5 unchanged sentences
Among the factors that could cause actual results to differ materially are:
−Removed: adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornados, COVID-19 or other pandemics, marine accidents, lock delays or closures, fuel costs, interest rates, construction of new equipment by competitors, government and environmental laws and regulations, and the timing, magnitude and number of acquisitions made by the Company.
−Removed: For a more detailed discussion of factors that could cause actual results to differ from those presented in forward-looking statements, see Item 1A-Risk Factors found in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2024.
+Added: adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornados, pandemics, marine accidents, lock delays or closures, fuel costs, interest rates, construction of new equipment by competitors, government and environmental laws and regulations, and the timing, magnitude and number of acquisitions made by the Company.
+Added: For a more detailed discussion of factors that could cause actual results to differ from those presented in forward-looking statements, see Part II, Item 1A-Risk Factors and Item 1A-Risk Factors found in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2025.
Forward-looking statements are based on currently available information and the Company assumes no obligation to update any such statements.
3 unchanged sentences
In addition, the Company participates in the transportation of dry-bulk commodities in United States coastwise trade.
−Removed: 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: Through KDS, the Company provides equipment, after-market parts and services for power generation systems in applications that include behind the meter power systems and emergency backup systems, after-market and genuine replacement parts and services for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and controls systems, and related equipment used in power generation, marine, on-highway, oilfield services, and other industrial applications.
The Company also rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment, and refrigeration trailers for use in a variety of industrial markets.
−Removed: 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: The Company also manufactures and remanufactures specialized equipment, including pressure pumping units and electric fracturing systems, electric power generation equipment, and specialized electrical distribution and control equipment for data centers, oilfield service, railroad, and other industrial customers.
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: Cash provided by operating activities for the 2025 first nine months decreased in comparison to the 2024 first nine months primarily due to unfavorable working capital changes driven by the timing of accounts receivable collections, accounts payable payments and federal income tax payments, as well as an increase in inventories in the first nine months of 2025, partially offset by increased net earnings.
−Removed: The increase in inventories was due to the impact of higher business activity levels and supply delays in KDS resulting in the buildup of inventory for projects, mainly due to power generation orders, which are scheduled to be delivered later in 2025 and into 2026.
−Removed: For the 2025 first nine months, capital expenditures of $217.4 million included $186.5 million in KMT and $30.9 million in KDS and corporate, each more fully described under Cash Flow and Capital Expenditures below.
+Added: Cash provided by operating activities for the 2026 first quarter increased in comparison to the 2025 first quarter primarily due to increased net earnings and favorable working capital changes.
+Added: The favorable working capital changes were driven by the timing of accounts payable and income tax payments, partially offset by the timing of accounts receivable collections.
+Added: The 2025 first quarter included a $24.4 million estimated federal income tax payment as compared to none in the 2026 first quarter.
+Added: For the 2026 first quarter, capital expenditures of $48.3 million included $34.6 million in KMT and $13.7 million in KDS and corporate, each more fully described under Cash Flow and Capital Expenditures below.
The Company projects that capital expenditures for 2026 will be in the $220 million to $260 million range.
1 unchanged sentence
Up to approximately $65 million is associated with growth capital spending in both segments.
−Removed: The Company’s debt-to-capitalization ratio increased to 23.8% at September 30, 2025 compared to 20.7% at December 31, 2024, primarily due to an increase in debt outstanding.
−Removed: Total equity at September 30, 2025 increased as compared to December 31, 2024 primarily from net earnings attributable to Kirby of $262.8 million, partially offset by treasury stock purchases of $252.6 million.
−Removed: The Company’s debt outstanding as of September 30, 2025 and December 31, 2024 is detailed in Long-Term Financing below.
+Added: The Company’s debt-to-capitalization ratio increased slightly to 22.3% at March 31, 2026 compared to 21.4% at December 31, 2025, primarily due to an increase in debt outstanding.
+Added: Total equity at March 31, 2026 increased as compared to December 31, 2025 primarily from net earnings attributable to Kirby of $81.2 million, partially offset by treasury stock purchases of $52.7 million.
+Added: The Company’s debt outstanding as of March 31, 2026 and December 31, 2025 is detailed in Long-Term Financing below.
Marine Transportation
−Removed: For the 2025 third quarter and first nine months, KMT generated 56% and 58%, respectively, of the Company’s revenues compared to 58% and 59% for the 2024 third quarter and first nine months, respectively.
+Added: For the 2026 first quarter, KMT generated 59% of the Company’s revenues compared to 61% for the 2025 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:
6 unchanged sentences
Offshore tugboats and docking tugboat (owned and chartered)
−Removed: The Company also owns shifting operations and fleeting facilities for dry cargo barges and tank barges in the Houston Ship Channel and in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana and a shipyard for building towboats and performing routine maintenance near the Houston Ship Channel.
−Removed: 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 2025 first nine months, the Company purchased 16 inland tank barges, brought back into service three inland tank barges, and retired eight inland tank barges, increasing its capacity by approximately 0.3 million barrels.
−Removed: KMT revenues for both the 2025 third quarter and first nine months were flat, and operating income decreased 11% and 1%, respectively, compared to the 2024 third quarter and first nine months.
−Removed: Revenues for the 2025 first nine months were up 1% compared to the 2024 first nine months as higher spot and term pricing in the inland market over the 2025 first six months and higher term pricing in the coastal market for the 2025 first nine months were offset by lower fuel rebills in both inland and coastal markets.
−Removed: Revenues for the 2025 third quarter were flat as compared to the 2024 third quarter as lower barge utilization and moderating spot market pricing seen in the 2025 third quarter in the inland market were offset by higher term pricing in the coastal market.
−Removed: The decrease in operating income for the 2025 third quarter and first nine months was primarily due to lower barge utilization and moderating spot market prices in the third quarter in the inland market, partially offset by higher term pricing in the coastal market.
−Removed: 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 the 2025 third quarter and first nine months, the inland tank barge fleet contributed 78% and 80%, respectively, and the coastal fleet contributed 22% and 20% of KMT revenues, respectively.
−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: Inland tank barge utilization levels averaged in the low to mid-90% range during the 2025 and 2024 first and second quarters, the mid-80% range during the 2025 third quarter, and the 90% range during the 2024 third quarter.
−Removed: The 2025 third quarter experienced seasonally favorable weather and improved navigational conditions.
−Removed: In addition, the 2025 third quarter was also impacted by a lighter feedstock mix for refinery and chemical customers and fewer barges undergoing maintenance across the industry.
