KIRBY CORP 10-Q

Item 1. Financial Statements KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES CONDENSED BALANCE SHEETS (Unaudited) March 31, 2026 December 31, 2025 ($ in thousands) ASSETS Current assets: Cash and cash equivalents $ 58,014 $ 78,775 Accounts receivable: Trade – less allowance for doubtful accounts 536,350 473,497 Other 66,963 69,622 Inventories – net 418,076 398,026 Prepaid expenses and other current assets 62,732 57,935 Total current assets 1,142,135 1,077,855 Property and equipment 6,521,037 6,392,985 Accumulated depreciation ( 2,358,118 ) ( 2,294,927 ) Property and equipment – net 4,162,919 4,098,058 Operating lease right-of-use assets 179,662 193,276 Goodwill 438,748 438,748 Other intangibles, net 27,976 30,165 Other assets 167,763 169,943 Total assets $ 6,119,203 $ 6,008,045 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Bank notes payable $ 6,092 $ 7,357 Accounts payable 263,110 218,614 Accrued liabilities 200,854 232,623 Current portion of operating lease liabilities 42,221 45,766 Deferred revenues 205,187 202,164 Total current liabilities 717,464 706,524 Long-term debt, net – less current portion 977,292 911,924 Deferred income taxes 835,396 826,373 Operating lease liabilities – less current portion 159,422 169,854 Other long-term liabilities 12,954 10,577 Total long-term liabilities 1,985,064 1,918,728 Contingencies and commitments — — Equity: Kirby stockholders’ equity: Common stock, $ 0.10 par value per share. Authorized 120 million shares, issued 65.5 million shares 6,547 6,547 Additional paid-in capital 870,284 873,249 Accumulated other comprehensive income – net 84,121 86,342 Retained earnings 3,414,138 3,332,941 Treasury stock – at cost, 12 million shares at March 31, 2026 and 11.7 million at December 31, 2025 ( 960,825 ) ( 918,567 ) Total Kirby stockholders’ equity 3,414,265 3,380,512 Noncontrolling interests 2,410 2,281 Total equity 3,416,675 3,382,793 Total liabilities and equity $ 6,119,203 $ 6,008,045 See accompanying notes to condensed financial statements. 2 KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES CONDENSED STATEMENTS OF EARNINGS (Unaudited) Three Months Ended March 31, 2026 2025 ($ in thousands, except per share amounts) Revenues: Marine transportation $ 497,183 $ 476,149 Distribution and services 346,916 309,510 Total revenues 844,099 785,659 Costs and expenses: Costs of sales and operating expenses 558,529 512,336 Selling, general and administrative 101,260 95,287 Taxes, other than on income 9,852 8,830 Depreciation and amortization 68,238 63,730 Gain on disposition of assets ( 1,453 ) ( 70 ) Total costs and expenses 736,426 680,113 Operating income 107,673 105,546 Other income 7,281 5,334 Interest expense ( 10,250 ) ( 10,537 ) Earnings before taxes on income 104,704 100,343 Provision for taxes on income ( 23,378 ) ( 24,073 ) Net earnings 81,326 76,270 Net earnings attributable to noncontrolling interests ( 129 ) ( 284 ) Net earnings attributable to Kirby $ 81,197 $ 75,986 Net earnings per share attributable to Kirby common stockholders: Basic $ 1.51 $ 1.33 Diluted $ 1.50 $ 1.33 See accompanying notes to condensed financial statements. 3 KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three Months Ended March 31, 2026 2025 ($ in thousands) Net earnings $ 81,326 $ 76,270 Other comprehensive loss, net of taxes: Pension and postretirement benefits ( 2,359 ) ( 1,867 ) Foreign currency translation adjustments 138 308 Total other comprehensive loss, net of taxes ( 2,221 ) ( 1,559 ) Total comprehensive income, net of taxes 79,105 74,711 Net earnings attributable to noncontrolling interests ( 129 ) ( 284 ) Comprehensive income attributable to Kirby $ 78,976 $ 74,427 See accompanying notes to condensed financial statements. 4 KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, 2026 2025 ($ in thousands) Cash flows from operating activities: Net earnings $ 81,326 $ 76,270 Adjustments to reconcile net earnings to net cash provided by operations: Depreciation and amortization 68,238 63,730 Provision for deferred income taxes 9,813 2,570 Amortization of share-based compensation 10,143 7,847 Amortization of major maintenance costs 6,703 7,185 Other 782 1,246 Decrease in cash flows resulting from changes in operating assets and liabilities, net ( 79,355 ) ( 122,307 ) Net cash provided by operating activities 97,650 36,541 Cash flows from investing activities: Capital expenditures ( 48,256 ) ( 78,687 ) Acquisitions of businesses and marine equipment ( 81,400 ) ( 97,250 ) Proceeds from disposition of assets 2,708 81 Net cash used in investing activities ( 126,948 ) ( 175,856 ) Cash flows from financing activities: Borrowings on bank credit facilities, net 133,735 224,110 Payments on long-term debt ( 70,000 ) — Payment of debt issuance costs ( 132 ) — Proceeds from exercise of stock options 4,308 262 Payments related to tax withholding for share-based compensation ( 6,671 ) ( 5,949 ) Treasury stock purchases ( 52,675 ) ( 101,473 ) Other ( 28 ) ( 1,001 ) Net cash provided by financing activities 8,537 115,949 Decrease in cash and cash equivalents ( 20,761 ) ( 23,366 ) Cash and cash equivalents, beginning of year 78,775 74,444 Cash and cash equivalents, end of period $ 58,014 $ 51,078 Supplemental disclosures of cash flow information: Cash paid during the period: Interest paid $ 18,778 $ 17,711 Income taxes paid, net $ 713 $ 24,994 Operating cash outflow from operating leases $ 13,447 $ 11,749 Non-cash investing activity: Capital expenditures included in accounts payable $ ( 2,274 ) $ ( 12,011 ) Right-of-use assets obtained in exchange for lease obligations $ 4,946 $ 5,516 See accompanying notes to condensed financial statements. 5 KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY (Unaudited) Accumulated Additional Other Common Stock Paid-in- Comprehensive Retained Treasury Stock Noncontrolling Shares Amount Capital Income, Net Earnings Shares Amount Interests Total (in thousands) Balance at December 31, 2025 65,472 $ 6,547 $ 873,249 $ 86,342 $ 3,332,941 ( 11,701 ) $ ( 918,567 ) $ 2,281 $ 3,382,793 Stock option exercises — — ( 329 ) — — 59 4,637 — 4,308 Issuance of stock for equity awards, net of forfeitures — — ( 12,779 ) — — 162 12,779 — — Tax withholdings on equity award vesting — — — — — ( 54 ) ( 6,671 ) — ( 6,671 ) Amortization of share-based compensation — — 10,143 — — — — — 10,143 Treasury stock purchases — — — — — ( 428 ) ( 52,675 ) — ( 52,675 ) Excise taxes on treasury stock purchases — — — — — — ( 328 ) — ( 328 ) Total comprehensive income, net of taxes — — — ( 2,221 ) 81,197 — — 129 79,105 Balance at March 31, 2026 65,472 $ 6,547 $ 870,284 $ 84,121 $ 3,414,138 ( 11,962 ) $ ( 960,825 ) $ 2,410 $ 3,416,675 Accumulated Additional Other Common Stock Paid-in- Comprehensive Retained Treasury Stock Noncontrolling Shares Amount Capital Income, Net Earnings Shares Amount Interests Total (in thousands) Balance at December 31, 2024 65,472 $ 6,547 $ 868,763 $ 71,192 $ 2,978,372 ( 8,215 ) $ ( 573,061 ) $ 1,435 $ 3,353,248 Stock option exercises — — 27 — — 4 235 — 262 Issuance of stock for equity awards, net of forfeitures — — ( 11,630 ) — — 165 11,630 — — Tax withholdings on equity award vesting — — — — — ( 55 ) ( 5,949 ) — ( 5,949 ) Amortization of share-based compensation — — 7,847 — — — — — 7,847 Treasury stock purchases — — — — — ( 1,003 ) ( 101,473 ) — ( 101,473 ) Excise taxes on treasury stock purchases — — — — — — ( 892 ) — ( 892 ) Total comprehensive income, net of taxes — — — ( 1,559 ) 75,986 — — 284 74,711 Balance at March 31, 2025 65,472 $ 6,547 $ 865,007 $ 69,633 $ 3,054,358 ( 9,104 ) $ ( 669,510 ) $ 1,719 $ 3,327,754 See accompanying notes to condensed financial statements. 6 KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES NOTES TO CONDENSED FINANCIAL STATEMENTS (Unaudited) (1) Basis for Preparation of the Condensed Financial Statements The condensed financial statements included herein have been prepared by Kirby Corporation and its consolidated subsidiaries (“Kirby” or the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including significant accounting policies normally included in annual financial statements, have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 . Certain reclassifications have been made to reflect the current presentation of financial information. (2) Acquisitions 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. 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. The 23 tank barges, including five specialty barges, transport petrochemicals and refined products on the Mississippi River System and Gulf Intracoastal Waterway. The average age of the 23 barges was 19 years. 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. 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. 