11 unchanged sentences
The Company transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge.
−Removed: 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, backup power and other industrial applications.
−Removed: 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, 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.
+Added: In addition, the Company participates in the transportation of dry-bulk commodities in United States coastwise trade.
+Added: Through KDS, the Company provides after-market services and genuine replacement parts for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and control systems, and related equipment used in oilfield services, marine, power generation, on-highway, and other industrial applications.
+Added: 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.
+Added: 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 following table summarizes key operating results of the Company (in thousands, except per share amounts):
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Total revenues
3 unchanged sentences
Capital expenditures
−Removed: The 2023 first quarter included $3.0 million before taxes, $2.4 million after taxes, or $0.04 per share of costs related to 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 the refund from the IRS.
−Removed: Cash provided by operating activities for the 2024 first nine months increased in comparison to the 2023 first nine months primarily due to higher business activity levels.
−Removed: For the 2024 first nine months, capital expenditures of $246.0 million included $182.6 million in KMT and $63.4 million in KDS and corporate, each more fully described under Cash Flow and Capital Expenditures below.
+Added: Cash provided by operating activities for the 2025 first quarter decreased in comparison to the 2024 first quarter primarily due to unfavorable working capital changes.
+Added: This was related to an increase in inventories in the first quarter of 2025 due to the impact of supply delays in KDS resulting in the buildup of inventory for projects, mainly due to power generation orders, that are scheduled to be delivered later in 2025, partially offset by increased net earnings.
+Added: For the 2025 first quarter, capital expenditures of $78.7 million included $61.8 million in KMT and $16.9 million in KDS and corporate, each more fully described under Cash Flow and Capital Expenditures below.
The Company projects that capital expenditures for 2025 will be in the $280 million to $320 million range.
1 unchanged sentence
Approximately $100 million is associated with growth capital spending in both segments.
−Removed: The Company’s debt-to-capitalization ratio decreased to 22.9% at September 30, 2024 compared to 24.2% at December 31, 2023.
−Removed: Total equity increased as of September 30, 2024 as compared to December 31, 2023 primarily from net earnings attributable to Kirby of $243.9 million, partially offset by treasury stock purchases of $141.3 million.
−Removed: The Company’s debt outstanding as of September 30, 2024 and December 31, 2023 is detailed in Long-Term Financing below.
+Added: The Company’s debt-to-capitalization ratio increased to 24.8% at March 31, 2025 compared to 20.7% at December 31, 2024, primarily due to an increase in debt outstanding.
+Added: Total equity at March 31, 2025 decreased as compared to December 31, 2024 primarily from treasury stock purchases of $101.5 million, partially offset by net earnings attributable to Kirby of $76.0 million.
+Added: The Company’s debt outstanding as of March 31, 2025 and December 31, 2024 is detailed in Long-Term Financing below.
Marine Transportation
−Removed: For the 2024 third quarter and first nine months, KMT generated 58% and 59%, respectively, of the Company’s revenues compared to 56% and 55%, respectively, for the 2023 third quarter and first nine months.
+Added: For the 2025 first quarter, KMT generated 61% of the Company’s revenues compared to 59% for the 2024 first quarter.
The segment’s customers include many of the major petrochemical and refining companies that operate in the United States.
2 unchanged sentences
The following table summarizes the Company’s marine transportation fleet:
−Removed: September 30,
Inland tank barges:
8 unchanged sentences
Furthermore, the Company owns a two-thirds interest in Osprey Line, L.L.C., which transports project cargoes and cargo containers by barge.
−Removed: During the 2024 first nine months, the Company brought back into service four inland tank barges, purchased 13 inland tank barges, purchased five newly constructed inland tank barges, and retired three inland tank barges, increasing its capacity by approximately 0.5 million barrels.
−Removed: KMT revenues for the 2024 third quarter and first nine months increased 13% and 14%, respectively, and operating income increased 57% and 62%, respectively, compared to the 2023 third quarter and first nine months.
−Removed: The increase in revenues was primarily due to higher term and spot pricing in the inland and coastal markets.
−Removed: The 2024 second and third quarters were modestly impacted by weather and lock delays.
−Removed: The 2023 third quarter was impacted by lower tank barge utilization as a result of Illinois River lock closures and several refinery outages, as well as lower fuel rebills in the inland market.
+Added: During the 2025 first quarter, the Company purchased 14 inland tank barges, chartered five inland tank barges, and retired two inland tank barges, increasing its capacity by approximately 0.4 million barrels.
+Added: KMT revenues for the 2025 first quarter were flat and operating income increased 4% compared to the 2024 first quarter.
+Added: Revenues were flat in the 2025 first quarter as compared to the 2024 first quarter as higher term and spot market pricing in the inland and coastal markets was offset by lower fuel rebills in both markets and increased shipyards in the coastal market as compared to the 2024 first quarter.
+Added: The increase in operating income for the 2025 first quarter was primarily due to higher term and spot pricing in the inland and coastal markets, partially offset by higher levels of planned coastal shipyards and increased inland delay days in the 2025 first quarter.
The 2025 and 2024 first quarters were impacted by poor operating conditions including seasonal wind and fog along the Gulf Coast and various lock closures.
−Removed: For both the 2024 third quarter and first nine months, the inland tank barge fleet contributed 81% and the coastal fleet contributed 19% of KMT revenues.
−Removed: For both the 2023 third quarter and first nine months, the inland tank barge fleet contributed 82% and the coastal fleet contributed 18% of KMT revenues.
−Removed: Inland tank barge utilization levels averaged in the low to mid-90% range during both the 2024 first and second quarters, and the 90% range during the 2024 third quarter.
−Removed: Inland tank barge utilization levels averaged in the low to mid-90% range during the 2023 first quarter, the low 90% range during the 2023 second quarter, and the high 80% range during the 2023 third quarter.
−Removed: The 2024 second and third quarters were modestly impacted by weather and lock closures.
−Removed: The 2023 third quarter was impacted by Illinois River lock closures and several refinery outages.
+Added: For the 2025 first quarter, the inland tank barge fleet contributed 82% and the coastal fleet contributed 18% of KMT revenues.
+Added: For the 2024 first quarter, the inland tank barge fleet contributed 81% and the coastal fleet contributed 19% of KMT revenues.
+Added: Inland tank barge utilization levels averaged in the low to mid-90% range during both the 2025 and 2024 first quarters.
The 2025 and 2024 first quarters were impacted by high winds and heavy fog along the Gulf Coast and lock delays.
−Removed: Coastal tank barge utilization levels averaged in the mid to high 90% range during the 2024 first, second and third quarters.
