materially harm the Company’s business. Increased prices and inflation could negatively impact the Company’s margin performance and financial results.
In 2020, with the acquisition of Convoy Servicing Company and Agility Fleet Services, LLC, the Company expanded its dealership network of Thermo King refrigeration systems for trucks, railroad cars, and other land transportation markets in Texas and Colorado. In 2024, sales and service of Thermo King products comprised approximately 4% of the Company’s revenues.
In 2020, with the acquisition of Convoy Servicing Company and Agility Fleet Services, LLC, the Company expanded its dealership network of Thermo King refrigeration systems for trucks, railroad cars, and other land transportation markets in Texas and Colorado. In 2025, sales and service of Thermo King products comprised approximately 4% of the Company’s revenues.
Various legislative and regulatory initiatives have been proposed that, if passed, could limit or discourage future production of oil and gas. Further, legislation may be enacted by Congress that would authorize the EPA to impose additional regulations on hydraulic fracturing.
In the past, various legislative and regulatory initiatives have been proposed that, if passed, could limit or discourage future production of oil and gas. Further, legislation may be enacted by Congress that would authorize the EPA to impose additional regulations on hydraulic fracturing.
Future environmental regulatory developments related to climate change in the United States that restrict emissions of greenhouse gases could result in financial impacts on the Company’s operations that cannot be predicted with certainty at this time.
Future environmental regulatory developments related to climate change in the United States relating to emissions of greenhouse gases could result in financial impacts on the Company’s operations that cannot be predicted with certainty at this time.
Three KDS customers accounted for approximately 10% of the Company’s 2024 revenue, 12% of 2023 revenue, 26 and 9% of 2022 revenue. Although the Company considers its relationships with these companies to be strong, the loss of any of these customers, or their inability to meet financial obligations, could have an adverse effect on the Company.
Three KDS customers accounted for approximately 9% of the Company’s 2025 revenue, 10% of 2024 revenue, and 12% of 2023 revenue. Although the Company considers its relationships with these companies to be strong, the loss of any of these customers, or their inability to meet financial obligations, could have an adverse effect on the Company.
The Company estimates there are approximately 260 tank barges operating in the 195,000 barrels or less coastal industry fleet, the sector of the market in which the Company operates, and approximately 20 of those are over 25 years old. The Company is aware of no ATBs placed in service in 2022, 2023 or 2024 and no ATBs currently under construction.
The Company estimates there are approximately 260 tank barges operating in the 195,000 barrels or less coastal industry fleet, the sector of the market in which the Company operates, and approximately 22 of those are over 25 years old. The Company is aware of no ATBs placed in service in 2023, 2024 or 2025 and no ATBs currently under construction.
The Company also utilizes an internal development program to train Maritime Academy graduates for vessel leadership positions. KMT has approximately 3,119 employees, of which approximately 2,380 are vessel crew members. None of the segment’s inland operations are subject to collective bargaining agreements.
The Company also utilizes an internal development program to train Maritime Academy graduates for vessel leadership positions. KMT has approximately 3,054 employees, of which approximately 2,337 are vessel crew members. None of the segment’s inland operations are subject to collective bargaining agreements.
Sales and service of EMD products account for approximately 4% of the Company’s revenues for 2024. Although the Company considers its relationship with EMD to be strong, the loss of the EMD distributorship and service rights, or a disruption of the supply of EMD parts, could have a negative impact on the Company’s ability to service its customers.
Sales and service of EMD products account for approximately 3% of the Company’s revenues for 2025. Although the Company considers its relationship with EMD to be strong, the loss of the EMD distributorship and service rights, or a disruption of the supply of EMD parts, could have a negative impact on the Company’s ability to service its customers.
The segment’s coastal operations include approximately 413 vessel employees, of whom approximately 317 are subject to collective bargaining agreements in certain geographic areas. Any work stoppages or labor disputes could adversely affect coastal operations in those areas. KMT is subject to the Jones Act.
The segment’s coastal operations include approximately 436 vessel employees, of whom approximately 339 are subject to collective bargaining agreements in certain geographic areas. Any work stoppages or labor disputes could adversely affect coastal operations in those areas. KMT is subject to the Jones Act.
Higher fuel prices could increase operating expenses and fuel price volatility could reduce profitability. The cost of fuel during 2024 was approximately 9% of marine transportation revenue. The Company’s marine transportation term contracts typically include fuel escalation clauses, or the customer pays for the fuel.
Higher fuel prices could increase operating expenses and fuel price volatility could reduce profitability. The cost of fuel during 2025 was approximately 8% of marine transportation revenue. The Company’s marine transportation term contracts typically include fuel escalation clauses, or the customer pays for the fuel.
For 2024, 51% of KMT’s revenues were from the movement of petrochemicals, including the movement of raw materials and feedstocks from one refinery or petrochemical plant to another, as well as the movement of more finished products to end users and terminals for export.
For 2025, 48% of KMT’s revenues were from the movement of petrochemicals, including the movement of raw materials and feedstocks from one refinery or petrochemical plant to another, as well as the movement of more finished products to end users and terminals for export.
United and S&S are also the distributors for parts, service and warranty on Daimler truck engines and related equipment in multiple states. Sales and service of MTU, Allison, and Daimler products accounted for approximately 10% of the Company’s revenues during 2024.
United and S&S are also the distributors for parts, service and warranty on Daimler truck engines and related equipment in multiple states. Sales and service of MTU, Allison, and Daimler products accounted for approximately 12% of the Company’s revenues during 2025.
Although steel prices have remained stable in 2024, they still remain near historical highs.
Although steel prices have remained stable in 2024 and 2025, they still remain near historical highs.
In addition, the Company could be criticized for the timing, scope or nature of these initiatives, goals, or aspirations, or for any revisions to them. As mandatory and voluntary disclosures about ESG matters increase, the Company could be penalized or criticized for the accuracy, adequacy, or completeness of such disclosures.
In addition, the Company could be criticized for the timing, scope or nature of these initiatives, goals, or aspirations, or for any revisions to them. As mandatory and voluntary disclosures about sustainability matters continues to evolve and increase, the Company may be penalized or criticized for the accuracy, adequacy, or completeness of such disclosures.
Loss of a large customer could adversely affect the Company. Five KMT customers accounted for approximately 18% of the Company’s 2024 revenue, 16% of 2023 revenue, and 17% of 2022 revenue. The Company has contracts with these customers expiring in 2025 through 2031.
Loss of a large customer or changes in customer demand could adversely affect the Company. Five KMT customers accounted for approximately 17% of the Company’s 2025 revenue, 18% of 2024 revenue, and 16% of 2023 revenue. The Company has contracts with these customers expiring in 2026 through 2031.
As of the end of 2023, the Company estimates that approximately 190 to 220 inland tank barges were transporting crude and natural gas condensate. As of the end of 2024, the Company estimates that approximately 170 to 180 inland tank barges were transporting crude and natural gas condensate.
As of the end of 2024, the Company estimates that approximately 170 to 180 inland tank barges were transporting crude and natural gas condensate. As of the end of 2025, the Company estimates that approximately 170 to 180 inland tank barges were transporting crude and natural gas condensate.
The Company estimates that approximately 45 to 50 new tank barges have currently been ordered for delivery in 2025 and expects a number of older tank barges will be retired, dependent on 2025 market conditions.
The Company estimates that approximately 60 to 70 new tank barges have currently been ordered for delivery in 2026 and expects a number of older tank barges will be retired, dependent on 2026 market conditions.
By the end of 2019, the Company estimates that number of tank barges had declined to 335 inland tank barges and approximately five coastal tank barges transporting crude and natural gas condensate. As of the end of 2022, the Company estimates that approximately 170 to 200 inland tank barges were transporting crude and natural gas condensate.
By the end of 2019, the Company estimates that number of tank barges had declined to 335 inland tank barges and approximately five coastal tank barges transporting crude and natural gas condensate. As of the end of 2023, the Company estimates that approximately 190 to 220 inland tank barges were transporting crude and natural gas condensate.
In addition to its relationships with MTU, Allison, and Daimler, the Company also has relationships with many other distributors and parts suppliers and the loss of a distributorship and service rights, or a disruption of the supply of parts from any of these other distributors or part suppliers could also have a negative impact on the Company’s ability to service its customers.
In addition to its relationships with MTU, Allison, and Daimler, the Company also has relationships with many other distributors and parts suppliers and the loss of a distributorship and service rights, or a disruption of the supply of parts from any of these other distributors or part suppliers could also have a negative impact on the Company’s ability to service its customers. 25 General Corporate Risk Factors The Company is subject to adverse weather conditions in KMT and KDS.
The ESG-related initiatives, 27 goals and/or aspirations could be difficult to achieve and costly to implement, and the Company may be unable to economically develop or deploy technologies to achieve its goals or aspirations, if at all.
The Company’s sustainability-related initiatives, goals and/or aspirations may be difficult to achieve and costly to implement, and the Company may be unable to economically develop or deploy technologies to achieve such initiatives, goals or aspirations, if at all.
For 2023, the Company estimates that industry-wide 27 new tank barges were placed in service and 48 tank barges were retired. For 2024, the Company estimates that industry-wide 34 new tank barges were placed in service and 38 tank barges were retired.
For 2024, the Company estimates that industry-wide 34 new tank barges were placed in service and 38 tank barges were retired. For 2025, the Company estimates that industry-wide 66 new tank barges were placed in service and 65 tank barges were retired.
The Company’s businesses rely on a variety of intellectual property rights for its product and services. The Company’s intellectual property could be adversely affected by successful intellectual property challenges or infringement proceedings against it which could materially and adversely affect its competitive position.
The Company’s intellectual property could be adversely affected by successful intellectual property challenges or infringement proceedings against it which could materially and adversely affect its competitive position.
At the present time, there are an estimated 4,003 inland tank barges in the United States, of which the Company operates 1,094, or 27%. For 2022, the Company estimates that industry-wide 22 new tank barges were placed in service and retirements, net of reactivations, were flat.
At the present time, there are an estimated 4,004 inland tank barges in the United States, of which the Company operates 1,105, or 28%. For 2023, the Company estimates that industry-wide 27 new tank barges were placed in service and 48 tank barges were retired.
For more information regarding the mitigation of cybersecurity risk, see Item 1C-Cybersecurity. Limitations on the Company’s ability to obtain, maintain, protect, or enforce its proprietary information and any successful intellectual property challenges or infringement proceedings, including its trade secrets could affect the Company's competitive position.
Limitations on the Company’s ability to obtain, maintain, protect, or enforce its proprietary information and any successful intellectual property challenges or infringement proceedings, including its trade secrets could affect the Company's competitive position. The Company’s businesses rely on a variety of intellectual property rights for its product and services.