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. The 14 tank barges, including four specialty barges, transport petrochemicals and refined products on the Mississippi River System and Gulf Intracoastal Waterway. The average age of the 14 barges was 16 years. (3) Revenues The following table sets forth the Company’s revenues by major source (in thousands): Three Months Ended March 31, 2026 2025 Marine transportation segment: Inland transportation $ 394,125 $ 392,499 Coastal transportation 103,058 83,650 $ 497,183 $ 476,149 Distribution and services segment: Commercial and industrial $ 161,646 $ 160,228 Power generation 151,754 104,502 Oil and gas 33,516 44,780 $ 346,916 $ 309,510 Contract liabilities represent advance consideration received from customers, and are recognized as revenue over time or at a point in time as the related performance obligation is satisfied. Revenues recognized during the three months ended March 31, 2026 and 2025 that were included in the opening contract liability balances were $ 64.7 million and $ 60.2 million , respectively. The Company presents all contract liabilities within the deferred revenues financial statement caption on the balance sheets. The Company did no t have any contract assets as of March 31, 2026 or December 31, 2025 . 7 (4) Segment Data The Company’s operations are aggregated into two reportable business segments as follows: Marine Transportation Segment (“KMT”) — Provides marine transportation by United States flagged vessels principally of liquid cargoes throughout the United States inland waterway system, along all three United States coasts, and to a lesser extent, in United States coastal transportation of dry-bulk cargoes. The principal products transported include petrochemicals, black oil, refined petroleum products and agricultural chemicals. Distribution and Services Segment (“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. 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 Company’s two reportable business segments are managed separately by the Company’s chief operating decision maker (“CODM” ) , its Chief Executive Officer , based on fundamental differences in their operations. The Company’s accounting policies for the business segments are the same as those described in Note 1, Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Company’s 2025 Annual Report on Form 10-K. The CODM evaluates the performance of the Company’s segments based on the contributions to operating income of the respective segments, and before income taxes, interest, gains or losses on disposition of assets, other nonoperating income, noncontrolling interests, accounting changes, and nonrecurring items. The CODM uses segment operating income to allocate resources for each segment during the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis for segment operating income when making decisions about allocating capital and personnel to the segments. The CODM also uses segment operating income to assess the performance for each segment by comparing the results and return on invested capital of each segment. Intersegment revenues, based on market-based pricing, of KDS from KMT of $ 7.9 million for the three months ended March 31, 2026, and $ 11.1 million for the three months ended March 31, 2025, as well as the related intersegment profit of $ 0.8 million for the three months ended March 31, 2026, and $ 1.1 million for the three months ended March 31, 2025, have been eliminated from the tables below. The following tables set forth the Company’s revenues, depreciation and amortization, and income or loss by reportable segment and total assets (in thousands): Three Months Ended March 31, 2026 2025 KMT KDS Total KMT KDS Total Revenue from external customers $ 497,183 $ 346,916 $ 844,099 $ 476,149 $ 309,510 $ 785,659 Less: Costs of sales and operating expenses 300,824 257,284 558,108 290,987 222,228 513,215 Administrative payroll expense 22,388 25,486 47,874 21,230 24,936 46,166 Taxes, other than on income 7,567 2,261 9,828 6,452 2,353 8,805 Depreciation and amortization 55,336 10,954 66,290 51,672 10,319 61,991 Other segment items (a) 21,413 27,585 48,998 19,224 27,083 46,307 Segment operating income $ 89,655 $ 23,346 $ 113,001 $ 86,584 $ 22,591 $ 109,175 Reconciliation of segment operating income Unallocated amounts: General corporate expenses ( 6,781 ) ( 3,699 ) Gain on disposition of assets 1,453 70 Operating income $ 107,673 $ 105,546 Other income 7,281 5,334 Interest expense ( 10,250 ) ( 10,537 ) Earnings before taxes on income $ 104,704 $ 100,343 (a) Other segment items for each reportable segment includes: KMT – selling expense, professional service expense, occupancy expense, and certain overhead expenses. KDS – inventory-related expense, warranty expense, selling expense, professional service expense, occupancy expense, and certain overhead expenses. 