−Removed: The 2025 and 2024 first quarters were impacted by high winds and heavy fog along the Gulf Coast and lock delays.
−Removed: The 2024 second and third quarters were modestly impacted by weather and lock closures.
−Removed: Coastal tank barge utilization levels averaged in the mid to high 90% range during the 2025 and 2024 first, second, and third quarters.
−Removed: During both the 2025 third quarter and first nine months, approximately 70% of KMT inland revenues were under term contracts and 30% were spot contract revenues.
−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: Inland time charters during the 2025 third quarter and first nine months represented approximately 57% and 59%, respectively, of inland revenues under term contracts compared with 62% and 61% in the 2024 third quarter and first nine months, respectively.
−Removed: During both the 2025 third quarter and first nine months, approximately 100% of KMT coastal revenues were under term contracts and none were under spot contracts.
−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: Coastal time charters represented approximately 100% of coastal revenues under term contracts during both the 2025 third quarter and first nine months compared to 99% and 98% during the 2024 third quarter and first nine months, respectively.
+Added: The Company also operates shifting and fleeting facilities for dry cargo barges and tank barges on the Houston Ship Channel, in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana, and its San Jac shipyard for building inland towboats and performing routine maintenance on marine vessels near the Houston Ship Channel.
+Added: The Company also owns a two-thirds interest in Osprey Line, L.L.C., which transports project cargoes and cargo containers by barge on the United States inland waterway system.
+Added: During the 2026 first quarter, the Company purchased 22 inland tank barges and retired three inland tank barges, increasing its capacity by approximately 0.5 million barrels.
+Added: KMT revenues and operating income for the 2026 first quarter increased 4% compared to the 2025 first quarter, primarily due to higher term pricing and decreased planned shipyards in the coastal market, partially offset by lower spot pricing in the inland market as compared to the 2025 first quarter.
+Added: The 2026 and 2025 first quarters were impacted by poor operating conditions including seasonal wind and fog along the Gulf Coast, ice on the Illinois and Upper Mississippi Rivers and various lock closures.
+Added: For the 2026 first quarter, the inland tank barge fleet contributed 79% and the coastal fleet contributed 21% of KMT revenues.
+Added: For the 2025 first quarter, the inland tank barge fleet contributed 82% and the coastal fleet contributed 18% of KMT revenues.
+Added: Inland tank barge utilization levels averaged in the low-90% range during the 2026 first quarter and the low-to-mid-90% range during the 2025 first quarter.
+Added: The 2026 and 2025 first quarters were impacted by high winds and heavy fog along the Gulf Coast, ice on the Illinois and Upper Mississippi Rivers and various lock delays.
+Added: Coastal tank barge utilization levels averaged in the mid-to-high-90% range during the 2026 and 2025 first quarters.
+Added: During the 2026 first quarter, approximately 65% of KMT inland revenues were under term contracts and 35% were spot contract revenues.
+Added: During the 2025 first quarter, approximately 70% of KMT inland revenues were under term contracts and 30% were spot
+Added: contract revenues.
+Added: Inland time charters during the 2026 first quarter represented approximately 56% of inland revenues under term contracts compared with 61% in the 2025 first quarter.
+Added: During the 2026 first quarter, approximately 92% of KMT coastal revenues were under term contracts and 8% were under spot contracts.
+Added: During the 2025 first quarter, approximately 100% of KMT coastal revenues were under term contracts and none were under spot contracts.
+Added: Coastal time charters represented approximately 100% of coastal revenues under term contracts during both the 2026 and 2025 first quarters.
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, 2026
−Removed: June 30, 2025
−Removed: September 30, 2025
Inland market:
−Removed: Term increase
−Removed: Spot increase
Coastal market (a):
−Removed: Term increase
(a) Term contract pricing in the coastal market is contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.
−Removed: 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.
−Removed: KMT operating margin was 18.3% and 18.9% for the 2025 third quarter and first nine months, respectively, compared to 20.5% and 19.2% for the 2024 third quarter and first nine months, respectively.
+Added: Effective January 1, 2026, 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 3%, excluding fuel.
+Added: KMT operating margin was 18.0% for the 2026 first quarter compared to 18.2% for the 2025 first quarter.
Distribution and Services
−Removed: 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, through KDS, provides equipment, after-market parts and services for power generation systems in applications that include behind the meter power systems and emergency backup systems, after-market and genuine replacement parts and services for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and controls systems, and related equipment used in power generation, marine, on-highway, oilfield services, and other industrial applications.
The Company also rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment, and refrigeration trailers for use in a variety of industrial markets.
−Removed: 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.
−Removed: For the 2025 third quarter and first nine months, KDS generated 44% and 42% of the Company’s revenues, respectively, of which 79% and 84%, respectively, were generated from service and parts and 21% and 16%, respectively, from manufacturing.
−Removed: 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 2025 third quarter and first nine months increased 12% and 4%, respectively, compared with the 2024 third quarter and first nine months.
−Removed: KDS operating income for the 2025 third quarter and first nine months increased 40% and 23%, respectively, compared with the 2024 third quarter and first nine months.
−Removed: In the commercial and industrial market, revenues and operating income increased compared to the 2024 third quarter and first nine months due to higher business levels in marine repair.
−Removed: For the 2025 third quarter and first nine months, the commercial and industrial market contributed 44% and 47% of KDS revenues, respectively.
−Removed: In the power generation market, revenues and operating income increased compared to the 2024 third quarter and first nine months due to increased demand for backup and critical power applications.
−Removed: For the 2025 third quarter and first nine months, the power generation market contributed 45% and 40% of KDS revenues, respectively.
−Removed: In the oil and gas market, revenues decreased compared to the 2024 third quarter and first nine months, 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.
−Removed: Operating income in the oil and gas market increased compared to the 2024 third quarter and first nine months due to product mix and ongoing cost management initiatives.
−Removed: For the 2025 third quarter and first nine months, the oil and gas market contributed 11% and 13% of KDS revenues, respectively.
−Removed: KDS operating margin was 11.0% and 9.5% for the 2025 third quarter and first nine months, respectively, compared to 8.8% and 8.0% for the 2024 third quarter and first nine months, respectively.
+Added: The Company also manufactures and remanufactures specialized equipment, including pressure pumping units and electric fracturing systems, electric power generation equipment, and specialized electrical distribution and control equipment for data centers, oilfield service, railroad, and other industrial customers.
+Added: For the 2026 first quarter, KDS generated 41% of the Company’s revenues.
+Added: The results of KDS are largely influenced by cycles of the power generation, marine, on-highway, oilfield service industry and oil and gas operator and producer markets, and other industrial markets.