−Removed: Coastal tank barge utilization levels averaged in the mid to high 90% range during both the 2023 first and second quarters, and the mid-90% range during the 2023 third quarter.
−Removed: During both the 2024 third quarter and first nine months, approximately 65% of KMT inland revenues were under term contracts and 35% were spot contract revenues.
−Removed: During both the 2023 third quarter and first nine months, approximately 55% of KMT inland revenues were under term contracts and 45% were spot contract revenues.
−Removed: Inland time charters during the 2024 third quarter and first nine months represented approximately 62% and 61%, respectively, of inland revenues under term contracts compared with 66% and 63% in the 2023 third quarter and first nine months, respectively.
−Removed: During the 2024 third quarter and first nine months, approximately 99% and 98%, respectively, of KMT coastal revenues were under term contracts and 1% and 2%, respectively, were under spot contracts.
−Removed: During the 2023 third quarter and first nine months, approximately 90% and 85%, respectively, of KMT coastal revenues were under term contracts and 10% and 15%, respectively, were under spot contracts.
−Removed: Coastal time charters represented approximately 99% and 98% of coastal revenues under term contracts during the 2024 third quarter and first nine months, respectively, compared to 90% during both the 2023 third quarter and first nine months.
+Added: Coastal tank barge utilization levels averaged in the mid to high 90% range during both the 2025 and 2024 first quarters.
+Added: During the 2025 first quarter, approximately 70% of KMT inland revenues were under term contracts and 30% were spot contract revenues.
+Added: During the 2024 first quarter, approximately 65% of KMT inland revenues were under term contracts and 35% were spot contract revenues.
+Added: Inland time charters during the 2025 first quarter represented approximately 61% of inland revenues under term contracts compared with 62% in the 2024 first quarter.
+Added: During the 2025 first quarter, approximately 100% of KMT coastal revenues were under term contracts and none were under spot contracts.
+Added: During the 2024 first quarter, approximately 96% of KMT coastal revenues were under term contracts and 4% were under spot contracts.
+Added: Coastal time charters represented approximately 100% of coastal revenues under term contracts during the 2025 first quarter compared to 98% during the 2024 first quarter.
Term contracts have contract terms of 12 months or longer, while spot contracts have contract terms of less than 12 months.
2 unchanged sentences
March 31, 2025
−Removed: June 30, 2024
−Removed: September 30, 2024
Inland market:
5 unchanged sentences
(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.
−Removed: 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.
−Removed: KMT operating margin was 20.5% and 19.2% for the 2024 third quarter and first nine months, respectively, compared to 14.8% and 13.5% for the 2023 third quarter and first nine months, respectively.
+Added: Effective January 1, 2025, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts in the 3% to 5% range, excluding fuel.
+Added: KMT operating margin was 18.2% for the 2025 first quarter compared to 17.5% for the 2024 first quarter.
Distribution and Services
−Removed: KDS sells genuine replacement parts, provides service mechanics to overhaul and repair engines, transmissions, reduction gears and related oilfield services equipment, rebuilds component parts or entire diesel engines, transmissions and reduction gears, and related equipment used in oilfield services, marine, power generation, on-highway, backup power and other industrial applications.
−Removed: The Company also rents equipment including generators, industrial compressors, high capacity lift trucks, and refrigeration trailers for use in a variety of industrial markets, manufactures and remanufactures oilfield service equipment, including pressure pumping units, and manufactures cementing and pumping equipment as well as coil tubing and well intervention equipment, electric power generation equipment, and specialized electric distribution and control equipment.
−Removed: For the 2024 third quarter and first nine months, KDS generated 42% and 41%, respectively, of the Company’s revenues, of which 85% and 80%, respectively, were generated from service and parts and 15% and 20%, respectively, from manufacturing.
+Added: The Company, through KDS, provides after-market services and genuine replacement parts for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and control systems, and related equipment used in oilfield services, marine, power generation, on-highway, and other industrial applications.
+Added: 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.
+Added: 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.
+Added: For the 2025 first quarter, KDS generated 39% of the Company’s revenues, of which 88% were generated from service and parts and 12% from manufacturing.
The results of KDS are largely influenced by the economic cycles of the oil and gas, marine, power generation, on-highway, and other related industrial markets.
−Removed: KDS revenues for the 2024 third quarter and first nine months increased 3% and decreased 1%, respectively, and operating income decreased 8% and 5%, respectively, compared with the 2023 third quarter and first nine months.
−Removed: In the commercial and industrial market, revenues and operating income increased compared to the 2023 third quarter and first nine months, as higher business levels in marine repair were partially offset by lower on-highway activity.
−Removed: For the 2024 third quarter and first nine months, the commercial and industrial market contributed 47% and 46%, respectively, of KDS revenues.
−Removed: In the power generation market, revenues and operating income decreased compared to the 2023 third quarter as delays in power generation equipment for oil and gas impacted 2024 third quarter results.
−Removed: Revenues and operating income in the power generation market increased compared to the 2023 first nine months with several large project awards from data center customers as well as other backup power industrial customers.
−Removed: For the 2024 third quarter and first nine months, the power generation market contributed 32% and 35%, respectively, of KDS revenues.
−Removed: In the oil and gas market, revenues increased and operating income declined compared to the 2023 third quarter as deliveries of electric fracturing equipment were partially offset by lower levels of conventional oilfield activity which resulted in decreased demand for new transmissions and parts.
−Removed: Revenues and operating income in the oil and gas market decreased compared to the 2023 first nine months due to lower levels of conventional oilfield activity, partially offset by deliveries of electric fracturing equipment.
−Removed: For the 2024 third quarter and first nine months, the oil and gas market contributed 21% and 19%, respectively, of KDS revenues.
−Removed: KDS operating margin was 8.8% and 8.0% for the 2024 third quarter and first nine months, respectively, compared to 9.9% and 8.4% for the 2023 third quarter and first nine months, respectively.
+Added: KDS revenues for the 2025 first quarter decreased 7% and operating income increased 3% compared with the 2024 first quarter.
+Added: In the commercial and industrial market, revenues and operating income increased compared to the 2024 first quarter as higher business levels in marine repair were partially offset by lower on-highway activity.
+Added: For the 2025 first quarter, the commercial and industrial market contributed 52% of KDS revenues.
+Added: In the power generation market, revenues and operating income decreased compared to the 2024 first quarter as deferred deliveries of equipment due to supply delays impacted 2025 first quarter results.
+Added: For the 2025 first quarter, the power generation market contributed 34% of KDS revenues.
+Added: In the oil and gas market, revenues decreased and operating income increased compared to the 2024 first quarter with revenues impacted by lower levels of conventional oilfield activity which resulted in decreased demand for new transmissions and parts, partially offset by deliveries of electric fracturing equipment.