Continuing impacts resulting from actual or threatened health epidemics, and pandemics or other major health crises could materially and adversely affect the Company’s business, financial condition and results of operations. The Company’s business could be impacted adversely by the effects of public health epidemics, pandemics or other major heath crises (which are referred to collectively as public health crises).
The Company’s business could be impacted adversely by the effects of public health epidemics, pandemics or other major heath crises (which are referred to collectively as public health crises).
Supply chain disruptions can adversely impact the Company’s operations, particularly where supply chain delays adversely impact availability of materials, components, and equipment for construction, maintenance or repair, including with regard to KMT vessels or in KDS manufacturing. In KMT, Company also transports customer cargoes that are imported into the U.S. or which are destined for export from the U.S.
Supply chain disruptions can adversely impact the Company’s operations, particularly where supply chain delays adversely impact availability of materials, 28 components, and equipment necessary for construction, maintenance or repair, including with regard to KMT vessels or in KDS manufacturing.
The degree to which any future disease outbreaks or public health threats may impact the Company’s revenues, results of operations and financial condition is uncertain and will depend on future developments.
The degree to which any future disease outbreaks or public health threats may impact the Company’s revenues, results of operations and financial condition is uncertain and will depend on future developments. The impact of epidemics, pandemics or other major health crises may also exacerbate other risks discussed above, any of which could have a material effect on the Company.
The Company’s selection of disclosure frameworks that seek to align with various reporting standards may change from time to time and may result in a lack of comparative data from period to period.
Similarly, the SEC’s climate-related disclosure rules are subject to pending litigation, have been stayed and the SEC has withdrawn its defense of those rules. The Company’s selection of disclosure frameworks that seek to align with various reporting standards may change from time to time and may result in a lack of comparative data from period to period.
Many of the Company’s facilities are located near coastal areas or waterways where rising sea levels or flooding could disrupt the Company’s operations or adversely impact its facilities.
Extreme weather conditions may increase the Company’s costs or cause damage to its facilities, and any damage resulting from extreme weather may not be fully insured. Many of the Company’s facilities are located near coastal areas or waterways where rising sea levels or flooding could disrupt the Company’s operations or adversely impact its facilities.
In connection with recovery from Hurricane Fiona, in September and October 2022, two limited waivers of the Jones Act were granted to allow diesel and liquefied natural gas deliveries to Puerto Rico. Waivers of the Jones Act, whether in response to natural disasters or otherwise, could result in increased competition from foreign tank vessel operators, which could negatively impact KMT.
Waivers of the Jones Act, whether in response to natural disasters or otherwise, could result in increased competition from foreign tank vessel operators, which could negatively impact KMT.
Although to date the Company is unaware of any material data breach or system disruption, including a cyber-attack, the Company cannot provide any assurances that such events and impacts will not be material in the future. The Company’s efforts to deter, identify, mitigate and/or eliminate future breaches may require significant additional effort and expense and may not be successful.
Although to date no data breach or system disruption, including a cyber-attack, has resulted in a material cybersecurity incident for the Company, the Company cannot provide any assurances that such events and impacts will not be material in the future.
In 2023, the State of California enacted climate related legislation and the SEC was expected to issue its own climate disclosure rules in 2024, both of which will or could impose additional reporting requirements on the Company resulting in additional compliance cost and expense.
In 2023, the State of California enacted climate related legislation, and in 2024 the SEC adopted climate disclosure rules, each of which are expected to impose additional reporting requirements on the Company resulting in additional compliance cost and expense. The California legislation is subject to ongoing litigation and regulatory rulemaking and enforcement of certain provisions have been stayed.
To the extent possible, the Company seeks to include contractual language to address recovery of increased costs related to tariffs in the KDS segment. Any changes in trade policies in the U.S. and corresponding actions by other countries could adversely impact Company’s financial performance.
To the extent possible, the Company seeks to include contractual language to address recovery of increased costs related to tariffs in the KDS segment although there can be no assurance that such provisions will fully offset the impact of changes in trade policies.
Removed
In addition, five new United States petrochemical projects, including expansion of existing plants, were completed during 2023, with an additional four projects completed during 2024. These projects should provide additional movements for KMT.
Added
In connection with recovery from Hurricane Fiona, in September and October 2022, two limited waivers of the Jones Act were granted to allow diesel and liquefied natural gas deliveries to Puerto Rico. An additional limited waiver was granted in connection with another shutdown of the Colonial Pipeline in April 2025.
Removed
General Corporate Risk Factors The Company is subject to adverse weather conditions in KMT and KDS. KMT is subject to weather condition volatility. Physical impacts of climate change could have a material adverse effect on the Company's costs and operations.
Added
Recent growth in prime power (“behind the meter”) and data center demand has contributed to increased revenue in the power generation market in the KDS segment, and changes in customer demand in this area or other areas of business could have an adverse effect on the Company.
Removed
The impact of epidemics, pandemics or other major health crises may also exacerbate other risks discussed above, any of which could have a material effect on the Company. 28 Item 1B. Unresolved S taff Comments Not applicable.
Added
The Company’s efforts to deter, identify, mitigate and/or eliminate future breaches may require significant additional effort and expense and may not be successful. For more information regarding the mitigation of cybersecurity risk, see Item 1C-Cybersecurity.
Added
In KMT, Company also transports customer cargoes that are imported into the U.S. or which are destined for export from the U.S.
Added
Any changes in trade policies in the U.S. and corresponding actions by other countries could adversely impact Company’s financial performance. Continuing impacts resulting from actual or threatened health epidemics, and pandemics or other major health crises could materially and adversely affect the Company’s business, financial condition and results of operations.
Added
Item 1B. Unresolved S taff Comments Not applicable.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

11 edited+1 added−1 removed2 unchanged
Biggest changeThe Company’s approach to cybersecurity risk management includes the following key elements: • Continuous monitoring – The Company actively searches for cybersecurity threats, including those associated with its use of third-party vendors, through the use of data analytics and network vulnerability monitoring systems and threat intelligence. • Third party risk assessments – From time to time, the Company engages third party consultants or other advisors to assist in assessing points of vulnerability in its information security systems. • Internal threats – The Company maintains a program designed to monitor and address risk from within the Company. • Vendor engagement – The Company assesses the risk of vendors who are critical digital partners in order to support the resiliency of the supply chain and seeks to include risk appropriate terms and conditions in its vendor contracts. • Training and Awareness – The Company has various information technology policies, including an Information Security Awareness Training Policy, that relate to cybersecurity.
Biggest changeThe Company’s approach to cybersecurity risk management includes, among other things, the following key elements: • Continuous monitoring – The Company monitors for cybersecurity threats, including those risks associated with its use of third-party vendors using a combination of internal processes and threat intelligence. 29 • Third party risk assessments – The Company periodically engages third party consultants or other advisors to assist in assessing vulnerabilities in its information security environment. • Internal threats – The Company maintains programs designed to monitor and address cybersecurity risk arising from within the Company. • Vendor risk management – The Company assesses cybersecurity risks associated with vendors who are critical digital partners in order and seeks to include risk appropriate terms and conditions in its vendor contracts. • Training and Awareness – The Company has various information technology policies, that relate to cybersecurity.
Item 1C. Cybersecurity The Company is committed to maintaining robust governance and oversight of cybersecurity risks and to implementing processes, controls and technologies designed to help assess, identify, and manage material risks from cybersecurity threats. The Company’s Board of Directors has ultimate oversight of cybersecurity risks, which it manages as part of the Company’s enterprise risk management program.
Item 1C. Cybersecurity The Company is committed to maintaining appropriate governance and oversight of cybersecurity risks and to implementing processes, controls and technologies designed to help assess, identify, and manage material risks from cybersecurity threats. The Company’s Board of Directors has ultimate oversight of cybersecurity risks, which it manages as part of the Company’s enterprise risk management program.
The Audit Committee assists the Board in reviewing the Company’s information security programs, including review of cybersecurity processes, procedures and safeguards. To more effectively prevent, detect and respond to information security threats, the Company maintains a cyber risk management program, which is aligned with the National Institute of Standards and Technology ( “NIST” ) Cybersecurity Framework.
The Audit Committee assists the Board in its oversight by reviewing the Company’s information security programs, including review of cybersecurity processes, procedures and safeguards. To more effectively prevent, detect and respond to information security threats, the Company maintains a cyber risk management program, which is aligned with the National Institute of Standards and Technology ( “NIST” ) Cybersecurity Framework.
For more information regarding the risks the Company faces from cybersecurity threats, please see Item 1A-Risk Factors. 29
For more information regarding the risks the Company faces from cybersecurity threats, please see Item 1A-Risk Factors. 30
The Company also requires employees to sign confidentiality agreements, where appropriate to their role. The Company has also recently adopted an Artificial Intelligence Use Policy to mitigate cybersecurity and other risks associated with use of artificial intelligence technology. The Company continues to invest in its cybersecurity systems and to enhance its internal controls and processes.
The Company also requires employees to sign confidentiality agreements, where appropriate to their role. The Company has also adopted an Artificial Intelligence Use Policy to mitigate cybersecurity and other risks associated with use of artificial intelligence technology. The Company continues to enhance its cybersecurity controls and processes.
While the Company has not, as of the date of this Form 10-K, identified a cybersecurity threat or incident that resulted in a material adverse impact to its business, results of operations or financial condition, there can be no guarantee that the Company will not experience such an incident in the future.
While the Company has not, as of the date of this Form 10-K, identified a cybersecurity threat or incident that resulted in a material adverse impact to its business, results of operations or financial condition, there can be no assurance that the Company will not experience a cybersecurity incident in the future or that its response to any such incident would be sufficient to prevent material adverse effects.
The Cyber Risk Management program is supervised by the Company’s executive officer, the Vice President and Chief Information Officer, who is responsible for leading company-wide cybersecurity strategy, policy, standards, architecture and processes . The Vice President and Chief Information Officer has extensive experience assessing and managing cybersecurity programs and risks and has served in this position since 2019.
The Cyber Risk Management program is overseen by the Company’s executive officer, the Vice President and Chief Information Officer, who is responsible for leading the Company’s cybersecurity strategy, policies, standards, and processes . The Vice President and Chief Information Officer has relevant experience assessing and managing cybersecurity programs and risks and has served in this position since 2019.
The Company annually engages third parties such as assessors, consultants and auditors (as well as its internal audit department) to audit the Company’s information security programs, whose findings are reported to the Audit Committee. The Company also actively engage with key vendors, industry participants, and the U.S.
The Company annually engages third parties such as assessors, consultants and auditors (as well as its internal audit department) to evaluate the Company’s information security programs, whose findings are reported to the Audit Committee. The Company also engages with key vendors, industry participants, and the U.S. Coast Guard as part of its efforts, which are reported to the Audit Committee.
