[10-Q] KIRBY CORP Quarterly Earnings Report
Kirby Corporation (KEX) reported Q3 2025 results with total revenues of $871.2 million, up from $831.1 million a year ago. Net earnings attributable to Kirby were $92.5 million versus $90.0 million, and diluted EPS rose to $1.65 from $1.55.
Marine Transportation generated $484.9 million (flat year over year) as lower inland utilization and moderating spot pricing were offset by stronger coastal term pricing. Distribution & Services delivered $386.2 million (up 12%), led by higher power generation demand and stronger marine repair activity, while oil and gas revenue softened.
Operating income was $129.2 million versus $126.9 million; margins reflected mix and inflationary cost pressures. Year-to-date operating cash flow was $358.0 million (down from $509.1 million) amid working capital timing and inventory builds for power generation projects. Capital expenditures were $217.4 million, and the company repurchased $252.6 million of treasury stock. Debt increased to $1.05 billion (variable rate on credit facilities 5.3% at quarter-end), and the debt-to-capitalization ratio rose to 23.8%.
Kirby added equipment with barge and towboat purchases, including $97.3 million on March 27 and $9.2 million on August 7, to support fleet capacity.
- None.
- None.
Insights
Solid revenue and EPS growth; segment mix shifts and buybacks.
Kirby posted higher revenue of
Operating cash flow of
Management highlights continued favorable coastal conditions and improving inland utilization into the fourth quarter. Actual outcomes will hinge on utilization trends, pricing renewals, and delivery timing for power generation orders disclosed for
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
For the quarterly period ended
or
For the transition period from to
Commission File Number:
(Exact name of registrant as specified in its charter)
|
(I.R.S. Employer Identification No.) |
|
(State or other jurisdiction of incorporation or organization) |
|
|
||
(Address of principal executive offices) |
|
(Zip Code) |
(Registrant’s telephone number, including area code)
No Change
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
|
|
Accelerated filer |
|
|
Non-accelerated filer |
|
|
Smaller reporting company |
|
|
|
|
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
As of November 7, 2025,
|
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONDENSED BALANCE SHEETS
(Unaudited)
|
|
September 30, |
|
|
December 31, |
|
||
|
|
($ in thousands) |
|
|||||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
|
|
$ |
|
||
Accounts receivable: |
|
|
|
|
|
|
||
Trade – less allowance for doubtful accounts |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
Inventories – net |
|
|
|
|
|
|
||
Prepaid expenses and other current assets |
|
|
|
|
|
|
||
Total current assets |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Property and equipment |
|
|
|
|
|
|
||
Accumulated depreciation |
|
|
( |
) |
|
|
( |
) |
Property and equipment – net |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Operating lease right-of-use assets |
|
|
|
|
|
|
||
Goodwill |
|
|
|
|
|
|
||
Other intangibles, net |
|
|
|
|
|
|
||
Other assets |
|
|
|
|
|
|
||
Total assets |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Bank notes payable |
|
$ |
|
|
$ |
|
||
Income taxes payable |
|
|
|
|
|
|
||
Accounts payable |
|
|
|
|
|
|
||
Accrued liabilities |
|
|
|
|
|
|
||
Current portion of operating lease liabilities |
|
|
|
|
|
|
||
Deferred revenues |
|
|
|
|
|
|
||
Total current liabilities |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Long-term debt, net – less current portion |
|
|
|
|
|
|
||
Deferred income taxes |
|
|
|
|
|
|
||
Operating lease liabilities – less current portion |
|
|
|
|
|
|
||
Other long-term liabilities |
|
|
|
|
|
|
||
Total long-term liabilities |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Contingencies and commitments |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Equity: |
|
|
|
|
|
|
||
Kirby stockholders’ equity: |
|
|
|
|
|
|
||
Common stock, $ |
|
|
|
|
|
|
||
Additional paid-in capital |
|
|
|
|
|
|
||
Accumulated other comprehensive income – net |
|
|
|
|
|
|
||
Retained earnings |
|
|
|
|
|
|
||
Treasury stock – at cost, |
|
|
( |
) |
|
|
( |
) |
Total Kirby stockholders’ equity |
|
|
|
|
|
|
||
Noncontrolling interests |
|
|
|
|
|
|
||
Total equity |
|
|
|
|
|
|
||
Total liabilities and equity |
|
$ |
|
|
$ |
|
||
See accompanying notes to condensed financial statements.
2
KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENTS OF EARNINGS
(Unaudited)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
|
($ in thousands, except per share amounts) |
|
|||||||||||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Marine transportation |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Distribution and services |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Costs of sales and operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Taxes, other than on income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gain on disposition of assets |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Total costs and expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Earnings before taxes on income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Provision for taxes on income |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings attributable to noncontrolling interests |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings attributable to Kirby |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings per share attributable to Kirby common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Diluted |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
See accompanying notes to condensed financial statements.
3
KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
|
|
($ in thousands) |
|
|||||||||||||
Net earnings |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other comprehensive loss, net of taxes: |
|
|
|
|
|
|
|
|
|
|
|
|||||
Pension and postretirement benefits |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
||
Foreign currency translation adjustments |
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|||
Total other comprehensive loss, net of taxes |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total comprehensive income, net of taxes |
|
|
|
|
|
|
|
|
|
|
|
|||||
Net earnings attributable to noncontrolling interests |
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Comprehensive income attributable to Kirby |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|||||
See accompanying notes to condensed financial statements.