+Added: Operating income increased in the 2025 first quarter as compared to the 2024 first quarter due to product mix and ongoing cost management initiatives.
+Added: For the 2025 first quarter, the oil and gas market contributed 14% of KDS revenues.
+Added: KDS operating margin was 7.3% for the 2025 first quarter compared to 6.6% for the 2024 first quarter.
Overall, the Company expects to deliver improved financial results in 2025.
−Removed: In KMT, barge utilization and customer demand remain strong, and rates continue to increase.
−Removed: In KDS, demand for products and services remains steady, and the Company continues to receive new orders in manufacturing.
−Removed: The Company remains mindful of the ever-changing economic landscape related to the impact of continued high interest rates, and possible recessionary headwinds as it moves through 2024 and into 2025.
−Removed: In the inland marine transportation market, the Company’s outlook for the fourth quarter of 2024 anticipates continued positive market dynamics with limited new barge construction in the industry and normal seasonal weather impacts and steady demand with slightly lower refinery utilization.
−Removed: With these market conditions, the Company expects its barge utilization rates to remain around the 90% range throughout the remainder of the year and continued improvement in term contract pricing as renewals occur during the final quarter of the year.
−Removed: In coastal marine, market conditions remain favorable with supply and demand in balance across the industry fleet.
−Removed: Steady customer demand is expected to continue in the fourth quarter with barge utilization in the mid-90% range.
−Removed: Coastal marine is expected to be impacted by a number of planned shipyards in the fourth quarter.
−Removed: In the distribution and services segment, the Company anticipates the 2024 fourth quarter will see near-term variability in equipment deliveries due to uncertainty from supply issues, some customer maintenance deferrals, and lower overall levels of activity in oil and gas.
−Removed: In oil and gas, activity levels are lower but have been stabilizing at these lower levels.
−Removed: In commercial and industrial, the demand outlook in marine repair remains steady while on-highway service and repair is somewhat weak in the current environment.
−Removed: In power generation, the Company anticipates continued strong growth in orders as data center demand and the need for backup power is very strong.
−Removed: The Company does anticipate extended lead times for certain OEM products to continue contributing to a volatile delivery schedule of new products in the fourth quarter and into 2025.
+Added: In KMT, barge utilization and customer demand remain favorable and rates continue to increase.
+Added: In KDS, growth in the power generation market is expected to mostly offset softness in oil and gas markets, and the on-highway service and repair business due to the ongoing trucking recession.
+Added: The Company remains mindful of the ever-changing economic landscape related to the possible impact of high interest rates, tariffs and possible recessionary headwinds as it moves through 2025.
+Added: In the inland marine transportation market in 2025, the Company anticipates positive market dynamics due to limited new barge construction.
+Added: The Company expects barge utilization rates to remain steady for the year with continued improvement in term contract pricing as renewals occur throughout the year.
+Added: However, the Company continues to see inflationary pressures and there remains an acute mariner shortage in the industry which continues to drive up labor costs.
+Added: These pressures, along with the increasing cost of equipment, should continue to put upward pressure on spot and term contract prices.
+Added: In the coastal marine transportation market in 2025, market conditions remain very favorable with steady customer demand.
+Added: This is expected to keep barge utilization at high levels with improved rates as the availability of equipment is limited across the industry given there are currently no new ATBs under construction.
+Added: The Company expects mixed results in KDS in 2025 as near-term volatility from supply issues, customers deferring maintenance, and lower overall levels of activity in the oil and gas market are partially offset by increased orders in the power generation market.
+Added: In commercial and industrial, the demand outlook in marine repair remains steady while on-highway service and repair remains soft.
+Added: In power generation, the Company anticipates continued strong growth in orders as data center demand and the need for backup power continues to be strong.
+Added: In oil and gas, the Company expects revenues to be down as the transition from conventional diesel hydraulic fracturing to electric hydraulic fracturing continues to take place.
+Added: The Company anticipates extended lead times and supply delays for certain original equipment manufacturer products to continue throughout 2025.
+Added: On March 27, 2025, the Company purchased 14 inland tank barges with a total capacity of 364,000 barrels, including four specialty barges, and four high horsepower towboats from an undisclosed seller for $97.3 million in cash.
+Added: The 14 tank barges, including four specialty barges, transport petrochemicals and refined products on the Mississippi River System and Gulf Intracoastal Waterway.
+Added: The average age of the 14 barges was 16 years.
+Added: On December 31, 2024, the Company purchased an inland tank barge from a leasing company for $2.7 million in cash.
+Added: The Company had been leasing the barge prior to purchase.
+Added: On December 30, 2024, the Company purchased three inland tank barges from an undisclosed seller for $9.9 million in cash.
On May 15, 2024, the Company completed the purchase of 13 inland tank barges, with a total capacity of 347,000 barrels, and two high horsepower towboats from an undisclosed seller for $65.2 million in cash.
1 unchanged sentence
The average age of the 13 barges was 15 years.
−Removed: Financing of the equipment acquisition was through borrowings under the Company’s revolving credit facility.
−Removed: 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.
−Removed: The 23 tank barges transport petrochemicals and refined products on the Mississippi River System and the Gulf Intracoastal Waterway.
−Removed: The average age of the 23 barges was 14 years.
−Removed: Financing of the equipment acquisition was through borrowings under the Company’s revolving credit facility.
−Removed: The Company purchased four inland tank barges from a leasing company for $0.5 million in cash during the 2023 third quarter.
−Removed: The Company had been leasing the barges prior to the purchase.
−Removed: Financing of the equipment acquisition was through borrowings under the Company’s revolving credit facility.
+Added: Financing of these purchases was through borrowings under the Company’s 2027 Revolving Credit Facility and cash provided by operating activities.
Results of Operations
The following table sets forth the Company’s KMT and KDS revenues and the percentage of each to total revenues (dollars in thousands):
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Marine transportation
2 unchanged sentences
The following table sets forth KMT revenues, costs and expenses, operating income, and operating margin (dollars in thousands):
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Marine transportation revenues
8 unchanged sentences
The following table shows the marine transportation markets serviced by the Company, KMT revenue distribution, products moved and the drivers of the demand for the products the Company transports:
−Removed: 2024 Third Quarter
−Removed: 2024 Nine Months
+Added: 2025 Three Months
Products Moved
11 unchanged sentences
Corn, Cotton and Wheat Production, Chemical Feedstock Usage
−Removed: KMT revenues for the 2024 third quarter and first nine months increased 13% and 14%, respectively, and operating income increased 57% and 62%, respectively, compared to the 2023 third quarter and first nine months.