The Audit Committee receives regular reports from the Vice President and Chief Information Officer on, among other things, the Company’s cyber risks and threats , the status of projects to strengthen the Company’s information security systems, assessments of the Company’s security program and the emerging threat landscape.
The Audit Committee receives regular reports from the Vice President and Chief Information Officer on, among other things, the Company’s cybersecurity risks and threats , assessments of the Company’s cybersecurity program and developments in the threat landscape.
The team includes the Senior Director of IT Operations & Security, who is a Certified Information Security Manager reporting directly to the Vice President and Chief Information Officer.
The Vice President and Chief Information Officer is supported by the Director of IT Operations & Security, who reports directly to the Vice President and Chief Information Officer.
Additionally, the Vice President and Chief Information Officer chairs the Company’s Cybersecurity Risk Oversight working group, which drives awareness, ownership and alignment across broad governance and risk stakeholder groups for effective cybersecurity risk management and reporting. Upon the occurrence of a cybersecurity incident, a documented process is followed to escalate notifications to the Company’s CEO and Board, as appropriate.
Additionally, the Vice President and Chief Information Officer chairs the Company’s Cybersecurity Governance Committee, which is intended to promote coordination, awareness, accountability and alignment across broad governance and risk stakeholder groups for effective cybersecurity risk management and reporting.
Removed
Coast Guard as part of its efforts, which are reported to the Audit Committee.
Added
The Company maintains a documented incident response process, pursuant to which cybersecurity incidents are escalated to the Company’s senior management, including the CEO and Board, as appropriate. As part of its incident response plan, the Company has preidentified consultants and advisors to assist with any potential response.

Item 2. Properties

Properties — owned and leased real estate

1 edited+0 added−0 removed1 unchanged
Biggest changeThe Company’s significant operating shoreside facilities include the following locations: Location Building(s) Size (Approximate Square Feet) Owned or Leased Activity KMT Baton Rouge, Louisiana 20,300 Leased Operations and fleeting Channelview, Texas 108,300 Owned Operations, fleeting, shipyard, training and cleaning Corpus Christi, Texas 3,600 Leased Operations Freeport, Texas 6,500 Leased Fueling and fleeting Houston, Texas 73,000 Owned/Leased KMT, KDS and Corporate Headquarters Lake Charles, Louisiana 500 Leased Fleeting Miami, Florida 8,500 Leased Operations and dockage Port Arthur, Texas 1,000 Leased Fleeting Seattle, Washington 10,200 Leased Operations and inventory Staten Island, New York 7,800 Leased Operations, inventory and dockage Westwego, Louisiana 15,300 Owned Operations KDS Albany, New York 40,000 Leased Service and repairs Austin, Texas 1,500 Leased Service and repairs Baton Rouge, Louisiana 23,500 Leased Service and repairs Belle Chasse, Louisiana 34,700 Owned Service and repairs Chesapeake, Virginia 30,000 Leased Service and repairs Commerce City, Colorado 151,600 Owned Service and repairs Corpus Christi, Texas 11,200 Owned Service and repairs Dallas, Texas 211,100 Owned Service and repairs El Paso, Texas 9,000 Leased Service and repairs Fort Lauderdale, Florida 40,400 Leased Service and repairs Fort Myers, Florida 9,900 Owned Service and repairs Fort Pierce, Florida 10,300 Owned Service and repairs Fort Worth, Texas 22,600 Owned Service and repairs Houma, Louisiana 109,700 Owned Service and repairs Houston, Texas 501,000 Owned/Leased Manufacturing, service and repairs Jacksonville, Florida 44,800 Leased Service and repairs Laredo, Texas 7,000 Leased Service and repairs Little Rock, Arkansas 21,500 Leased Service and repairs Lodi, New Jersey 57,300 Leased Service and repairs Lubbock, Texas 27,500 Owned Service and repairs Marlborough, Massachusetts 45,700 Leased Service and repairs Miami, Florida 54,400 Leased Service and repairs Middletown, Connecticut 38,800 Leased Service and repairs Mobile, Alabama 27,000 Owned Service and repairs Mount Pleasant, Texas 3,100 Leased Service and repairs New Iberia, Louisiana 33,000 Owned Service and repairs New Orleans, Louisiana 29,200 Leased Service and repairs Ocala, Florida 15,200 Owned Service and repairs Odessa, Texas 49,500 Owned Service and repairs Oklahoma City, Oklahoma 446,400 Owned/Leased Manufacturing, service and repairs Orlando, Florida 44,600 Leased Service and repairs Paducah, Kentucky 73,700 Owned/Leased Service and repairs Panama City, Florida 29,500 Owned Service and repairs Pharr, Texas 59,300 Leased Service and repairs Piscataway, New Jersey 39,900 Leased Service and repairs Rocky Mount, North Carolina 50,000 Leased Service and repairs San Antonio, Texas 42,100 Owned Service and repairs Seattle, Washington 19,500 Leased Service and repairs Shreveport, Louisiana 50,000 Owned Service and repairs Tampa, Florida 50,900 Owned Service and repairs Temple, Texas 18,800 Leased Service and repairs Thorofare, New Jersey 24,200 Leased Service and repairs Tulsa, Oklahoma 37,600 Leased Service and repairs West Palm Beach, Florida 7,000 Leased Service and repairs Wichita Falls, Texas 11,500 Leased Service and repairs 30
Biggest changeThe Company’s significant operating shoreside facilities include the following locations: Location Building(s) Size (Approximate Square Feet) Owned or Leased Activity KMT Baton Rouge, Louisiana 20,700 Leased Operations and fleeting Channelview, Texas 107,700 Owned Operations, fleeting, shipyard, training and cleaning Corpus Christi, Texas 3,600 Leased Operations Freeport, Texas 6,500 Leased Fueling and fleeting Houston, Texas 73,000 Owned/Leased KMT, KDS and Corporate Headquarters Lake Charles, Louisiana 500 Leased Fleeting Miami, Florida 8,500 Leased Operations and dockage Port Arthur, Texas 1,000 Leased Fleeting Seattle, Washington 10,200 Leased Operations and inventory Staten Island, New York 7,800 Leased Operations, inventory and dockage Westwego, Louisiana 15,300 Owned Operations KDS Albany, New York 40,000 Leased Service and repairs Austin, Texas 1,500 Leased Service and repairs Baton Rouge, Louisiana 23,500 Leased Service and repairs Belle Chasse, Louisiana 34,700 Owned Service and repairs Chesapeake, Virginia 30,000 Leased Service and repairs Commerce City, Colorado 151,600 Owned Service and repairs Corpus Christi, Texas 44,100 Owned Service and repairs Dallas, Texas 211,100 Owned Service and repairs El Paso, Texas 9,000 Leased Service and repairs Fort Lauderdale, Florida 40,400 Leased Service and repairs Fort Myers, Florida 9,900 Owned Service and repairs Fort Pierce, Florida 10,300 Owned Service and repairs Fort Worth, Texas 22,600 Owned Service and repairs Houma, Louisiana 119,800 Owned Service and repairs Houston, Texas 501,000 Owned/Leased Manufacturing, service and repairs Jacksonville, Florida 44,800 Leased Service and repairs Laredo, Texas 23,500 Leased Service and repairs Little Rock, Arkansas 33,600 Leased Service and repairs Lodi, New Jersey 57,300 Leased Service and repairs Lubbock, Texas 27,500 Owned Service and repairs Marlborough, Massachusetts 45,700 Leased Service and repairs Miami, Florida 54,400 Leased Service and repairs Middletown, Connecticut 38,800 Leased Service and repairs Mobile, Alabama 27,000 Owned Service and repairs Mount Pleasant, Texas 3,100 Leased Service and repairs New Iberia, Louisiana 33,000 Owned Service and repairs New Orleans, Louisiana 29,200 Leased Service and repairs Ocala, Florida 15,200 Owned Service and repairs Odessa, Texas 49,500 Owned Service and repairs Oklahoma City, Oklahoma 446,400 Owned/Leased Manufacturing, service and repairs Orlando, Florida 44,600 Leased Service and repairs Paducah, Kentucky 73,700 Owned/Leased Service and repairs Panama City, Florida 29,500 Owned Service and repairs Pharr, Texas 59,300 Leased Service and repairs Piscataway, New Jersey 39,900 Leased Service and repairs Rocky Mount, North Carolina 50,000 Leased Service and repairs San Antonio, Texas 42,100 Owned Service and repairs Seattle, Washington 19,500 Leased Service and repairs Shreveport, Louisiana 50,000 Owned Service and repairs Tampa, Florida 50,900 Owned Service and repairs Temple, Texas 18,800 Leased Service and repairs Thorofare, New Jersey 24,200 Leased Service and repairs Tulsa, Oklahoma 37,600 Leased Service and repairs West Palm Beach, Florida 7,000 Leased Service and repairs Wichita Falls, Texas 11,500 Leased Service and repairs 31

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

5 edited+0 added−0 removed2 unchanged
Biggest changePeriod Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Maximum Number of Shares that May Yet be Purchased Under the Plans October 1 — October 31, 2024 25,385 $ 120.32 — — November 1 — November 30, 2024 112,700 $ 114.56 — — December 1 — December 31, 2024 148,612 $ 116.65 — — Total 286,697 $ 116.16 — — Purchases of the Company's common stock during the 2024 fourth quarter were made in the open market pursuant to a discretionary authorization by the Board of Directors.
Biggest changePeriod Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans Maximum Number of Shares that May Yet be Purchased Under the Plans October 1 — October 31, 2025 428,955 $ 84.13 — — November 1 — November 30, 2025 319,437 $ 106.95 — — December 1 — December 31, 2025 282,337 $ 110.89 — — Total 1,030,729 $ 98.53 — — Purchases of the Company's common stock during the 2025 fourth quarter were made in the open market pursuant to a discretionary authorization by the Board of Directors.
Information for this item relating to equity compensation plans is incorporated by reference to the definitive proxy statement to be filed by the Company with the Commission pursuant to Regulation 14A within 120 days of the close of the fiscal year ended December 31, 2024. See also Note 8, Stock Award Plans to the Company’s financial statements for additional information.
Information for this item relating to equity compensation plans is incorporated by reference to the definitive proxy statement to be filed by the Company with the Commission pursuant to Regulation 14A within 120 days of the close of the fiscal year ended December 31, 2025. See also Note 8, Stock Award Plans to the Company’s financial statements for additional information.
For more information about stock purchases in the 2024 fourth quarter and other information responsive to this Item, see “Treasury Stock Purchases” in Financial Condition, Capital Resources and Liquidity included in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
For more information about stock purchases in the 2025 fourth quarter and other information responsive to this Item, see “Treasury Stock Purchases” in Financial Condition, Capital Resources and Liquidity included in Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The Company’s credit agreements contain covenants restricting the payment of dividends by the Company at any time when there is a default under the agreements. The following table is a summary of purchases of the Company's common stock during the 2024 fourth quarter.