4
KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
Nine Months Ended September 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
|
($ in thousands) |
|
|||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net earnings |
|
$ |
|
|
$ |
|
||
Adjustments to reconcile net earnings to net cash provided by operations: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
|
|
|
|
||
Provision for deferred income taxes |
|
|
|
|
|
|
||
Amortization of share-based compensation |
|
|
|
|
|
|
||
Amortization of major maintenance costs |
|
|
|
|
|
|
||
Other |
|
|
( |
) |
|
|
( |
) |
Increase (decrease) in cash flows resulting from changes in operating assets and liabilities, net |
|
|
( |
) |
|
|
|
|
Net cash provided by operating activities |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Capital expenditures |
|
|
( |
) |
|
|
( |
) |
Acquisitions of businesses and marine equipment |
|
|
( |
) |
|
|
( |
) |
Proceeds from disposition of assets |
|
|
|
|
|
|
||
Other |
|
|
( |
) |
|
|
|
|
Net cash used in investing activities |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Borrowings (payments) on bank credit facilities, net |
|
|
|
|
|
( |
) |
|
Payment of debt issuance costs |
|
|
|
|
|
( |
) |
|
Proceeds from exercise of stock options |
|
|
|
|
|
|
||
Payments related to tax withholding for share-based compensation |
|
|
( |
) |
|
|
( |
) |
Treasury stock purchases |
|
|
( |
) |
|
|
( |
) |
Other |
|
|
( |
) |
|
|
( |
) |
Net cash used in financing activities |
|
|
( |
) |
|
|
( |
) |
Increase (decrease) in cash and cash equivalents |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|
|
||
Cash and cash equivalents, beginning of year |
|
|
|
|
|
|
||
Cash and cash equivalents, end of period |
|
$ |
|
|
$ |
|
||
|
|
|
|
|
|
|
||
Supplemental disclosures of cash flow information: |
|
|
|
|
|
|
||
Cash paid during the period: |
|
|
|
|
|
|
||
Interest paid |
|
$ |
|
|
$ |
|
||
Income taxes paid, net |
|
$ |
|
|
$ |
|
||
Operating cash outflow from operating leases |
|
$ |
|
|
$ |
|
||
Non-cash investing activity: |
|
|
|
|
|
|
||
Capital expenditures included in accounts payable |
|
$ |
|
|
$ |
|
||
Right-of-use assets obtained in exchange for lease obligations |
|
$ |
|
|
$ |
|
||
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 June 30, 2025 |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||||
Issuance of stock for equity awards, net of forfeitures |
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
||
Tax withholdings on equity award vesting |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Amortization of share-based compensation |
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Treasury stock purchases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Excise taxes on treasury stock purchases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Total comprehensive income, net of taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|||
Balance at September 30, 2025 |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||||
|
|
|
|
|
|
|
|
|
|
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 June 30, 2024 |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||||
Stock option exercises |
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||
Issuance of stock for equity awards, net of forfeitures |
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
||
Tax withholdings on equity award vesting |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Amortization of share-based compensation |
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Treasury stock purchases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Excise taxes on treasury stock purchases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Total comprehensive income, net of taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|||
Balance at September 30, 2024 |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||||
See accompanying notes to condensed financial statements.
6
KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES
CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY
(Unaudited)
|
|
|
|
|
|
|
Additional |
|
|
Accumulated 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 |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||||
Stock option exercises |
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||
Issuance of stock for equity awards, net of forfeitures |
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
||
Tax withholdings on equity award vesting |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Amortization of share-based compensation |
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Treasury stock purchases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Excise taxes on treasury stock purchases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Total comprehensive income, net of taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|||
Balance at September 30, 2025 |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||||
|
|
|
|
|
|
|
Additional |
|
|
Accumulated 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, 2023 |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||||
Stock option exercises |
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||||
Issuance of stock for equity awards, net of forfeitures |
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
||
Tax withholdings on equity award vesting |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Amortization of share-based compensation |
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Treasury stock purchases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Excise taxes on treasury stock purchases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Total comprehensive income, net of taxes |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|||
Balance at September 30, 2024 |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
|
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|||||||
See accompanying notes to condensed financial statements.
7
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, 2024. Certain reclassifications have been made to reflect the current presentation of financial information.
(2) Acquisitions
On August 7, 2025, the Company purchased
On March 27, 2025, the Company purchased
On December 31, 2024, the Company purchased an inland tank barge from a leasing company for $
On December 30, 2024, the Company purchased
On May 15, 2024, the Company completed the purchase of
(3) Revenues
The following table sets forth the Company’s revenues by major source (in thousands):
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Marine transportation segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Inland transportation |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Coastal transportation |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Distribution and services segment: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Commercial and industrial |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Power generation |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Oil and gas |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
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 nine months ended September 30, 2025 and 2024 that were included in the opening contract liability balances were $
8
(4) Segment Data
The Company’s operations are aggregated into
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 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. The Company also rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment and refrigeration trailers for use in a variety of industrial markets. The Company also manufactures and remanufactures specialized equipment, including pressure pumping units, electric power generation equipment, and specialized electrical distribution and control equipment for oilfield service, railroad and other industrial customers.
The Company’s
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 September 30, |
|
|||||||||||||||||||||
|
2025 |
|
|
2024 |
|
||||||||||||||||||
|
KMT |
|
|
KDS |
|
|
Total |
|
|
KMT |
|
|
KDS |
|
|
Total |
|
||||||
Revenue from external customers |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Costs of sales and operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Administrative payroll expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxes, other than on income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other segment items (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Segment operating income |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reconciliation of segment operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
General corporate expenses |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Gain on disposition of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income |
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
$ |
|
||||||
Other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Earnings before taxes on income |
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
$ |
|
||||||
9
|
Nine Months Ended September 30, |
|
|||||||||||||||||||||
|
2025 |
|
|
2024 |
|
||||||||||||||||||
|
KMT |
|
|
KDS |
|
|
Total |
|
|
KMT |
|
|
KDS |
|
|
Total |
|
||||||
Revenue from external customers |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Costs of sales and operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Administrative payroll expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Taxes, other than on income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Other segment items (a) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Segment operating income |
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Reconciliation of segment operating income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Unallocated amounts: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
General corporate expenses |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Gain on disposition of assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating income |
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
$ |
|
||||||
Other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest expense |
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
|
|
|
( |
) |
||||
Earnings before taxes on income |
|
|
|
|
|
|
$ |
|
|
|
|
|
|
|
|
$ |
|
||||||
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.