−Removed: The increase in revenues for the 2024 third quarter and first nine months was primarily due to higher term and spot pricing in the inland and coastal markets.
−Removed: The 2024 second and third quarters were modestly impacted by weather and lock delays.
−Removed: The 2023 third quarter was impacted by lower tank barge utilization as a result of Illinois River lock closures and several refinery outages, as well as lower fuel rebills in the inland market.
+Added: KMT revenues for the 2025 first quarter were flat and operating income increased 4% compared to the 2024 first quarter.
+Added: Revenues were flat in the 2025 first quarter as compared to the 2024 first quarter as higher term and spot market pricing in the inland and coastal markets was offset by lower fuel rebills in both markets and increased shipyards in the coastal market as compared to the 2024 first quarter.
+Added: The increase in operating income for the 2025 first quarter was primarily due to higher term and spot pricing in the inland and coastal markets, partially offset by higher levels of planned coastal shipyards and increased inland delay days in the 2025 first quarter.
The 2025 and 2024 first quarters were impacted by poor operating conditions including seasonal wind and fog along the Gulf Coast and various lock closures.
−Removed: For both the 2024 third quarter and first nine months, the inland tank barge fleet contributed 81% and the coastal
−Removed: fleet contributed 19% of KMT revenues.
−Removed: For both the 2023 third quarter and first nine months, the inland tank barge fleet contributed 82% and the coastal fleet contributed 18% of KMT revenues.
−Removed: Inland tank barge utilization levels averaged in the low to mid-90% range during both the 2024 first and second quarters, and the 90% range during the 2024 third quarter.
−Removed: Inland tank barge utilization levels averaged in the low to mid-90% range during the 2023 first quarter, the low 90% range during the 2023 second quarter, and the high 80% range during the 2023 third quarter.
−Removed: The 2024 second and third quarters were modestly impacted by weather and lock closures.
−Removed: The 2023 third quarter was impacted by Illinois River lock closures and several refinery outages.
+Added: For the 2025 first quarter, the inland tank barge fleet contributed 82% and the coastal fleet contributed 18% of KMT revenues.
+Added: For the 2024 first quarter, the inland tank barge fleet contributed 81% and the coastal fleet contributed 19% of KMT revenues.
+Added: Inland tank barge utilization levels averaged in the low to mid-90% range during both the 2025 and 2024 first quarters.
The 2025 and 2024 first quarters were impacted by high winds and heavy fog along the Gulf Coast and lock delays.
−Removed: Coastal tank barge utilization levels averaged in the mid to high 90% range during the 2024 first, second and third quarters.
−Removed: Coastal tank barge utilization levels averaged in the mid to high 90% range during both the 2023 first and second quarters, and the mid-90% range during the 2023 third quarter.
−Removed: The petrochemical market, which is the Company’s largest market, contributed 52% and 51% of KMT revenues for the 2024 third quarter and first nine months, respectively, 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 the 2023 third quarter and first nine months.
−Removed: The black oil market, which contributed 25% of KMT revenues for both the 2024 third quarter and first nine months reflected stable demand as refinery utilization and production levels of refined petroleum products and fuel oils increased.
−Removed: During the 2024 first nine months, the Company transported crude oil and natural gas condensate produced from major U.S.
−Removed: shale basins along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of Mexico with coastal equipment.
+Added: Coastal tank barge utilization levels averaged in the mid to high 90% range during both the 2025 and 2024 first quarters.
+Added: The petrochemical market, which is the Company’s largest market, contributed 50% of KMT revenues for the 2025 first quarter reflecting steady rates, volumes and utilization from Gulf Coast petrochemical plants as compared to the 2024 first quarter.
+Added: The black oil market, which contributed 25% of KMT revenues for the 2025 first quarter reflected stable demand as refinery utilization and production levels of refined petroleum products and fuel oils increased.
+Added: During the 2025 first quarter, the Company transported crude oil and natural gas condensate produced from major U.S.
+Added: shale basins along the Gulf Intracoastal Waterway with inland vessels and in the Gulf of America with coastal equipment.
Additionally, the Company transported volumes of Utica natural gas condensate downriver from the Mid-Atlantic to the Gulf Coast.
−Removed: The refined petroleum products market, which contributed 21% of KMT revenues for both the 2024 third quarter and first nine months, reflected stable volumes in the inland market with steady refinery utilization and product levels as compared to the 2023 third quarter and first nine months.
−Removed: The agricultural chemical market, which contributed 2% and 3% of KMT revenues for the 2024 third quarter and first nine months, respectively, reflected stable demand for transportation of both domestically produced and imported products as compared to the 2023 third quarter and first nine months.
−Removed: For the 2024 third quarter, inland operations incurred 2,061 delay days, 33% more than the 1,548 delay days that occurred during the 2023 third quarter.
−Removed: For the 2024 first nine months, inland operations incurred 8,902 delay days, 11% more than the 7,990 delay days that occurred during the 2023 first nine months.
+Added: The refined petroleum products market, which contributed 22% of KMT revenues for the 2025 first quarter, reflected stable volumes in the inland market with steady refinery utilization and product levels as compared to the 2024 first quarter.
+Added: The agricultural chemical market, which contributed 3% of KMT revenues for the 2025 first quarter reflected stable demand for transportation of both domestically produced and imported products as compared to the 2024 first quarter.
+Added: For the 2025 first quarter, inland operations incurred 4,029 delay days, 15% more than the 3,507 delay days that occurred during the 2024 first quarter.
Delay days measure the lost time incurred by a tow (towboat and one or more tank barges) during transit when the tow is stopped due to weather, lock conditions, or other navigational factors.
−Removed: Delay days reflected the modest impact of weather and lock delays during the 2024 second and third quarters, Illinois River lock closures during the 2023 third quarter, and poor operating conditions due to heavy wind and fog along the Gulf Coast and lock delays during the 2024 and 2023 first quarters.
−Removed: During both the 2024 third quarter and first nine months, approximately 65% of KMT inland revenues were under term contracts and 35% were spot contract revenues.
−Removed: During both the 2023 third quarter and first nine months, approximately 55% of KMT inland revenues were under term contracts and 45% were spot contract revenues.
−Removed: Inland time charters during the 2024 third quarter and first nine months represented approximately 62% and 61%, respectively, of inland revenues under term contracts compared with 66% and 63% in the 2023 third quarter and first nine months, respectively.
−Removed: During the 2024 third quarter and first nine months, approximately 99% and 98%, respectively, of KMT coastal revenues were under term contracts and 1% and 2%, respectively, were under spot contracts.
−Removed: During the 2023 third quarter and first nine months, approximately 90% and 85%, respectively, of KMT coastal revenues were under term contracts and 10% and 15%, respectively, were under spot contracts.
