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What changed in KIRBY CORP's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of KIRBY CORP's 2023 and 2024 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 2024 report.

+346 added−341 removedSource: 10-K (2025-02-18) vs 10-K (2024-02-20)

Top changes in KIRBY CORP's 2024 10-K

346 paragraphs added · 341 removed · 294 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

124 edited+20 added−13 removed139 unchanged
Biggest changeAs of December 31, 2023, the equipment owned or operated by KMT consisted of 1,076 inland tank barges with 23.7 million barrels of capacity, and an average of 281 inland towboats during the fourth quarter of 2023, as well as 28 coastal tank barges with 2.9 million barrels of capacity, 25 coastal tugboats, four offshore dry-bulk cargo barges, four 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 384 15.9 4,499,000 Over 20,000 barrels 637 14.6 18,301,000 Specialty double hull 55 37.6 924,000 Total inland tank barges 1,076 16.2 23,724,000 Inland towboats (owned and chartered): 800 to 1300 horsepower 29 34.7 1400 to 1900 horsepower 31 25.0 2000 to 2400 horsepower 165 12.8 2500 to 3200 horsepower 42 10.9 3300 to 4800 horsepower 9 23.4 Greater than 5000 horsepower 5 24.1 Total inland towboats 281 16.7 Coastal tank barges (owned): 30,000 barrels and under 2 29.0 37,000 50,000 to 70,000 barrels 3 18.3 111,000 80,000 to 90,000 barrels 8 19.9 677,000 100,000 to 110,000 barrels 6 17.5 630,000 120,000 to 150,000 barrels 3 22.0 416,000 Over 150,000 barrels 6 8.1 1,046,000 Total coastal tank barges 28 17.6 2,917,000 Coastal tugboats (owned and chartered): 2000 to 2900 horsepower 1 48.1 3000 to 3900 horsepower 1 21.0 4000 to 4900 horsepower 7 19.0 5000 to 6900 horsepower 10 7.8 Greater than 7000 horsepower 6 13.5 Total coastal tugboats 25 14.4 Deadweight Tonnage Offshore dry-bulk cargo barges (owned) 4 25.1 67,000 Offshore tugboats and docking tugboat (owned and chartered) 5 32.5 The 281 inland towboats, 25 coastal tugboats, four offshore tugboats and one docking tugboat provide the power source and the 1,076 inland tank barges, 28 coastal tank barges and four offshore dry-bulk cargo barges provide the freight capacity for KMT.
Biggest changeAs 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.
Kirby Offshore Marine provides marine transportation of refined petroleum products, petrochemicals and black oil in coastal regions of the United States. The coastal operations are conducted along the eastern seaboard, western seaboard and the Gulf Coast. The Company also operates equipment, to a lesser extent, in the Eastern and Western Canadian Provinces.
Kirby Offshore Marine provides marine transportation of refined petroleum products, petrochemicals and black oil in coastal regions of the United States. The coastal operations are conducted along the eastern seaboard, western seaboard and the Gulf Coast. The Company also operates equipment, to a lesser extent, in the Eastern Canadian Provinces.
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 diesel engine parts, engine modifications, generator modifications, controls, governors and diesel generator packages to the nuclear industry.
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.
However, the Company has entered into service agreements with certain operators of diesel powered marine equipment, providing such operators with one source of support and service for all of their requirements at pre-negotiated prices. The Company is one of a limited number of authorized resellers of EMD, Caterpillar, Cummins, Detroit Diesel, John Deere, MTU and Volvo Penta parts.
However, the Company has entered into service agreements with certain operators of diesel powered marine equipment, providing one source of support and service for all of their requirements at pre-negotiated prices. The Company is one of a limited number of authorized resellers of EMD, Caterpillar, Cummins, Detroit Diesel, John Deere, MTU and Volvo Penta parts.
The medium-speed operations are located in Houma, Louisiana, Chesapeake, Virginia, 12 Paducah, Kentucky, Seattle, Washington, and Tampa, Florida, serving as the authorized distributor for EMD Power Products (“EMD”) throughout the United States. The Company is also a distributor and representative for certain Alfa Laval products in the Midwest and on the East Coast, Gulf Coast, and West Coast.
The medium-speed operations are located in Houma, Louisiana, Chesapeake, Virginia, Paducah, Kentucky, Seattle, Washington, and Tampa, Florida, serving as the authorized distributor for EMD Power Products (“EMD”) throughout the United States. The Company is also a distributor and representative for certain Alfa Laval products in the Midwest and on the East Coast, Gulf Coast, and West Coast.
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.
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.
While price is a major determinant in the competitive process, equipment availability, reputation, 14 consistent quality, expeditious service, experienced personnel, access to parts inventories and market presence are also significant factors. A substantial portion of the Company’s business is obtained by competitive bids. Governmental Regulations General.
While price is a major determinant in the competitive process, equipment availability, reputation, consistent quality, expeditious service, experienced personnel, access to parts inventories and market presence are also significant factors. A substantial portion of the Company’s business is obtained by competitive bids. Governmental Regulations General.
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.
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.
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.
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.
Refer to Human Capital below for further discussion regarding training programs the Company has developed and instituted. 17 Quality. Kirby Inland Marine has made a substantial commitment to the implementation, maintenance, and improvement of quality assurance systems. Kirby Offshore Marine is certified under ABS ISM standards.
Refer to Human Capital below for further discussion regarding training programs the Company has developed and instituted. Quality. Kirby Inland Marine has made a substantial commitment to the implementation, maintenance, and improvement of quality assurance systems. Kirby Offshore Marine is certified under ABS ISM standards.
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.
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.
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.
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 provides anti-corruption training to all of its employees. 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 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.
He served as Director – Public & Government Affairs from 2014 to October 2017 after joining the Company as Director – Government Affairs in 2004. Prior to joining the Company, he was a maritime lawyer in private practice and Vice President and General Counsel of Coastal Towing, Inc. 20
He served as Director – Public & Government Affairs from 2014 to October 2017 after joining the Company as Director – Government Affairs in 2004. Prior to joining the Company, he was a maritime lawyer in private practice and Vice President and General Counsel of Coastal Towing, Inc.
The Midwest is a net importer of such 8 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.
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.
Kumar served as Vice President and 19 Chief Financial Officer of Dril-Quip, Inc. from 2020 to 2021, Vice President and Chief Accounting Officer from 2019 to 2020, and Vice President and Treasurer from 2017 to 2019. Prior to joining Dril-Quip, he served as Vice President Finance at Frank ’ s International from 2015 to 2017.
Kumar served as Vice President and Chief Financial Officer of Dril-Quip, Inc. from 2020 to 2021, Vice President and Chief Accounting Officer from 2019 to 2020, and Vice President and Treasurer from 2017 to 2019. Prior to joining Dril-Quip, he served as Vice President Finance at Frank ’ s International from 2015 to 2017.
The Company presently pays a federal fuel user tax of 29.1 cents per gallon consisting of a 0.1 cent per gallon leaking underground storage tank tax and 29 cents per gallon waterways user tax. 15 Security Requirements.
The Company presently pays a federal fuel user tax of 29.1 cents per gallon consisting of a 0.1 cent per gallon leaking underground storage tank tax and 29 cents per gallon waterways user tax. Security Requirements.
Ocean-going tank barges and United States product tankers in the 300,000 barrels plus category, excluding the fleet of large tankers dedicated to Alaska crude oil transportation, occasionally compete in the 195,000 barrels or less market to move large volumes of refined petroleum products within the Gulf of Mexico with occasional movements from the Gulf Coast to the East Coast, along the West Coast and from Texas and Louisiana to Florida.
Ocean-going tank barges and United States product tankers in the 300,000 barrels plus category, excluding the fleet of large tankers dedicated to Alaska crude oil transportation, occasionally compete in the 195,000 barrels or less market to move large volumes of refined petroleum products within the Gulf of America with occasional movements from the Gulf Coast to the East Coast, along the West Coast and from Texas and Louisiana to Florida.
No single customer of KMT accounted for 10% or more of the Company’s revenues in 2023, 2022, or 2021. 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 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.
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 5,450 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 5,414 employees, the large majority of whom are in the United States.
The Company’s rental customers are primarily commercial and industrial companies, and residential customers with short-term rental requirements. Commercial and In dustrial Competitive Conditions The Company’s primary marine competitors are independent distribution and services companies and other factory-authorized distributors, authorized service centers and authorized marine dealers. Certain operators of diesel powered marine equipment also elect to maintain in-house service capabilities.
The Company’s rental customers are primarily commercial and industrial companies with short-term rental requirements. 13 Commercial and In dustrial Competitive Conditions The Company’s primary marine competitors are independent distribution and services companies and other factory-authorized distributors, authorized service centers and authorized marine dealers. Certain operators of diesel powered marine equipment also elect to maintain in-house service capabilities.
The Company is also a non-exclusive distributor of Ingersoll Rand air start equipment to the nuclear industry worldwide. The Company sells pre-packaged and fabricated power generation systems for emergency, standby and auxiliary power for commercial and industrial applications. The Company also offers rental generator systems from 50 to 2,000 kilowatts of power to a broad range of customers.
The Company is also a non-exclusive distributor of Ingersoll Rand air start equipment to the nuclear industry worldwide. The Company sells pre-packaged and fabricated power generation systems for emergency, standby and auxiliary power applications. The Company also offers rental generator systems from 50 to 2,000 kilowatts of power to a broad range of customers.
Lastly, the Company is a dealer for Thermo King refrigeration systems for trucks, railroad cars and other land transportation markets in Texas and Colorado. Commercial and Industria l Customers The results of the distribution and services industry are largely tied to the industries it serves and, therefore, are influenced by the cycles of such industries.