|
|
September 30, |
|
|
December 31, |
|
||
Total assets: |
|
|
|
|
|
|
||
Marine transportation |
|
$ |
|
|
$ |
|
||
Distribution and services |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
The following table presents the details of “Other” total assets (in thousands):
|
|
September 30, |
|
|
December 31, |
|
||
General corporate assets |
|
$ |
|
|
$ |
|
||
Investment in affiliates |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
(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):
|
|
September 30, 2025 |
|
|
December 31, 2024 |
|
||||||||||
|
|
Carrying Value |
|
|
Fair Value |
|
|
Carrying Value |
|
|
Fair Value |
|
||||
Revolving Credit Facility due |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Term Loan due |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Credit line due |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Bank notes payable |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Unamortized debt discounts and issuance costs |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
10
On July 29, 2022, the Company entered into a credit agreement (the “2027 Credit Agreement”) with a group of commercial banks, with JPMorgan Chase Bank, N.A. as the administrative agent bank that allows for a $
On February 3, 2022, the Company entered into a note purchase agreement for the issuance of $
The Company has a $
(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 sheet 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
Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year were as follows (in thousands):
|
|
September 30, |
|
|
December 31, |
|
||
2025 |
|
$ |
|
|
$ |
|
||
2026 |
|
|
|
|
|
|
||
2027 |
|
|
|
|
|
|
||
2028 |
|
|
|
|
|
|
||
2029 |
|
|
|
|
|
|
||
Thereafter |
|
|
|
|
|
|
||
Total lease payments |
|
|
|
|
|
|
||
Less: imputed interest |
|
|
( |
) |
|
|
( |
) |
Operating lease liabilities |
|
$ |
|
|
$ |
|
||
The following table summarizes lease costs (in thousands):
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Operating lease cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Variable lease cost |
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|||
Short-term lease cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sublease income |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The following table summarizes other supplemental information about the Company’s operating leases:
|
|
September 30, |
|
|
December 31, |
|
||
Weighted average discount rate |
|
|
% |
|
|
% |
||
Weighted average remaining lease term |
|
|
|
|
||||
11
(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 September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Compensation cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Income tax benefit |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
During the nine months ended September 30, 2025, the Company granted
(8) Taxes on Income
Earnings (loss) before taxes on income and details of the provision (benefit) for taxes on income were as follows (in thousands):
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Earnings (loss) before taxes on income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
United States |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Foreign |
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Provision (benefit) for taxes on income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Federal: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
|
$ |
|
|||
Deferred |
|
|
|
|
|
|
|
|
|
|
|
|
||||
State and local: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Current |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Deferred |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Foreign - current |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was signed into law. The legislation included several significant U.S. income tax provisions that will help reduce the Company’s U.S. federal cash tax payments for the remainder of 2025 and future years. These provisions include 100% bonus tax depreciation and domestic research and development cost expensing. The Company incorporated these provisions effective during the quarter, and they had no material impact on the operational results for the three and nine months ended September 30, 2025. At September 30, 2025, the Company had a federal income tax receivable of $
12
(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 September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Net earnings attributable to Kirby |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Undistributed earnings allocated to restricted shares |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Earnings available to Kirby common stockholders – basic |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Undistributed earnings allocated to restricted shares |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Undistributed earnings reallocated to restricted shares |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Earnings available to Kirby common stockholders – diluted |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common stock issued and outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average unvested restricted stock |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Weighted average common stock outstanding – basic |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dilutive effect of stock options and restricted stock units |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average common stock outstanding – diluted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net earnings per share attributable to Kirby common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Diluted |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
There were
(10) Inventories
The following table presents the details of inventories – net (in thousands):
|
|
September 30, |
|
|
December 31, |
|
||
Finished goods |
|
$ |
|
|
$ |
|
||
Work in process |
|
|
|
|
|
|
||
|
|
$ |
|
|
$ |
|
||
(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
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 2025.
13
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 $
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 September 30, |
|
|
Three Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Components of net periodic benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Interest cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expected return on plan assets |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Amortization of actuarial (gain) loss |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Net periodic benefit cost |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||
|
|
Pension Benefits |
|
|||||||||||||
|
|
Pension Plans |
|
|
SERP |
|
||||||||||
|
|
Nine Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Components of net periodic benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Service cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Interest cost |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expected return on plan assets |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Amortization of actuarial (gain) loss |
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
||
Net periodic benefit cost |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
|
||
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 September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Components of net periodic benefit cost: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest cost |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Amortization of actuarial gain |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Net periodic benefit cost |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
(12) Other Comprehensive Income
The Company’s changes in other comprehensive loss were as follows (in thousands):
|
|
Three Months Ended September 30, |
|
|||||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||||||
|
|
Gross |
|
|
Income Tax Benefit |
|
|
Net Amount |
|
|
Gross |
|
|
Income Tax Benefit |
|
|
Net |
|
||||||
Pension and postretirement benefits (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of net actuarial gain |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
Foreign currency translation |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Total |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
14
|
|
Nine Months Ended September 30, |
|
|||||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
||||||||||||||||||
|
|
Gross |
|
|
Income Tax Benefit |
|
|
Net Amount |
|
|
Gross |
|
|
Income Tax (Provision) Benefit |
|
|
Net |
|
||||||
Pension and postretirement benefits (a): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of net actuarial gain |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
Actuarial gains (losses) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
|||
Foreign currency translation |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||||
Total |
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
( |
) |
|
(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 $
15
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Statements contained in this Form 10-Q that are not historical facts, including, but not limited to, any projections contained herein, are forward-looking statements and involve a number of risks and uncertainties. Such statements involve risks and uncertainties. Such statements can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “anticipate,” “estimate,” or “continue,” or the negative thereof or other variations thereon or comparable terminology. The actual results of the future events described in such forward-looking statements in this Form 10-Q could differ materially from those stated in such forward-looking statements. Among the factors that could cause actual results to differ materially are: adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornados, COVID-19 or other pandemics, marine accidents, lock delays 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. 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. Forward-looking statements are based on currently available information and the Company assumes no obligation to update any such statements. For purposes of Management’s Discussion, all net earnings per share attributable to Kirby common stockholders are “diluted earnings per share.”