−Removed: Coastal time charters represented approximately 99% and 98% of coastal revenues under term contracts during the 2024 third quarter and first nine months, respectively, compared to 90% during both the 2023 third quarter and first nine months.
+Added: Delay days reflected poor operating conditions due to heavy wind and fog along the Gulf Coast and lock delays during the 2025 and 2024 first quarters.
+Added: During the 2025 first quarter, approximately 70% of KMT inland revenues were under term contracts and 30% were spot contract revenues.
+Added: During the 2024 first quarter, approximately 65% of KMT inland revenues were under term contracts and 35% were spot contract revenues.
+Added: Inland time charters during the 2025 first quarter represented approximately 61% of inland revenues under term contracts compared with 62% in the 2024 first quarter.
+Added: During the 2025 first quarter, approximately 100% of KMT coastal revenues were under term contracts and none were under spot contracts.
+Added: During the 2024 first quarter, approximately 96% of KMT coastal revenues were under term contracts and 4% were under spot contracts.
+Added: Coastal time charters represented approximately 100% of coastal revenues under term contracts during the 2025 first quarter compared to 98% during the 2024 first quarter.
Term contracts have contract terms of 12 months or longer, while spot contracts have contract terms of less than 12 months.
2 unchanged sentences
March 31, 2025
−Removed: June 30, 2024
−Removed: September 30, 2024
Inland market:
5 unchanged sentences
(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.
−Removed: 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.
+Added: Effective January 1, 2025, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts in the 3% to 5% range, excluding fuel.
Marine Transportation Costs and Expenses
−Removed: Costs and expenses for both the 2024 third quarter and first nine months increased 6% compared to the 2023 third quarter and first nine months.
−Removed: Costs of sales and operating expenses for the 2024 third quarter and first nine months increased 6% and 7%, respectively, compared with the 2023 third quarter and first nine months.
−Removed: The increase during the 2024 third quarter and first nine months was driven by higher levels of business activity and continued inflationary cost pressures, partially offset by lower fuel costs.
−Removed: The inland marine transportation fleet operated an average of 287 towboats during the 2024 third quarter, of which an average of 71 were chartered, compared to 274 during the 2023 third quarter, of which an average of 55 were chartered.
+Added: Costs and expenses for both the 2025 first quarter decreased 1% compared to the 2024 first quarter.
+Added: Costs of sales and operating expenses for the 2025 first quarter decreased 3% compared with the 2024 first quarter.
+Added: The decrease during the 2025 first quarter was driven by lower fuel costs, partially offset by inflationary cost pressures including wage increases that went into effect in 2024.
+Added: The inland marine transportation fleet operated an average of 291 towboats during the 2025 first quarter, of which an average of 76 were chartered, compared to 286 during the 2024 first quarter, of which an average of 72 were chartered.
The Company charters in or releases chartered towboats in an effort to balance horsepower needs with current requirements, taking into account variability in demand or anticipated demand, addition or removal of tank barges from the fleet, chartered towboat availability, and weather or water conditions.
The Company has historically used chartered towboats for approximately one-fourth of its horsepower requirements.
−Removed: During the 2024 third quarter, inland operations consumed 11.3 million gallons of diesel fuel compared to 11.6 million gallons consumed during the 2023 third quarter.
−Removed: The average price per gallon of diesel fuel consumed during the 2024 third quarter was $2.65 per gallon compared with $2.71 per gallon for the 2023 third quarter.
−Removed: During the 2024 first nine months, inland operations consumed 35.3 million gallons of diesel fuel compared to 35.9 million gallons consumed during the 2023 first nine months.
−Removed: The average price per gallon of diesel fuel consumed during the 2024 first nine months was $2.77 per gallon compared with $2.97 per gallon for the 2023 first nine months.
+Added: During the 2025 first quarter, inland operations consumed 11.7 million gallons of diesel fuel compared to 11.9 million gallons consumed during the 2024 first quarter.
+Added: The average price per gallon of diesel fuel consumed during the 2025 first quarter was $2.57 per gallon compared with $2.82 per gallon for the 2024 first quarter.
Fuel escalation and de-escalation clauses are typically included in term contracts and are designed to rebate fuel costs when prices decline and recover additional fuel costs when fuel prices rise;
1 unchanged sentence
Spot contracts do not have escalators for fuel.
−Removed: Selling, general and administrative expenses for the 2024 third quarter and first nine months increased 3% and 2%, respectively, compared to the 2023 third quarter and first nine months.
−Removed: The increase in selling, general and administrative expenses for the 2024 third quarter and first nine months as compared to the 2023 third quarter and first nine months was primarily due to higher business activity levels and continued inflationary cost pressures, which was partially offset by lower legal costs.
−Removed: Both the 2024 third quarter and first nine months were also impacted by salary and wage increases that went into effect July 1, 2024.
+Added: Selling, general and administrative expenses for the 2025 first quarter increased 9% compared to the 2024 first quarter.
+Added: The increase in selling, general and administrative expenses for the 2025 first quarter as compared to the 2024 first quarter was primarily due to salary and wage increases that went into effect on July 1, 2024, continued inflationary cost pressures, and an increase in the provision for credit losses related to a certain customer.
Marine Transportation Operating Income and Operating Margin
−Removed: KMT operating income for the 2024 third quarter and first nine months increased 57% and 62%, respectively, compared with the 2023 third quarter and first nine months.
−Removed: The 2024 third quarter operating margin was 20.5% compared with 14.8% for the 2023 third quarter.
−Removed: The 2024 first nine months operating margin was 19.2% compared with 13.5% for the 2023 first nine months.
−Removed: The increases in operating income and operating margin were primarily due to higher term and spot contract pricing in the inland and coastal markets as a result of improving business activity levels, high utilization and a reduced supply of barges across the industry due to a heavier than normal maintenance cycle.
+Added: KMT operating income for the 2025 first quarter increased 4% compared with the 2024 first quarter.
+Added: The 2025 first quarter operating margin was 18.2% compared with 17.5% for the 2024 first quarter.
+Added: The increases in operating income and operating margin were primarily due to higher term and spot contract pricing in the inland and coastal markets, partially offset by higher levels of planned coastal shipyards and increased inland delay days in the 2025 first quarter.
Distribution and Services
The following table sets forth KDS revenues, costs and expenses, operating income, and operating margin (dollars in thousands):
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Distribution and services revenues
9 unchanged sentences
Markets Serviced
−Removed: 2024 Third Quarter
−Removed: 2024 Nine Months
+Added: 2025 Three Months
Commercial and Industrial
3 unchanged sentences
Oilfield Services, Oil and Gas Operators and Producers
−Removed: KDS revenues for the 2024 third quarter and first nine months increased 3% and decreased 1%, respectively, compared to the 2023 third quarter and first nine months.