+Added: KDS revenues for the 2026 first quarter increased 12% compared with the 2025 first quarter.
+Added: KDS operating income for the 2026 first quarter increased 3% compared with the 2025 first quarter.
+Added: In the commercial and industrial market, revenues and operating income increased compared to the 2025 first quarter due to higher business levels in marine repair.
+Added: For the 2026 first quarter, the commercial and industrial market contributed 46% of KDS revenues.
+Added: In the power generation market, revenues and operating income increased compared to the 2025 first quarter due to increased demand for backup, prime power and critical power applications.
+Added: For the 2026 first quarter, the power generation market contributed 44% of KDS revenues.
+Added: In the oil and gas market, revenues and operating income decreased compared to the 2025 first quarter, 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: For the 2026 first quarter, the oil and gas market contributed 10% of KDS revenues.
+Added: KDS operating margin was 6.7% for the 2026 first quarter compared to 7.3% for the 2025 first quarter.
Overall, the Company expects to deliver improved financial results in 2026.
−Removed: In KMT, the Company expects barge utilization rates in the 2025 fourth quarter to improve over the 2025 third quarter.
−Removed: The coastal marine market conditions remain very favorable.
−Removed: In KDS, growth in the power generation market is expected to offset softness in oil and gas markets, and the on-highway service and repair business continues to modestly improve despite the ongoing trucking recession.
−Removed: 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 the 2025 fourth quarter and into 2026.
−Removed: In the inland marine transportation market for the remainder of 2025, the Company continues to see inflationary pressures persisting which continue to drive up operating costs.
−Removed: These continuing cost pressures, along with limited new barge construction and the increasing cost of equipment, should continue to put upward pressure on prices over the long-term.
−Removed: In the near term, however, term and spot market pricing could face headwinds if short-term market softness experienced in the 2025 third quarter re-emerges.
−Removed: In the coastal marine transportation market in 2025, market conditions remain very favorable with steady customer demand.
−Removed: 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.
−Removed: The Company expects improved results in KDS in 2025 driven by increased orders in the power generation market, partially offset by near-term volatility from supply issues, customers deferring maintenance, and lower overall levels of activity in the oil and gas market.
+Added: In KMT, barge utilization and customer demand remain stable.
+Added: In KDS, growth in the power generation market is expected to offset softness in oil and gas markets, and the continuing trucking recession impacting the on-highway service and repair business.
+Added: The Company remains mindful of the ever-changing economic landscape related to the possible impact of high interest rates, tariffs, current geopolitical tensions and possible recessionary headwinds as it moves through 2026.
+Added: In 2026, the inland marine transportation market is expected to experience 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 pricing as the year progresses.
+Added: The Company also 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: The coastal marine transportation market is also expected to see very favorable market conditions in 2026.
+Added: The coastal marine transportation market should experience steady customer demand, keeping barge utilization at high levels with improving rates as the availability of equipment remains limited across the industry.
+Added: There are no coastal barges currently under construction.
+Added: The Company does expect more shipyard days in the coastal marine transportation market as compared to 2025.
+Added: The Company does expect some near-term cost headwinds in its inland marine transportation operations during the 2026 second quarter from rising fuel costs.
+Added: Term and affreightment contracts contain fuel escalation clauses or provides for the customer to pay for fuel.
+Added: Cost escalators and rate recovery mechanisms in the Company’s term contracts, while effective over time in allowing the Company to recover changes in fuel costs, create a delay that will lag near-term fuel cost increases.
+Added: As a result, periods of rapidly rising fuel prices may temporarily compress margins and operating income until escalation adjustments are fully realized.
+Added: The Company expects that lag to occur during the 2026 second quarter but should be ultimately realized in subsequent quarters as there is generally a 30 to 120 day delay before term contracts are adjusted for fuel costs.
+Added: Fuel escalation clauses in term contracts and their effectiveness are discussed in more detail in Liquidity below and Item 1A – Risk Factors found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
+Added: The Company expects stable growth in KDS in 2026 as near-term volatility from supply issues, customers deferring maintenance, and lower overall levels of activity in the oil and gas market are offset by increased orders in the power generation market.
In commercial and industrial, the demand outlook in marine repair remains steady while on-highway service and repair remains soft but has shown some recent modest improvement.
−Removed: 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 power generation, the Company anticipates continued strong growth in orders as data center demand and the need for behind the meter and backup power continues to be strong.
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.
−Removed: The Company anticipates extended lead times and supply delays for certain original equipment manufacturer products to continue in the 2025 fourth quarter and into 2026.
+Added: The Company anticipates extended lead times and supply delays for certain original equipment manufacturer (“OEM”) products, especially in the power generation market, to continue throughout 2026.
+Added: The Company does expect to be impacted in the 2026 second quarter by delayed OEM engine deliveries as certain impacted projects will shift from the 2026 second quarter into the 2026 second half.
+Added: On March 17, 2026, the Company purchased 23 inland tank barges with a total capacity of 653,000 barrels, including five specialty barges, and three high horsepower towboats from an undisclosed seller for $95.8 million.
+Added: The Company paid $81.4 million in cash in March 2026 with the remaining $14.4 million to be paid in the 2026 second quarter when delivery of all vessels has been completed.
+Added: The 23 tank barges, including five specialty barges, transport petrochemicals and refined products on the Mississippi River System and Gulf Intracoastal Waterway.
+Added: The average age of the 23 barges was 19 years.
+Added: On October 14, 2025, the Company purchased certain assets from an undisclosed seller in support of the KDS segment for $9.3 million in cash.
+Added: The assets consisted of inventory and an authorized distributorship for EMD Power Products (“EMD”) for certain geographic regions including Mexico, Central America, the northern part of South America and the Caribbean islands.
On August 7, 2025, the Company purchased two inland tank barges and one towboat from an undisclosed seller for $9.2 million in cash.
2 unchanged sentences
The average age of the 14 barges was 16 years.
−Removed: On December 31, 2024, the Company purchased an inland tank barge from a leasing company for $2.7 million in cash.
−Removed: The Company had been leasing the barge prior to purchase.
−Removed: On December 30, 2024, the Company purchased three inland tank barges from an undisclosed seller for $9.9 million in cash.
−Removed: 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.
−Removed: The 13 tank barges, including three specialty barges, transport petrochemicals and refined products on the Mississippi River System and Gulf Intracoastal Waterway.
−Removed: The average age of the 13 barges was 15 years.
