Kirby(US:KEX)2026-02-17 17:48Fleet and Operations - Kirby Corporation operates the largest domestic tank barge fleet in the U.S., with 1,105 inland tank barges and a total capacity of 24.5 million barrels[23]. - The inland tank barge fleet's average age is approximately 18 years, with about 600 barges being 30 years or older, indicating potential retirements in the near future[31]. - In 2024, the company reported an inland barge utilization rate in the low 90% range, which was impacted by an increase in delay days compared to 2023[31]. - The company estimates that 66 new tank barges will be placed in service industry-wide in 2025, while 65 will be retired[30]. - Kirby Corporation's coastal tank barge fleet has a capacity of 2.9 million barrels, equivalent to approximately 4,800 railroad tank cars[27]. - The inland tank barge industry has seen a stable number of operating barges, with Kirby's fleet representing about 28% of the total industry[29]. - The company operates shifting and fleeting facilities for dry cargo and tank barges in key locations such as the Houston Ship Channel and Lake Charles, Louisiana[32]. - Kirby Corporation's marine transportation segment is crucial for transporting petrochemicals, black oil, and refined petroleum products across the U.S.[28]. - The Company operates 28 out of approximately 260 coastal tank barges, representing about 11% of the market[34]. - The inland tank barge fleet has grown from 71 barges in 1988 to 1,105 barges as of December 31, 2025, accounting for approximately 28% of the estimated total number of domestic inland tank barges[36]. - During 2025, the inland marine transportation operation moved over 55 million tons of liquid cargo on the United States inland waterway system[40]. - Inland barge utilization averaged in the low 90% range during 2023 and 2024, decreasing to the high 80% range in 2025 due to a lighter feedstock mix[46]. - The Company operates a fleet of 1,105 inland tank barges and an average of 266 inland towboats during the 2025 fourth quarter[50]. - The inland tank barges are equipped with various specialized features, including self-contained heating systems and pressurized tanks, to meet cargo requirements[56]. - Kirby Inland Marine operates the largest commercial tank barge fleeting service in the United States, with operations in numerous key ports[63]. - The Company utilizes a proprietary vessel management computer system for efficient dispatch and tracking of its barge and towboat fleet[62]. - The coastal fleet consists of 28 tank barges with a total capacity of 2.9 million barrels, primarily transporting refined petroleum products, black oil, and petrochemicals[69]. Revenue and Financial Performance - Petrochemical products accounted for 48% of the segment's 2025 revenues, while black oil represented 26%, refined petroleum products 23%, and agricultural chemicals 3%[41][42][43][44]. - Approximately 70% of inland marine transportation revenues were under term contracts in 2025, up from 60% in 2023[59]. - For the distribution and services segment, service and parts revenue reached $1,190,547,000 in 2025, accounting for 83% of total segment revenue[83]. - The commercial and industrial operations represented approximately 46% of the distribution and services segment's revenues in 2025[84]. - The company has a significant presence in the power generation market, which has been separated from other revenue sources due to its growth importance[78]. - No single customer accounted for 10% or more of the company's revenues in 2025, 2024, or 2023, indicating a diversified customer base[75]. - The company maintains a higher mix of term contracts to spot contracts, with 60% of inland marine transportation revenues under term contracts in 2023, increasing to 70% in 2025[74]. - Power generation operations accounted for approximately 43% of the segment's 2025 revenues[94]. - Oil and gas operations represented about 11% of the segment's 2025 revenues[100]. - Sales and service of EMD products accounted for approximately 3% of the Company's revenues for 2025, while Thermo King products comprised about 4%[186]. - Sales and service of MTU, Allison, and Daimler products accounted for approximately 12% of the Company's revenues during 2025[187]. - Five KMT customers accounted for approximately 17% of the Company's 2025 revenue, with contracts expiring between 2026 and 2031[198]. - Recent growth in prime power and data center demand has contributed to increased revenue in the power generation market in the KDS segment[198]. Workforce and Employment - The company has approximately 5,233 employees, primarily located in the United States[21]. - KMT segment employs about 3,054 individuals, including 2,337 vessel crew members, with some operations subject to collective bargaining agreements[137]. - KDS segment has around 2,072 employees, with a small number under collective bargaining agreements[138]. - In 2025, the Company issued approximately 2,017 certificates for training courses, including 582 USCG approved classes[141]. - The