−Removed: In the commercial and industrial market, revenues increased compared to the 2023 third quarter and first nine months, as higher business levels in marine repair were partially offset by lower on-highway activity.
−Removed: Operating income in the commercial and industrial market was up compared to the 2023 third quarter and first nine months mainly due to sales mix.
−Removed: In the power generation market, revenues and operating income decreased compared to the 2023 third quarter as delays in power generation equipment for oil and gas impacted 2024 third quarter results.
−Removed: Revenues and operating income in the power generation market increased compared to the 2023 first nine months with several large project awards from data center customers as well as other backup power industrial customers.
−Removed: In the oil and gas market, revenues increased and operating income declined compared to the 2023 third quarter as deliveries of electric fracturing equipment were offset by lower levels of conventional oilfield activity which resulted in decreased demand for new transmissions and parts.
−Removed: Revenues and operating income in the oil and gas market decreased compared to the 2023 first nine months due to lower levels of conventional oilfield activity, partially offset by deliveries of electric fracturing equipment.
+Added: KDS revenues for the 2025 first quarter decreased 7% compared to the 2024 first quarter.
+Added: In the commercial and industrial market, revenues and operating income increased compared to the 2024 first quarter as higher business levels in marine repair were partially offset by lower on-highway activity.
+Added: In the power generation market, revenues and operating income decreased compared to the 2024 first quarter as deferred deliveries of equipment due to supply delays impacted 2025 first quarter results.
+Added: In the oil and gas market, revenues decreased compared to the 2024 first quarter due to lower levels of conventional oilfield activity which resulted in decreased demand for new transmissions and parts, partially offset by deliveries of electric fracturing equipment.
+Added: Oil and gas operating income increased compared to the 2024 first quarter due to product mix and ongoing cost management initiatives.
Distribution and Services Costs and Expenses
−Removed: Costs and expenses for the 2024 third quarter and first nine months increased 4% and were flat, respectively, compared with the 2023 third quarter and first nine months.
−Removed: Costs of sales and operating expenses for the 2024 third quarter and first nine months increased 2% and decreased 3%, respectively, compared with the 2023 third quarter and first nine months, reflecting deliveries of electric fracturing equipment and lower on-highway and conventional oilfield activity.
−Removed: Selling, general and administrative expenses for the 2024 third quarter and first nine months increased 9% and 5%, respectively, compared to the 2023 third quarter and first nine months, primarily due to continued inflationary cost pressures and salary and wage increases that went into effect July 1, 2024.
−Removed: Depreciation and amortization for the 2024 third quarter and first nine months increased 78% and 86%, respectively, compared to the 2023 third quarter and first nine months.
−Removed: The increase was primarily due to capital additions during the 2023 second half and 2024 first nine months including additions to the equipment rental fleet.
+Added: Costs and expenses for the 2025 first quarter decreased 8% compared with the 2024 first quarter.
+Added: Costs of sales and operating expenses for the 2025 first quarter decreased 11% compared with the 2024 first quarter, reflecting lower on-highway and conventional oilfield activity as well as deferred power generation equipment shipments due to supply delays.
+Added: Selling, general and administrative expenses for the 2025 first quarter increased 1% compared to the 2024 first quarter, reflecting salary and wage increases that went into effect July 1, 2024, partially offset by ongoing cost management initiatives.
+Added: Depreciation and amortization for the 2025 first quarter increased 32% compared to the 2024 first quarter.
+Added: The increase was primarily due to capital additions during 2024 and the first quarter of 2025 including additions to the equipment rental fleet.
Distribution and Services Operating Income and Operating Margin
−Removed: KDS operating income for the 2024 third quarter and first nine months decreased 8% and 5%, respectively, compared with the 2023 third quarter and first nine months.
−Removed: The 2024 third quarter operating margin was 8.8% compared to 9.9% for the 2023 third quarter.
−Removed: The 2024 first nine months operating margin was 8.0% compared to 8.4% for the 2023 first nine months.
−Removed: The results reflect lower on-highway and conventional oilfield activity partially offset by increased power generation in industrial end markets and marine repair activity.
−Removed: General Corporate Expenses
−Removed: General corporate expenses for the 2024 third quarter and first nine months decreased compared to the 2023 third quarter and first nine months primarily due to lower legal and insurance costs.
−Removed: The 2023 first nine months also included costs related to strategic review and shareholder engagement.
+Added: KDS operating income for the 2025 first quarter increased 3% compared with the 2024 first quarter.
+Added: The 2025 first quarter operating margin was 7.3% compared to 6.6% for the 2024 first quarter.
+Added: The results reflect increased marine repair activity and deliveries of electric fracturing equipment, partially offset by lower on-highway and conventional oilfield activity.
Gain on Disposition of Assets
−Removed: The Company reported a net gain on disposition of assets of $1.6 million for the 2024 third quarter and $1.5 million for the 2023 third quarter.
−Removed: The Company reported a net gain on disposition of assets of $2.2 million for the 2024 first nine months and $4.2 million for the 2023 first nine months.
+Added: The Company reported a net gain on disposition of assets of $0.1 million for both the 2025 and 2024 first quarters.
The net gains were primarily from sales of marine transportation equipment.
1 unchanged sentence
The following table sets forth other income, noncontrolling interests, and interest expense (dollars in thousands):
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Noncontrolling interests
Interest expense
−Removed: Other income for the 2024 and 2023 third quarters includes income of $2.6 million and $1.2 million, respectively, and the 2024 and 2023 first nine months includes income of $7.7 million and $3.6 million, respectively, for all components of net benefit costs except the service cost component related to the Company’s defined benefit plans.
−Removed: The 2023 first nine months also includes interest income associated with an Internal Revenue Service refund.
+Added: Other income for the 2025 and 2024 first quarters includes income of $4.8 million and $2.4 million, respectively, for all components of net benefit costs except the service cost component related to the Company’s defined benefit plans.
Interest Expense
The following table sets forth average debt and average interest rate (dollars in thousands):
−Removed: Three Months Ended September 30,
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
Average interest rate
−Removed: Interest expense for the 2024 third quarter and first nine months decreased 7% and 1%, respectively, compared with the 2023 third quarter and first nine months, primarily due to a lower average interest rate in the 2024 third quarter, as well as lower debt levels in the 2024 third quarter and first nine months.
−Removed: There was no capitalized interest excluded from interest expense during the 2024 or 2023 first nine months.
+Added: Interest expense for the 2025 first quarter decreased 20% compared with the 2024 first quarter, primarily due to a lower average interest rate in the 2025 first quarter, as well as lower debt levels in the 2025 first quarter.