The Company’s credit agreements contain covenants restricting the payment of dividends by the Company at any time when there is a default under the agreements. The following table is a summary of purchases of the Company's common stock during the 2025 fourth quarter.
As of February 17, 2025, the Company had 57,126,000 outstanding shares held by approximately 320 stockholders of record; however, the Company believes the number of beneficial owners of common stock exceeds this number.
As of February 13, 2026, the Company had 53,646,000 outstanding shares held by approximately 295 stockholders of record; however, the Company believes the number of beneficial owners of common stock exceeds this number.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

110 edited+27 added−18 removed64 unchanged
Biggest changeResults of Operations The following table sets forth the Company’s marine transportation and distribution and services revenues and the percentage of each to total revenues for the comparable periods (dollars in thousands): Year Ended December 31, 2024 % 2023 % 2022 % Marine transportation $ 1,913,050 59 % $ 1,721,937 56 % $ 1,616,967 58 % Distribution and services 1,352,826 41 1,369,703 44 1,167,787 42 $ 3,265,876 100 % $ 3,091,640 100 % $ 2,784,754 100 % 37 Marine Transportation The following table sets forth a year over year comparison of KMT’s revenues, costs and expenses, operating income and operating margins (dollars in thousands): Year Ended December 31, 2024 2023 % Change 2022 % Change Marine transportation revenues $ 1,913,050 $ 1,721,937 11 % $ 1,616,967 6 % Costs and expenses: Costs of sales and operating expenses 1,188,794 1,136,526 5 1,146,657 (1 ) Selling, general and administrative 137,057 134,641 2 128,340 5 Taxes, other than on income 26,476 27,602 (4 ) 28,235 (2 ) Depreciation and amortization 197,347 184,225 7 177,551 4 1,549,674 1,482,994 4 1,480,783 — Operating income $ 363,376 $ 238,943 52 % $ 136,184 75 % Operating margins 19.0 % 13.9 % 8.4 % The following table shows the marine transportation markets serviced by the Company, the marine transportation revenue distribution, products moved and the drivers of the demand for the products the Company transports: Markets Serviced 2024 Revenue Distribution Products Moved Drivers Petrochemicals 51% Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Naphtha, Caustic Soda, Butadiene, Propylene Consumer non-durables — 70% Consumer durables — 30% Black Oil 25% Residual Fuel Oil, Coker Feedstock, Vacuum Gas Oil, Asphalt, Carbon Black Feedstock, Crude Oil, Natural Gas Condensate, Ship Bunkers Fuel for Power Plants and Ships, Feedstock for Refineries, Road Construction Refined Petroleum Products 21% Gasoline, No. 2 Oil, Jet Fuel, Heating Oil, Diesel Fuel, Ethanol Vehicle Usage, Air Travel, Weather Conditions, Refinery Utilization Agricultural Chemicals 3% Anhydrous Ammonia, Nitrogen-Based Liquid Fertilizer, Industrial Ammonia Corn, Cotton and Wheat Production, Chemical Feedstock Usage 2024 Compared to 2023 Marine Transportation Revenues KMT’s revenues for 2024 increased 11% compared to 2023 and operating income increased 52%, compared to 2023.
Biggest changeFinancing of these purchases and acquisitions was through borrowings under the Company’s Revolving Credit Facility and cash provided by operating activities. 38 Results of Operations The following table sets forth the Company’s marine transportation and distribution and services revenues and the percentage of each to total revenues for the comparable periods (dollars in thousands): Year Ended December 31, 2025 % 2024 % 2023 % Marine transportation $ 1,935,305 58 % $ 1,913,050 59 % $ 1,721,937 56 % Distribution and services 1,428,745 42 1,352,826 41 1,369,703 44 $ 3,364,050 100 % $ 3,265,876 100 % $ 3,091,640 100 % Marine Transportation The following table sets forth a year over year comparison of KMT’s revenues, costs and expenses, operating income and operating margins (dollars in thousands): Year Ended December 31, 2025 2024 % Change 2023 % Change Marine transportation revenues $ 1,935,305 $ 1,913,050 1 % $ 1,721,937 11 % Costs and expenses: Costs of sales and operating expenses 1,175,628 1,188,794 (1 ) 1,136,526 5 Selling, general and administrative 144,563 137,057 5 134,641 2 Taxes, other than on income 26,749 26,476 1 27,602 (4 ) Depreciation and amortization 213,907 197,347 8 184,225 7 1,560,847 1,549,674 1 1,482,994 4 Operating income $ 374,458 $ 363,376 3 % $ 238,943 52 % Operating margins 19.3 % 19.0 % 13.9 % The following table shows the marine transportation markets serviced by the Company, the marine transportation revenue distribution, products moved and the drivers of the demand for the products the Company transports: Markets Serviced 2025 Revenue Distribution Products Moved Drivers Petrochemicals 48% Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Naphtha, Caustic Soda, Butadiene, Propylene Consumer non-durables — 70% Consumer durables — 30% Black Oil 26% Residual Fuel Oil, Coker Feedstock, Vacuum Gas Oil, Asphalt, Carbon Black Feedstock, Crude Oil, Natural Gas Condensate, Ship Bunkers Fuel for Power Plants and Ships, Feedstock for Refineries, Road Construction Refined Petroleum Products 23% Gasoline, No. 2 Oil, Jet Fuel, Heating Oil, Diesel Fuel, Ethanol Vehicle Usage, Air Travel, Weather Conditions, Refinery Utilization Agricultural Chemicals 3% Anhydrous Ammonia, Nitrogen-Based Liquid Fertilizer, Industrial Ammonia Corn, Cotton and Wheat Production, Chemical Feedstock Usage 2025 Compared to 2024 Marine Transportation Revenues KMT’s revenues for 2025 increased 1% compared to 2024 and operating income increased 3%, compared to 2024.
In addition to financial covenants, the 2027 Credit Agreement contains covenants that, subject to exceptions, restrict debt incurrence, mergers and acquisitions, sales of assets, dividends and investments, liquidations and dissolutions, capital leases, transactions with affiliates, and changes in lines of business.
In addition to financial 45 covenants, the 2027 Credit Agreement contains covenants that, subject to exceptions, restrict debt incurrence, mergers and acquisitions, sales of assets, dividends and investments, liquidations and dissolutions, capital leases, transactions with affiliates, and changes in lines of business.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 45 Liquidity and Capital Resources Funds generated from operations are available for acquisitions, capital expenditure projects, common stock purchases, repayments of borrowings and for other corporate and operating requirements.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Liquidity and Capital Resources Funds generated from operations are available for acquisitions, capital expenditure projects, common stock purchases, repayments of borrowings and for other corporate and operating requirements.
The Company’s spot contract rates generally reflect current fuel prices at the time the contract is signed but do not have escalators for fuel. The Company currently leases various facilities and equipment under cancelable and noncancelable operating leases.
The Company’s spot contract rates generally reflect current fuel prices at the time the contract is signed but do not have escalators for fuel. 47 The Company currently leases various facilities and equipment under cancelable and noncancelable operating leases.
Shares purchased may be used for reissuance upon the exercise of stock options or the granting of other forms of incentive compensation, in future acquisitions for stock or for other appropriate corporate purposes. For more information about stock purchases in the 2024 fourth quarter, see Item 5.
Shares purchased may be used for reissuance upon the exercise of stock options or the granting of other forms of incentive compensation, in future acquisitions for stock or for other appropriate corporate purposes. For more information about stock purchases in the 2025 fourth quarter, see Item 5.
Among the factors that could cause actual results to differ materially are: adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornados, COVID-19 or other pandemics, marine accidents, lock delays, fuel costs, interest rates, construction of new equipment, government and environmental laws and regulations, and the timing, magnitude and number of acquisitions made by the Company.
Among the factors that could cause actual results to differ materially are: adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornados, pandemics, marine accidents, lock delays or closures, fuel costs, interest rates, construction of new equipment by competitors, government and environmental laws and regulations, and the timing, magnitude and number of acquisitions made by the Company.
Based on the current market conditions and its view on the industry outlook, including decreased customer demand for conventional diesel fracturing equipment driven by an industry-wide shift to electric fracturing equipment, the Company determined that certain inventory had limited commercial opportunity, and the cost of these inventories exceeded its net realizable value.
Based on market conditions at that time and its view on the industry outlook, including decreased customer demand for conventional diesel fracturing equipment driven by an industry-wide shift to electric fracturing equipment, the Company determined that certain inventory had limited commercial opportunity, and the cost of these inventories exceeded its net realizable value.
The Company’s pension plan funding strategy is to make annual contributions in amounts equal to or greater than amounts necessary to meet minimum government funding requirements. No pension contributions to that plan were made in 2024, 2023 or 2022.
The Company’s pension plan funding strategy is to make annual contributions in amounts equal to or greater than amounts necessary to meet minimum government funding requirements. No pension contributions to that plan were made in 2025, 2024 or 2023.
Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 for management's discussion and analysis of financial condition and results of operations for 2023 compared to 2022.
Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 for management's discussion and analysis of financial condition and results of operations for 2024 compared to 2023.
The 2027 Term Loan is repayable in quarterly installments, with no repayments until March 31, 2027, in increasing percentages of the original principal amount of the loan, with the remaining unpaid balance of approximately $43.8 million payable upon maturity, assuming no prepayment. The 2027 Term Loan is prepayable, in whole or in part, without penalty.
The 2027 Term Loan is repayable in quarterly installments, with no repayments until March 31, 2027, in increasing percentages of the original principal amount of the loan, with the remaining unpaid balance of approximately $43.8 million payable upon maturity, assuming no further prepayments. The 2027 Term Loan is prepayable, in whole or in part, without penalty.
Retirement Plans The Company sponsors a defined benefit plan for its inland vessel personnel and shore based tankermen. The plan benefits are based on an employee’s years of service and compensation. The plan assets consist primarily of equity and fixed income securities.
Retirement Plans The Company sponsors a defined benefit plan (the “Kirby Pension Plan”) for its inland vessel personnel and shore based tankermen. The plan benefits are based on an employee’s years of service and compensation. The plan assets consist primarily of equity and fixed income securities.
On April 12, 2017, the Company amended its pension plan to cease all benefit accruals for periods after May 31, 2017 for certain participants.
On April 12, 2017, the Company amended the Kirby Pension Plan to cease all benefit accruals for periods after May 31, 2017 for certain participants.
On March 27, 2018, the Company amended the Higman Pension Plan to close it to all new entrants and cease all benefit accruals for periods after May 15, 2018 for all participants. The Company made contributions to the Higman Pension Plan of $1.7 million, $8.2 million and $0.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.