Financing of these purchases was through borrowings under the Company’s Revolving Credit Facility and cash provided by operating activities.
1 unchanged sentence
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: 2025 Third Quarter
−Removed: 2025 Nine Months
+Added: 2026 First Quarter
Products Moved
11 unchanged sentences
Corn, Cotton and Wheat Production, Chemical Feedstock Usage
−Removed: KMT revenues for both the 2025 third quarter and first nine months were flat, and operating income decreased 11% and 1%, respectively, compared to the 2024 third quarter and first nine months.
−Removed: Revenues for the 2025 first nine months were up 1% compared to the 2024 first nine months as higher spot and term pricing in the inland market over the 2025 first six months and higher term pricing in the coastal market for the 2025 first nine months were offset by lower fuel rebills in both inland and coastal markets.
−Removed: the 2025 third quarter were flat as compared to the 2024 third quarter as lower barge utilization and moderating spot market pricing seen in the 2025 third quarter in the inland market were offset by higher term pricing in the coastal market.
−Removed: The decrease in operating income for the 2025 third quarter and first nine months was primarily due to lower barge utilization and moderating spot market prices in the third quarter in the inland market, partially offset by higher term pricing in the coastal market.
−Removed: 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 the 2025 third quarter and first nine months, the inland tank barge fleet contributed 78% and 80%, respectively, and the coastal fleet contributed 22% and 20% of KMT revenues, respectively.
−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: Inland tank barge utilization levels averaged in the low to mid-90% range during the 2025 and 2024 first and second quarters, the mid-80% range during the 2025 third quarter, and the 90% range during the 2024 third quarter.
−Removed: The 2025 third quarter experienced seasonally favorable weather and improved navigational conditions.
−Removed: In addition, the 2025 third quarter was also impacted by a lighter feedstock mix for refinery and chemical customers and fewer barges undergoing maintenance across the industry.
−Removed: The 2025 and 2024 first quarters were impacted by high winds and heavy fog along the Gulf Coast and lock delays.
−Removed: The 2024 second and third quarters were modestly impacted by weather and lock closures.
−Removed: Coastal tank barge utilization levels averaged in the mid to high 90% range during the 2025 and 2024 first, second, and third quarters.
−Removed: The petrochemical market, which is the Company’s largest market, contributed 48% and 49% of KMT revenues for the 2025 third quarter and first nine months, respectively, reflecting steady rates, volumes and utilization from Gulf Coast petrochemical plants as compared to the 2024 third quarter and first nine months.
−Removed: The black oil market, which contributed 25% and 26% of KMT revenues for the 2025 third quarter and first nine months, respectively, reflected stable demand as refinery utilization and production levels of refined petroleum products and fuel oils increased.
−Removed: During the 2025 first nine months, the Company transported crude oil and natural gas condensate produced from major U.S.
+Added: KMT revenues and operating income for the 2026 first quarter increased 4% compared to the 2025 first quarter, primarily due to higher term pricing and decreased planned shipyards in the coastal market, partially offset by lower spot pricing in the inland market as compared to the 2025 first quarter.
+Added: The 2026 and 2025 first quarters were impacted by poor operating conditions including seasonal wind and fog along the Gulf Coast, ice on the Illinois and Upper Mississippi Rivers and various lock closures.
+Added: For the 2026 first quarter, the inland tank barge fleet contributed 79% and the coastal fleet contributed 21% of KMT revenues.
+Added: For the 2025 first quarter, the inland tank barge fleet contributed 82% and the coastal fleet contributed 18% of KMT revenues.
+Added: Inland tank barge utilization levels averaged in the low-90% range during the 2026 first quarter and the low-to-mid-90% range during the 2025 first quarter.
+Added: The 2026 and 2025 first quarters were impacted by high winds and heavy fog along the Gulf Coast, ice on
+Added: the Illinois and Upper Mississippi Rivers and various lock delays.
+Added: Coastal tank barge utilization levels averaged in the mid-to-high-90% range during the 2026 and 2025 first quarters.
+Added: The petrochemical market, which is the Company’s largest market, contributed 47% of KMT revenues for the 2026 first quarter reflecting steady rates, volumes and utilization from Gulf Coast petrochemical plants as compared to the 2025 first quarter.
+Added: The black oil market, which contributed 27% of KMT revenues for the 2026 first quarter reflected stable demand as refinery utilization and production levels of refined petroleum products and fuel oils increased.
+Added: During the 2026 first quarter, the Company transported crude oil and natural gas condensate produced from major U.S.
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 24% and 22% of KMT revenues for the 2025 third quarter and first nine months, respectively, reflected stable volumes in the inland market with steady refinery utilization and product levels as compared to the 2024 third quarter and first nine months.
−Removed: The agricultural chemical market, which contributed 3% of KMT revenues for both the 2025 third quarter and first nine months reflected stable demand for transportation of both domestically produced and imported products as compared to the 2024 third quarter and first nine months.
−Removed: For the 2025 third quarter, inland operations incurred 1,442 delay days, 30% fewer than the 2,061 delay days that occurred during the 2024 third quarter.
−Removed: For the 2025 first nine months, inland operations incurred 8,791 delay days, 1% fewer than the 8,902 delay days that occurred during the 2024 first nine months.
+Added: The refined petroleum products market, which contributed 22% of KMT revenues for the 2026 first quarter reflected stable volumes in the inland market with steady refinery utilization and product levels as compared to the 2025 first quarter.
+Added: The agricultural chemical market, which contributed 4% of KMT revenues for the 2026 first quarter reflected stable demand for transportation of both domestically produced and imported products as compared to the 2025 first quarter.
+Added: For the 2026 first quarter, inland operations incurred 3,264 delay days, 19% fewer than the 4,029 delay days that occurred during the 2025 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 very favorable seasonal weather and improved navigational conditions in the 2025 third quarter, and poor operating conditions due to heavy wind and fog along the Gulf Coast and lock delays during the 2025 and 2024 first quarters.
−Removed: During both the 2025 third quarter and first nine months, approximately 70% of KMT inland revenues were under term contracts and 30% were spot contract revenues.
−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: Inland time charters during the 2025 third quarter and first nine months represented approximately 57% and 59%, respectively, of inland revenues under term contracts compared with 62% and 61% in the 2024 third quarter and first nine months, respectively.
−Removed: During both the 2025 third quarter and first nine months, approximately 100% of KMT coastal revenues were under term contracts and none were under spot contracts.
−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: Coastal time charters represented approximately 100% of coastal revenues under term contracts during both the 2025 third quarter and first nine months compared to 99% and 98% during the 2024 third quarter and first nine months, respectively.