+Added: There was no capitalized interest excluded from interest expense during the 2025 or 2024 first quarter.
Financial Condition, Capital Resources and Liquidity
1 unchanged sentence
The following table sets forth the significant components of the balance sheets (dollars in thousands):
−Removed: September 30,
Current assets
8 unchanged sentences
Other long-term liabilities
−Removed: Current assets as of September 30, 2024 increased 3% compared with December 31, 2023.
+Added: Current assets as of March 31, 2025 increased 3% compared with December 31, 2024.
Trade accounts receivable increased 3% primarily due to higher business activity levels in KMT.
−Removed: Inventories – net decreased by 4% primarily due to strong deliveries of power generation units and oilfield service equipment during the 2024 first nine months.
−Removed: Property and equipment, net of accumulated depreciation, at September 30, 2024 increased 3% compared with December 31, 2023.
−Removed: The increase reflected $244.3 million of capital additions (net of a decrease in accrued capital expenditures of $1.7 million) and a $65.2 million equipment acquisition in the 2024 second quarter, partially offset by $171.3 million of depreciation expense and $13.9 million of property disposals more fully described under Cash Flow and Capital Expenditures below.
−Removed: Operating lease right-of-use assets as of September 30, 2024 increased 7% compared with December 31, 2023, primarily due to new leases acquired during the 2024 first nine months, partially offset by lease amortization expense.
−Removed: Other intangibles, net, as of September 30, 2024 decreased 15% compared with December 31, 2023, due to amortization during the 2024 first nine months.
−Removed: Other assets as of September 30, 2024 decreased 11% compared with December 31, 2023, primarily due to amortization of drydock expenditures, partially offset by additional deferred major maintenance drydock expenditures incurred during the 2024 first nine months.
−Removed: Current liabilities as of September 30, 2024 increased 3% compared with December 31, 2023.
−Removed: Income taxes payable increased by $20.2 million primarily due to timing of federal income tax payments.
−Removed: Accounts payable decreased 8% primarily due to timing of KDS inventory purchases and KMT shipyard payments.
+Added: Inventories – net increased 10% primarily due to the impact of supply delays in KDS resulting in the buildup of inventory for mainly power generation projects that are scheduled to be delivered later in 2025.
+Added: Property and equipment, net of accumulated depreciation, at March 31, 2025 increased 3% compared with December 31, 2024.
+Added: The increase reflected $90.7 million of capital additions (including an increase in accrued capital expenditures of $12.0 million) and a $97.3 million equipment acquisition in the 2025 first quarter, partially offset by $61.6 million of depreciation expense and $0.1 million of property disposals more fully described under Cash Flow and Capital Expenditures below.
+Added: Operating lease right-of-use assets as of March 31, 2025 decreased 1% compared with December 31, 2024, primarily due to lease amortization expense, partially offset by new leases acquired in the 2025 first quarter.
+Added: Other intangibles, net, as of March 31, 2025 decreased 6% compared with December 31, 2024, due to amortization during the 2025 first quarter.
+Added: Other assets as of March 31, 2025 increased 5% compared with December 31, 2024, primarily due to additional deferred major maintenance drydock expenditures incurred during the 2025 first quarter, partially offset by amortization of drydock expenditures.
+Added: Current liabilities as of March 31, 2025 decreased 5% compared with December 31, 2024.
+Added: Income taxes payable decreased 14% primarily due to timing of federal income tax payments.
+Added: Accounts payable increased 8% primarily due to timing of KDS inventory purchases and KMT shipyard payments.
Accrued liabilities decreased 20% primarily from payment during the 2025 first quarter of employee incentive compensation accrued during 2024.
−Removed: Deferred revenue increased 25% primarily due to deposits on equipment expected to be shipped later in 2024 and 2025 in KDS.
−Removed: Long-term debt, net – less current portion, as of September 30, 2024 decreased 4% compared with December 31, 2023, primarily reflecting reduced borrowings under the 2027 Revolving Credit Facility.
−Removed: Deferred income taxes as of September 30, 2024 increased 6% compared with December 31, 2023, primarily reflecting the deferred tax provision of $38.7 million.
−Removed: Total equity as of September 30, 2024 increased 4% compared with December 31, 2023.
−Removed: The increase was primarily due to the net earnings attributable to Kirby of $243.9 million, amortization of share-based compensation of $12.8 million, and stock option exercises of $8.4 million, partially offset by treasury stock purchases of $141.3 million and tax withholdings of $5.4 million on RSU vestings.
+Added: Long-term debt, net – less current portion, as of March 31, 2025 increased 26% compared with December 31, 2024, primarily reflecting increased borrowings under the 2027 Revolving Credit Facility.
+Added: Total equity as of March 31, 2025 decreased 1% compared with December 31, 2024.
+Added: The decrease was primarily due to treasury stock purchases of $101.5 million and tax withholdings of $5.9 million on RSU vestings, partially offset by net earnings attributable to Kirby of $76.0 million, amortization of share-based compensation of $7.8 million, and stock option exercises of $0.3 million.
Long-Term Financing
The following table summarizes the Company’s outstanding debt (in thousands):
−Removed: September 30,
Long-term debt, including current portion:
7 unchanged sentences
Unamortized debt discounts and issuance costs
−Removed: (a) Variable interest rate of 6.1% at September 30, 2024 and 6.8% at December 31, 2023.
+Added: (a) Variable interest rate of 5.6% at March 31, 2025 and December 31, 2024.
On July 29, 2022, the Company entered into the 2027 Credit Agreement with a group of commercial banks, with JPMorgan Chase Bank, N.A.
as the administrative agent bank that allows for a $500 million 2027 Revolving Credit Facility and a $250 million 2027 Term Loan with a maturity date of July 29, 2027.
−Removed: In October 2024, the Company repaid $10.0 million under the 2027 Term Loan prior to scheduled maturities.
−Removed: As a result, no repayments are required until September 30, 2025.
+Added: In the fourth quarter of 2022, the Company repaid $80 million under the 2027 Term Loan prior to scheduled maturities.
+Added: In the fourth quarter of 2024, the Company repaid $100 million under the 2027 Term Loan prior to scheduled maturities.
+Added: As a result, no repayments are required until March 31, 2027.
Future repayments under the 2027 Term Loan are excluded from short term liabilities because the Company intends to use availability under the 2027 Revolving Credit Facility to repay these amounts upon maturity.
−Removed: Outstanding letters of credit under the 2027 Revolving Credit Facility were $6,000 and available borrowing capacity was $495.0 million as of September 30, 2024.
