v3.25.2
Segment Data
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Data

(4) Segment Data

The Company’s operations are aggregated into two reportable business segments as follows:

Marine Transportation Segment (“KMT”) — Provides marine transportation by United States flagged vessels principally of liquid cargoes throughout the United States inland waterway system, along all three United States coasts, and to a lesser extent, in United States coastal transportation of dry-bulk cargoes. The principal products transported include petrochemicals, black oil, refined petroleum products and agricultural chemicals.

Distribution and Services Segment (“KDS”) — Provides 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 two reportable business segments are managed separately by the Company’s chief operating decision maker (“CODM”), its Chief Executive Officer, based on fundamental differences in their operations. The Company’s accounting policies for the business segments are the same as those described in Note 1, Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Company’s 2024 Annual Report on Form 10-K. The CODM evaluates the performance of the Company’s segments based on the contributions to operating income of the respective segments, and before income taxes, interest, gains or losses on disposition of assets, other nonoperating income, noncontrolling interests, accounting changes, and nonrecurring items. The CODM uses segment operating income to allocate resources for each segment during the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis for segment operating income when making decisions about allocating capital and personnel to the segments. The CODM also uses segment operating income to assess the performance for each segment by comparing the results and return on invested capital of each segment. Intersegment revenues, based on market-based pricing, of KDS from KMT of $11.3 million and $22.5 million for the three months and six months ended June 30, 2025, respectively, and $7.5 million and $14.1 million for the three months and six months ended June 30, 2024, respectively, as well as the related intersegment profit of $1.1 million and $2.2 million for the three months and six months ended June 30, 2025, respectively, and $0.7 million and $1.4 million for the three months and six months ended June 30, 2024, respectively, have been eliminated from the tables below.

The following tables set forth the Company’s revenues, depreciation and amortization, and income or loss by reportable segment and total assets (in thousands):

 

Three Months Ended June 30,

 

 

2025

 

 

2024

 

 

KMT

 

 

KDS

 

 

Total

 

 

KMT

 

 

KDS

 

 

Total

 

Revenue from external customers

$

492,562

 

 

$

362,893

 

 

$

855,455

 

 

$

484,808

 

 

$

339,582

 

 

$

824,390

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of sales and operating expenses

 

298,789

 

 

 

264,331

 

 

 

563,120

 

 

 

299,975

 

 

 

253,742

 

 

 

553,717

 

Administrative payroll expense

 

18,378

 

 

 

23,206

 

 

 

41,584

 

 

 

17,743

 

 

 

21,454

 

 

 

39,197

 

Taxes, other than on income

 

8,124

 

 

 

2,391

 

 

 

10,515

 

 

 

8,383

 

 

 

1,900

 

 

 

10,283

 

Depreciation and amortization

 

53,182

 

 

 

10,682

 

 

 

63,864

 

 

 

49,047

 

 

 

8,585

 

 

 

57,632

 

Other segment items (a)

 

15,037

 

 

 

26,848

 

 

 

41,885

 

 

 

14,784

 

 

 

24,465

 

 

 

39,249

 

Segment operating income

$

99,052

 

 

$

35,435

 

 

$

134,487

 

 

$

94,876

 

 

$

29,436

 

 

$

124,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General corporate expenses

 

 

 

 

 

 

 

(4,328

)

 

 

 

 

 

 

 

 

(4,329

)

Gain on disposition of assets

 

 

 

 

 

 

 

1,687

 

 

 

 

 

 

 

 

 

515

 

Operating income

 

 

 

 

 

 

$

131,846

 

 

 

 

 

 

 

 

$

120,498

 

Other income

 

 

 

 

 

 

 

4,812

 

 

 

 

 

 

 

 

 

3,088

 

Interest expense

 

 

 

 

 

 

 

(12,730

)

 

 

 

 

 

 

 

 

(12,819

)

Earnings before taxes on income

 

 

 

 

 

 

$

123,928

 

 

 

 

 

 

 

 

$

110,767

 

 

 

 

Six Months Ended June 30,

 

 

2025

 

 

2024

 

 

KMT

 

 

KDS

 

 

Total

 

 

KMT

 

 

KDS

 

 

Total

 

Revenue from external customers

$

968,711

 

 

$

672,403

 

 

$

1,641,114

 

 

$

960,220

 

 

$

672,192

 

 

$

1,632,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of sales and operating expenses

 

589,776

 

 

 

486,559

 

 

 

1,076,335

 

 

 

601,237

 

 

 

503,145

 

 

 

1,104,382

 

Administrative payroll expense

 

39,608

 

 

 

48,142

 

 

 

87,750

 

 

 

39,276

 

 

 

45,107

 

 

 

84,383

 

Taxes, other than on income

 

14,576

 

 

 

4,744

 

 

 

19,320

 

 

 

14,580

 

 

 

3,728

 

 

 

18,308

 

Depreciation and amortization

 

104,854

 

 

 

21,001

 

 

 

125,855

 

 

 

96,896

 

 

 

16,429

 

 

 

113,325

 

Other segment items (a)

 

34,261

 

 

 

53,931

 

 

 

88,192

 

 

 

30,372

 

 

 

52,333

 

 

 

82,705

 

Segment operating income

$

185,636

 

 

$

58,026

 

 

$

243,662

 

 

$

177,859

 

 

$

51,450

 

 

$

229,309

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment operating income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unallocated amounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General corporate expenses

 

 

 

 

 

 

 

(8,027

)

 

 

 

 

 

 

 

 

(7,877

)

Gain on disposition of assets

 

 

 

 

 

 

 

1,757

 

 

 

 

 

 

 

 

 

589

 

Operating income

 

 

 

 

 

 

$

237,392

 

 

 

 

 

 

 

 

$

222,021

 

Other income

 

 

 

 

 

 

 

10,146

 

 

 

 

 

 

 

 

 

6,357

 

Interest expense

 

 

 

 

 

 

 

(23,267

)

 

 

 

 

 

 

 

 

(25,970

)

Earnings before taxes on income

 

 

 

 

 

 

$

224,271

 

 

 

 

 

 

 

 

$

202,408

 
(a)
Other segment items for each reportable segment includes:

KMT – selling expense, professional service expense, occupancy expense, and certain overhead expenses.

KDS – inventory-related expense, warranty expense, selling expense, professional service expense, occupancy expense, and certain overhead expenses.

 

 

 

June 30,
2025

 

 

December 31,
2024

 

Total assets:

 

 

 

 

 

 

Marine transportation

 

$

4,703,152

 

 

$

4,578,616

 

Distribution and services

 

 

1,212,371

 

 

 

1,115,781

 

Other

 

 

164,442

 

 

 

157,555

 

 

$

6,079,965

 

 

$

5,851,952

 

The following table presents the details of “Other” total assets (in thousands):

 

 

 

June 30,
2025

 

 

December 31,
2024

 

General corporate assets

 

$

161,505

 

 

$

154,655

 

Investment in affiliates

 

 

2,937

 

 

 

2,900

 

 

$

164,442

 

 

$

157,555