Company emphasizes safety through extensive monitoring and training programs, with 90% of employees agreeing on the commitment to employee safety[147]. - The Company has established relationships with educational institutions to attract talent and enhance workforce quality[145]. - The CEO and Chief Human Resources Officer are responsible for succession planning, reviewing qualifications and performance regularly[146]. Regulatory Compliance and Environmental Responsibility - The company maintains compliance with various governmental regulations, including the Clean Water Act and the Clean Air Act[118][127]. - The company has fully complied with the Certificate of Financial Responsibility (COFR) requirement since its inception[126]. - The company completed the installation of an approved ballast water management system on the last barge in its fleet during 2024[125]. - The Company is committed to environmental responsibility, participating in programs aimed at reducing greenhouse gas emissions[132]. - The Company anticipates that new hazardous substance spill contingency regulations will not be more difficult to comply with than existing oil spill plans[129]. - The Company maintains various insurance coverages, including hull, liability, and pollution liability insurance, to mitigate operational risks[131]. Market and Economic Conditions - The company faces competitive labor pressure with approximately 3,054 employees, including 2,337 vessel crew members, and ongoing retirements in the industry[166]. - The aging infrastructure of the United States inland waterway system, with over 50% of locks over 50 years old, may lead to increased costs and operational disruptions[161]. - The company is subject to extensive regulation by the USCG and other federal agencies, incurring significant expenses to comply with applicable laws and regulations[169]. - KMT's business could be adversely affected by changes to the Jones Act, which restricts domestic marine transportation to U.S.-built and manned vessels[167]. - The cost of fuel during 2025 was approximately 8% of marine transportation revenue, with fuel price volatility impacting profitability[175]. - The company estimates that approximately 190 to 220 inland tank barges were transporting crude and natural gas condensate as of the end of 2023, down from 335 in 2019[171]. - For 2023, the company estimates that industry-wide 27 new tank barges were placed in service and 48 were retired, indicating a net decrease in capacity[172]. - The company estimates that approximately 60 to 70 new tank barges have currently been ordered for delivery in 2026, depending on market conditions[172]. - The average construction price for a new 30,000 barrel capacity tank barge in 2009 was approximately 90% higher than in 2000, primarily due to increased steel costs[178]. - The construction price of inland tank barges fell significantly in 2010 due to a decrease in steel prices and the number of tank barges ordered[178]. - Steel prices rose above 2019 levels during 2021 and 2022 due to supply chain disruptions, but decreased in 2023 and remained stable in 2024 and 2025[178]. - The Company did not experience significant shipyard delays associated with the COVID-19 pandemic and expects its shipyard vendors to manage operations effectively in future similar events[179]. - The distribution and services segment could be adversely impacted by future legislation regulating oil and gas extraction, including hydraulic fracturing practices[181]. - Lower energy prices generally lead to decreased demand for oilfield service equipment, negatively impacting KDS's business[182]. - The Company faces risks from public health crises, which could lead to volatility in the global economy and significant disruptions in operations[209]. Risks and Challenges - A deterioration in the Company's credit profile could restrict access to debt capital markets and increase borrowing costs, impacting financial condition and cash flows[203]. - Increased inflation and rising prices for raw materials, labor, and energy could negatively affect the Company's margin performance and financial results[205]. - Supply chain disruptions and material shortages could adversely impact the Company's operations, particularly in manufacturing, leading to operational slowdowns[206]. - New tariffs and trade measures could increase input costs and disrupt the supply chain, adversely affecting the Company's financial performance[207]. - The Company relies on proprietary information and intellectual property, and any successful challenges could materially affect its competitive position[202]. - The Company has not experienced material cybersecurity incidents to date, but future breaches could have significant adverse effects[201]. - The Company may incur additional costs related to evolving ESG regulations and compliance requirements, impacting financial performance[204]. - The Company attempts to mitigate rising costs through contractual clauses but may struggle to pass these costs onto customers[205].