On March 27, 2018, the Company amended the Higman Pension Plan to close it to all new entrants and cease all benefit accruals for periods after May 15, 2018 for all participants. The Company made contributions to the Higman Pension Plan of $1.2 million, $1.7 million and $8.2 million for the years ended December 31, 2025, 2024 and 2023, respectively.
The Company’s debt outstanding as of December 31, 2024 and December 31, 2023 is detailed in Long-Term Financing below.
The Company’s debt outstanding as of December 31, 2025 and December 31, 2024 is detailed in Long-Term Financing below.
The Company sells and manufactures various products used in oil and gas and industrial applications, including those used in hydraulic fracturing and refrigeration systems that, as compared to conventional offerings, reduce emissions. These products made up approximately 18% of KDS’s revenues in 2024.
The Company sells and manufactures various products used in oil and gas and industrial applications, including those used in hydraulic fracturing and refrigeration systems that, as compared to conventional offerings, reduce emissions. These products made up approximately 20% of KDS’s revenues in 2025.
Approximately 65% of the inland marine transportation revenues were under term contracts and 35% were under spot contracts in 2024. Approximately 60% of the inland marine transportation revenues were under term contracts and 40% were under spot contracts in 2023. Term contracts provide the operations with a reasonably predictable revenue stream.
Approximately 65% of the inland marine transportation revenues were under term contracts and 35% were under spot contracts in 2024. Term contracts provide the operations with a reasonably predictable revenue stream.
Interest is capitalized on the construction of new ocean-going vessels. 36 The Company performs an impairment assessment whenever events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable.
Interest is capitalized on the construction of new vessels. 37 The Company performs an impairment assessment whenever events or changes in circumstances indicate that the carrying amount of long-lived assets may not be recoverable.
Term contracts provide the operations with a reasonably predictable revenue stream. Inland time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 61% of the inland revenues under term contracts during 2024 and 63% in 2023.
Term contracts provide the operations with a reasonably predictable revenue stream. Inland time charters, which help insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 59% of the inland revenues under term contracts during 2025 and 61% in 2024.
The Company also manufactures and remanufactures specialized equipment, including pressure pumping units, electric power generation equipment, and specialized electrical distribution and control equipment for oilfield service, railroad and other industrial customers.
The Company also manufactures and remanufactures specialized equipment, including pressure pumping units and electric fracturing systems, electric power generation equipment, and specialized electrical distribution and control equipment for data centers, oilfield service, railroad and other industrial customers.
For purposes of Management’s Discussion, all net earnings per share attributable to Kirby common stockholders are “diluted earnings per share.” The weighted average number of common shares outstanding applicable to diluted earnings per share for 2024, 2023, and 2022 were 58,355,000, 59,857,000, and 60,329,000, respectively.
For purposes of Management’s Discussion, all net earnings per share attributable to Kirby common stockholders are “diluted earnings per share.” The weighted average number of common shares outstanding applicable to diluted earnings per share for 2025, 2024, and 2023 were 56,045,000, 58,355,000, and 59,857,000, respectively.
For 2024, cash generated was used for capital expenditures of $342.7 million (including a decrease in accrued capital expenditures of $6.9 million), including $232.5 million associated with marine maintenance capital and improvements to existing inland and coastal marine equipment and facility improvements, as well as $110.2 million for growth spending in both segments.
For 2024, cash generated was used for capital expenditures of $342.7 million, including $232.5 million associated with marine maintenance capital and improvements to existing inland and coastal marine equipment and facility improvements, as well as $110.2 46 million for growth spending in both segments.
Financial Statements and Supplementary Data The response to this item is submitted as a separate section of this report (see Item 15, page 79 and pages 49 to 78 of this report). I tem 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable. 47
Financial Statements and Supplementary Data The response to this item is submitted as a separate section of this report (see Item 15, page 80 and pages 50 to 79 of this report). I tem 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure Not applicable. 48
Other Income Other income for 2024, 2023, and 2022 includes income of $10.2 million, $4.8 million and $13.9 million, respectively, for all components of net benefit costs except the service cost component related to the Company’s defined benefit plans.
Other Income Other income for 2025, 2024, and 2023 includes income of $18.2 million, $10.2 million and $4.8 million, respectively, for all components of net benefit costs except the service cost component related to the Company’s defined benefit plans.
Accounting Standards For a discussion of recently issued accounting standards, see Note 1, Summary of Significant Accounting Policies. 46 Ite m 7A. Quantitative and Qualitative Disclosures about Market Risk The Company is exposed to risk from changes in interest rates on certain of its outstanding debt.
The repair portion of KDS is based on prevailing current market rates. Accounting Standards For a discussion of recently issued accounting standards, see Note 1, Summary of Significant Accounting Policies. Ite m 7A. Quantitative and Qualitative Disclosures about Market Risk The Company is exposed to risk from changes in interest rates on certain of its outstanding debt.
As of December 31, 2024, the Company’s pension plan funding was 132% of the pension plans’ ABO, including the Higman pension plan. The Company expects to make additional pension contributions of $1.5 million in 2025. The Company has certain mechanisms designed to help mitigate the impacts of rising costs.
As of December 31, 2025, the Company’s pension plan funding was 142% of the pension plans’ ABO, including the Higman pension plan. The Company expects to make additional pension contributions of $1.2 million in 2026. The Company has certain mechanisms designed to help mitigate the impacts of rising costs.
Acquisitions On December 31, 2024, the Company purchased an inland tank barge from a leasing company for $2.7 million in cash. The Company had been leasing the barge prior to purchase. On December 30, 2024, the Company purchased three inland tank barges from an undisclosed seller for $9.9 million in cash.
The Company had been leasing the barge prior to purchase. On December 30, 2024, the Company purchased three inland tank barges from an undisclosed seller for $9.9 million in cash.
Cash Flow and Capital Expenditures The Company generated net cash provided by operating activities of $756.5 million, $540.2 million, and $294.1 million for the years ended December 31, 2024, 2023, and 2022, respectively.
Cash Flow and Capital Expenditures The Company generated net cash provided by operating activities of $670.2 million, $756.5 million, and $540.2 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Outstanding letters of credit under the 2027 Revolving Credit Facility were $6,000 and available borrowing capacity was $500 million as of December 31, 2024.
Outstanding letters of credit under the 2027 Revolving Credit Facility were $6,000 and available borrowing capacity was $455 million as of December 31, 2025.
The 2023 first quarter included $3.0 million before taxes, $2.4 million after taxes, or $0.04 per share of costs related to the strategic review and shareholder engagement and $2.7 million before taxes, $2.2 million after taxes, or $0.04 per share of other income associated with the interest on a refund from the Internal Revenue Service (“IRS”). 33 Cash provided by operating activities in 2024 increased compared to 2023 primarily due to higher business activity levels.
The 2023 first quarter included $3.0 million before taxes, $2.4 million after taxes, or $0.04 per share of costs related to the strategic review and shareholder engagement and $2.7 million before taxes, $2.2 million after taxes, or $0.04 per share of other income associated with the interest on a refund from the Internal Revenue Service (“IRS”). 34 Cash provided by operating activities in 2025 decreased compared to 2024 primarily due to unfavorable working capital changes, partially offset by higher business activity levels.
The aggregate fair value of plan assets of the Company’s pension plans was $411.4 million and $375.9 million at December 31, 2024, and 2023, respectively. The Company’s investment strategy focuses on total return on invested assets (capital appreciation plus dividend and interest income).
The aggregate fair value of plan assets of the Company’s pension plans was $461.2 million and $411.4 million at December 31, 2025, and 2024, respectively. 44 The Company’s investment strategy focuses on total return on invested assets (capital appreciation plus dividend and interest income).
The Company has historically used chartered towboats for approximately one-fourth of its horsepower requirements. 39 Inland operations consumed 46.8 million gallons of diesel fuel in 2024 compared to 48.1 million gallons consumed during 2023. The average price per gallon of diesel fuel consumed during 2024 was $2.66 per gallon compared to $3.08 per gallon for 2023.
The Company has historically used chartered towboats for approximately one-fourth of its horsepower requirements. Inland operations consumed 49.3 million gallons of diesel fuel in 2025 compared to 46.8 million gallons consumed during 2024. The average price per gallon of diesel fuel consumed during 2025 was $2.47 per gallon compared to $2.66 per gallon for 2024.
Consequently, the Company’s marine transportation business is directly affected by the volumes produced by the Company’s petroleum, petrochemical and refining customer base. KMT’s revenues for 2024 increased 11% compared to 2023 and operating income increased 52%, compared to 2023.
Consequently, the Company’s marine transportation business is directly affected by the volumes produced by the Company’s petroleum, petrochemical and refining customer base. KMT’s revenues for 2025 increased 1% compared to 2024 and operating income increased 3%, compared to 2024.
Overall inland tank barge utilization levels in 2024 were flat as compared to 2023, ranging from the low to mid-90% range during both the 2024 first and second quarters, and the 90% range during both the 2024 third and fourth quarters.
Inland tank barge utilization levels in 2025 were flat as compared to 2024, ranging from the low to mid-90% range during both the 2025 first and second quarters, and mid-80% range during the 2025 third quarter, and the mid to high 80% range during the 2025 fourth quarter.
A 1% increase in variable interest rates would impact the 2024 interest expense by $0.7 million based on balances outstanding at December 31, 2024, and would change the fair value of the Company’s debt by approximately 4.1%. Ite m 8.
A 1% increase in variable interest rates would impact the 2025 interest expense by $1.2 million based on balances outstanding at December 31, 2025, and would change the fair value of the Company’s debt by approximately 3.2%. Ite m 8.
Other assets as of December 31, 2024 increased 40% compared to December 31, 2023, primarily due to an increase in pension assets as a result of an improved funded status and additional deferred major drydock expenditures incurred during 2024, partially offset by amortization of drydock expenditures. 42 Current liabilities as of December 31, 2024 increased 9% compared to December 31, 2023.
Other assets as of December 31, 2025 increased 33% compared to December 31, 2024, primarily due to an increase in pension assets as a result of an improved funded status and additional deferred major drydock expenditures incurred during 2025, partially offset by amortization of drydock expenditures. Current liabilities as of December 31, 2025 decreased 4% compared to December 31, 2024.
During 2024, KDS generated 41% of the Company’s revenues, of which 80% was generated from service and parts and 20% from manufacturing. The results of KDS are largely influenced by cycles of the oilfield service industry and oil and gas operator and producer markets, marine, power generation, on-highway and other industrial markets.
During 2025, KDS generated 42% of the Company’s revenues, of which 83% was generated from service and parts and 17% from manufacturing. The results of KDS are largely influenced by cycles of the power generation, marine, on-highway, oilfield service industry and oil and gas operator and producer markets, and other industrial markets.
The Company also used $77.9 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above.
The Company also used $115.7 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above.