+Added: Delay days reflected poor operating conditions due to heavy wind and fog along the Gulf Coast and lock delays during the 2026 and 2025 first quarters.
+Added: During the 2026 first quarter, approximately 65% of KMT inland revenues were under term contracts and 35% were spot contract revenues.
+Added: During the 2025 first quarter, approximately 70% of KMT inland revenues were under term contracts and 30% were spot contract revenues.
+Added: Inland time charters during the 2026 first quarter represented approximately 56% of inland revenues under term contracts compared with 61% in the 2025 first quarter.
+Added: During the 2026 first quarter, approximately 92% of KMT coastal revenues were under term contracts and 8% were under spot contracts.
+Added: During the 2025 first quarter, approximately 100% of KMT coastal revenues were under term contracts and none were under spot contracts.
+Added: Coastal time charters represented approximately 100% of coastal revenues under term contracts during both the 2026 and 2025 first quarters.
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, 2026
−Removed: June 30, 2025
−Removed: September 30, 2025
Inland market:
−Removed: Term increase
−Removed: Spot increase
Coastal market (a):
−Removed: Term increase
(a) Term contract pricing in the coastal market is contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.
−Removed: 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: Effective January 1, 2026, 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 3%, excluding fuel.
Marine Transportation Costs and Expenses
−Removed: Costs and expenses for both the 2025 third quarter and first nine months increased 3% and 1%, respectively, compared to the 2024 third quarter and first nine months.
−Removed: Costs of sales and operating expenses for the 2025 third quarter and first nine months were flat compared with the 2024 third quarter and first nine months.
−Removed: The results for the 2025 third quarter and first nine months were driven by inflationary cost pressures including wage increases that went into effect on July 1, 2025.
−Removed: Fuel costs were slightly higher in the 2025 third quarter as compared to the 2024 third quarter but lower in the 2025 first nine months as compared to the 2024 first nine months.
−Removed: The inland marine transportation fleet operated an average of 270 towboats during the 2025 third quarter, of which an average of 61 were chartered, compared to 287 during the 2024 third quarter, of which an average of 71 were chartered.
+Added: Costs and expenses for the 2026 first quarter increased 5% compared to the 2025 first quarter.
+Added: Costs of sales and operating expenses for the 2026 first quarter increased 3% compared with the 2025 first quarter.
+Added: The results for the 2026 first quarter were driven by inflationary cost pressures including wage increases that went into effect on July 1, 2025.
+Added: Fuel costs were slightly lower in the 2026 first quarter as compared to the 2025 first quarter.
+Added: The inland marine transportation fleet operated an average of 284 towboats during the 2026 first quarter, of which an average of 79 were chartered, compared to 291 during the 2025 first quarter, of which an average of 76 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 2025 third quarter, inland operations consumed 12.5 million gallons of diesel fuel compared to 11.3 million gallons consumed during the 2024 third quarter.
−Removed: The average price per gallon of diesel fuel consumed during the 2025 third quarter was $2.46 per gallon compared with $2.65 per gallon for the 2024 third quarter.
−Removed: During the 2025 first nine months, inland operations consumed 37.0 million gallons of diesel fuel compared to 35.3 million gallons consumed during the 2024 first nine months.
−Removed: The average price per gallon of diesel fuel consumed during the 2025 first nine months was $2.46 per gallon compared with $2.77 per gallon for the 2024 first nine months.
+Added: During the 2026 first quarter, inland operations consumed 12.5 million gallons of diesel fuel compared to 11.7 million gallons consumed during the 2025 first quarter.
+Added: The average price per gallon of diesel fuel consumed during the 2026 first quarter was $2.26 per gallon compared with $2.57 per gallon for the 2025 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 2025 third quarter and first nine months increased 3% and 5%, respectively, compared to the 2024 third quarter and first nine months.
−Removed: The increase in selling, general and administrative expenses for the 2025 third quarter and first nine months as compared to the 2024 third quarter and first nine months was primarily due to continued inflationary cost pressures, including higher medical costs, and salary and wage increases that went into effect on July 1, 2025.
−Removed: The 2025 first nine months was also impacted by an increase in the provision for credit losses related to a certain customer during the 2025 first quarter.
−Removed: Depreciation and amortization for both the 2025 third quarter and first nine months increased 8% compared to the 2024 third quarter and first nine months.
−Removed: The increase was primarily due to capital additions during 2024 and the first nine months of 2025, as well as equipment acquisitions.
+Added: Selling, general and administrative expenses for the 2026 first quarter increased 8% compared to the 2025 first quarter.
+Added: The increase in selling, general and administrative expenses for the 2026 first quarter as compared to the 2025 first quarter was primarily due to continued inflationary cost pressures, including salary and wage increases that went into effect on July 1, 2025.
+Added: The 2025 first quarter was impacted by an increase in the provision for credit losses related to a certain customer.
+Added: Depreciation and amortization for the 2026 first quarter increased 7% compared to the 2025 first quarter.
+Added: The increase was primarily due to capital additions during 2025 and the first three months of 2026, as well as equipment acquisitions.
Marine Transportation Operating Income and Operating Margin
−Removed: KMT operating income for the 2025 third quarter and first nine months decreased 11% and 1% compared with the 2024 third quarter and first nine months, respectively.
−Removed: The 2025 third quarter operating margin was 18.3% compared with 20.5% for the 2024 third quarter.
−Removed: The 2025 first nine months operating margin was 18.9% compared with 19.2% for the 2024 first nine months.
−Removed: The decrease in operating income and operating margin were primarily due to lower barge utilization and moderating spot market prices in the inland market in the 2025 third quarter, partially offset by higher term pricing in the coastal market.
+Added: KMT operating income for the 2026 first quarter increased 4% compared with the 2025 first quarter.
+Added: The 2026 first quarter operating margin was 18.0% compared with 18.2% for the 2025 first quarter.
+Added: The increase in operating income as compared to the 2025 first quarter was primarily due to higher term pricing and decreased planned shipyards in the coastal market, partially offset by lower spot pricing in the inland market.
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: 2025 Third Quarter
−Removed: 2025 Nine Months
+Added: 2026 Three Months
Commercial and Industrial
3 unchanged sentences
Oilfield Services, Oil and Gas Operators and Producers
−Removed: KDS revenues for the 2025 third quarter and first nine months increased 12% and 4%, respectively, compared with the 2024 third quarter and first nine months.
−Removed: KDS operating income for the 2025 third quarter and first nine months increased 40% and 23%, respectively, compared with the 2024 third quarter and first nine months.