Lastly, the Company is a dealer for Thermo King refrigeration systems for trucks, railroad cars and other land transportation markets in Texas and Colorado. Commercial and Industria l Customers The results of the distribution and services industry are largely tied to the industrial markets it serves and, therefore, are influenced by the cycles of such markets.
However, access to United States ports of approximately 45 such product tankers is limited by terminal size and draft restrictions. While the Company competes primarily with other tank barge companies, it also competes with companies who operate refined product and petrochemical pipelines, railroad tank cars, and tractor-trailer tank trucks.
However, access to United States ports of approximately 45 of these product tankers is limited by terminal size and draft restrictions. While the Company competes primarily with other tank barge companies, it also competes with companies who operate refined product and petrochemical pipelines, railroad tank cars, and tractor-trailer tank trucks.
The Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977 (“Clean Water Act”), the Comprehensive Environmental Response, Compensation and Liability Act of 1981 (“CERCLA”) and the Oil Pollution Act of 1990 (“OPA”) impose strict prohibitions against the discharge of oil and its derivatives or hazardous substances into the navigable waters of the United States.
The Federal Water Pollution Control Act of 1972, as amended by the Clean Water Act of 1977 (“Clean Water Act”), the Comprehensive Environmental Response, Compensation and Liability Act of 1981 (“CERCLA”) and the Oil Pollution Act of 1990 (“OPA”) impose strict prohibitions against the discharge of oil and its derivatives or hazardous substances into the navigable waters of the United States or to the environment.
Prior to joining the Company in February 2010, he served in various operational and financial positions since 1988 with FMC Technologies Inc. (“FMC”), including Controller, Energy Services, Treasurer, and Director of Global SAP and Industry Relations. Prior to joining FMC, he was employed by Dow Chemical Company in manufacturing, engineering and financial roles.
Prior to joining the Company in February 2010, he served in various operational and financial positions since 1988 with FMC Technologies Inc. (“FMC”), including Controller, Energy Services, Treasurer, and Director of Global SAP and Industry Relations. Prior to joining FMC, he was employed by Dow Chemical Company in manufacturing, engineering and financial roles. Christian G.
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.
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.
Contracts and C ustomers Marine transportation inland and coastal services are conducted under term or spot contracts for customers with whom the Company has traditionally had long-standing relationships. Typically, term contracts range from one to three years, some of which have renewal options.
Contracts and C ustomers Marine transportation inland and coastal services are conducted under term or spot contracts for 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 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 2023.
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.
Kirby Offshore Marine also operates a fleet of two offshore dry-bulk barge and tugboat units involved in the transportation of sugar and other dry products between Florida and East Coast ports. These vessels have typically operated under term contracts of affreightment of a year or longer.
Kirby Offshore Marine also operates a fleet of two offshore dry-bulk barge and a tugboat unit involved in the transportation of sugar and other dry products between Florida and East Coast ports. These vessels have typically operated under term contracts of affreightment of a year or longer.
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 transportation of petrochemical products represented 51% of the segment’s 2023 revenues. Customers shipping these products are petrochemical and refining companies. Black Oil.
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 transportation of petrochemical products represented 51% of the segment’s 2024 revenues. Customers shipping these products are petrochemical and refining companies. Black Oil.
He has also served in various sales and business development roles at the Company and Osprey. Prior to joining the Company, he served as Sales Manager and Fleet Manager at Hollywood Marine, Inc. (“Hollywood Marine”) after joining Hollywood Marine in 1997 which was subsequently merged into the predecessor of Kirby Inland Marine. Dorman L.
He has also served in various sales and business development roles at the Company and Osprey. Prior to joining the Company, he served as Sales Manager and Fleet Manager at Hollywood Marine, Inc. (“Hollywood Marine”) after joining Hollywood Marine in 1997 which was subsequently merged into the predecessor of Kirby Inland Marine.
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 2023, 2022, or 2021. KDS also provides service to KMT, which accounted for approximately 3% of KDS’s 2023 and 2022 revenues, and 2% of the segment's 2021 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 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.
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 400 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 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.
Approximately 50 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 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.
The Company has approximately 5,450 employees, the large majority of whom are in the United States. 4 MARINE TRANSPORTA TION KMT is primarily a provider of transportation services by tank barge for the inland and coastal markets.
The Company has approximately 5,414 employees, the large majority of whom are in the United States. 4 MARINE TRANSPORTA TION KMT is primarily a provider of transportation services by tank barge for the inland and coastal markets.
The Company also is engaged in the rental of industrial compressors, high capacity lift trucks, and refrigeration trailers. In addition, the Company provides accessory products such as cables, hoses, fuel cells, air dryers, air compressor boosters and ground heaters.
The Company also is engaged in the rental of industrial compressors, high capacity lift trucks, construction equipment and refrigeration trailers. In addition, the Company provides accessory products such as cables, hoses, fuel cells, air dryers, air compressor boosters and ground heaters.
Grzebinski is a Chartered Financial Analyst and holds a Master of Business Administration degree from Tulane University and a degree in chemical engineering from the University of South Florida. He has served as President and Chief Executive Officer since April 2014.
Grzebinski is a Chartered Financial Analyst and holds a Master of Business Administration degree from Tulane University and a degree in chemical engineering from the University of South Florida. He has served as Chief Executive Officer since April 2024. He served as President and Chief Executive Officer from April 2014 to April 2024.
The marine segment provides a clear career progression for vessel personnel from entry level deckhand to captain and regularly reviews promotions from one level to another. In distribution and services, the Company operates regional training centers providing instructor-led, skill-based training classes to certify its technicians to work on diesel engines, transmissions, and power generation equipment.
The marine segment provides a clear career progression for vessel personnel from entry level deckhand to captain and regularly reviews promotions from one level to another. In KDS, the Company operates regional training centers providing instructor-led, skill-based training classes to certify its technicians to work on diesel engines, transmissions, and power generation equipment.
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, energy storage battery systems, and related equipment used in oilfield services, marine, power generation, on-highway, and other commercial and industrial applications.
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 number of coastal tank barges that operate in the 195,000 barrels or less category is approximately 264, 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 15 years.
Agricultural chemicals transported represented 3% of the segment’s 2023 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 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.
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 2023 survey was 90% of employees surveyed agree that Kirby is committed to Employee Safety.
Although a risk exists that new regulations could require significant capital expenditures by the Company and otherwise increase the Company’s costs, the Company believes that, based upon the regulations that have been proposed thus far, no material capital expenditures beyond those currently contemplated by the Company and no material increase in costs are likely to be required. Contingency Plan Requirement.
Although a risk exists that new regulations could require significant capital expenditures by the Company and otherwise increase the Company’s costs, the Company believes that, based upon the regulations that have been proposed thus far, no material capital expenditures beyond those currently contemplated by the Company and no material increase in costs are likely to be required.
Kirby Inland Marine provides shifting and fleeting service for its own barges, as well as for customers and third party carriers, transferring barges within the areas noted. Kirby Inland Marine also provides shore-based barge tankermen to the Company and third parties. Services to the Company and third parties cover the Gulf Coast, mid-Mississippi Valley, and the Ohio River Valley.
Kirby Inland Marine provides shifting and fleeting service for its own barges, as well as for customers and third party carriers, transferring barges within the areas noted. Kirby Inland Marine also provides shore-based barge tankermen to the Company and third parties in the Gulf Coast, mid-Mississippi Valley, and the Ohio River Valley.
The Tampa, Florida operation concentrates on Gulf of Mexico offshore dry-bulk, tank barge and harbor docking operators. The Paducah, Kentucky operation concentrates on the inland river towboat and barge operators and the Great Lakes carriers.
The Tampa, Florida operation concentrates on Gulf of America offshore dry-bulk, tank barge and harbor docking operators. The Paducah, Kentucky operation concentrates on the inland river towboat and barge operators and the Great Lakes carriers.
The Company is aware of no specialized coastal articulated tank barge and tugboat units (“ATB”) that were delivered in 2023 with 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 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.
Kirby Inland Marine operates the largest commercial tank barge fleeting service (barge storage facilities) in numerous ports, including Houston, Corpus Christi, Freeport and Orange, Texas, Baton Rouge, Lake Charles and New Orleans, Louisiana, Mobile, Alabama, and Greenville, Mississippi.
Kirby Inland Marine operates the largest commercial tank barge fleeting service (barge storage facilities) in the United States, operating in numerous ports including Houston, Corpus Christi, Freeport and Orange, Texas, Baton Rouge, Lake Charles and New Orleans, Louisiana, Mobile, Alabama, and Greenville, Mississippi.
The results of the Company’s oil and gas distribution and services operations are largely tied to the industries it serves and, therefore, are influenced by the cycles of such industries. Oil and Gas Competitive Conditions The Company’s primary competitors in the oil and gas market are other oilfield equipment manufacturers and remanufacturers, and equipment service companies.
The results of the Company’s oil and gas distribution and services operations are largely tied to the industrial markets it serves and, therefore, are influenced by the cycles of such markets. Oil and Gas Competitive Conditions The Company’s primary competitors in the oil and gas market are other oilfield equipment manufacturers and remanufacturers, and equipment service companies.
Coastal black oil tank barge utilization averaged in the mid 90% range in 2022 and the high 90% range in 2023 as utilization was supported by a higher percentage of term contracts. Inland and coastal asphalt shipments are generally seasonal, with higher volumes shipped during April through November, months when weather allows for efficient road construction.
Coastal black oil tank barge utilization averaged in the high 90% range in both 2023 and 2024 as utilization was supported by a high percentage of term contracts. Inland and coastal asphalt shipments are generally seasonal, with higher volumes shipped during April through November, months when weather allows for efficient road construction.