Other Income and Expenses The following table sets forth a year over year comparison of impairments and other charges, other income, noncontrolling interests, and interest expense (dollars in thousands): Year Ended December 31, 2024 2023 % Change 2022 % Change Impairments $ (56,303 ) $ — N/A $ — — % Other income $ 12,795 $ 11,041 16 % $ 16,677 (34 )% Noncontrolling interests $ (189 ) $ 30 730 % $ (470 ) (106 )% Interest expense $ (49,129 ) $ (52,008 ) (6 )% $ (44,588 ) 17 % Impairments For 2024, impairments included a $56.3 million before taxes, $43.0 million after taxes, or $0.74 per share non-cash impairment charge in the KDS segment primarily associated with conventional diesel fracturing equipment inventory.
Other Income and Expenses The following table sets forth a year over year comparison of impairments and other charges, other income, noncontrolling interests, and interest expense (dollars in thousands): Year Ended December 31, 2025 2024 % Change 2023 % Change Impairments $ — $ (56,303 ) (100 )% $ — (N/A) Other income $ 21,455 $ 12,795 68 % $ 11,041 16 % Noncontrolling interests $ (846 ) $ (189 ) 348 % $ 30 730 % Interest expense $ (46,327 ) $ (49,129 ) (6 )% $ (52,008 ) (6 )% 42 Impairments For 2024, impairments included a $56.3 million before taxes, $43.0 million after taxes, or $0.74 per share non-cash impairment charge in the KDS segment primarily associated with conventional diesel fracturing equipment inventory.
During 2024, 2023, and 2022, the Company generated cash of $20.4 million, $26.1 million, and $36.9 million, respectively, from proceeds from the disposition of assets, and $9.4 million, $4.2 million, and $3.9 million, respectively, from proceeds from the exercise of stock options.
During 2025, 2024, and 2023, the Company generated cash of $31.0 million, $20.4 million, and $26.1 million, respectively, from proceeds from the disposition of assets, and $4.9 million, $9.4 million, and $4.2 million, respectively, from proceeds from the exercise of stock options.
Prepaid expenses and other current assets decreased 9% primarily due to lower prepaid fuel due to a decrease in the price of diesel fuel and lower assets held for sale due to sales in 2024. Property and equipment, net of accumulated depreciation, at December 31, 2024 increased 4% compared to December 31, 2023.
Prepaid expenses and other current assets decreased 9% primarily due to lower prepaid fuel due to a decrease in the price of diesel fuel. Property and equipment, net of accumulated depreciation, at December 31, 2025 increased 2% compared to December 31, 2024.
The 2027 Revolving Credit Facility’s commitment is in the amount of $500 million and expires July 29, 2027. The 4.2% senior unsecured notes do not mature until March 1, 2028 and require no prepayments.
The 2027 Revolving Credit Facility’s commitment is in the amount of $500 million, with $45 million currently outstanding at December 31, 2025, and expires July 29, 2027. The $500 million 4.2% senior unsecured notes do not mature until March 1, 2028 and require no prepayments.
The 2027 Term Loan in the amount of $250 million is subject to quarterly installments, beginning March 31, 2027, in increasing percentages of the original principal amount of the loan, with the remaining unpaid balance of approximately $43.8 million payable on July 29, 2027, assuming no prepayments. The 2027 Term Loan is prepayable, in whole or in part, without penalty.
The 2027 Term Loan in the amount of $70 million is subject to quarterly installments, beginning March 31, 2027, in increasing percentages of the original principal amount of the loan, with the remaining unpaid balance of approximately $43.8 million payable on July 29, 2027, assuming no further prepayments.
The following table summarizes key operating results of the Company (in thousands, except per share amounts): Year Ended December 31, 2024 2023 2022 Total revenues $ 3,265,876 $ 3,091,640 $ 2,784,754 Net earnings attributable to Kirby $ 286,707 $ 222,935 $ 122,291 Net earnings per share attributable to Kirby common stockholders – diluted $ 4.91 $ 3.72 $ 2.03 Net cash provided by operating activities $ 756,494 $ 540,228 $ 294,128 Capital expenditures $ 342,660 $ 401,730 $ 172,606 The 2024 fourth quarter included a $56.3 million before taxes, $43.0 million after taxes, or $0.74 per share non-cash impairment charge in the KDS segment primarily associated with conventional diesel fracturing equipment inventory.
The following table summarizes key operating results of the Company (in thousands, except per share amounts): Year Ended December 31, 2025 2024 2023 Total revenues $ 3,364,050 $ 3,265,876 $ 3,091,640 Net earnings attributable to Kirby $ 354,569 $ 286,707 $ 222,935 Net earnings per share attributable to Kirby common stockholders – diluted $ 6.33 $ 4.91 $ 3.72 Net cash provided by operating activities $ 670,204 $ 756,494 $ 540,228 Capital expenditures $ 264,473 $ 342,660 $ 401,730 The 2024 fourth quarter included a $56.3 million before taxes, $43.0 million after taxes, or $0.74 per share non-cash impairment charge in the KDS segment primarily associated with conventional diesel fracturing equipment inventory.
In commercial and industrial, the demand outlook in marine repair remains steady while on-highway service and repair remains soft in the current environment. In power generation, the Company anticipates continued strong growth in orders as data center demand and the need for backup power continues to be strong.
In commercial and industrial, the demand outlook in marine repair remains steady while on-highway service and repair remains soft but has shown some recent modest improvement. In power generation, the Company anticipates continued strong growth in orders as data center demand and the need for backup power continues to be strong.
Operating lease right-of-use assets as of December 31, 2024 increased 4% compared to December 31, 2023, primarily due to new leases acquired, partially offset by lease amortization expense. Other intangibles, net, as of December 31, 2024 decreased 20% compared to December 31, 2023, primarily due to amortization.
Operating lease right-of-use assets as of December 31, 2025 increased 22% compared to December 31, 2024, primarily due to new leases acquired, partially offset by lease amortization expense. Other intangibles, net, as of December 31, 2025 decreased 12% compared to December 31, 2024, primarily due to amortization, partially offset by intangible assets acquired during 2025.
Distribution and Services The following table sets forth a year over year comparison of KDS’s revenues, costs and expenses, operating income and operating margins (dollars in thousands): Year Ended December 31, 2024 2023 % Change 2022 % Change Distribution and services revenues $ 1,352,826 $ 1,369,703 (1 )% $ 1,167,787 17 % Costs and expenses: Costs of sales and operating expenses 1,008,008 1,040,905 (3 ) 913,624 14 Selling, general and administrative 192,439 187,424 3 163,642 15 Taxes, other than on income 8,329 7,051 18 6,708 5 Depreciation and amortization 35,448 19,842 79 16,776 18 1,244,224 1,255,222 (1 ) 1,100,750 14 Operating income $ 108,602 $ 114,481 (5 )% $ 67,037 71 % Operating margins 8.0 % 8.4 % 5.7 % The following table shows the markets serviced by the Company, the revenue distribution, and the customers for each market: Markets Serviced 2024 Revenue Distribution Customers Commercial and Industrial 46% Inland River Carriers — Dry and Liquid, Offshore Towing — Dry and Liquid, Offshore Oilfield Services — Drilling Rigs & Supply Boats, Harbor Towing, Dredging, Great Lakes Ore Carriers, Pleasure Crafts, On and Off-Highway Transportation, Pumping Stations, Mining Power Generation 36% Power Generation & Standby Power Generation Equipment, Power Generation Rentals & Related Service, Data Centers Oil and Gas 18% Oilfield Services, Oil and Gas Operators and Producers 2024 Compared to 2023 Distribution and Services Revenues KDS revenues for 2024 decreased 1% compared to 2023.
Distribution and Services The following table sets forth a year over year comparison of KDS’s revenues, costs and expenses, operating income and operating margins (dollars in thousands): Year Ended December 31, 2025 2024 % Change 2023 % Change Distribution and services revenues $ 1,428,745 $ 1,352,826 6 % $ 1,369,703 (1 )% Costs and expenses: Costs of sales and operating expenses 1,045,421 1,008,008 4 1,040,905 (3 ) Selling, general and administrative 200,860 192,439 4 187,424 3 Taxes, other than on income 8,776 8,329 5 7,051 18 Depreciation and amortization 42,936 35,448 21 19,842 79 1,297,993 1,244,224 4 1,255,222 (1 ) Operating income $ 130,752 $ 108,602 20 % $ 114,481 (5 )% Operating margins 9.2 % 8.0 % 8.4 % The following table shows the markets serviced by the Company, the revenue distribution, and the customers for each market: Markets Serviced 2025 Revenue Distribution Customers Commercial and Industrial 46% Inland River Carriers — Dry and Liquid, Offshore Towing — Dry and Liquid, Offshore Oilfield Services — Drilling Rigs & Supply Boats, Harbor Towing, Dredging, Great Lakes Ore Carriers, Pleasure Crafts, On and Off-Highway Transportation, Pumping Stations, Mining Power Generation 43% Power Generation & Standby Power Generation Equipment, Power Generation Rentals & Related Service, Data Centers Oil and Gas 11% Oilfield Services, Oil and Gas Operators and Producers 41 2025 Compared to 2024 Distribution and Services Revenues KDS revenues for 2025 increased 6% compared to 2024.
The aggregate notional value of these instruments is $32.3 million at December 31, 2024, including $11.6 million in letters of credit and $20.6 million in performance bonds. All of these instruments have an expiration date within two years.
The aggregate notional value of these instruments is $30.2 million at December 31, 2025, including $11.3 million in letters of credit and $18.9 million in performance bonds. All of these instruments have an expiration date within two years.
Total equity as of December 31, 2024 increased 5% compared to December 31, 2023, primarily due to net earnings attributable to Kirby of $286.7 million and other comprehensive income of $36.2 million for 2024, partially offset by treasury stock purchases of $174.6 million.
Total equity as of December 31, 2025 increased 1% compared to December 31, 2024, primarily due to net earnings attributable to Kirby of $354.6 million and other comprehensive income of $15.2 million for 2025, partially offset by treasury stock purchases of $354.2 million.
In addition to net cash flow provided by operating activities, as of February 17, 2025, the Company had cash equivalents of $62.7 million, availability of $400 million under its Revolving Credit Facility and $8.2 million available under its Credit Line.
In addition to net cash flow provided by operating activities, as of February 13, 2026, the Company had cash and cash equivalents of $50.6 million, availability of $435 million under its Revolving Credit Facility and $8.2 million available under its Credit Line.
During 2024 and 2023, approximately 99% and 85%, respectively, of coastal revenues were under term contracts and 1% and 15%, respectively, were under spot contracts. Coastal time charters represented approximately 98% and 90% of coastal revenues under term contracts during 2024 and 2023, respectively.