−Removed: In the commercial and industrial market, revenues and operating income increased compared to the 2024 third quarter and first nine months due to higher business levels in marine repair.
−Removed: In the power generation market, revenues and operating income increased compared to the 2024 third quarter and first nine months due to increased demand for backup and critical power applications.
−Removed: In the oil and gas market, revenues decreased compared to the 2024 third quarter and first nine months, 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.
−Removed: Operating income in the oil and gas market increased compared to the 2024 third quarter and first nine months due to product mix and ongoing cost management initiatives.
+Added: KDS revenues for the 2026 first quarter increased 12% compared with the 2025 first quarter.
+Added: KDS operating income for the 2026 first quarter increased 3% compared with the 2025 first quarter.
+Added: In the commercial and industrial market, revenues and operating income increased compared to the 2025 first quarter due to higher business levels in marine repair.
+Added: In the power generation market, revenues and operating income increased compared to the 2025 first quarter due to increased demand for backup, prime power and critical power applications.
+Added: In the oil and gas market, revenues and operating income decreased compared to the 2025 first quarter, 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.
Distribution and Services Costs and Expenses
−Removed: Costs and expenses for the 2025 third quarter and first nine months increased 9% and 2%, respectively, compared with the 2024 third quarter and first nine months.
−Removed: Costs of sales and operating expenses for the 2025 third quarter and first nine months increased 9% and 1%, respectively, compared with the 2024 third quarter and first nine months.
−Removed: The increase for the 2025 third quarter and first nine months reflected higher deliveries of power generation equipment, partially offset by lower on-highway and conventional oilfield activity.
−Removed: Selling, general and administrative expenses for the 2025 third quarter and first nine months increased 5% compared to the 2024 third quarter and first nine months, reflecting higher business activity levels, inflationary cost pressures, including higher medical costs, and salary and wage increases that went into effect July 1, 2025.
−Removed: Depreciation and amortization for the 2025 third quarter and first nine months increased 23% and 26%, respectively, compared to the 2024 third quarter and first nine months.
−Removed: The increase was primarily due to capital additions during 2024 and the first nine months of 2025 including additions to the equipment rental fleet.
+Added: Costs and expenses for the 2026 first quarter increased 13% compared with the 2025 first quarter.
+Added: Costs of sales and operating expenses for the 2026 first quarter increased 16% compared with the 2025 first quarter.
+Added: The increase for the 2026 first quarter reflected higher deliveries of power generation equipment, partially offset by lower on-highway and conventional oilfield activity.
+Added: Selling, general and administrative expenses for the 2026 first quarter increased 2% compared to the 2025 first quarter, reflecting higher business activity levels, inflationary cost pressures, including salary and wage increases that went into effect July 1, 2025.
+Added: Depreciation and amortization for the 2026 first quarter increased 6% compared to the 2025 first quarter.
+Added: The increase was primarily due to capital additions during 2025 and the first three months of 2026, including additions to the equipment rental fleet.
Distribution and Services Operating Income and Operating Margin
−Removed: KDS operating income for the 2025 third quarter and first nine months increased 40% and 23%, respectively, compared with the 2024 third quarter and first nine months.
−Removed: The 2025 third quarter operating margin was 11.0% compared to 8.8% for the 2024 third quarter.
−Removed: The 2025 first nine months operating margin was 9.5% compared to 8.0% for the 2024 first nine months.
+Added: KDS operating income for the 2026 first quarter increased 3% compared with the 2025 first quarter.
+Added: The 2026 first quarter operating margin was 6.7% compared to 7.3% for the 2025 first quarter.
The results reflect increased demand in power generation from data centers and prime power customers and higher marine repair activity and deliveries of electric fracturing equipment, partially offset by lower conventional oilfield activity.
+Added: General Corporate Expenses
+Added: General corporate expenses for the 2026 first quarter increased compared to the 2025 first quarter primarily due to higher insurance costs, higher professional fees and higher incentive compensation.
Gain on Disposition of Assets
−Removed: The Company reported a net gain on disposition of assets of $3.0 million and $1.6 million for the 2025 and 2024 third quarters, respectively.
−Removed: The Company reported a net gain on disposition of assets of $4.8 million and $2.2 million for the 2025 and 2024 first nine months, respectively.
−Removed: The net gains were primarily from sales of marine transportation equipment.
+Added: The Company reported a net gain on disposition of assets of $1.5 million and $0.1 million for the 2026 and 2025 first quarter, respectively.
+Added: The net gains were primarily from sales of marine transportation equipment and the sale of a KDS facility in the 2026 first quarter.
Other Income and Expenses
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 2025 and 2024 third quarters includes income of $4.6 million and $2.6 million, respectively, and the 2025 and 2024 first nine months includes income of $13.7 million and $7.7 million, respectively, for all components of net benefit costs except the service cost component related to the Company’s defined benefit plans.
+Added: Other income for the 2026 and 2025 first quarters includes income of $6.2 million and $4.8 million, respectively, for all components of net benefit costs except the service cost component related to the Company’s defined benefit plans.
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 2025 third quarter and first nine months decreased 5% and 9%, respectively, compared with the 2024 third quarter and first nine months, primarily due to a lower average interest rate in the 2025 third quarter and first nine months.
−Removed: Interest expense excludes capitalized interest for the 2025 third quarter and first nine months of $0.3 million and $0.8 million, respectively.
−Removed: There was no capitalized interest excluded from interest expense during the 2024 first nine months.
+Added: Interest expense for the 2026 first quarter decreased 3% compared with the 2025 first quarter, primarily due to lower average debt outstanding in the 2026 first quarter.
+Added: Interest expense excludes capitalized interest for the 2026 first quarter of $0.2 million.
+Added: There was no capitalized interest excluded from interest expense during the 2025 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, 2025 increased 9% compared with December 31, 2024.
+Added: Current assets as of March 31, 2026 increased 6% compared with December 31, 2025.
Trade accounts receivable increased 13% primarily due to higher business activity levels in both KMT and KDS.
−Removed: Accounts receivable – other increased 105% due to a federal income tax receivable associated with the OBBBA.
−Removed: Inventories – net increased 8% primarily due to the impact of higher business activity levels and efforts to manage supply in KDS resulting in the buildup of inventory for mainly power generation projects that are scheduled to be delivered later in 2025 and into 2026.
−Removed: Property and equipment, net of accumulated depreciation, at September 30, 2025 increased 2% compared with December 31, 2024.