Time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented approximately 63% of the marine transportation’s inland revenues under term contracts during 2023, and 58% of the revenue under term contracts during 2022 and 2021.
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.
During 2023, the Company’s inland marine transportation operation moved over 56 million tons of liquid cargo on the United States inland waterway system. Petrochemicals. Bulk 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.
During 2024, the Company’s inland marine transportation operation moved over 55 million tons of liquid cargo on the United States inland waterway system. Petrochemicals. Bulk 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.
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.
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.
The tank barges operating are in the 10,000 to 195,000 barrel capacity range and coastal tugboats in the 2,400 to 10,000 horsepower range. Kirby Offshore Marine’s vessels call on various coastal ports from Maine to Texas, servicing refineries, storage terminals and power plants. The Company also services refineries and storage terminals from Southern California to Washington State.
The tank barges are in the 10,000 to 195,000 barrel capacity range and coastal tugboats in the 3,000 to 10,000 horsepower range. Kirby Offshore Marine’s vessels call on various coastal ports from Maine to Texas, servicing refineries, storage terminals and power plants. The Company also services refineries and storage terminals from Southern California to Washington State.
KDS has multiple career progressions within its numerous job groups. In 2022, KDS launched an apprentice program at various locations. The Company continues to recruit and train apprentices for technical roles.
KDS has multiple career progressions within its numerous businesses. In 2022, KDS launched an apprentice program at various locations. The Company continues to recruit and train apprentices for technical roles.
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 20% of the segment’s 2023 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 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.
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 1,076 tank barges as of December 31, 2023, 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 1,094 tank barges as of December 31, 2024, or approximately 27% of the estimated total number of domestic inland tank barges.
The commercial and industrial operations represented approximately 59% of the segment’s 2023 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 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.
During 2021 through 2023, 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 Mexico 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 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.
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 26% of the segment’s 2023 revenues.
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 large majority of non-vessel employees work full-time. Vessel employees work varying schedules according to their assignments. The Company has approximately 110 general corporate employees. The Company supports its employees by providing competitive pay and benefits, training, and a respectful and inclusive culture. KMT has approximately 3,070 employees, of which approximately 2,350 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 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.
During 2023, approximately 1,750 certificates were issued for the completion of courses at the training facility, of which approximately 930 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 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.
Marine Tra nsportation Operations KMT operated a fleet of 1,076 inland tank barges and an average of 281 inland towboats during the 2023 fourth quarter, as well as 28 coastal tank barges and 25 coastal tugboats. The segment also operated four offshore dry-bulk cargo barges, four offshore tugboats and one docking tugboat transporting dry-bulk commodities in United States coastal trade.
Marine Tra nsportation Operations KMT operated a fleet of 1,094 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.
The Company also sells engines, transmissions, power generation systems, and rents equipment including generators, industrial compressors, high capacity lift trucks, and refrigeration trailers for use in a variety of commercial and industrial applications, including for oilfield service and railroad customers.
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.
Approximately 217 Kirby Offshore Marine vessel crew members are subject to a collective bargaining agreement with the Richmond Terrace Bargaining Unit in effect through August 31, 2025.
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.
For the oil and gas market, the Company sells OEM replacement parts, sells and services diesel engines, pumps and transmissions, manufactures and remanufactures pressure pumping units, manufactures cementing and pumping equipment, as well as coil tubing and well intervention equipment, electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems.
For the oil and gas market, the Company sells OEM replacement parts, sells and services diesel engines, pumps and transmissions, manufactures and remanufactures pressure pumping units, manufactures cementing and pumping equipment, as well as coil tubing and well intervention equipment, electric power generation equipment, and specialized electrical distribution and control equipment.
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 2021, approximately 80% of the coastal marine transportation revenues were under term contracts and 20% 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 2022, approximately 75% of the coastal marine transportation revenues were under term contracts and 25% were under spot contracts.
Coastal tank barge utilization for the transportation of petrochemicals increased from the low 90% range in 2022 to the mid 90% range during 2023 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 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.
During 2024, the Company expects to complete installation of an approved BWMS on the last such barge currently in its fleet. Financial Responsibility Requirement.
During 2024, the Company completed installation of an approved BWMS on the last such barge currently in its fleet. Financial Responsibility Requirement.
Succession planning is a key responsibility of the CEO and the Vice President – Human Resources and is a critical annual process for the Company’s senior management and its Board. Senior management reviews their succession plans regularly throughout the year and on an annual basis provides the Board an in-depth review of the top three levels of management.
Succession planning is a key responsibility of the CEO and the Chief Human Resources Officer and is a critical annual process for the Company’s senior management and its Board. Senior management reviews their succession plans regularly throughout the year and provides the Board an in-depth review on an annual basis.
The Company utilizes several programs to further its commitment to environmental responsibility in its operations. Environmental compliance audits, performed with internal and external resources, are performed regularly on the Company's operations. Additionally, the Company employs third party expertise to conduct safety performance, safety management system, and environmental audits on its barge cleaning and shipyard vendors.
Environmental compliance audits, performed with internal and external resources, are performed regularly on the Company's operations. Additionally, the Company employs third party expertise to conduct safety performance, safety management system, and environmental audits on its barge cleaning and shipyard vendors.
In addition, approximately 108 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 May 1, 2025. KDS has approximately 2,270 employees. None of the United Holdings and Kirby Engine Systems operations are subject to collective bargaining agreements.
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.
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 23.7 million barrels equates to approximately 39,700 railroad tank cars or approximately 124,000 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 24.2 million barrels equates to approximately 40,500 railroad tank cars or approximately 127,000 tractor-trailer tank trucks.
The fleet of 281 inland towboats for the 2023 fourth quarter ranges from 800 to 6,100 horsepower. Of the 281 inland towboats, 214 are owned by the Company and 67 are chartered.
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.
This evidence is in the form of a Certificate of Financial Responsibility (“COFR”) issued by the USCG. The majority of the Company’s tank barges are subject to this COFR 16 requirement, and the Company has fully complied with this requirement since its inception. The States of Alaska, California, and Washington have implemented state financial responsibility requirements.
This evidence is in the form of a Certificate of Financial Responsibility (“COFR”) issued by the USCG. The majority of the Company’s tank barges are subject to this COFR requirement, and the Company has fully complied with this requirement since its inception.
Violations of these laws may result in civil and criminal penalties, fines, or other sanctions. Water Pollution Regulations.
Violations of applicable federal, state or local laws may result in civil and criminal penalties, fines, or other sanctions. Water Pollution Regulations.
(“Marine Systems”) and Engine Systems, Inc. (“Engine Systems”), serves two markets, commercial and industrial, and oil and gas.
(“Marine Systems”) and Engine Systems, Inc. (“Engine Systems”), serves three markets, commercial and industrial, power generation, and oil and gas.
The following table sets forth the revenues for KDS (dollars in thousands): Year Ended December 31, 2023 % 2022 % 2021 % Service and parts $ 1,071,297 78 % $ 962,187 82 % $ 813,875 88 % Manufacturing 298,406 22 205,600 18 109,867 12 $ 1,369,703 100 % $ 1,167,787 100 % $ 923,742 100 % 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, 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 Company also rents equipment including generators, industrial compressors, high capacity lift trucks, and refrigeration trailers for use in a variety of industrial markets, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, and manufacturers cementing and pumping equipment as well as coil tubing and well intervention equipment, electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems for oilfield service and railroad 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. 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.
He has served as President of Kirby Inland Marine and Kirby Offshore Marine since January 2018, as President of San Jac Marine, LLC since October 2018, and President of Kirby Offshore Wind, LLC since March 2021. He served as Executive Vice President and Chief Operating Officer of Kirby Inland Marine and Kirby Offshore Marine from May 2016 to January 2018.
He has served as President and Chief Operating Officer since April 2024, as President of Kirby Inland Marine and Kirby Offshore Marine since January 2018, as President of San Jac Marine, LLC since October 2018, and President of Kirby Offshore Wind, LLC since March 2021.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe Company’s operations are also affected by various United States and state regulations and legislation enacted for protection of the environment. The Company incurs significant expenses and capital expenditures to comply with applicable laws and regulations and any significant new regulation or legislation, including climate change laws or regulations, could have an adverse effect on the Company.
Biggest changeThe Company incurs significant expenses and capital expenditures to comply with applicable laws and regulations and any significant new regulation or legislation, including climate change laws or regulations, could have an adverse effect on the Company. 22 KMT is subject to natural gas and crude oil prices as well as the volatility of their prices as well as the volatility in production of refined products and petrochemicals in the United States.
Increased competition for 22 available black oil and petrochemical barge moves caused by reduced crude oil and natural gas condensate production could have an adverse impact on KMT including as a result of lower spot and term contract rates and/or reluctance to enter into or extend term contracts. KMT could be adversely impacted by the construction of tank barges.
Increased competition for available black oil and petrochemical barge moves caused by reduced crude oil and natural gas condensate production could have an adverse impact on KMT including as a result of lower spot and term contract rates and/or reluctance to enter into or extend term contracts. KMT could be adversely impacted by the construction of tank barges.
Any damage or compromise of its critical assets or data security or its inability to use or access these critical assets and information systems could adversely impact the efficient and safe operation of its businesses, or result in the failure to safely operate its equipment, and maintain the confidentiality of data of its customers or its employees and could subject the Company to increased operating expenses 26 or legal action, which could have an adverse effect on the Company.
Any damage or compromise of its critical assets or data security or its inability to use or access these critical assets and information systems could adversely impact the efficient and safe operation of its businesses, or result in the failure to safely operate its equipment, and maintain the confidentiality of data of its customers or its employees and could subject the Company to increased operating expenses or legal action, which could have an adverse effect on the Company.