Overview
The Company is the nation’s largest domestic tank barge operator transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway, and coastwise along all three United States coasts. The Company transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. In addition, the Company participates in the transportation of dry-bulk commodities in United States coastwise trade. Through KDS, the Company provides after-market services and genuine replacement parts for engines, transmissions, reduction gears, 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. The Company also rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment and refrigeration trailers for use in a variety of industrial markets. The Company also manufactures and remanufactures specialized equipment, including pressure pumping units, electric power generation equipment, and specialized electrical distribution and control equipment for oilfield service, railroad and other industrial customers.
The following table summarizes key operating results of the Company (in thousands, except per share amounts):
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Total revenues |
|
$ |
871,161 |
|
|
$ |
831,149 |
|
|
$ |
2,512,275 |
|
|
$ |
2,463,561 |
|
Net earnings attributable to Kirby |
|
$ |
92,496 |
|
|
$ |
89,968 |
|
|
$ |
262,759 |
|
|
$ |
243,890 |
|
Net earnings per share attributable to Kirby common stockholders – diluted |
|
$ |
1.65 |
|
|
$ |
1.55 |
|
|
$ |
4.64 |
|
|
$ |
4.17 |
|
Net cash provided by operating activities |
|
|
|
|
|
|
|
$ |
357,994 |
|
|
$ |
509,110 |
|
||
Capital expenditures |
|
|
|
|
|
|
|
$ |
217,440 |
|
|
$ |
245,990 |
|
||
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. 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. 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.
The Company projects that capital expenditures for 2025 will be in the $260 million to $290 million range. Approximately $180 million to $210 million is associated with marine maintenance capital and improvements to existing inland and coastal marine equipment, and facility improvements. Up to approximately $80 million is associated with growth capital spending in both segments.
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. 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. The Company’s debt outstanding as of September 30, 2025 and December 31, 2024 is detailed in Long-Term Financing below.
16
Marine Transportation
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. The segment’s customers include many of the major petrochemical and refining companies that operate in the United States. Products transported include intermediate materials used to produce many of the end products used widely by businesses and consumers — plastics, fiber, paints, detergents, oil additives and paper, among others, as well as residual fuel oil, ship bunkers, asphalt, gasoline, diesel fuel, heating oil, crude oil, natural gas condensate, and agricultural chemicals. Consequently, KMT is directly affected by the volumes produced by the Company’s petroleum, petrochemical, and refining customer base.
The following table summarizes the Company’s marine transportation fleet:
|
|
September 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Inland tank barges: |
|
|
|
|
|
|
||
Owned |
|
|
1,073 |
|
|
|
1,062 |
|
Leased |
|
|
32 |
|
|
|
33 |
|
Total |
|
|
1,105 |
|
|
|
1,095 |
|
Barrel capacity (in millions) |
|
|
24.5 |
|
|
|
24.2 |
|
|
|
|
|
|
|
|
||
Active inland towboats (quarter average): |
|
|
|
|
|
|
||
Owned |
|
|
209 |
|
|
|
216 |
|
Chartered |
|
|
61 |
|
|
|
71 |
|
Total |
|
|
270 |
|
|
|
287 |
|
|
|
|
|
|
|
|
||
Coastal tank barges: |
|
|
|
|
|
|
||
Owned |
|
|
28 |
|
|
|
28 |
|
Leased |
|
|
- |
|
|
|
- |
|
Total |
|
|
28 |
|
|
|
28 |
|
Barrel capacity (in millions) |
|
|
2.9 |
|
|
|
2.9 |
|
|
|
|
|
|
|
|
||
Coastal tugboats: |
|
|
|
|
|
|
||
Owned |
|
|
23 |
|
|
|
24 |
|
Chartered |
|
|
1 |
|
|
|
1 |
|
Total |
|
|
24 |
|
|
|
25 |
|
|
|
|
|
|
|
|
||
Offshore dry-bulk cargo barges (owned) |
|
|
2 |
|
|
|
4 |
|
Offshore tugboats and docking tugboat (owned and chartered) |
|
|
3 |
|
|
|
4 |
|
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. Furthermore, the Company owns a two-thirds interest in Osprey Line, L.L.C., which transports project cargoes and cargo containers by barge.
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.
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. 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. 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. 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. 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. 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. 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.
17
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. The 2025 third quarter experienced seasonally favorable weather and improved navigational conditions. 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. The 2025 and 2024 first quarters were impacted by high winds and heavy fog along the Gulf Coast and lock delays. The 2024 second and third quarters were modestly impacted by weather and lock closures. Coastal tank barge utilization levels averaged in the mid to high 90% range during the 2025 and 2024 first, second, and third quarters.
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. 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. 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. 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. 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. 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. Term contracts have contract terms of 12 months or longer, while spot contracts have contract terms of less than 12 months.
The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2025 compared to contracts renewed during the corresponding quarter of 2024:
|
|
Three Months Ended |
||||
|
|
March 31, 2025 |
|
June 30, 2025 |
|
September 30, 2025 |
Inland market: |
|
|
|
|
|
|
Term increase |
|
3% – 5% |
|
2% – 4% |
|
0% – 2% |
Spot increase |
|
6% – 8% |
|
6% – 8% |
|
(2)% – (4)% |
Coastal market (a): |
|
|
|
|
|
|
Term increase |
|
24% – 26% |
|
24% – 26% |
|
14% – 16% |
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.
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.
Distribution and Services
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. The Company also rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment and refrigeration trailers for use in a variety of industrial markets. The Company also manufactures and remanufactures specialized equipment, including pressure pumping units, electric power generation equipment, and specialized electrical distribution and control equipment for oilfield service, railroad and other industrial customers.
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. 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.
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. 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. 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. For the 2025 third quarter and first nine months, the commercial and industrial market contributed 44% and 47% of KDS revenues, respectively.
18
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. For the 2025 third quarter and first nine months, the power generation market contributed 45% and 40% of KDS revenues, respectively.
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. 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. For the 2025 third quarter and first nine months, the oil and gas market contributed 11% and 13% of KDS revenues, respectively.
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.