−Removed: The increase reflected $206.9 million of capital additions (net of a decrease in accrued capital expenditures of $10.6 million) and $106.5 million of equipment acquisitions in the 2025 first nine months, partially offset by $189.7 million of depreciation expense and $24.5 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, 2025 increased 14% compared with December 31, 2024, primarily due to new leases acquired in the 2025 first nine months, partially offset by lease amortization expense.
−Removed: Other intangibles, net, as of September 30, 2025 decreased 10% compared with December 31, 2024, due to amortization during the 2025 first nine months partially offset by a $3.0 million intellectual property intangible asset acquired in the 2025 second quarter.
−Removed: Other assets as of September 30, 2025 increased 2% compared with December 31, 2024, primarily due to additional deferred major maintenance drydock expenditures incurred during the 2025 first nine months, partially offset by amortization of drydock expenditures.
−Removed: Current liabilities as of September 30, 2025 decreased 7% compared with December 31, 2024.
−Removed: Income taxes payable decreased 98% primarily due to timing of federal income tax payments.
−Removed: Accrued liabilities decreased 7% primarily from payment during the 2025 first nine months of employee incentive compensation accrued during 2024.
−Removed: Long-term debt, net – less current portion, as of September 30, 2025 increased 20% compared with December 31, 2024, primarily reflecting increased borrowings under the 2027 Revolving Credit Facility.
−Removed: Total equity as of September 30, 2025 was flat compared with December 31, 2024.
+Added: Inventories – net increased 5% primarily due to the impact of higher business activity levels and 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 2026.
+Added: Prepaid expenses and other current assets increased 8% primarily due to higher prepaid fuel as a result of an increase in the price of diesel fuel.
+Added: Property and equipment, net of accumulated depreciation, at March 31, 2026 increased 2% compared with December 31, 2025.
+Added: The increase reflected $50.5 million of capital additions (including an increase in accrued capital expenditures of $2.3 million) and $81.4 million of equipment acquisitions in the 2026 first three months, partially offset by $66.0 million of depreciation expense and $1.1 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, 2026 decreased 7% compared with December 31, 2025, primarily due to lease amortization expense, partially offset by new leases acquired in the 2026 first three months.
+Added: Other intangibles, net, as of March 31, 2026 decreased 7% compared with December 31, 2025, due to amortization during the 2026 first quarter.
+Added: Other assets as of March 31, 2026 decreased 1% compared with December 31, 2025, primarily due to amortization of drydock expenditures.
+Added: Current liabilities as of March 31, 2026 increased 2% compared with December 31, 2025.
+Added: Accounts payable increased 20% primarily due to higher business activity levels and the timing of inventory purchases and shipyard payments.
+Added: Accrued liabilities decreased 14% primarily from payment during the 2026 first three months of employee incentive compensation accrued during 2025.
+Added: Long-term debt, net – less current portion, as of March 31, 2026 increased 7% compared with December 31, 2025, primarily reflecting increased borrowings under the 2031 Revolving Credit Facility.
+Added: Operating lease liabilities – less current portion, as of March 31, 2026 decreased 6% compared with December 31, 2025, primarily due to lease payments made, partially offset by new leases acquired and liability accretion.
+Added: Total equity as of March 31, 2026 increased 1% compared with December 31, 2025.
Net earnings attributable to Kirby of $81.2 million, amortization of share-based compensation of $10.1 million, and stock option exercises of $4.3 million were partially offset by treasury stock purchases of $52.7 million and tax withholdings of $6.7 million on RSU vestings.
1 unchanged sentence
The following table summarizes the Company’s outstanding debt (in thousands):
−Removed: September 30,
Long-term debt, including current portion:
−Removed: Revolving Credit Facility due July 29, 2027 (a)
−Removed: Term Loan due July 29, 2027 (a)
+Added: Revolving Credit Facility due March 26, 2031 (a)
+Added: Term Loan due July 29, 2027 (b)
4.2% senior notes due March 1, 2028
4 unchanged sentences
Unamortized debt discounts and issuance costs
−Removed: (a) Variable interest rate of 5.3% at September 30, 2025 and 5.6% at December 31, 2024.
−Removed: On July 29, 2022, the Company entered into the 2027 Credit Agreement with a group of commercial banks, with JPMorgan Chase Bank, N.A.
−Removed: 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 the fourth quarter of 2022, the Company repaid $80 million under the 2027 Term Loan prior to scheduled maturities.
−Removed: In the fourth quarter of 2024, the Company repaid $100 million under the 2027 Term Loan prior to scheduled maturities.
−Removed: As a result, no repayments are required until March 31, 2027.
−Removed: 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 $325.0 million as of September 30, 2025.
−Removed: 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.
−Removed: The Series A Notes were issued on October 20, 2022, and the Series B Notes were issued on January 19, 2023.
−Removed: No principal payments will be required until maturity.
+Added: (a) Variable interest rate of 4.7% at March 31, 2026 and 5.0% at December 31, 2025.
+Added: (b) Variable interest rate of 5.0% at December 31, 2025.
+Added: On March 26, 2026, the Company entered into the 2031 Credit Agreement with JPMorgan, as administrative agent, and certain lenders and issuing banks party thereto.
+Added: The 2031 Credit Agreement amends and restates in its entirety the 2027 Credit Agreement, extending the Maturity Date, increasing the revolving credit facility commitments to $750 million, and removing the term loan credit facility.
+Added: Under the 2031 Credit Agreement, the Company has the option, subject to customary conditions and consent of the participating lenders, to increase the size of the revolving credit facility commitments and to add term loan commitments up to an aggregate additional $500 million.
+Added: Borrowings under the 2031 Credit Agreement bear interest at a rate per annum equal to, at the Company’s option, either a SOFR or a base rate, plus an interest rate margin which ranges from 87.5 to 150 basis points for SOFR loans and 0 to 50 basis points for base rate loans based on the Company’s credit rating.
+Added: The commitment fee on the unused available credit ranges from 7 to 20 basis points based on the Company’s credit rating.
+Added: The Maturity Date may be extended for up to two additional one-year periods with the consent of the Company and lenders holding at least 50 percent of the commitments under the 2031 Credit Agreement.
+Added: The 2031 Credit Agreement contains customary provisions regarding permitted uses, events of default, and covenants substantively similar to those in the 2027 Credit Agreement, including the maintenance of an interest coverage ratio of no less than 2.5 to 1.0 and a debt to capitalization of no more than or equal to 60 percent (with all calculations based on definitions contained in the 2031 Credit Agreement).
+Added: Outstanding letters of credit under the 2031 Revolving Credit Facility were $6,000 and available borrowing capacity was $570.0 million as of March 31, 2026.