8 March 31, 2026 December 31, 2025 Total assets: Marine transportation $ 4,784,066 $ 4,705,692 Distribution and services 1,175,868 1,111,549 Other 159,269 190,804 $ 6,119,203 $ 6,008,045 The following table presents the details of “Other” total assets (in thousands): March 31, 2026 December 31, 2025 General corporate assets $ 155,639 $ 187,616 Investment in affiliates 3,630 3,188 $ 159,269 $ 190,804 (5) Long-Term Debt The following table presents the carrying value and fair value (determined using inputs characteristic of a Level 2 fair value measurement) of debt outstanding (in thousands): March 31, 2026 December 31, 2025 Carrying Value Fair Value Carrying Value Fair Value Revolving Credit Facility due March 26, 2031 (a) $ 180,000 $ 180,000 $ 45,000 $ 45,000 Term Loan due July 29, 2027 (b) — — 70,000 70,000 4.2 % senior notes due March 1, 2028 500,000 497,998 500,000 506,089 3.46 % senior notes due January 19, 2033 60,000 54,258 60,000 55,093 3.51 % senior notes due January 19, 2033 240,000 217,735 240,000 221,128 Credit line due June 30, 2026 — — — — Bank notes payable 6,092 6,092 7,357 7,357 986,092 956,083 922,357 904,667 Unamortized debt discounts and issuance costs ( 2,708 ) — ( 3,076 ) — $ 983,384 $ 956,083 $ 919,281 $ 904,667 (a) Variable interest rate o f 4.7 % at March 31, 2026 and 5.0 % at December 31, 2025 . (b) Variable interest rate o f 5.0 % at December 31, 2025. On March 26, 2026, the Company entered into an amended and restated credit agreement (the “2031 Credit Agreement”) with JPMorgan Chase Bank, N.A. (“JPMorgan”), as administrative agent, and certain lenders and issuing banks party thereto. The 2031 Credit Agreement amends and restates in its entirety the Company’s existing credit agreement, dated as of July 29, 2022 (the “2027 Credit Agreement”), extending the term of the facility to March 26, 2031 (the “Maturity Date”), increasing the revolving credit facility commitments to $ 750 million, and removing the term loan credit facility. 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. Borrowings under the 2031 Credit Agreement bear interest at a rate per annum equal to, at the Company’s option, either a Secured Overnight Financing Rate (“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. The commitment fee on the unused available credit ranges from 7 to 20 basis points based on the Company’s credit rating. 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. 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). 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 line of credit (“Credit Line”) with Bank of America, N.A. (“Bank of America”) for short-term liquidity needs and letters of credit, with a maturity date of June 30, 2026 . Outstanding letters of credit under the Credit Line were $ 7.6 million and available borrowing capacity was $ 7.4 million as of March 31, 2026 . 9 (6) Leases The Company currently leases various facilities and equipment under cancelable and noncancelable operating leases. The accounting for the Company’s leases may require judgments, which include determining whether a contract contains a lease, allocating the consideration between lease and non-lease components, and determining the incremental borrowing rates. Leases with an initial noncancelable term of 12 months or less are not recorded on the balance sheets and related lease expense is recognized on a straight-line basis over the lease term. The Company has also elected to combine lease and non-lease components on all classes of leased assets, except for leased towing vessels, for which the Company estimates approximately 70 % of the costs relate to service costs and other non-lease components. Variable lease costs relate primarily to real estate executory costs (i.e. taxes, insurance and maintenance). Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year were as follows (in thousands): March 31, 2026 December 31, 2025 2026 $ 38,563 $ 54,278 2027 41,830 44,246 2028 31,825 33,245 2029 19,600 18,855 2030 15,288 14,522 Thereafter 99,910 97,566 Total lease payments 247,016 262,712 Less: imputed interest ( 45,373 ) ( 47,092 ) Operating lease liabilities $ 201,643 $ 215,620 The following table summarizes lease costs (in thousands): Three Months Ended March 31, 2026 2025 Operating lease cost $ 13,241 $ 11,985 Variable lease cost ( 651 ) ( 15 ) Short-term lease cost 8,553 10,675 Sublease income ( 905 ) ( 860 ) $ 20,238 $ 21,785 The following table summarizes other supplemental information about the Company’s operating leases: March 31, 2026 December 31, 2025 Weighted average discount rate 4.7 % 4.7 % Weighted average remaining lease term 8 years 8 years (7) Stock Award Plans The compensation cost that has been charged against earnings for the Company’s stock award plans and the income tax benefit recognized in the statement of earnings for stock awards were as follows (in thousands): Three Months Ended March 31, 2026 2025 Compensation cost $ 10,143 $ 7,847 Income tax benefit $ 2,262 $ 1,883 During the three months ended March 31, 2026, the Company grant ed 131,250 restricted stock units (“RSUs”) to selected officers and other key employees under the employee stock award plan that vest ratably over five years . During May 2026, the Company granted 11,136 shares of restricted stock to nonemployee directors of the Company under the director stock plan which vest six months after the date of grant. 