Increased competition in the distribution and services industry and 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 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.
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.
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.
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 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 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 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.
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.
Many of 27 the items essential to the Company’s business require the use of shipping services to transport them to the Company’s facilities. Shipping delays or disruptions may result in operational slowdowns, especially where materials, components, or equipment are necessary to complete a project or order for the Company’s customers, particularly in the manufacturing business of KDS.
Many of the items essential to the Company’s business require the use of shipping services to transport them to the Company’s facilities. Shipping delays or disruptions may result in operational slowdowns, especially where materials, components, or equipment are necessary to complete a project or order for the Company’s customers, particularly in the manufacturing business of KDS.
A significant delay in the construction of new vessels or a shipyard’s inability to perform under the construction contract could negatively impact the 23 Company’s ability to fulfill contract commitments and to realize timely revenues with respect to vessels under construction.
A significant delay in the construction of new vessels or a shipyard’s inability to perform under the construction contract could negatively impact the Company’s ability to fulfill contract commitments and to realize timely revenues with respect to vessels under construction.
The requirements that the Company’s vessels be United States built and manned by United States citizens, the crewing requirements and material requirements of the USCG, and the 21 application of United States labor and tax laws increases the cost of United States flagged vessels compared to comparable foreign flagged vessels.
The requirements that the Company’s vessels be United States built and manned by United States citizens, the crewing requirements and material requirements of the USCG, and the application of United States labor and tax laws increases the cost of United States flagged vessels compared to comparable foreign flagged vessels.
The ESG-related initiatives, 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 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.
For the commercial and industrial market, the segment’s primary marine diesel competitors are independent diesel services companies and other factory-authorized distributors, authorized service centers and authorized marine dealers. Certain operators of diesel powered marine equipment also elect to maintain in-house service capabilities.
For the commercial and industrial market, the segment’s primary marine diesel competitors are independent diesel services companies and other factory-authorized distributors, authorized service centers and authorized marine dealers. Certain operators of diesel powered marine equipment also elect to maintain in-house service capabilities. For power generation, the primary competitors are other independent service companies.
The Company has also implemented virus protection software, intrusion detection systems and annual attack and penetration audits to protect information systems to mitigate these risks. However, the Company cannot guarantee that its critical assets or information systems cannot be damaged or compromised.
The Company has also implemented virus protection software, intrusion detection systems and annual attack and penetration audits, and implemented employee training to protect information systems to mitigate these risks. However, the Company cannot guarantee that its critical assets or information systems cannot be damaged or compromised.
For 2023, 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 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.
The long-term risk of an oversupply of inland tank barges may be mitigated by the fact that the inland tank barge industry has approximately 600 tank barges that are 30 years old or older and approximately 400 of those are 40 years old or older.
The long-term risk of an oversupply of inland tank barges may be mitigated by 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.
The Company also services offshore supply vessels and offshore drillings rigs operating in the Gulf of Mexico, as well as internationally. Low energy prices may negatively impact the number of wells drilled in the Gulf of Mexico and international waters.
The Company also services offshore supply vessels and offshore drillings rigs operating in the Gulf of America, as well as internationally. Low energy prices may negatively impact the number of wells drilled in the Gulf of America and international waters.
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 2023, sales and service of Thermo King products comprised approximately 5% 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 2024, sales and service of Thermo King products comprised approximately 4% of the Company’s revenues.
The Company also utilizes an internal development program to train Maritime Academy graduates for vessel leadership positions. KMT has approximately 3,070 employees, of which approximately 2,350 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 3,119 employees, of which approximately 2,380 are vessel crew members. None of the segment’s inland operations are subject to collective bargaining agreements.
In 2023, the State of California enacted climate related legislation and the SEC is expected to issue its own climate disclosure rules in 2024, both of which will or are expected to 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 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.
Three KDS customers accounted for approximately 12% of the Company’s 2023 revenue, 9% of 2022 revenue, and 6% of 2021 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 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.
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 13% of the Company’s revenues during 2023.
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.
Continuing impacts resulting from actual or threatened health epidemics, and pandemics or other major health crisis 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 we refer to collectively as public health crises).
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 nature of crewmember work schedules and assignments away from home for extended periods require special recruiting and at times it can be difficult to find candidates. With ongoing retirements and competitive labor pressure in KMT, the Company continues to monitor and implement market competitive pay practices.
The nature of crewmember work schedules and assignments away from home for extended periods require special recruiting and at times it can be difficult to find candidates. With ongoing retirements and a mariner shortage in the industry, the Company faces competitive labor pressure and continues to monitor and implement market competitive pay practices.
Loss of a large customer could adversely affect the Company. Five KMT customers accounted for approximately 16% of the Company’s 2023 revenue, and 17% of 2022 and 2021 revenue. The Company has contracts with these customers expiring in 2024 through 2026.
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.
The segment’s coastal operations include approximately 413 vessel employees, of whom approximately 325 are subject to collective bargaining agreements in certain geographic areas. Any work stoppages or labor disputes could adversely affect coastal operations in those areas.
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 Company estimates that approximately 25 to 30 new tank barges have currently been ordered for delivery in 2024 and expects a number of older tank barges will be retired, dependent on 2024 market conditions.
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.
In addition, eight new United States petrochemical projects, including expansion of existing plants, were completed during 2022, with an additional five projects completed during 2023 and four scheduled to be completed in 2024. These projects should provide additional movements for KMT.
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.
Although steel prices decreased in 2023, they still remain near historical highs. These increases in steel costs and alterations in supply and demand dynamics, as well as higher labor costs, resulted in construction prices for a new 30,000 barrel tank barge increasing compared to prices in 2017 when there was an industry-wide over-capacity of inland tank barges in the market.
These increases in steel costs and alterations in supply and demand dynamics, as well as higher labor costs, resulted in construction prices for a new 30,000 barrel tank barge increasing compared to prices in 2017 when there was an industry-wide over-capacity of inland tank barges in the market.
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 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.
Lower energy prices generally result in a decrease in the number of oil and gas wells being drilled. Oilfield service companies reduce their capital spending, resulting in decreased demand for new parts and equipment, including pressure pumping units, provided by KDS. This may also lead to order cancellations from customers or customers requesting to delay delivery of new equipment.
Oilfield service companies reduce their capital spending, resulting in decreased demand for new parts and equipment, including pressure pumping units, provided by KDS. This may also lead to order cancellations from customers or customers requesting to delay delivery of new equipment.
The Company estimates there are approximately 264 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 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.
As of the end of 2021, approximately 160 to 170 inland tank barges and one coastal tank barge were 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 2022, the Company estimates that approximately 170 to 200 inland tank barges were transporting crude and natural gas condensate.
At the present time, there are an estimated 4,007 inland tank barges in the United States, of which the Company operates 1,076, or 27%. For 2021, the Company estimated that industry-wide 70 new tank barges were placed in service, and 90 tank barges were retired.
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.
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 distribution and services businesses rely on a variety of intellectual property rights for its product and services.
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.
For 2022, the Company estimates that industry-wide 22 new tank barges were placed in service and retirements, net of reactivations, were flat. For 2023, the Company estimates that industry-wide 27 new tank barges were placed in service and 48 tank barges were retired.
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.
As of the end of 2023, the Company estimates that approximately 190 to 220 inland tank barges were transporting crude and natural gas condensate. Volatility in the price of natural gas and crude oil can also result in heightened uncertainty which may lead to decreased production and delays in new petrochemical and refinery plant construction.
Volatility in the price of natural gas and crude oil can also result in heightened uncertainty which may lead to decreased production and delays in new petrochemical and refinery plant construction.
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 or COVID-19 and other pandemics may also exacerbate other risks discussed above, any of which could have a material effect on the Company. Item 1B.
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.
In addition, agreements governing the Company’s indebtedness from time to time may impose certain limitations on the Company’s ability to undertake acquisitions or make investments or may limit the Company’s ability to incur certain indebtedness and liens, which could limit the Company’s ability to make acquisitions. 25 The Company’s failure to comply with the FCPA, or similar local applicable anti-bribery laws, could have a negative impact on its ongoing operations .
In addition, agreements governing the Company’s indebtedness from time to time may impose certain limitations on the Company’s ability to undertake acquisitions or make investments or may limit the Company’s ability to incur certain indebtedness and liens, which could limit the Company’s ability to make acquisitions.
The Company, through Kirby Engine Systems, serves as an EMD distributor for select markets and locations for both service and parts. With the acquisition of S&S in September 2017, the Company added additional EMD distributorship rights in key states, primarily through the Central and South areas of the United States.
With the acquisition of S&S in September 2017, the Company added additional EMD distributorship rights in key states, primarily through the Central and South areas of the United States. With the S&S acquisition, the Company became the United States distributor for EMD marine and power generation applications.
The Company’s marine transportation term contracts typically include fuel escalation clauses, or the customer pays for the fuel. However, there is generally a 30 to 120 day delay before contracts are adjusted depending on the specific contract.
However, there is generally a 30 to 120 day delay before contracts are adjusted depending on the specific contract.
For power generation, the primary competitors are other independent service companies. 24 Loss of a distributorship or other significant business relationship or disruptions of supply could adversely affect KDS. KDS has had a relationship with EMD, the largest manufacturer of medium-speed diesel engines, since the 1960s.
Loss of a distributorship or other significant business relationship or disruptions of supply could adversely affect KDS. KDS has had a relationship with EMD, the largest manufacturer of medium-speed diesel engines, since the 1960s. The Company, through Kirby Engine Systems, serves as an EMD distributor for select markets and locations for both service and parts.
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 may also be adversely affected when its patents are unenforceable, where claims allowed are not sufficient to protect its technology or its trade secrets are not adequately protected.