During 2025 and 2024, approximately 100% and 99%, respectively, of coastal revenues were under term contracts and none and 1%, respectively, were under spot contracts. Coastal time charters represented approximately 100% and 98% of coastal revenues under term contracts during 2025 and 2024, respectively.
For 2024 and 2023, the power generation market contributed 36% and 29%, respectively, of the distribution and services revenues. In the oil and gas market, revenues declined 28% compared to 2023 due to lower levels of conventional oilfield activity, partially offset by deliveries of electric fracturing equipment.
For 2025 and 2024, the power generation market contributed 43% and 36%, respectively, of the distribution and services revenues. In the oil and gas market, revenues declined 32% compared to 2024 due to lower levels of conventional oilfield activity which resulted in decreased demand for new transmissions and parts, partially offset by deliveries of electric fracturing equipment.
The Company believes that long-term asset allocation, on average, will approximate the targeted allocation. 43 Long-Term Financing The following table summarizes the Company’s outstanding debt (in thousands): December 31, 2024 2023 Long-term debt, including current portion: Revolving Credit Facility due July 29, 2027 (a) $ — $ 44,000 Term Loan due July 29, 2027 (a) 70,000 170,000 4.2% senior notes due March 1, 2028 500,000 500,000 3.46% senior notes due January 19, 2033 60,000 60,000 3.51% senior notes due January 19, 2033 240,000 240,000 Credit line due June 30, 2026 — — Bank notes payable 8,226 8,068 878,226 1,022,068 Unamortized debt discount and issuance costs (b) (3,278 ) (5,473 ) $ 874,948 $ 1,016,595 (a) Variable interest rate of 5.6% and 6.8% at December 31, 2024 and 2023, respectively.
Long-Term Financing The following table summarizes the Company’s outstanding debt (in thousands): December 31, 2025 2024 Long-term debt, including current portion: Revolving Credit Facility due July 29, 2027 (a) $ 45,000 $ — Term Loan due July 29, 2027 (a) 70,000 70,000 4.2% senior notes due March 1, 2028 500,000 500,000 3.46% senior notes due January 19, 2033 60,000 60,000 3.51% senior notes due January 19, 2033 240,000 240,000 Credit line due June 30, 2026 — — Bank notes payable 7,357 8,226 922,357 878,226 Unamortized debt discount and issuance costs (b) (3,076 ) (3,278 ) $ 919,281 $ 874,948 (a) Variable interest rate of 5.0% and 5.6% at December 31, 2025 and 2024, respectively.
The Company developed its expected long-term rate of return assumption by evaluating input from investment consultants and comparing historical returns for various asset classes with its actual and targeted plan investments.
The Company assumed that plan assets would generate a long-term rate of return of 6.75% in both 2025 and 2024. The Company developed its expected long-term rate of return assumption by evaluating input from investment consultants and comparing historical returns for various asset classes with its actual and targeted plan investments.
The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2024 compared to contracts renewed during the corresponding quarter of 2023: Three Months Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Inland market: Term increase 9% – 12% 4% – 6% 6% – 9% 6% – 9% Spot increase 14% – 17% 14% – 16% 10% – 12% 6% – 9% Coastal market (a): Term increase 19% – 21% 17% – 20% 25% – 28% 24% – 27% Spot increase 30% – 32% 23% – 26% 11% – 13% 13% – 16% (a) Spot and term contract pricing in the coastal market are contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.
The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2025 compared to contracts renewed during the corresponding quarter of 2024: Three Months Ended March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Inland market: Term 3% – 5% 2% – 4% 0% – 2% (3)% – (5)% Spot 6% – 8% 6% – 8% (2)% – (4)% (4)% – (6)% Coastal market (a): Term 24% – 26% 24% – 26% 14% – 16% N/A (a) Term contract pricing in the coastal market are contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.
The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2024 compared to contracts renewed during the corresponding quarter of 2023: Three Months Ended March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Inland market: Term increase 9% – 12% 4% – 6% 6% – 9% 6% – 9% Spot increase 14% – 17% 14% – 16% 10% – 12% 6% – 9% Coastal market (a): Term increase 19% – 21% 17% – 20% 25% – 28% 24% – 27% Spot increase 30% – 32% 23% – 26% 11% – 13% 13% – 16% (a) Spot and term contract pricing in the coastal market are contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.
The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2025 compared to contracts renewed during the corresponding quarter of 2024: Three Months Ended March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 Inland market: Term 3% – 5% 2% – 4% 0% – 2% (3)% – (5)% Spot 6% – 8% 6% – 8% (2)% – (4)% (4)% – (6)% Coastal market (a): Term 24% – 26% 24% – 26% 14% – 16% N/A (a) Term contract pricing in the coastal market are contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.
Delay days measure the lost time incurred by a tow (towboat and one or more tank barges) during transit when the tow is stopped due to weather, lock conditions, or other navigational factors.
Inland operations incurred 11,410 delay days in 2025, 1% fewer than the 11,583 delay days that occurred during 2024. Delay days measure the lost time incurred by a tow (towboat and one or more tank barges) during transit when the tow is stopped due to weather, lock conditions, or other navigational factors.
The Company’s debt-to-capitalization ratio decreased to 20.7% at December 31, 2024 from 24.2% at December 31, 2023, primarily due an increase in total equity, primarily from net earnings attributable to Kirby of $286.7 million during 2024 and a reduction of debt outstanding of $141.6 million, partially offset by treasury stock purchases of $174.6 million.
The Company’s debt-to-capitalization ratio increased to 21.4% at December 31, 2025 from 20.7% at December 31, 2024, primarily due to an increase in debt outstanding of $44.3 million, partially offset by an increase in total equity, primarily from net earnings attributable to Kirby of $354.6 million during 2025 partially offset by treasury stock purchases of $354.2 million.
Financial Condition, Capital Resources and Liquidity Balance Sheet The following table sets forth a year over year comparison of the significant components of the balance sheets (dollars in thousands): December 31, 2024 2023 % Change 2022 % Change Assets: Current assets $ 1,068,559 $ 1,135,161 (6 )% $ 1,211,759 (6 )% Property and equipment, net 4,022,966 3,861,105 4 3,633,462 6 Operating lease right-of-use assets 158,990 152,216 4 154,507 (1 ) Investment in affiliates 2,900 2,576 13 2,171 19 Goodwill 438,748 438,748 — 438,748 — Other intangibles, net 34,406 42,927 (20 ) 51,463 (17 ) Other assets 125,383 89,464 40 62,814 42 $ 5,851,952 $ 5,722,197 2 % $ 5,554,924 3 % Liabilities and stockholders’ equity: Current liabilities $ 734,753 $ 675,795 9 % $ 642,197 5 % Long-term debt, net — less current portion 866,722 1,008,527 (14 ) 1,076,326 (6 ) Deferred income taxes 739,472 696,557 6 625,884 11 Operating lease liabilities — less current portion 148,170 138,811 7 142,140 (2 ) Other long-term liabilities 9,587 15,830 (39 ) 23,209 (32 ) Total equity 3,353,248 3,186,677 5 3,045,168 5 $ 5,851,952 $ 5,722,197 2 % $ 5,554,924 3 % 2024 Compared to 2023 Current assets as of December 31, 2024 decreased 6% compared to December 31, 2023.
Financial Condition, Capital Resources and Liquidity Balance Sheet The following table sets forth a year over year comparison of the significant components of the balance sheets (dollars in thousands): December 31, 2025 2024 % Change 2023 % Change Assets: Current assets $ 1,077,855 $ 1,068,559 1 % $ 1,135,161 (6 )% Property and equipment, net 4,098,058 4,022,966 2 3,861,105 4 Operating lease right-of-use assets 193,276 158,990 22 152,216 4 Investment in affiliates 3,188 2,900 10 2,576 13 Goodwill 438,748 438,748 — 438,748 — Other intangibles, net 30,165 34,406 (12 ) 42,927 (20 ) Other assets 166,755 125,383 33 89,464 40 $ 6,008,045 $ 5,851,952 3 % $ 5,722,197 2 % Liabilities and stockholders’ equity: Current liabilities $ 706,524 $ 734,753 (4 )% $ 675,795 9 % Long-term debt, net — less current portion 911,924 866,722 5 1,008,527 (14 ) Deferred income taxes 826,373 739,472 12 696,557 6 Operating lease liabilities — less current portion 169,854 148,170 15 138,811 7 Other long-term liabilities 10,577 9,587 10 15,830 (39 ) Total equity 3,382,793 3,353,248 1 3,186,677 5 $ 6,008,045 $ 5,851,952 3 % $ 5,722,197 2 % 2025 Compared to 2024 Current assets as of December 31, 2025 increased 1% compared to December 31, 2024.
Long-term debt, net – less current portion, as of December 31, 2024, decreased 14% compared to December 31, 2023, primarily reflecting repayments on the Term Loan and 2027 Revolving Credit Facility. Deferred income taxes as of December 31, 2024 increased 6% compared to December 31, 2023, primarily reflecting the 2024 deferred tax provision of $31.4 million.
Long-term debt, net – less current portion, as of December 31, 2025, increased 5% compared to December 31, 2024, primarily reflecting net borrowings on the 2027 Revolving Credit Facility. Deferred income taxes as of December 31, 2025 increased 12% compared to December 31, 2024, primarily reflecting the 2025 deferred tax provision of $82.5 million.
For 2024 and 2023, the oil and gas market contributed 18% and 25%, respectively, of the distribution and services revenues. The distribution and services operating margin for 2024 was 8.0% compared to 8.4% for 2023. Outlook Overall, the Company expects to deliver improved financial results in 2025.
For 2025 and 2024, the oil and gas market contributed 11% and 18%, respectively, of the distribution and services revenues. The distribution and services operating margin for 2025 was 9.2% compared to 8.0% for 2024. Outlook Overall, the Company expects to deliver improved financial results in 2026. In KMT, barge utilization and customer demand remain stable.
Marine Transportation The following table summarizes the Company’s marine transportation fleet: December 31, 2024 2023 Inland tank barges: Owned 1,062 1,043 Leased 32 33 Total 1,094 1,076 Barrel capacity (in millions) 24.2 23.7 Active inland towboats (quarter average): Owned 216 214 Chartered 65 67 Total 281 281 Coastal tank barges: Owned 28 28 Leased — — Total 28 28 Barrel capacity (in millions) 2.9 2.9 Coastal tugboats: Owned 23 24 Chartered 1 1 Total 24 25 Offshore dry-bulk cargo barges (owned) 4 4 Offshore tugboats and docking tugboat (owned and chartered) 4 5 The Company also owns shifting operations and fleeting facilities for dry cargo barges and tank barges on the Houston Ship Channel and in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana, and its San Jac shipyard for building towboats and performing routine maintenance near the Houston Ship Channel, as well as a two-thirds interest in Osprey Line, L.L.C., which transports project cargoes and cargo containers by barge.