10 (8) Taxes on Income Earnings (loss) before taxes on income and details of the provision for taxes on income were as follows (in thousands): Three Months Ended March 31, 2026 2025 Earnings (loss) before taxes on income: United States $ 104,746 $ 100,574 Foreign ( 42 ) ( 231 ) $ 104,704 $ 100,343 Provision for taxes on income: Federal: Current $ 12,275 $ 18,166 Deferred 7,940 1,545 State and local: Current 1,093 3,337 Deferred 1,873 1,025 Foreign - current 197 — $ 23,378 $ 24,073 (9) Earnings Per Share The following table presents the components of basic and diluted earnings per share (in thousands, except per share amounts): Three Months Ended March 31, 2026 2025 Net earnings attributable to Kirby $ 81,197 $ 75,986 Undistributed earnings allocated to restricted shares — — Earnings available to Kirby common stockholders – basic 81,197 75,986 Undistributed earnings allocated to restricted shares — — Undistributed earnings reallocated to restricted shares — — Earnings available to Kirby common stockholders – diluted $ 81,197 $ 75,986 Shares outstanding: Weighted average common stock issued and outstanding 53,663 56,949 Weighted average unvested restricted stock ( 1 ) — Weighted average common stock outstanding – basic 53,662 56,949 Dilutive effect of stock options and restricted stock units 351 367 Weighted average common stock outstanding – diluted 54,013 57,316 Net earnings per share attributable to Kirby common stockholders: Basic $ 1.51 $ 1.33 Diluted $ 1.50 $ 1.33 There were no antidilutive stock options as of March 31, 2026 and 2025 . There were no antidilutive RSUs as of March 31, 2026 and 2025 . (10) Inventories The following table presents the details of inventories – net (in thousands): March 31, 2026 December 31, 2025 Finished goods $ 352,321 $ 340,740 Work in process 65,755 57,286 $ 418,076 $ 398,026 11 (11) Retirement Plans The Company sponsors a defined benefit plan for certain of its inland vessel personnel and shore based tankermen. The plan benefits are based on an employee’s years of service and compensation. The plan assets consist primarily of equity and fixed income securities. On April 12, 2017, the Company amended its pension plan to cease all benefit accruals for periods after May 31, 2017 for certain participants. Participants grandfathered and not impacted were those, as of the close of business on May 31, 2017, who either (a) had completed 15 years of pension service or (b) had attained age 50 and completed 10 years of pension service. Participants non-grandfathered are eligible to receive discretionary 401(k) plan contributions. The Company’s pension plan funding strategy is to make annual contributions in amounts equal to or greater than amounts necessary to meet minimum government funding requirements. The plan’s benefit obligations are based on a variety of demographic and economic assumptions, and the pension plan assets’ returns are subject to various risks, including market and interest rate risk, making an accurate prediction of the pension plan contribution difficult. Based on current pension plan assets and market conditions, the Company does not expect to make a contribution to the Kirby pension plan during 2026. On February 14, 2018, with the acquisition of Higman Marine, Inc. and its affiliated companies (“Higman”), the Company assumed Higman’s pension plan for its inland vessel personnel and office staff. On March 27, 2018, the Company amended the Higman pension plan to close it to all new entrants and cease all benefit accruals for periods after May 15, 2018 for all participants. The Company made contributions of $ 0.2 million to the Higman pension plan during the three months ended March 31, 2026 . The Company expects to make additional contributions of $ 1.0 million during the remainder of 2026. The Company sponsors an unfunded defined benefit health care plan that provides limited postretirement medical benefits to employees who meet minimum age and service requirements, and to eligible