The Company may also be adversely affected when its intellectual property rights are unenforceable, such as where patent claims allowed are not sufficient to protect its technology or its trade secrets are not adequately protected.
Increased expansion of, or additions to, facilities or equipment by the Company’s competitors could have a negative impact on the Company’s results of operations. Prevailing natural gas and crude oil prices, as well as the volatility of their prices, could have an adverse effect on KDS business.
Prevailing natural gas and crude oil prices, as well as the volatility of their prices, could have an adverse effect on KDS business. Lower energy prices generally result in a decrease in the number of oil and gas wells being drilled.
The Company’s operations outside the United States require the Company to comply with both United States and international regulations.
The Company’s failure to comply with the FCPA, or similar local applicable anti-bribery laws, could have a negative impact on its ongoing operations . The Company’s operations outside the United States require the Company to comply with both United States and international regulations.
The Company is aware of one small specialized coastal ATB placed in service in 2021 and no ATBs placed in service in 2022 or 2023 with no further ATBs currently under construction. Higher fuel prices could increase operating expenses and fuel price volatility could reduce profitability. The cost of fuel during 2023 was approximately 12% of marine transportation revenue.
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.
Removed
While the COVID-19 pandemic caused some crewing issues, the Company was able to manage its operations with limited vessel delays and disruption of services, including some loss of revenue and incremental costs in the Company’s inland and coastal businesses.
Added
The Company’s operations are also affected by various United States and state regulations and legislation enacted for protection of the environment.
Removed
The Company expects that it would be able to similarly manage its operations in the future were an event of similar impact to occur again, but there is no guarantee that it would be able to do so. KMT is subject to the Jones Act.
Added
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.
Removed
KMT is subject to natural gas and crude oil prices as well as the volatility of their prices as well as the volatility in production of refined products and petrochemicals in the United States.
Added
Although steel prices have remained stable in 2024, they still remain near historical highs.
Removed
As a result of the COVID-19 pandemic and petrochemical and refinery plant shutdowns, 2020 and 2021 petrochemical and refined products volumes decreased relative to 2019. Volumes began to recover in 2021 and have continued to increase in 2022 and 2023 as economic activity improved.
Added
Further, the oil and gas industry is characterized by rapid and significant technological advancements and introductions of new products using new technologies. As competitors and others use or develop new technologies, the Company may lose market share or be placed at a competitive disadvantage.
Removed
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. During 2020, the COVID-19 pandemic and oil price volatility resulted in a sharp decrease in volumes of crude and natural gas condensate being transported.
Added
The Company may face competitive pressure to implement or acquire certain new technologies at a substantial cost. Additionally, the Company may be unable to implement new technologies on a timely basis or at an acceptable cost.
Removed
Beginning in 2019, a decline in industry-wide demand for the movement of crude oil and natural gas condensate transportation volumes increased available capacity and resulted in some reluctance among certain customers to extend term contracts, which led to an increase in the number of coastal vessels operating in the spot market.
Added
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.
Removed
In addition, the Company and the industry added new coastal tank barge capacity during 2019 through 2021. Much of this new capacity was replacement capacity for older vessels anticipated to be retired.
Added
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.
Removed
KDS could be adversely impacted by the construction of pressure pumping units by its competitors.
Added
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.
Removed
During 2020, a significant reduction in oilfield activity as a result of oil price volatility and the COVID-19 pandemic resulted in a decrease to an estimated 6 million horsepower of pressure pumping units working in North America, with an estimated 1.5 million horsepower available to work, and 12 million horsepower stacked and in need of major repair.
Added
Trade discussions and arrangements between the U.S. and various of its trading partners are fluid, and existing and future trade agreements are, and are expected to continue to be, subject to a number of uncertainties, including the imposition of new tariffs or adjustments and changes to the products or materials covered by existing tariffs.
Removed
At the end of 2021, strong commodity prices resulted in an increase in horsepower demand with an estimated 12 million horsepower of pressure pumping units working in North America, with an estimated 8 million horsepower idled and in need of major repair.
Added
Any decision by the U.S. government to adopt actions such as an increase in customs duties or tariffs, or the renegotiation of U.S. trade agreements, or any other action that could have a negative impact on international trade, including corresponding actions taken by other countries in response to U.S. governmental actions, could cause an increase to the cost of goods sold to KDS customers, adversely impact operations in KMT through interruptions in customer trade patterns or volumes, and adversely impact input costs and supply chain in both segments.
Removed
Supported by stronger commodity prices, surplus horsepower capacity declined as activity levels in North America improved during 2022 resulting in an increase to an estimated 15 million horsepower of pressure pumping units working in North America at the end of 2022, with an estimated 5 million horsepower idled and in need of major repair.
Added
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.
Removed
Horsepower demand remained flat in 2023 with an estimated 15 million horsepower of pressure pumping units working in North America at the end of 2023, with an estimated 4 million horsepower idled and in need of major repair.
Added
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.
Removed
With the S&S acquisition, the Company became the United States distributor for EMD marine and power generation applications. Sales and service of EMD products account for approximately 3% of the Company’s revenues for 2023.
Removed
In response to the COVID-19 pandemic, various countries, including the United States, either mandated or recommended business closures, travel restrictions or limitations, social distancing, and/or self-quarantine, among other restrictions. Additionally, various state and local governments in locations where the Company operates took similar actions.
Removed
Governments removed, eased, reinstated, or implemented new protocols or restrictions in response to reassessment of the risk of COVID-19, based in part on, changing levels of infection and hospitalization rates.
Removed
There has been and continues to be a negative impact on the global and United States economies and supply chains, including the oil and gas industry, which has created delays and reduced demand for the Company’s products and services and in some cases, resulted in delays in performance of its contracts with customers.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeTo more effectively prevent, detect and respond to information security threats, the Company maintains a cyber risk management program, which is supervised by a Company executive officer, the Vice President and Chief Information Officer, whose team is responsible for leading company-wide cybersecurity strategy, policy, standards, architecture and processes.
Biggest changeThe 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.
Additionally, the Vice President and Chief Information Officer chairs the 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 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.
The Company provides employee training that reinforces its information technology policies, standards and practices, as well as the expectation that employees comply with these policies. This training empowers employees to identify and report potential cybersecurity risks and protect the Company’s resources and information.
The Company provides employee education and training that reinforces its information technology policies, standards and practices, as well as the expectation that employees comply with these policies. This training empowers employees to identify and report potential cybersecurity risks and protect the Company’s resources and information.
The 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 monitoring systems. 28 • 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.
The 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.
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. The Company’s Board of Directors has ultimate oversight of cybersecurity risks, which it manages as part of the Company’ enterprise risk management program.
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.
While the Company has not, as of the date of this Form 10-K, experienced a cybersecurity threat or incident that resulted in a material adverse impact to its business or operations, 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 guarantee that the Company will not experience such an incident in the future.
This training is mandatory for all employees globally and is administered on a periodic basis, and it is supplemented by Company-wide testing initiatives, including periodic phishing tests. The Company provides specialized security training for certain employee roles. The Company also requires employees to sign confidentiality agreements, where appropriate to their role.
This training is mandatory for all employees globally and is administered on an annual basis, and it is supplemented by Company-wide testing initiatives, including periodic phishing tests. Further education is provided at operations meetings to raise awareness and educate on current topics. The Company provides specialized security training for certain employee roles.
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 team includes the Senior Director of IT Operations & Security with a certification in information security, who reports directly to the Vice President and Chief Information Officer.
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 Audit Committee assists the Board in reviewing the Company’s information security programs, including review of cybersecurity processes, procedures and safeguards.
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 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 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.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe Company’s significant operating facilities include the following locations: Location Building(s) Size (Approximate Square Feet) Owned or Leased Activity KMT Baton Rouge, Louisiana 19,300 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 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 109,700 Owned Service and repairs Houston, Texas 491,100 Owned 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 Owned Service and repairs Lodi, New Jersey 57,300 Leased Service and repairs Longview, Texas 50,000 Owned 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 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 10,200 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 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 20,300 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

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

4 edited+1 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, 2023 131,603 $ 81.16 — — November 1 — November 30, 2023 294,843 $ 76.46 — — December 1 — December 31, 2023 246,833 $ 75.63 — — Total 673,279 $ 77.08 — — Purchases of the Company's common stock during the 2023 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, 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.
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, 2023. 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, 2024. See also Note 8, Stock Award Plans to the Company’s financial statements for additional information.
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 2023 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 2024 fourth quarter.
As of February 16, 2024, the Company had 58,522,000 outstanding shares held by approximately 370 stockholders of record; however, the Company believes the number of beneficial owners of common stock exceeds this number.
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.
Added
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.

Item 7. Management's Discussion & Analysis

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

110 edited+19 added−18 removed63 unchanged
Biggest changeOther 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, 2023 2022 % Change 2021 % Change Impairments and other charges $ — $ — 0 % $ (340,713 ) (100 )% Other income $ 11,041 $ 16,677 (34 )% $ 10,001 67 % Noncontrolling interests $ 30 $ (470 ) (106 )% $ (183 ) 157 % Interest expense $ (52,008 ) $ (44,588 ) 17 % $ (42,469 ) 5 % Other Income Other income for 2023, 2022, and 2021 includes income of $4.8 million, $13.9 million and $8.2 million, respectively, for all components of net benefit costs except the service cost component related to the Company’s defined benefit plans. 41 Interest Expense The following table sets forth average debt and average interest rate (dollars in thousands): Year Ended December 31, 2023 2022 2021 Average debt $ 1,088,851 $ 1,171,317 $ 1,293,446 Average interest rate 4.7 % 3.8 % 3.2 % Interest expense for 2023 increased 17% compared to 2022, primarily due to a higher average interest rate, partially offset by a lower average debt outstanding as a result of debt repayments.