Outlook
Overall, the Company expects to deliver improved financial results in 2025. In KMT, the Company expects barge utilization rates in the 2025 fourth quarter to improve over the 2025 third quarter. The coastal marine market conditions remain very favorable. 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. 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.
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. 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. 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. In the coastal marine transportation market in 2025, market conditions remain very favorable with steady customer demand. 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.
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. In commercial and industrial, the demand outlook in marine repair remains steady while on-highway service and repair remains soft but has shown some recent modest improvement. In power generation, the Company anticipates continued strong growth in orders as data center demand and the need for backup power continues to be strong. In oil and gas, the Company expects revenues to be down as the transition from conventional diesel hydraulic fracturing to electric hydraulic fracturing continues to take place. The Company anticipates extended lead times and supply delays for certain original equipment manufacturer products to continue in the 2025 fourth quarter and into 2026.
Acquisitions
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.
On December 31, 2024, the Company purchased an inland tank barge from a leasing company for $2.7 million in cash. The Company had been leasing the barge prior to purchase.
On December 30, 2024, the Company purchased three inland tank barges from an undisclosed seller for $9.9 million in cash.
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. The 13 tank barges, including three specialty barges, transport petrochemicals and refined products on the Mississippi River System and Gulf Intracoastal Waterway. The average age of the 13 barges was 15 years.
Financing of these purchases was through borrowings under the Company’s 2027 Revolving Credit Facility and cash provided by operating activities.
19
Results of Operations
The following table sets forth the Company’s KMT and KDS revenues and the percentage of each to total revenues (dollars in thousands):
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||||||||||||||||||
|
|
2025 |
|
|
% |
|
|
2024 |
|
|
% |
|
|
2025 |
|
|
% |
|
|
2024 |
|
|
% |
|
||||||||
Marine transportation |
|
$ |
484,941 |
|
|
|
56 |
% |
|
$ |
486,054 |
|
|
|
58 |
% |
|
$ |
1,453,652 |
|
|
|
58 |
% |
|
$ |
1,446,274 |
|
|
|
59 |
% |
Distribution and services |
|
|
386,220 |
|
|
|
44 |
|
|
|
345,095 |
|
|
|
42 |
|
|
|
1,058,623 |
|
|
|
42 |
|
|
|
1,017,287 |
|
|
|
41 |
|
|
|
$ |
871,161 |
|
|
|
100 |
% |
|
$ |
831,149 |
|
|
|
100 |
% |
|
$ |
2,512,275 |
|
|
|
100 |
% |
|
$ |
2,463,561 |
|
|
|
100 |
% |
Marine Transportation
The following table sets forth KMT revenues, costs and expenses, operating income, and operating margin (dollars in thousands):
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
||||||
Marine transportation revenues |
|
$ |
484,941 |
|
|
$ |
486,054 |
|
|
|
— |
|
|
$ |
1,453,652 |
|
|
$ |
1,446,274 |
|
|
|
1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Costs of sales and operating expenses |
|
|
300,021 |
|
|
|
296,114 |
|
|
|
1 |
|
|
|
889,797 |
|
|
|
897,351 |
|
|
|
(1 |
) |
Selling, general and administrative |
|
|
34,985 |
|
|
|
34,064 |
|
|
|
3 |
|
|
|
108,854 |
|
|
|
103,712 |
|
|
|
5 |
|
Taxes, other than on income |
|
|
7,266 |
|
|
|
6,524 |
|
|
|
11 |
|
|
|
21,842 |
|
|
|
21,104 |
|
|
|
3 |
|
Depreciation and amortization |
|
|
54,100 |
|
|
|
49,876 |
|
|
|
8 |
|
|
|
158,954 |
|
|
|
146,772 |
|
|
|
8 |
|
|
|
|
396,372 |
|
|
|
386,578 |
|
|
|
3 |
|
|
|
1,179,447 |
|
|
|
1,168,939 |
|
|
|
1 |
|
Operating income |
|
$ |
88,569 |
|
|
$ |
99,476 |
|
|
|
(11 |
)% |
|
$ |
274,205 |
|
|
$ |
277,335 |
|
|
|
(1 |
)% |
Operating margins |
|
|
18.3 |
% |
|
|
20.5 |
% |
|
|
|
|
|
18.9 |
% |
|
|
19.2 |
% |
|
|
|
||
Marine Transportation Revenues
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:
Markets |
|
2025 Third Quarter |
|
2025 Nine Months |
|
Products Moved |
|
Drivers |
Petrochemicals |
|
48% |
|
49% |
|
Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Naphtha, Caustic Soda, Butadiene, Propylene |
|
Consumer non-durables – 70%, Consumer durables – 30% |
Black Oil |
|
25% |
|
26% |
|
Residual Fuel Oil, Coker Feedstock, Vacuum Gas Oil, Asphalt, Carbon Black Feedstock, Crude Oil, Natural Gas Condensate, Ship Bunkers |
|
Fuel for Power Plants and Ships, Feedstock for Refineries, Road Construction |
Refined Petroleum Products |
|
24% |
|
22% |
|
Gasoline, No. 2 Oil, Jet Fuel, Heating Oil, Diesel Fuel, Ethanol |
|
Vehicle Usage, Air Travel, Weather Conditions, Refinery Utilization |
Agricultural Chemicals |
|
3% |
|
3% |
|
Anhydrous Ammonia, Nitrogen – Based Liquid Fertilizer, Industrial Ammonia |
|
Corn, Cotton and Wheat Production, Chemical Feedstock Usage |
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. 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. Revenues for
20
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. 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. 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. 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. 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.
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. The 2025 third quarter experienced seasonally favorable weather and improved navigational conditions. 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. The 2025 and 2024 first quarters were impacted by high winds and heavy fog along the Gulf Coast and lock delays. The 2024 second and third quarters were modestly impacted by weather and lock closures. Coastal tank barge utilization levels averaged in the mid to high 90% range during the 2025 and 2024 first, second, and third quarters.
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.
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. During the 2025 first nine months, 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.
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.
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.
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. 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. 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. 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.
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. 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. 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. 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. 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. 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. Term contracts have contract terms of 12 months or longer, while spot contracts have contract terms of less than 12 months.