Marine Transportation The following table summarizes the Company’s marine transportation fleet: December 31, 2025 2024 Inland tank barges: Owned 1,073 1,062 Leased 32 32 Total 1,105 1,094 Barrel capacity (in millions) 24.5 24.2 Active inland towboats (quarter average): Owned 200 216 Chartered 66 65 Total 266 281 Coastal tank barges: Owned 28 28 Leased — — Total 28 28 Barrel capacity (in millions) 2.9 2.9 Coastal tugboats: Owned 23 23 Chartered 1 1 Total 24 24 Offshore dry-bulk cargo barges (owned) 2 4 Offshore tugboats and docking tugboat (owned and chartered) 3 4 The Company also operates shifting and fleeting facilities for dry cargo barges and tank barges on the Houston Ship Channel, in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana, and its San Jac shipyard for building inland towboats and performing routine maintenance on marine vessels near the Houston Ship Channel.
Income taxes payable increased by $23.9 million primarily due to timing of federal income tax payments. Deferred revenues increased 32%, primarily due to deposits on equipment expected to be shipped in 2025 in KDS. Accounts payable decreased 7%, primarily due to timing of shipyard payments.
Accounts payable decreased 13%, primarily due to timing of shipyard payments. Income taxes payable decreased 100% due to the timing of federal income tax payments. Deferred revenues increased 14%, primarily due to deposits on equipment expected to be shipped in 2026 in KDS.
Inland time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 61% of the inland revenues under term contracts during 2024 and 63% in 2023. During 2024 and 2023, approximately 99% and 85%, respectively, of coastal revenues were under term contracts and 1% and 15%, respectively, were under spot contracts.
Inland time charters, which help insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 59% of the inland revenues under term contracts during 2025 and 61% in 2024.
The Company expects to yield mixed results in KDS in 2025 as near-term volatility from supply issues, customers deferring maintenance, and lower overall levels of activity in the oil and gas market are partially offset by increased orders in the power generation market.
The Company does expect more shipyard days in the coastal marine transportation market as compared to 2025. The Company expects stable growth in KDS in 2026 as near-term volatility from supply issues, customers deferring maintenance, and lower overall levels of activity in the oil and gas market are offset by increased orders in the power generation market.
Gain on Disposition of Assets The Company reported net gains on disposition of assets of $2.2 million, $5.0 million, and $8.3 million in 2024, 2023, and 2022, respectively. The net gains were predominantly from the sales or retirements of marine equipment.
General corporate expenses were lower in 2025 compared to 2024 primarily due to lower insurance costs. Gain on Disposition of Assets The Company reported net gains on disposition of assets of $4.8 million, $2.2 million, and $5.0 million in 2025, 2024, and 2023, respectively. The net gains were predominantly from the sales or retirements of marine equipment.
Interest Expense The following table sets forth average debt and average interest rate (dollars in thousands): Year Ended December 31, 2024 2023 2022 Average debt $ 1,025,644 $ 1,088,851 $ 1,171,317 Average interest rate 4.7 % 4.7 % 3.8 % 41 Interest expense for 2024 decreased 6% compared to 2023, primarily due to lower average debt outstanding as a result of debt repayments.
Interest Expense The following table sets forth average debt and average interest rate (dollars in thousands): Year Ended December 31, 2025 2024 2023 Average debt $ 1,041,670 $ 1,025,644 $ 1,088,851 Average interest rate 4.5 % 4.7 % 4.7 % Interest expense for 2025 decreased 6% compared to 2024, primarily due to a lower average interest rate, partially offset by higher average debt outstanding during 2025.
Operating lease liabilities – less current portion, as of December 31, 2024 increased 7% compared to December 31, 2023, primarily due to new leases acquired and liability accretion, partially offset by lease payments made.
Operating lease liabilities – less current portion, as of December 31, 2025 increased 15% compared to December 31, 2024, primarily due to new leases acquired and liability accretion, partially offset by lease payments made. Other long-term liabilities as of December 31, 2025 increased 10% compared to December 31, 2024, primarily due to an increase in deferred compensation accruals.
The Company also used $37.5 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above. Treasury Stock Purchases During 2024, the Company purchased 1.6 million shares of its common stock for $174.6 million, at an average price of $106.40 per share.
The Company also used $77.9 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above. Treasury Stock Purchases During 2025, the Company purchased 3.7 million shares of its common stock for $354.2 million, at an average price of $96.27 per share.
Subsequent to December 31, 2024 and through February 17, 2025, the Company purchased an additional 0.2 million shares of its common stock for $26.0 million, at an average price of $107.56 per share. During 2023, the Company purchased 1.5 million shares of its common stock for $112.8 million, at an average price of $75.95 per share.
Subsequent to December 31, 2025 and through February 13, 2026, the Company purchased an additional 0.2 million shares of its common stock for $28.5 million, at an average price of $120.22 per share. During 2024, the Company purchased 1.6 million shares of its common stock for $174.6 million, at an average price of $106.40 per share.
The increase reflected $335.8 million of capital additions (including accrued capital expenditures) and $77.9 million of acquisitions of barge equipment, partially offset by $231.7 million of depreciation expense and $20.1 million of property disposals, more fully described under Cash Flows and Capital Expenditures below.
The increase reflected $250.3 million of capital additions (including accrued capital expenditures) and $106.5 million of equipment acquisitions, partially offset by $255.4 million of depreciation expense and $26.3 million of property disposals, more fully described under Cash Flows and Capital Expenditures below.
In oil and gas, the Company expects revenues to be down as the shift away from conventional diesel hydraulic fracturing to electric hydraulic fracturing continues to take place. The Company anticipates extended lead times for certain OEM products to continue contributing to a volatile delivery schedule of new products throughout 2025.
In oil and gas, the Company expects revenues to be down as the transition from conventional diesel hydraulic fracturing to electric hydraulic fracturing continues to take place. The Company anticipates extended lead times and supply delays for certain original equipment manufacturer products to continue throughout 2026.
For 2024 and 2023, the power generation market contributed 36% and 29%, respectively, of the distribution and services revenues. 40 In the oil and gas market, revenues declined 28% compared to 2023 due to lower levels of conventional oilfield activity, partially offset by deliveries of electric fracturing equipment.
In the oil and gas market, revenues declined 32% compared to 2024 due to lower levels of conventional oilfield activity which resulted in decreased demand for new transmissions and parts, partially offset by deliveries of electric fracturing equipment. For 2025 and 2024, the oil and gas market contributed 11% and 18%, respectively, of the distribution and services revenues.
In the coastal marine transportation market in 2025, market conditions remain very favorable with steady customer demand expected to keep barge utilization at high levels with improved rates as the availability of equipment is limited across the industry due to no further ATBs currently under construction and favorable economic conditions.
The coastal marine transportation market is also expected to see very favorable market conditions in 2026. The coastal marine transportation market should experience steady customer demand keeping barge utilization at high levels with improving rates as the availability of equipment remains limited across the industry. There are no coastal barges currently under construction.
The 2028 Notes also specify certain events of default, upon the occurrence of which the maturity of the notes may be accelerated, including failure to pay principal and interest, violation of covenants or default on other indebtedness, among others. 44 On February 3, 2022, the Company entered into a note purchase agreement for the issuance of $300 million of unsecured senior notes with a group of institutional investors, consisting of $60 million of 3.46% series A notes (“Series A Notes”) and $240 million of 3.51% series B notes (“Series B Notes”), each due January 19, 2033 (collectively, the “2033 Notes”).
On February 3, 2022, the Company entered into a note purchase agreement for the issuance of $300 million of unsecured senior notes with a group of institutional investors, consisting of $60 million of 3.46% series A notes (“Series A Notes”) and $240 million of 3.51% series B notes (“Series B Notes”), each due January 19, 2033 (collectively, the “2033 Notes”).
During 2022, the Company purchased 0.4 million shares of its common stock for $22.9 million, at an average price of $59.32 per share. On January 30, 2023, the Board approved a five million share increase in the Company’s purchase authorization. As of February 17, 2025, the Company had approximately 2.6 million shares available under its existing purchase authorizations.
During 2023, the Company purchased 1.5 million shares of its common stock for $112.8 million, at an average price of $75.95 per share. On September 8, 2025, the Board approved an eight million share increase in the Company’s purchase authorization. As of February 13, 2026, the Company had approximately 7.0 million shares available under its existing purchase authorizations.
Effective January 1, 2024, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts of approximately 9.5%, excluding fuel. Marine Transportation Costs and Expenses Total costs and expenses for 2024 increased 4% compared to 2023.
There were no coastal marine transportation contracts scheduled for renewal in the 2025 fourth quarter. Effective January 1, 2025, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts in the 3% to 5% range, excluding fuel.
The 2033 Notes do not mature until January 19, 2033 and require no prepayment. There are numerous factors that may negatively impact the Company’s cash flow in 2025. For a list of significant risks and uncertainties that could impact cash flows, see Note 14, Contingencies and Commitments in the financial statements, and Item 1A — Risk Factors.
The 2027 Term Loan is prepayable, in whole or in part, without penalty. There are numerous factors that may negatively impact the Company’s cash flow in 2026. For a list of significant risks and uncertainties that could impact cash flows, see Note 14, Contingencies and Commitments in the financial statements, and Item 1A — Risk Factors.
Overall inland tank barge utilization levels in 2024 were flat as compared to 2023, ranging from the low to mid-90% range during both the 2024 first and second quarters, and the 90% range during both the 2024 third and fourth quarters.
For 2025 and 2024, the inland tank barge fleet contributed 80% and 81%, respectively, and the coastal fleet contributed 20% and 19%, respectively, of marine transportation revenues. 39 Inland tank barge utilization levels in 2025 were flat as compared to 2024, ranging from the low to mid-90% range during both the 2025 first and second quarters, and mid-80% range during the 2025 third quarter, and the mid to high 80% range during the 2025 fourth quarter.
The increase was primarily due to capital additions during 2024 and 2023. Marine Transportation Operating Income and Operating Margins KMT operating income for 2024 increased 52% compared to 2023. The operating margin was 19.0% for 2024 compared to 13.9% for 2023.
Marine Transportation Operating Income and Operating Margins KMT operating income for 2025 increased 3% compared to 2024. The operating margin was 19.3% for 2025 compared to 19.0% for 2024.
The Company also rents equipment including generators, industrial compressors, high capacity lift trucks, construction equipment and refrigeration trailers for use in a variety of industrial markets. The Company also manufactures and remanufactures specialized equipment, including pressure pumping units, electric power generation equipment, and specialized electrical distribution and control equipment for oilfield service, railroad and other industrial customers.
The Company also rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment and refrigeration trailers for use in a variety of industrial markets.

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