Biggest changeInterest 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.
The Company defers the drydocking expenditures incurred on its ocean-going vessels due to regulatory marine 36 inspections by the ABS and amortizes the costs of the shipyard over the period between drydockings, generally 30 or 60 months, depending on the type of major maintenance performed.
The Company defers the drydocking expenditures incurred on its ocean-going vessels due to regulatory marine inspections by the ABS and amortizes the costs of the shipyard over the period between drydockings, generally 30 or 60 months, depending on the type of major maintenance performed.
Generally, variability in demand or anticipated demand, as tank barges are added to or removed from the fleet, as chartered towboat availability changes, or as weather or water conditions dictate, the Company charters in or releases chartered towboats in an 39 effort to balance horsepower needs with current requirements.
Generally, variability in demand or anticipated demand, as tank barges are added to or removed from the fleet, as chartered towboat availability changes, or as weather or water conditions dictate, the Company charters in or releases chartered towboats in an effort to balance horsepower needs with current requirements.
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 2024. 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 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 3.29% unsecured senior notes due February 27, 2023 (the “2023 Notes”) were repaid using a combination of the proceeds from the issuance of the 2033 Notes and availability under the 2027 Revolving Credit Facility. The Company has a $10.0 million line of credit (“Credit Line”) with Bank of America, N.A.
The 3.29% unsecured senior notes due February 27, 2023 (the “2023 Notes”) were repaid using a combination of the proceeds from the issuance of the 2033 Notes and availability under the 2027 Revolving Credit Facility. The Company has a $15.0 million line of credit (“Credit Line”) with Bank of America, N.A.
Financial Statements and Supplementary Data The response to this item is submitted as a separate section of this report (see Item 15, page 78 and pages 49 to 77 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 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
Acquisitions On July 14, 2023, the Company purchased 23 inland tank barges with a total capacity of 265,000 barrels from an undisclosed seller for $37 million in cash. The 23 tank barges transport petrochemicals and refined products on the Mississippi River System and the Gulf Intracoastal Waterway. The average age of the 23 barges was 14 years.
The average age of the 13 barges was 15 years. On July 14, 2023, the Company purchased 23 inland tank barges with a total capacity of 265,000 barrels from an undisclosed seller for $37 million in cash. The 23 tank barges transport petrochemicals and refined products on the Mississippi River System and the Gulf Intracoastal Waterway.
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 2023, 2022 or 2021.
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.
Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 for management's discussion and analysis of financial condition and results of operations for 2022 compared to 2021.
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.
The Company estimates that every 0.1% decrease in the discount rate results in an increase in the accumulated benefit obligation (“ABO”) of approximately $4.3 million. The Company assumed that plan assets would generate a long-term rate of return of 6.75% in both 2023 and 2022.
The Company estimates that every 0.1% decrease in the discount rate results in an increase in the accumulated benefit obligation (“ABO”) of approximately $4.6 million. The Company assumed that plan assets would generate a long-term rate of return of 6.75% in both 2024 and 2023.
Additionally, the Company transported volumes of Utica natural gas condensate downriver from the Mid-Atlantic to the Gulf Coast and Canadian and Bakken crude downriver from the Midwest to the Gulf Coast. The refined petroleum products market, which contributed 20% of marine transportation revenues for 2023, saw increased volumes in the inland market with improved refinery utilization and product levels.
Additionally, the Company transported volumes of Utica natural gas condensate downriver from the Mid-Atlantic to the Gulf Coast and Canadian and Bakken crude downriver from the Midwest to the Gulf Coast. The refined petroleum products market, which contributed 21% of marine transportation revenues for 2024, saw increased volumes in the inland market with improved refinery utilization and product levels.
The Company also had $8.1 million and $3.3 million of short-term unsecured loans outstanding, as of December 31, 2023 and 2022, respectively, related to its Colombia operations. As of December 31, 2023, the Company was in compliance with all covenants under its debt instruments. For additional information about the Company’s debt instruments, see Note 5, Long-Term Debt.
The Company also had $8.2 million and $8.1 million of short-term unsecured loans outstanding, as of December 31, 2024 and 2023, respectively, related to its Colombia operations. As of December 31, 2024, the Company was in compliance with all covenants under its debt instruments. For additional information about the Company’s debt instruments, see Note 5, Long-Term Debt.
Gain on Disposition of Assets The Company reported net gains on disposition of assets of $5.0 million, $8.3 million, and $5.8 million in 2023, 2022, and 2021, respectively. The net gains were predominantly from the sales or retirements of marine equipment.
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.
Delay days for 2023 and 2022 were impacted by hurricanes and tropical storms, poor operating conditions due to heavy wind and fog along the Gulf Coast, low and high water conditions on the Mississippi River System, and various lock closures along the Gulf Intracoastal Waterway, due in part to lock maintenance projects.
Delay days for 2024 and 2023 were impacted by hurricanes and tropical storms, poor operating conditions due to heavy wind and fog along the Gulf Coast, low and high water conditions on the Mississippi River System, and various lock closures, due in part to lock maintenance projects.
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 63% of the inland revenues under term contracts during 2023 and 58% in 2022.
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.
The Company’s debt outstanding as of December 31, 2023 and December 31, 2022 is detailed in Long-Term Financing below.
The Company’s debt outstanding as of December 31, 2024 and December 31, 2023 is detailed in Long-Term Financing below.
A 1% increase in variable interest rates would impact the 2023 interest expense by $2.1 million based on balances outstanding at December 31, 2023, and would change the fair value of the Company’s debt by approximately 4.0%. Ite m 8.
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.
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 $8.2 million, $0.9 million and $0.5 million for the years ended December 31, 2023, 2022 and 2021, 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 $1.7 million, $8.2 million and $0.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.
Drydocking expenditures that extend the life, improve the operating capability of the vessel, or replace significant components of the vessel result in the costs being capitalized. Routine repairs and maintenance on ocean-going vessels are expensed as incurred. Interest is capitalized on the construction of new ocean-going vessels.
Drydocking expenditures that extend the life, improve the operating capability of the vessel, or replace significant components of the vessel result in the costs being capitalized. Routine repairs and maintenance on ocean-going vessels are expensed as incurred.
The 2027 Term Loan in the amount of $250 million is subject to quarterly installments, beginning June 30, 2025, 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 $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.
During 2023, the Company transported crude oil and natural gas condensate produced from the Permian Basin and the Eagle Ford shale formation in Texas, both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of Mexico with coastal equipment.
During 2024, the Company transported crude oil and natural gas condensate produced from the Permian Basin and the Eagle Ford shale formation in Texas, both along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of America with coastal equipment.
The 2027 Term Loan is repayable in quarterly installments, with no repayments until June 30, 2025, 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 prepayment. The 2027 Term Loan is prepayable, in whole or in part, without penalty.
Marine Transportation The following table summarizes the Company’s marine transportation fleet: December 31, 2023 2022 Inland tank barges: Owned 1,043 999 Leased 33 38 Total 1,076 1,037 Barrel capacity (in millions) 23.7 23.1 Active inland towboats (quarter average): Owned 214 216 Chartered 67 61 Total 281 277 Coastal tank barges: Owned 28 28 Leased — 1 Total 28 29 Barrel capacity (in millions) 2.9 3.0 Coastal tugboats: Owned 24 24 Chartered 1 3 Total 25 27 Offshore dry-bulk cargo barges (owned) 4 4 Offshore tugboats and docking tugboat (owned and chartered) 5 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, 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.
For purposes of Management’s Discussion, all net earnings per share attributable to Kirby common stockholders are “diluted earnings (loss) per share.” The weighted average number of common shares outstanding applicable to diluted earnings (loss) per share for 2023, 2022, and 2021 were 59,857,000, 60,329,000, and 60,053,000, 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 2024, 2023, and 2022 were 58,355,000, 59,857,000, and 60,329,000, respectively.
Coastal tank barge utilization levels during 2023 averaged in the mid to high 90% range during both the 2023 first and second quarters, the mid-90% range during the 2023 third quarter and the low to mid-90% range during the 2023 fourth quarter.
Coastal tank barge utilization levels during 2024 averaged in the mid to high 90% range throughout the year. For 2023, coastal tank barge utilization levels averaged in the mid to high 90% range during both the 2023 first and second quarters, the mid-90% range during the 2023 third quarter and the low to mid-90% range during the 2023 fourth quarter.
Coastal tank barge utilization levels during 2023 averaged in the mid to high 90% range during both the 2023 first and second quarters, the mid-90% range during the 2023 third quarter, and the low to mid-90% range during the 2023 fourth quarter.
Coastal tank barge utilization levels during 2024 averaged in the mid to high 90% range throughout the year. For 2023, coastal tank barge utilization levels averaged in the mid to high 90% range during both the 2023 first and second quarters, the mid-90% range during the 2023 third quarter and the low to mid-90% range during the 2023 fourth quarter.
The Company used discount rates of 5.1% for the Kirby pension plan and 5.2% for the Higman pension plan in 2023 and 5.5% for both the Kirby pension plan and the Higman pension plan in 2022.
The Company used discount rates of 5.7% for both the Kirby pension plan and Higman pension plan in 2024 and 5.1% for the Kirby pension plan and 5.2% for the Higman pension plan in in 2023.
For 2023, 56% of the Company’s revenues were generated by KMT. The segment’s customers include many of the major petrochemical and refining companies that operate in the United States.
For 2024, 59% of the Company’s revenues were generated by KMT. The segment’s customers include many of the major petrochemical and refining companies that operate in the United States.