21
The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2025 compared to contracts renewed during the corresponding quarter of 2024:
|
|
Three Months Ended |
||||
|
|
March 31, 2025 |
|
June 30, 2025 |
|
September 30, 2025 |
Inland market: |
|
|
|
|
|
|
Term increase |
|
3% – 5% |
|
2% – 4% |
|
0% – 2% |
Spot increase |
|
6% – 8% |
|
6% – 8% |
|
(2)% – (4)% |
Coastal market (a): |
|
|
|
|
|
|
Term increase |
|
24% – 26% |
|
24% – 26% |
|
14% – 16% |
Effective January 1, 2025, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts in the 3% to 5% range, excluding fuel.
Marine Transportation Costs and Expenses
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. 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. 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. 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.
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. 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.
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. 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. 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. 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. 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; however, there is generally a 30 to 120 day delay before contracts are adjusted. Spot contracts do not have escalators for fuel.
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. 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. 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.
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. The increase was primarily due to capital additions during 2024 and the first nine months of 2025, as well as equipment acquisitions.
Marine Transportation Operating Income and Operating Margin
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. The 2025 third quarter operating margin was 18.3% compared with 20.5% for the 2024 third quarter. The 2025 first nine months operating margin was 18.9% compared with 19.2% for the 2024 first nine months. 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.
22
Distribution and Services
The following table sets forth KDS revenues, costs and expenses, operating income, and operating margin (dollars in thousands):
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
||||||
Distribution and services revenues |
|
$ |
386,220 |
|
|
$ |
345,095 |
|
|
|
12 |
% |
|
$ |
1,058,623 |
|
|
$ |
1,017,287 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Costs of sales and operating expenses |
|
|
280,049 |
|
|
|
255,835 |
|
|
|
9 |
|
|
|
766,608 |
|
|
|
758,980 |
|
|
|
1 |
|
Selling, general and administrative |
|
|
50,081 |
|
|
|
47,547 |
|
|
|
5 |
|
|
|
152,154 |
|
|
|
144,987 |
|
|
|
5 |
|
Taxes, other than on income |
|
|
2,472 |
|
|
|
2,414 |
|
|
|
2 |
|
|
|
7,216 |
|
|
|
6,142 |
|
|
|
17 |
|
Depreciation and amortization |
|
|
10,949 |
|
|
|
8,921 |
|
|
|
23 |
|
|
|
31,950 |
|
|
|
25,350 |
|
|
|
26 |
|
|
|
|
343,551 |
|
|
|
314,717 |
|
|
|
9 |
|
|
|
957,928 |
|
|
|
935,459 |
|
|
|
2 |
|
Operating income |
|
$ |
42,669 |
|
|
$ |
30,378 |
|
|
|
40 |
% |
|
$ |
100,695 |
|
|
$ |
81,828 |
|
|
|
23 |
% |
Operating margins |
|
|
11.0 |
% |
|
|
8.8 |
% |
|
|
|
|
|
9.5 |
% |
|
|
8.0 |
% |
|
|
|
||
Distribution and Services Revenues
The following table shows the markets serviced by KDS, the revenue distribution, and the customers for each market:
Markets Serviced |
|
2025 Third Quarter |
|
2025 Nine Months |
|
Customers |
Commercial and Industrial |
|
44% |
|
47% |
|
Inland River Carriers — Dry and Liquid, Offshore Towing — Dry and Liquid, Offshore Oilfield Services — Drilling Rigs & Supply Boats, Harbor Towing, Dredging, Great Lakes Ore Carriers, Pleasure Crafts, On and Off-Highway Transportation, Pumping Stations, Mining |
Power Generation |
|
45% |
|
40% |
|
Power Generation & Standby Power Generation Equipment, Power Generation Rentals & Related Service, Data Centers |
Oil and Gas |
|
11% |
|
13% |
|
Oilfield Services, Oil and Gas Operators and Producers |
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. 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.
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. 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. 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. 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.
Distribution and Services Costs and Expenses
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. 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. 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.
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.
23
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. The increase was primarily due to capital additions during 2024 and the first nine months of 2025 including additions to the equipment rental fleet.
Distribution and Services Operating Income and Operating Margin
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. The 2025 third quarter operating margin was 11.0% compared to 8.8% for the 2024 third quarter. The 2025 first nine months operating margin was 9.5% compared to 8.0% for the 2024 first nine months. 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.
Gain on Disposition of Assets
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. 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. The net gains were primarily from sales of marine transportation equipment.
Other Income and Expenses
The following table sets forth other income, noncontrolling interests, and interest expense (dollars in thousands):
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||||||||||
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
2024 |
|
|
% Change |
|
||||||
Other income |
|
$ |
5,557 |
|
|
$ |
2,949 |
|
|
|
88 |
% |
|
$ |
15,703 |
|
|
$ |
9,306 |
|
|
|
69 |
% |
Noncontrolling interests |
|
$ |
(242 |
) |
|
$ |
(63 |
) |
|
|
284 |
% |
|
$ |
(627 |
) |
|
$ |
(38 |
) |
|
|
(1550 |
)% |
Interest expense |
|
$ |
(11,838 |
) |
|
$ |
(12,498 |
) |
|
|
(5 |
)% |
|
$ |
(35,105 |
) |
|
$ |
(38,468 |
) |
|
|
(9 |
)% |
Other Income
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.
Interest Expense
The following table sets forth average debt and average interest rate (dollars in thousands):
|
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
||||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
||||
Average debt |
|
$ |
1,057,714 |
|
|
$ |
1,034,089 |
|
|
$ |
1,051,279 |
|
|
$ |
1,053,875 |
|
Average interest rate |
|
|
4.5 |
% |
|
|
4.7 |
% |
|
|
4.5 |
% |
|
|
4.8 |
% |
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. Interest expense excludes capitalized interest for the 2025 third quarter and first nine months of $0.3 million and $0.8 million, respectively. There was no capitalized interest excluded from interest expense during the 2024 first nine months.