+Added: Outstanding letters of credit under the 2027 Revolving Credit Facility were $6,000 and available borrowing capacity was $275.0 million as of March 31, 2025.
On February 3, 2022, the Company entered into a note purchase agreement for the 2033 Notes with a group of institutional investors, consisting of $60 million Series A Notes and $240 million Series B Notes, each due January 19, 2033.
2 unchanged sentences
The Company has a $15 million Credit Line with Bank of America for short-term liquidity needs and letters of credit, with a maturity date of June 30, 2026.
−Removed: Outstanding letters of credit under the Credit Line were $6.8 million and available borrowing capacity was $8.2 million as of September 30, 2024.
−Removed: As of September 30, 2024, the Company was in compliance with all covenants under its debt instruments.
+Added: Outstanding letters of credit under the Credit Line were $6.8 million and available borrowing capacity was $8.2 million as of March 31, 2025.
+Added: As of March 31, 2025, 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, of the Notes to Condensed Financial Statements (Unaudited) as well as Note 5, Long-Term Debt, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Cash Flow and Capital Expenditures
−Removed: The Company generated positive operating cash flows during the 2024 first nine months with net cash provided by operating activities of $509.1 million compared with $324.2 million for the 2023 first nine months, a 57% increase.
−Removed: The improvement in operating cash flows was due to higher revenues and operating income in KMT and a favorable change in inventories and deferred revenues, primarily due to timing of shipments and customer deposits.
−Removed: The 2023 first nine months includes the receipt of the Internal Revenue Service refund of $70.4 million plus accrued interest in April 2023.
−Removed: Increases in KMT revenues and operating income were driven by higher term and spot contract pricing during the 2024 first nine months.
−Removed: During the 2024 and 2023 first nine months, the Company generated cash of $13.8 million and $21.8 million, respectively, from proceeds from the disposition of assets, and $8.4 million and $3.4 million, respectively, from proceeds from the exercise of stock options.
−Removed: For the 2024 first nine months, cash generated was used for capital expenditures of $246.0 million, including $166.9 million associated with marine maintenance capital and improvements to existing inland and coastal marine equipment and facility improvements, as well as $79.1 million for growth spending in both segments.
+Added: The Company generated positive operating cash flows during the 2025 first quarter with net cash provided by operating activities of $36.5 million compared with $123.3 million for the 2024 first quarter, a 70% decrease.
+Added: The decline in operating cash flows was mainly due to unfavorable changes in inventories in 2025 due to the impact of supply delays in KDS resulting in the buildup of inventory for mainly power generation projects that are scheduled to be delivered later in 2025, partially offset by higher operating income in KMT.
+Added: The increase in KMT operating income was driven by higher term and spot contract pricing, partially offset by higher levels of planned coastal shipyards and increased inland delay days in the 2025 first quarter.
+Added: During the 2025 and 2024 first quarter, the Company generated cash of $0.1 million and $2.4 million, respectively, from proceeds from the disposition of assets, and $0.3 million and $1.5 million, respectively, from proceeds from the exercise of stock options.
+Added: For the 2025 first quarter, cash generated was used for capital expenditures of $78.7 million, including $64.6 million associated with marine maintenance capital and improvements to existing inland and coastal marine equipment and facility improvements, as well as $14.1 million for growth spending in both segments.
The growth spending is related to inland equipment construction and equipment for use in a variety of KDS markets including electric fracturing equipment, generators, and other related equipment.
+Added: In addition, the Company used cash of $97.3 million for an equipment acquisition in the 2025 first quarter.
Treasury Stock Purchases
−Removed: During the 2024 first nine months, the Company purchased 1,354,105 shares of its common stock for $141.3 million, at an average price of $104.33 per share.
−Removed: Subsequent to September 30, 2024 and through November 8, 2024, the Company purchased an additional 138,085 shares of its common stock for $16.0 million, at an average price of $115.62 per share.
−Removed: As of November 8, 2024, the Company had approximately 3.0 million shares available under its existing purchase authorizations.
+Added: During the 2025 first quarter, the Company purchased 1.0 million shares of its common stock for $101.5 million, at an average price of $101.19 per share.
+Added: Subsequent to March 31, 2025 and through May 9, 2025, the Company purchased an additional 0.3 million shares of its common stock for $26.9 million, at an average price of $92.14 per share.
+Added: As of May 9, 2025, the Company had approximately 1.6 million shares available under its existing purchase authorizations.
Historically, treasury stock purchases have been financed through operating cash flows and borrowings under the Company’s Revolving Credit Facility.
2 unchanged sentences
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.
−Removed: For more information about stock purchases in the 2024 third quarter, see Part II, Item 2.
+Added: For more information about stock purchases in the 2025 first quarter, see Part II, Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds.
Funds generated from operations are available for acquisitions, capital expenditure projects, common stock purchases, repayments of borrowings, and for other corporate and operating requirements.
−Removed: In addition to net cash flows provided by operating activities, as of November 8, 2024 the Company also had cash and cash equivalents of $108.5 million, availability of $500.0 million under its 2027 Revolving Credit Facility, and $8.2 million available under its Credit Line.
+Added: In addition to net cash flows provided by operating activities, as of May 9, 2025 the Company also had cash and cash equivalents of $49.5 million, availability of $220 million under its 2027 Revolving Credit Facility, and $8.2 million available under its Credit Line.
Neither the Company, nor any of its subsidiaries, is obligated on any debt instrument, swap agreement, or any other financial instrument or commercial contract which has a rating trigger, except for the pricing grid on its 2027 Credit Agreement.
3 unchanged sentences
The 2033 Notes do not mature until January 19, 2033 and require no prepayments.
−Removed: The 2027 Term Loan is subject to quarterly installments, beginning September 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.
+Added: The 2027 Term Loan 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.
3 unchanged sentences
The Company has issued guaranties or obtained standby letters of credit and performance bonds supporting performance by the Company and its subsidiaries of contractual or contingent legal obligations of the Company and its subsidiaries incurred in the ordinary course of business.
−Removed: The aggregate notional value of these instruments is $31.5 million at September 30, 2024, including $11.6 million in letters of credit and $19.9 million in performance bonds.
+Added: The aggregate notional value of these instruments is $32.8 million at March 31, 2025, including $11.6 million in letters of credit and $21.1 million in performance bonds.
All of these instruments have an expiration date within two years.
9 unchanged sentences
In KDS, the cost of major components for large manufacturing orders is secured with suppliers at the time a customer order is finalized, which somewhat limits exposure to inflation.
+Added: To the extent possible, the Company also seeks to include contractual language to address recovery of increased costs related to tariffs in KDS.
The repair portion of KDS is based on prevailing current market rates.
3 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.