The aggregate fair value of plan assets of the Company’s pension plans was $375.9 million and $341.1 million at December 31, 2023, and 2022, 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 $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).
As of December 31, 2023, the Company’s pension plan funding was 115% of the pension plans’ ABO, including the Higman pension plan. The Company expects to make additional pension contributions of $1.8 million in 2024. The Company has certain mechanisms designed to help mitigate the impacts of rising costs.
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.
Effective January 1, 2023, 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%, excluding fuel. The 2023 marine transportation operating margin was 13.9% compared to 8.4% for 2022.
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. The 2024 marine transportation operating margin was 19.0% compared to 13.9% for 2023.
Effective January 1, 2023, 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%, excluding fuel. Marine Transportation Costs and Expenses Total costs and expenses for 2023 were flat compared to 2022.
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.
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, 2023 2022 Long-term debt, including current portion: Revolving Credit Facility due July 29, 2027 (a) $ 44,000 $ — Term Loan due July 29, 2027 (a) 170,000 170,000 3.29% senior notes due February 27, 2023 — 350,000 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 — Credit line due June 30, 2024 — — Bank notes payable 8,068 3,292 1,022,068 1,083,292 Unamortized debt discount and issuance costs (b) (5,473 ) (3,674 ) $ 1,016,595 $ 1,079,618 (a) Variable interest rate of 6.8% and 5.8% at December 31, 2023 and 2022, respectively.
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.
The agricultural chemical market, which contributed 3% of marine transportation revenues for 2023, also experienced improved demand for transportation of both domestically produced and imported products. Inland operations incurred 10,863 delay days in 2023, 6% more than the 10,244 delay days that occurred during 2022.
The agricultural chemical market, which contributed 3% of marine transportation revenues for 2024, also experienced improved demand for transportation of both domestically produced and imported products. Inland operations incurred 11,583 delay days in 2024, 7% more than the 10,863 delay days that occurred during 2023.
Coastal time charters represented approximately 90% of coastal revenues under term contracts during both 2023 and 2022. Term contracts have contract terms of 12 months or longer, while spot contracts have contract terms of less than 12 months.
Coastal time charters represented approximately 98% and 90% of coastal revenues under term contracts during 2024 and 2023, respectively. Term contracts have contract terms of 12 months or longer, while spot contracts have contract terms of less than 12 months.
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 2023 increased 6% compared to 2022 and operating income increased 75%, compared to 2022.
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.
The inland marine transportation fleet operated an average of 280 towboats during 2023, of which an average of 64 were chartered, compared to 271 during 2022, of which an average of 59 were chartered. The increase was primarily due to higher business activity levels.
The inland marine transportation fleet operated an average of 285 towboats during 2024, of which an average of 70 were chartered, compared to 280 during 2023, of which an average of 64 were chartered. The increase was primarily due to higher business activity levels.
(b) Excludes $1.8 million attributable to the 2027 Revolving Credit Facility included in other assets at December 31, 2022.
(b) Excludes $1.0 million attributable to the 2027 Revolving Credit Facility included in other assets at December 31, 2024.
Cash Flow and Capital Expenditures The Company generated net cash provided by operating activities of $540.2 million, $294.1 million, and $321.6 million for the years ended December 31, 2023, 2022, and 2021, respectively.
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.
Costs of sales and operating expenses for 2023 decreased 1% compared to 2022 primarily reflecting lower fuel costs which was partially offset by higher business activity levels and inflationary cost pressures.
Costs of sales and operating expenses for 2024 increased 5% compared to 2023 primarily reflecting higher business activity levels and inflationary cost pressures which was partially offset by lower fuel costs.
The Company also used $37.5 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above.
The Company also used $77.9 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above.
(Provision) Benefit for Taxes on Income Provision for taxes on income for 2023 increased 69% compared to 2022, primarily due to improved earnings before taxes on income as a result of increased business activity levels.
Provision for Taxes on Income Provision for taxes on income for 2024 increased 7% compared to 2023, primarily due to improved earnings before taxes on income as a result of increased business activity levels.
During 2023, 2022, and 2021, the Company generated cash of $26.1 million, $36.9 million, and $51.3 million, respectively, from proceeds from the disposition of assets, and $4.2 million, $3.9 million, and $0.6 million, respectively, from proceeds from the exercise of stock options.
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.
(“Bank of America”) for short-term liquidity needs and letters of credit, with a maturity date of June 30, 2024. Outstanding letters of credit under the $10.0 million credit line were $7.3 million and available borrowing capacity was $2.7 million as of December 31, 2023.
(“Bank of America”) for short-term liquidity needs and letters of credit, with a maturity date of June 30, 2026. Outstanding letters of credit under the $15.0 million credit line were $6.8 million and available borrowing capacity was $8.2 million as of December 31, 2024.
The Company has historically used chartered towboats for approximately one-fourth of its horsepower requirements. Inland operations consumed 48.1 million gallons of diesel fuel in 2023 compared to 48.4 million gallons consumed during 2022. The average price per gallon of diesel fuel consumed during 2023 was $3.08 per gallon compared to $3.70 per gallon for 2022.
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.
Inland time charters, which insulate the Company from revenue fluctuations caused by weather and navigational delays and temporary market declines, represented 63% of the inland revenues under term contracts during 2023 and 58% during 2022. During 2023 and 2022, approximately 85% and 75%, respectively, of coastal revenues were under term contracts and 15% and 25%, respectively, were under spot contracts.
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.
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, 2023 % 2022 % 2021 % Marine transportation $ 1,721,937 56 % $ 1,616,967 58 % $ 1,322,918 59 % Distribution and services 1,369,703 44 1,167,787 42 923,742 41 $ 3,091,640 100 % $ 2,784,754 100 % $ 2,246,660 100 % 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, 2023 2022 % Change 2021 % Change Marine transportation revenues $ 1,721,937 $ 1,616,967 6 % $ 1,322,918 22 % Costs and expenses: Costs of sales and operating expenses 1,136,526 1,146,657 (1 ) 924,380 24 Selling, general and administrative 134,641 128,340 5 119,017 8 Taxes, other than on income 27,602 28,235 (2 ) 30,527 (8 ) Depreciation and amortization 184,225 177,551 4 185,979 (5 ) 1,482,994 1,480,783 — 1,259,903 18 Operating income $ 238,943 $ 136,184 75 % $ 63,015 116 % Operating margins 13.9 % 8.4 % 4.8 % 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 2023 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 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 20% 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 2023 Compared to 2022 Marine Transportation Revenues KMT’s revenues for 2023 increased 6% compared to 2022 and operating income increased 75%, compared to 2022.
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, 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.
During 2022, inland tank barge utilization levels ranged from the mid-80% range during the 2022 first quarter, the low 90% range during both the 2022 second and third quarters, and the low 90% range in the 2022 fourth quarter.
During 2023, inland tank barge utilization levels ranged from the low to mid-90% range during the 2023 first quarter, the low 90% range during the 2023 second quarter, the high 80% range during the 2023 third quarter, and the low 90% range in the 2023 fourth quarter.
During 2022, inland tank barge utilization levels ranged from the mid-80% range during the 2022 first quarter, the low 90% range during both the 2022 second and third quarters, and the low 90% range in the 2022 fourth quarter.
During 2023, inland tank barge utilization levels ranged from the low to mid-90% range during the 2023 first quarter, the low 90% range during the 2023 second quarter, the high 80% range during the 2023 third quarter, and the low 90% range in the 2023 fourth quarter.
The Company also rents equipment including generators, industrial compressors, and high capacity lift trucks, and refrigeration trailers for use in a variety of industrial markets, and manufactures and remanufactures oilfield service equipment, including pressure pumping units, manufactures cementing and pumping equipment as well as coil tubing and well intervention equipment, electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems for oilfield service and railroad 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. 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 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.
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.
Selling, general and administrative expenses for 2023 increased 15% compared to 2022. The increase was primarily due to continued inflationary cost pressures, higher business activity and annual compensation increases. Depreciation and amortization for 2023 increased 18% compared to 2022. The increase was primarily due to increased capital spending during 2022 and 2023.
Selling, general and administrative expenses for 2024 increased 3% compared to 2023. The increase was primarily due to continued inflationary cost pressures and annual compensation increases. Depreciation and amortization for 2024 increased 79% compared to 2023. The increase was primarily due to increased capital spending during 2023 and 2024.
For more information about stock purchases in the 2023 fourth quarter, see Item 5 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. 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.
The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2023 compared to contracts renewed during the corresponding quarter of 2022: Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Inland market: Term increase 10% – 12% 10% – 12% 7% – 9% 7% – 9% Spot increase 23% – 26% 26% – 29% 14% – 16% 15% – 18% Coastal market (a): Term increase 10% – 12% 16% – 18% 10% – 12% 20% – 22% Spot increase 20% – 23% 25% – 28% 31% – 33% 34% – 36% (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 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 2023 compared to contracts renewed during the corresponding quarter of 2022: Three Months Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Inland market: Term increase 10% – 12% 10% – 12% 7% – 9% 7% – 9% Spot increase 23% – 26% 26% – 29% 14% – 16% 15% – 18% Coastal market (a): Term increase 10% – 12% 16% – 18% 10% – 12% 20% – 22% Spot increase 20% – 23% 25% – 28% 31% – 33% 34% – 36% (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 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.