24
Financial Condition, Capital Resources and Liquidity
Balance Sheets
The following table sets forth the significant components of the balance sheets (dollars in thousands):
|
|
September 30, |
|
|
December 31, |
|
|
% Change |
|
|||
Assets: |
|
|
|
|
|
|
|
|
|
|||
Current assets |
|
$ |
1,159,831 |
|
|
$ |
1,068,559 |
|
|
|
9 |
% |
Property and equipment, net |
|
|
4,122,065 |
|
|
|
4,022,966 |
|
|
|
2 |
|
Operating lease right-of-use assets |
|
|
181,407 |
|
|
|
158,990 |
|
|
|
14 |
|
Goodwill |
|
|
438,748 |
|
|
|
438,748 |
|
|
|
— |
|
Other intangibles, net |
|
|
30,956 |
|
|
|
34,406 |
|
|
|
(10 |
) |
Other assets |
|
|
130,552 |
|
|
|
128,283 |
|
|
|
2 |
|
|
|
$ |
6,063,559 |
|
|
$ |
5,851,952 |
|
|
|
4 |
% |
|
|
|
|
|
|
|
|
|
|
|||
Liabilities and stockholders’ equity: |
|
|
|
|
|
|
|
|
|
|||
Current liabilities |
|
$ |
683,770 |
|
|
$ |
734,753 |
|
|
|
(7 |
)% |
Long-term debt, net – less current portion |
|
|
1,041,632 |
|
|
|
866,722 |
|
|
|
20 |
|
Deferred income taxes |
|
|
805,006 |
|
|
|
739,472 |
|
|
|
9 |
|
Operating lease liabilities – less current portion |
|
|
159,261 |
|
|
|
148,170 |
|
|
|
7 |
|
Other long-term liabilities |
|
|
10,649 |
|
|
|
9,587 |
|
|
|
11 |
|
Total equity |
|
|
3,363,241 |
|
|
|
3,353,248 |
|
|
|
— |
|
|
|
$ |
6,063,559 |
|
|
$ |
5,851,952 |
|
|
|
4 |
% |
Current assets as of September 30, 2025 increased 9% compared with December 31, 2024. Trade accounts receivable increased 7% primarily due to higher business activity levels in both KMT and KDS. Accounts receivable – other increased 105% due to a federal income tax receivable associated with the OBBBA. 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.
Property and equipment, net of accumulated depreciation, at September 30, 2025 increased 2% compared with December 31, 2024. 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.
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.
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.
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.
Current liabilities as of September 30, 2025 decreased 7% compared with December 31, 2024. Income taxes payable decreased 98% primarily due to timing of federal income tax payments. Accrued liabilities decreased 7% primarily from payment during the 2025 first nine months of employee incentive compensation accrued during 2024.
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.
Total equity as of September 30, 2025 was flat compared with December 31, 2024. Net earnings attributable to Kirby of $262.8 million, amortization of share-based compensation of $14.6 million, and stock option exercises of $0.3 million were partially offset by treasury stock purchases of $252.6 million and tax withholdings of $6.0 million on RSU vestings.
25
Long-Term Financing
The following table summarizes the Company’s outstanding debt (in thousands):
|
|
September 30, |
|
|
December 31, |
|
||
Long-term debt, including current portion: |
|
|
|
|
|
|
||
Revolving Credit Facility due July 29, 2027 (a) |
|
$ |
175,000 |
|
|
$ |
— |
|
Term Loan due July 29, 2027 (a) |
|
|
70,000 |
|
|
|
70,000 |
|
4.2% senior notes due March 1, 2028 |
|
|
500,000 |
|
|
|
500,000 |
|
3.46% senior notes due January 19, 2033 |
|
|
60,000 |
|
|
|
60,000 |
|
3.51% senior notes due January 19, 2033 |
|
|
240,000 |
|
|
|
240,000 |
|
Credit line due June 30, 2026 |
|
|
— |
|
|
|
— |
|
Bank notes payable |
|
|
7,283 |
|
|
|
8,226 |
|
|
|
|
1,052,283 |
|
|
|
878,226 |
|
Unamortized debt discounts and issuance costs |
|
|
(3,368 |
) |
|
|
(3,278 |
) |
|
|
$ |
1,048,915 |
|
|
$ |
874,948 |
|
On July 29, 2022, the Company entered into the 2027 Credit Agreement with a group of commercial banks, with JPMorgan Chase Bank, N.A. as the administrative agent bank that allows for a $500 million 2027 Revolving Credit Facility and a $250 million 2027 Term Loan with a maturity date of July 29, 2027. In the fourth quarter of 2022, the Company repaid $80 million under the 2027 Term Loan prior to scheduled maturities. In the fourth quarter of 2024, the Company repaid $100 million under the 2027 Term Loan prior to scheduled maturities. As a result, no repayments are required until March 31, 2027. Future repayments under the 2027 Term Loan are excluded from short term liabilities because the Company intends to use availability under the 2027 Revolving Credit Facility to repay these amounts upon maturity. 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.
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. The Series A Notes were issued on October 20, 2022, and the Series B Notes were issued on January 19, 2023. No principal payments will be required until maturity.
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. 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.
As of September 30, 2025, the Company was in compliance with all covenants under its debt instruments. For additional information about the Company’s debt instruments, see Note 5, Long-Term Debt, of the Notes to Condensed Financial Statements (Unaudited) as well as Note 5, Long-Term Debt, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Cash Flow and Capital Expenditures
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. 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. 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. 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. 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.
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. 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. In addition, the Company used cash of $106.5 million for equipment acquisitions in the 2025 first nine months.
26
Treasury Stock Purchases
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. 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. On September 8, 2025, the Board approved an eight million share increase in the Company’s purchase authorization. As of November 7, 2025, the Company had approximately 7.7 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. The Company is authorized to purchase its common stock on the New York Stock Exchange and in privately negotiated transactions. When purchasing its common stock, the Company is subject to price, trading volume, and other market considerations. Shares purchased may be used for reissuance upon the exercise of stock options or the granting of other forms of incentive compensation, in future acquisitions for stock, or for other appropriate corporate purposes. For more information about stock purchases in the 2025 third quarter, see Part II, Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Liquidity
Funds generated from operations are available for acquisitions, capital expenditure projects, common stock purchases, repayments of borrowings, and for other corporate and operating requirements. 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.