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, 2025.
−Removed: As of September 30, 2025, the Company was in compliance with all covenants under its debt instruments.
+Added: Outstanding letters of credit under the Credit Line were $7.6 million and available borrowing capacity was $7.4 million as of March 31, 2026.
+Added: As of March 31, 2026, 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, 2025.
Cash Flow and Capital Expenditures
−Removed: The Company generated positive operating cash flows during the 2025 first nine months with net cash provided by operating activities of $358.0 million compared with $509.1 million for the 2024 first nine months, a 30% decrease.
−Removed: The decline in operating cash flows was mainly due to the timing of accounts receivable collections, accounts payable payments and federal income tax payments, as well as an increase in inventories in 2025, partially offset by increased net earnings.
−Removed: The increase in inventories was due to the impact of higher business activity levels and efforts to manage supply in KDS resulting in the buildup of inventory for projects, mainly due to power generation orders, which are scheduled to be delivered later in 2025 and into 2026.
−Removed: The increase in net earnings was driven by higher term contract pricing in the KMT coastal market, higher spot and term pricing in the KMT inland market during the 2025 first six months, and improved KDS business activity levels in the commercial and industrial and power generation markets, partially offset by lower spot market pricing and barge utilization in the 2025 third quarter in the KMT inland market.
−Removed: During the 2025 and 2024 first nine months, the Company generated cash of $28.3 million and $13.8 million, respectively, from proceeds from the disposition of assets, and $0.3 million and $8.4 million, respectively, from proceeds from the exercise of stock options.
−Removed: For the 2025 first nine months, cash generated was used for capital expenditures of $217.4 million, including $187.1 million associated with marine maintenance capital and improvements to existing inland and coastal marine equipment and facility improvements, as well as $30.3 million for growth spending in both segments.
+Added: The Company generated positive operating cash flows during the 2026 first quarter with net cash provided by operating activities of $97.7 million compared with $36.5 million for the 2025 first quarter, a 167% increase.
+Added: The increase in operating cash flows was mainly due to increased net earnings and the timing of accounts payable payments and a decrease in inventories in 2026, partially offset by the timing of accounts receivable collections.
+Added: The increase in net earnings was driven by higher term contract pricing in the KMT coastal market and improved KDS business activity levels in the commercial and industrial and power generation markets.
+Added: During the 2026 and 2025 first quarter, the Company generated cash of $2.7 million and $0.1 million, respectively, from proceeds from the disposition of assets, and $4.3 million and $0.3 million, respectively, from proceeds from the exercise of stock options.
+Added: For the 2026 first quarter, cash generated was used for capital expenditures of $48.3 million, including $39.5 million associated with marine maintenance capital and improvements to existing inland and coastal marine equipment and facility improvements, as well as $8.8 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, power generators, and other related equipment.
−Removed: In addition, the Company used cash of $106.5 million for equipment acquisitions in the 2025 first nine months.
+Added: In addition, the Company used cash of $81.4 million for a marine equipment acquisition in the 2026 first quarter.
Treasury Stock Purchases
−Removed: During the 2025 first nine months, the Company purchased 2.6 million shares of its common stock for $252.6 million, at an average price of $95.38 per share.
−Removed: Subsequent to September 30, 2025 and through November 7, 2025, the Company purchased an additional 0.5 million shares of its common stock for $43.6 million, at an average price of $87.10 per share.
−Removed: On September 8, 2025, the Board approved an eight million share increase in the Company’s purchase authorization.
−Removed: As of November 7, 2025, the Company had approximately 7.7 million shares available under its existing purchase authorizations.
+Added: During the 2026 first quarter, the Company purchased 0.4 million shares of its common stock for $52.7 million, at an average price of $123.18 per share.
+Added: Subsequent to March 31, 2026 and through May 7, 2026, the Company purchased an additional 45,000 shares of its common stock for $6.5 million, at an average price of $143.76 per share.
+Added: As of May 7, 2026, the Company had approximately 6.7 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 2025 third quarter, see Part II, Item 2.
+Added: For more information about stock purchases in the 2026 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 7, 2025 the Company also had cash and cash equivalents of $70 million, availability of $345 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 7, 2026 the Company also had cash and cash equivalents of $54.5 million, availability of $530 million under its 2031 Revolving Credit Facility, and $7.4 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 2031 Credit Agreement.
−Removed: The Company expects to continue to fund expenditures for acquisitions, capital construction projects, common stock purchases, repayment of borrowings, and for other operating requirements from a combination of available cash and cash equivalents, funds generated from operating activities, and available financing arrangements.
−Removed: The 2027 Revolving Credit Facility’s commitment is in the amount of $500 million and matures July 29, 2027.
+Added: The Company expects to continue to be able to fund expenditures for acquisitions, capital construction projects, common stock purchases, repayment of borrowings, and for other operating requirements both in the short term and in the long term from a combination of available cash and cash equivalents, funds generated from operating activities, and available financing arrangements.
+Added: The 2031 Revolving Credit Facility’s commitment is in the amount of $750 million and matures March 26, 2031, with $180 million currently outstanding at March 31, 2026.
The $500 million 4.2% senior unsecured notes do not mature until March 1, 2028 and require no prepayments.
−Removed: 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 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.
−Removed: The 2027 Term Loan is prepayable, in whole or in part, without penalty.
+Added: The $60 million of 3.46% series A notes and $240 million of 3.51% series B notes do not mature until January 19, 2033 and require no prepayments.
There are numerous factors that may negatively impact the Company’s cash flows in 2026.
−Removed: For a list of significant risks and uncertainties that could impact cash flows, see Note 13, Contingencies and Commitments, of the Notes to Condensed Financial Statements (Unaudited), and Item 1A — Risk Factors and Note 14, Contingencies and Commitments, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
+Added: For a list of significant risks and uncertainties that could impact cash flows, see Note 13, Contingencies and Commitments, of the Notes to Condensed Financial Statements (Unaudited), Part II, Item 1A-Risk Factors, and Item 1A-Risk Factors and Note 14, Contingencies and Commitments, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Amounts available under the Company’s existing financial arrangements are subject to the Company continuing to meet the covenants of the credit facilities as described in 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, 2025.
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 $30.5 million at September 30, 2025, including $11.6 million in letters of credit and $18.9 million in performance bonds.
+Added: The aggregate notional value of these instruments is $31.0 million at March 31, 2026, including $12.2 million in letters of credit and $18.8 million in performance bonds.
All of these instruments have an expiration date within approximately two years.
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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.