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, 2023 2022 % Change 2021 % Change Distribution and services revenues $ 1,369,703 $ 1,167,787 17 % $ 923,742 26 % Costs and expenses: Costs of sales and operating expenses 1,040,905 913,624 14 728,855 25 Selling, general and administrative 187,424 163,642 15 141,100 16 Taxes, other than on income 7,051 6,708 5 5,607 20 Depreciation and amortization 19,842 16,776 18 20,573 (18 ) 1,255,222 1,100,750 14 896,135 23 Operating income $ 114,481 $ 67,037 71 % $ 27,607 143 % Operating margins 8.4 % 5.7 % 3.0 % The following table shows the markets serviced by the Company, the revenue distribution, and the customers for each market: Markets Serviced 2023 Revenue Distribution Customers Commercial and Industrial 59% 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, Power Generation, Standby Power Generation, Pumping Stations, Mining Oil and Gas 41% Oilfield Services, Oil and Gas Operators and Producers 40 2023 Compared to 2022 Distribution and Services Revenues KDS revenues for 2023 increased 17% compared to 2022.
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.
In addition to net cash flow provided by operating activities, as of February 16, 2024, the Company had cash equivalents of $53.4 million, availability of $381.0 million under its Revolving Credit Facility and $2.7 million available under its Credit Line.
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.
The Company received grants from various government entities totaling approximately $3.7 million in 2023 related to certain emission reduction projects and has applied for and been awarded grants totaling approximately $4 million which it expects to receive reimbursements for in late 2024 and 2025.
The Company has applied for and been awarded grants related to certain emission reduction projects totaling approximately $4 million which it expects to receive reimbursements for in 2025.
Selling, general and administrative expenses for 2023 increased 5% compared to 2022 due to higher business activity levels and inflationary cost pressures. The increase is primarily due to higher salary and wage increases effective July 1, 2023 and increased incentive compensation, partially offset by lower legal costs.
Selling, general and administrative expenses for 2024 increased 2% compared to 2023 due to higher business activity levels and inflationary cost pressures. The increase is primarily due to higher salary and wage increases, partially offset by lower legal costs. Depreciation and amortization for 2024 increased 7% compared to 2023.
Operating lease right-of-use assets as of December 31, 2023 decreased 1% compared to December 31, 2022, primarily due to lease amortization expense, partially offset by new leases acquired.
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.
The aggregate notional value of these instruments is $26.7 million at December 31, 2023, including $12.1 million in letters of credit and $14.6 million in performance bonds. All of these instruments have an expiration date within two years.
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 Company also used $3.9 million for acquisitions of businesses and marine equipment, more fully described under Acquisitions above. Treasury Stock Purchases 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.
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’s debt-to-capitalization ratio decreased to 24.2% at December 31, 2023 from 26.2% at December 31, 2022, primarily due an increase in total equity, primarily from net earnings attributable to Kirby of $222.9 million during 2023 and a reduction of debt outstanding of $63.0 million, partially offset by treasury stock purchases of $112.8 million.
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.
Total equity as of December 31, 2023 increased 5% compared to December 31, 2022, primarily due to net earnings attributable to Kirby of $222.9 million and other comprehensive income of $18.2 million for 2023, partially offset by treasury stock purchases of $112.8 million.
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.
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.
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.
Overall inland tank barge utilization levels improved in 2023 as compared to 2022, ranging from the low to mid-90% range during the 2023 first quarter, the low 90% range during the 2023 second quarter, the high 80% range during the 2023 third quarter, and the low 90% range in the 2023 fourth quarter.
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.
Overall inland tank barge utilization levels improved in 2023 as compared to 2022, ranging from the low to mid-90% range during the 2023 first quarter, the low 90% range during the 2023 second quarter, the high 80% range during the 2023 third quarter, and the low 90% range in the 2023 fourth quarter.
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.
During 2023 and 2022, approximately 85% and 75%, respectively, of coastal revenues were under term contracts and 15% and 25%, respectively, were under spot contracts. Coastal time charters represented approximately 90% of coastal revenues under term contracts during both 2023 and 2022.
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.
The 2023 third quarter was also impacted by lock closures on the Illinois River. Approximately 60% of the inland marine transportation revenues were under term contracts and 40% were under spot contracts in 2023 and 2022. Term contracts provide the operations with a reasonably predictable revenue stream.
The 2023 third quarter was also impacted by lock closures on the Illinois River. 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.
General corporate expenses were higher in 2023 compared to 2022 primarily due to higher legal and insurance costs. The 2023 first quarter also included costs related to the strategic review and shareholder engagement.
General Corporate Expenses General corporate expenses for 2024, 2023, and 2022 were $18.8 million, $23.3 million and $18.6 million, respectively. General corporate expenses were lower in 2024 compared to 2023 primarily due to lower legal and insurance costs. The 2023 first quarter also included costs related to the strategic review and shareholder engagement.
The increase reflected $411.3 million of capital additions (including accrued capital expenditures) and $37.5 million of acquisitions of barge equipment, partially offset by $203.1 million of depreciation expense and $18.1 million of property disposals, more fully described under Cash Flows and Capital Expenditures below.
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.
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, 2023 2022 % Change 2021 % Change Assets: Current assets $ 1,135,161 $ 1,211,759 (6 )% $ 1,003,865 21 % Property and equipment, net 3,861,105 3,633,462 6 3,678,515 (1 ) Operating lease right-of-use assets 152,216 154,507 (1 ) 167,730 (8 ) Investment in affiliates 2,576 2,171 19 2,134 2 Goodwill 438,748 438,748 — 438,748 — Other intangibles, net 42,927 51,463 (17 ) 60,070 (14 ) Other assets 89,464 62,814 42 48,001 31 $ 5,722,197 $ 5,554,924 3 % $ 5,399,063 3 % Liabilities and stockholders’ equity: Current liabilities $ 675,795 $ 642,197 5 % $ 543,772 18 % Long-term debt, net — less current portion 1,008,527 1,076,326 (6 ) 1,161,433 (7 ) Deferred income taxes 696,557 625,884 11 574,152 9 Operating lease liabilities — less current portion 138,811 142,140 (2 ) 159,672 (11 ) Other long-term liabilities 15,830 23,209 (32 ) 71,252 (67 ) Total equity 3,186,677 3,045,168 5 2,888,782 5 $ 5,722,197 $ 5,554,924 3 % $ 5,399,063 3 % 2023 Compared to 2022 Current assets as of December 31, 2023 decreased 6% compared to December 31, 2022.
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.
Through KDS, the Company provides after-market service and parts for engines, transmissions, reduction gears, and related equipment used in oilfield services, marine, power generation, on-highway, and other industrial applications.
In addition, the Company participates in the transportation of dry-bulk commodities in United States coastwise trade. Through 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.
Deferred income taxes as of December 31, 2023 increased 11% compared to December 31, 2022, primarily reflecting the 2023 deferred tax provision of $65.3 million. Operating lease liabilities – less current portion, as of December 31, 2023 decreased 2% compared to December 31, 2022, primarily due to lease payments made, partially offset by new leases acquired and liability accretion.
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.
During 2021, the Company purchased four inland tank barges from a leasing company for $7.5 million in cash. The Company had been leasing the barges prior to the purchase.
The average age of the 23 barges was 14 years. The Company purchased four inland tank barges from a leasing company for $0.5 million in cash during the 2023 third quarter. The Company had been leasing the barges prior to the purchase.
The operating margin was 13.9% for 2023 compared to 8.4% for 2022. The increase in operating income and operating margin were primarily due to increased barge utilization and higher term and spot contract pricing in the inland and coastal markets.
The increase in operating income and operating margin were primarily due to higher term and spot contract pricing in the inland and coastal markets.
Other long-term liabilities as of December 31, 2023 decreased 32% compared to December 31, 2022, primarily due to a decrease in pension liabilities due to pension contributions and amortization of intangible liabilities.
Other long-term liabilities as of December 31, 2024 decreased 39% compared to December 31, 2023, primarily due to a decrease in pension liabilities due to pension contributions of $1.7 million and an improved funded status.
During 2023, capital expenditures of $401.7 million included $255.4 million in KMT and $146.3 million in KDS and corporate, more fully described under cash flow and capital expenditures below. The Company projects net cash flow from operations in 2024 of between $600 million and $700 million and expects capital expenditures to range between $290 million and $330 million.
During 2024, capital expenditures of $342.7 million included $247.8 million in KMT and $94.9 million in KDS and corporate, more fully described under cash flow and capital expenditures below. The Company projects net cash flow from operations in 2025 of between $620 million and $720 million and expects capital expenditures to range between $280 million and $320 million.
For 2022, coastal tank barge utilization levels averaged in the low 90% range during both the 2022 first and second quarters and low to mid-90% range during both the 2022 third and fourth quarters. 38 The petrochemical market, the Company’s largest market, contributed 51% of marine transportation revenues for 2023, reflecting increased rates, volumes and utilization from Gulf Coast petrochemical plants as a result of improved economic conditions and a reduced supply of barges across the industry due to a heavier than normal maintenance cycle as compared to 2022.
The petrochemical market, the Company’s largest market, contributed 51% of marine transportation revenues for 2024, reflecting increased rates, volumes and utilization from Gulf Coast petrochemical plants as a result of improved economic conditions and a reduced supply of barges across the industry due to a heavier than normal maintenance cycle as compared to 2023. 38 The black oil market, which contributed 25% of marine transportation revenues for 2024, reflecting improved demand as refinery utilization and production levels of refined petroleum products and fuel oils increased.
The following table summarizes key operating results of the Company (in thousands, except per share amounts): Year Ended December 31, 2023 2022 2021 Total revenues $ 3,091,640 $ 2,784,754 $ 2,246,660 Net earnings (loss) attributable to Kirby $ 222,935 $ 122,291 $ (246,954 ) Net earnings (loss) per share attributable to Kirby common stockholders – diluted $ 3.72 $ 2.03 $ (4.11 ) Net cash provided by operating activities $ 540,228 $ 294,128 $ 321,576 Capital expenditures $ 401,730 $ 172,606 $ 98,015 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”).
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.

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