Neither the Company, nor any of its subsidiaries, is obligated on any debt instrument, swap agreement, or any other financial instrument or commercial contract which has a rating trigger, except for the pricing grid on its 2027 Credit Agreement.
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.
The 2027 Revolving Credit Facility’s commitment is in the amount of $500 million and matures July 29, 2027. The $500 million 4.2% senior unsecured notes do not mature until March 1, 2028 and require no prepayments. The 2033 Notes do not mature until January 19, 2033 and require no prepayments. The 2027 Term Loan is subject to quarterly installments, beginning March 31, 2027, in increasing percentages of the original principal amount of the loan, with the remaining unpaid balance of approximately $43.8 million payable on July 29, 2027, assuming no prepayments. The 2027 Term Loan is prepayable, in whole or in part, without penalty.
There are numerous factors that may negatively impact the Company’s cash flows in 2025. 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. 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, 2024.
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 $30.5 million at September 30, 2025, including $11.6 million in letters of credit and $18.9 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 in connection with these instruments.
KMT term contracts typically contain fuel escalation clauses, or the customer pays for the fuel. However, there is generally a 30 to 120 day delay before contracts are adjusted depending on the specific terms of the contract. In general, the fuel escalation clauses are effective over the long-term in allowing the Company to recover changes in fuel costs due to fuel price changes. However, the short-term effectiveness of the fuel escalation clauses can be affected by a number of factors including, but not limited to, specific terms of the fuel escalation formulas, fuel price volatility, navigating conditions, tow sizes, trip routing, and the location of loading and discharge ports that may result in the Company over or under recovering its fuel costs. The Company’s spot contract rates generally reflect current fuel prices at the time the contract is signed but do not have escalators for fuel.
27
The Company has certain mechanisms designed to help mitigate the impacts of rising costs. For example, KMT has long-term contracts which generally contain cost escalation clauses whereby certain costs, including fuel as noted above, can be largely passed through to its customers. Spot contract rates include the cost of fuel and are subject to market volatility. In KDS, the cost of major components for large manufacturing orders is secured with suppliers at the time a customer order is finalized, which somewhat limits exposure to inflation. To the extent possible, the Company also seeks to include contractual language to address recovery of increased costs related to tariffs in KDS. The repair portion of KDS is based on prevailing current market rates.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
For quantitative and qualitative disclosures about market risk, see Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk,” in the Company’s Annual Report on Form 10-K. The Company’s exposure to market risk has not changed materially since December 31, 2024.
Item 4. Controls and Procedures
Disclosure Controls and Procedures. The Company’s management, with the participation of the Chief Executive Officer and the Chief Financial Officer, has evaluated the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”)), as of September 30, 2025, as required by Rule 13a-15(b) under the Exchange Act. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of September 30, 2025, the disclosure controls and procedures were effective to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act (i) is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and (ii) is accumulated and communicated to the Company’s management, including the Chief Executive Officer and the Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Changes in Internal Control Over Financial Reporting. There were no changes in the Company’s internal control over financial reporting during the quarter ended September 30, 2025 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
28
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
See Note 13, Contingencies and Commitments, of the Notes to Condensed Financial Statements (Unaudited).
Item 1A. Risk Factors
The Company continues to be subject to the risk factors previously disclosed in its “Risk Factors” in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Issuer Purchases of Equity Securities
Period |
|
Total Number of Shares Purchased |
|
|
Average Price Paid Per Share |
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans |
|
|
Maximum Number of Shares that May Yet be Purchased Under the Plans |
|
||||
July 1 — July 31, 2025 |
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
— |
|
August 1 — August 31, 2025 |
|
|
548,201 |
|
|
$ |
99.00 |
|
|
|
— |
|
|
|
— |
|
September 1 — September 30, 2025 |
|
|
765,808 |
|
|
$ |
85.78 |
|
|
|
— |
|
|
|
— |
|
Total |
|
|
1,314,009 |
|
|
$ |
91.30 |
|
|
|
— |
|
|
|
— |
|
Purchases of the Company’s common stock during the 2025 third quarter were made in the open market pursuant to a discretionary authorization by the Board of Directors. For more information about stock purchases in the 2025 first nine months and other information responsive to this Item, see “Treasury Stock Purchases” in Financial Condition, Capital Resources and Liquidity included in Part I, Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
Item 5. Other Information
There were no “Rule 10b5-1 trading arrangements” or “non-Rule 10b5-1 trading arrangements” (as defined in Item 408 of Regulation S-K of the Exchange Act)
Item 6. Exhibits
EXHIBIT INDEX
Exhibit Number |
|
Description of Exhibits |
3.1 |
– |
Restated Articles of Incorporation of the Company with all amendments to date (incorporated by reference to Exhibit 3.1 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014). |
3.2 |
– |
Bylaws of the Company, as amended to April 25, 2024 (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on October 28, 2022). |
3.3 |
– |
Amendment to Bylaws of Kirby Corporation dated April 26, 2024 (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 26, 2024). |
4.1 |
– |
See Exhibits 3.1, 3.2 and 3.3 hereof for provisions of the Restated Articles of Incorporation of the Company with all amendments to date and the Bylaws of the Company with all amendments to date (incorporated, respectively, by reference to Exhibit 3.1 to the Registrant’s Annual Report on Form 10-K for the year ended December 31, 2014, Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on October 28, 2022, and Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 26, 2024). |
31.1* |
– |
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) |
31.2* |
– |
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) |
32* |
– |
Certification Pursuant to 18 U.S.C. Section 1350 |
101.INS* |
– |
Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
101.SCH* |
– |
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
104* |
– |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* Filed herewith.
† Management contract, compensatory plan or arrangement.
29
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
KIRBY CORPORATION |
|
|
(Registrant) |
|
|
|
|
|
By: |
/s/ Raj Kumar |
|
|
Raj Kumar |
|
|
Executive Vice President and |
|
|
Chief Financial Officer |
|
|
|
Dated: November 10, 2025 |
|
|
30