dependents. The plan is contributory, with retiree contributions adjusted annually. The plan eliminated coverage for future retirees as of December 31, 2011. The Company also has an unfunded defined benefit supplemental executive retirement plan (“SERP”) that was assumed in an acquisition in 1999. That plan ceased to accrue additional benefits effective January 1, 2000. The components of net periodic benefit cost for the Company’s defined benefit plans were as follows (in thousands): Pension Benefits Pension Plans SERP Three Months Ended March 31, Three Months Ended March 31, 2026 2025 2026 2025 Components of net periodic benefit cost: Service cost $ 609 $ 605 $ — $ — Interest cost 4,544 4,487 9 10 Expected return on plan assets ( 7,631 ) ( 6,809 ) — — Amortization of actuarial (gain) loss ( 3,099 ) ( 2,434 ) 8 7 Net periodic benefit cost $ ( 5,577 ) $ ( 4,151 ) $ 17 $ 17 The components of net periodic benefit cost for the Company’s postretirement benefit plan were as follows (in thousands): Other Postretirement Benefits Postretirement Welfare Plan Three Months Ended March 31, 2026 2025 Components of net periodic benefit cost: Interest cost $ 5 $ 5 Amortization of actuarial gain ( 57 ) ( 65 ) Net periodic benefit cost $ ( 52 ) $ ( 60 ) 12 (12) Other Comprehensive Income The Company’s changes in other comprehensive loss were as follows (in thousands): Three Months Ended March 31, 2026 2025 Gross Amount Income Tax Benefit Net Amount Gross Amount Income Tax Benefit Net Amount Pension and postretirement benefits (a): Amortization of net actuarial gain $ ( 3,148 ) $ 789 $ ( 2,359 ) $ ( 2,492 ) $ 625 $ ( 1,867 ) Foreign currency translation 138 — 138 308 — 308 Total $ ( 3,010 ) $ 789 $ ( 2,221 ) $ ( 2,184 ) $ 625 $ ( 1,559 ) (a) Actuarial gains (losses) are amortized into other income (expense). ( See Note 11, Retirement Plans) (13) Contingencies and Commitments On October 13, 2016, the tug Nathan E. Stewart and barge DBL 55, an articulated tank barge and tugboat unit (“ATB”) owned and operated by Kirby Offshore Marine, LLC, a wholly owned subsidiary of the Company, ran aground at the entrance to Seaforth Channel on Atholone Island, British Columbia. The grounding resulted in a breach of a portion of the Nathan E. Stewart’s fuel tanks causing a discharge of diesel fuel into the water. The United States Coast Guard and the National Transportation Safety Board designated the Company as a party of interest in their investigation as to the cause of the incident. The Canadian authorities including Transport Canada and the Canadian Transportation Safety Board investigated the cause of the incident. On October 10, 2018, the Heiltsuk First Nation filed a civil action in the British Columbia Supreme Court against a subsidiary of the Company, the master and pilot of the tug, the vessels and the Canadian government seeking unquantified damages as a result of the incident. On May 1, 2019, the Company filed a limitation action in the Federal Court of Canada seeking limitation of liability relating to the incident as provided under admiralty law. The Heiltsuk First Nation’s civil claim has been consolidated into the Federal Court limitation action as of July 26, 2019 and it is expected that the Federal Court of Canada will decide all claims against the Company. The Company is unable to estimate the potential exposure in the civil proceeding. The Company has various insurance policies covering liabilities including pollution, property, marine and general liability and believes that it has satisfactory insurance coverage for the cost of cleanup and salvage operations as well as other potential liabilities arising from the incident. The Company believes its accrual of such estimated liability is adequate for the incident and does not expect the incident to have a material adverse effect on its business or financial condition. In addition, the Company is involved in various legal and other proceedings which are incidental to the conduct of its business, none of which in the opinion of management will have a material effect on the Company’s financial condition, results of operations, or cash flows. Management believes its accrual of such estimated liability is adequate and believes that it has adequate insurance coverage or has meritorious defenses for these other claims and contingencies. 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. 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 . The Company does not believe demand for payment under these instruments is likely and expects no material cash outlays to occur regarding these instruments. 13