10-Q

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED BALANCE SHEETS

(Unaudited)


	June 30, 2026			December 31, 2025
	($ in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	38,955		$	78,775
Accounts receivable:
Trade – less allowance for doubtful accounts		641,608			473,497
Other		82,690			69,622
Inventories – net		415,941			398,026
Prepaid expenses and other current assets		60,399			57,935
Total current assets		1,239,593			1,077,855

Property and equipment		6,595,273			6,392,985
Accumulated depreciation		(2,417,817	)		(2,294,927	)
Property and equipment – net		4,177,456			4,098,058

Operating lease right-of-use assets		168,927			193,276
Goodwill		438,748			438,748
Other intangibles, net		26,342			30,165
Other assets		169,201			169,943
Total assets	$	6,220,267		$	6,008,045

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Bank notes payable	$	5,950		$	7,357
Accounts payable		249,745			218,614
Accrued liabilities		212,121			232,623
Current portion of operating lease liabilities		38,606			45,766
Deferred revenues		229,631			202,164
Total current liabilities		736,053			706,524

Long-term debt, net – less current portion		1,031,398			911,924
Deferred income taxes		842,577			826,373
Operating lease liabilities – less current portion		151,073			169,854
Other long-term liabilities		14,172			10,577
Total long-term liabilities		2,039,220			1,918,728

Contingencies and commitments		—			—

Equity:
Kirby stockholders’ equity:
Common stock, $0.10 par value per share. Authorized 120 million shares, issued 65.5 million shares		6,547			6,547
Additional paid-in capital		871,657			873,249
Accumulated other comprehensive income – net		80,674			86,342
Retained earnings		3,503,867			3,332,941
Treasury stock – at cost, 12.4 million shares at June 30, 2026 and 11.7 million at December 31, 2025		(1,020,230	)		(918,567	)
Total Kirby stockholders’ equity		3,442,515			3,380,512
Noncontrolling interests		2,479			2,281
Total equity		3,444,994			3,382,793
Total liabilities and equity	$	6,220,267		$	6,008,045

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF EARNINGS

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	($ in thousands, except per share amounts)
Revenues:
Marine transportation	$	536,974		$	492,562		$	1,034,157		$	968,711
Distribution and services		385,425			362,893			732,341			672,403
Total revenues		922,399			855,455			1,766,498			1,641,114

Costs and expenses:
Costs of sales and operating expenses		631,599			563,238			1,190,128			1,075,574
Selling, general and administrative		88,709			85,846			189,969			181,133
Taxes, other than on income		10,081			10,542			19,933			19,372
Depreciation and amortization		70,361			65,670			138,599			129,400
Gain on disposition of assets		(708	)		(1,687	)		(2,161	)		(1,757	)
Total costs and expenses		800,042			723,609			1,536,468			1,403,722

Operating income		122,357			131,846			230,030			237,392
Other income		7,027			4,812			14,308			10,146
Interest expense		(10,977	)		(12,730	)		(21,227	)		(23,267	)

Earnings before taxes on income		118,407			123,928			223,111			224,271
Provision for taxes on income		(28,609	)		(29,550	)		(51,987	)		(53,623	)

Net earnings		89,798			94,378			171,124			170,648
Net earnings attributable to noncontrolling interests		(69	)		(101	)		(198	)		(385	)

Net earnings attributable to Kirby	$	89,729		$	94,277		$	170,926		$	170,263

Net earnings per share attributable to Kirby common stockholders:
Basic	$	1.68		$	1.68		$	3.19		$	3.01
Diluted	$	1.67		$	1.67		$	3.17		$	2.99

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	($ in thousands)
Net earnings	$	89,798		$	94,378		$	171,124		$	170,648

Other comprehensive loss, net of taxes:
Pension and postretirement benefits		(3,870	)		(4,199	)		(6,230	)		(6,066	)
Foreign currency translation adjustments		423			178			562			486
Total other comprehensive loss, net of taxes		(3,447	)		(4,021	)		(5,668	)		(5,580	)

Total comprehensive income, net of taxes		86,351			90,357			165,456			165,068
Net earnings attributable to noncontrolling interests		(69	)		(101	)		(198	)		(385	)

Comprehensive income attributable to Kirby	$	86,282		$	90,256		$	165,258		$	164,683

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

CONDENSED STATEMENTS OF CASH FLOWS
(Unaudited)


	Six Months Ended June 30,
	2026			2025
	($ in thousands)
Cash flows from operating activities:
Net earnings	$	171,124		$	170,648
Adjustments to reconcile net earnings to net cash provided by operations:
Depreciation and amortization		138,599			129,400
Provision for deferred income taxes		18,290			9,617
Amortization of share-based compensation		12,434			11,147
Amortization of major maintenance costs		12,360			14,635
Other		1,920			178
Decrease in cash flows resulting from changes in operating assets and liabilities, net		(184,811	)		(205,162	)
Net cash provided by operating activities		169,916			130,463

Cash flows from investing activities:
Capital expenditures		(119,764	)		(150,160	)
Acquisitions of businesses and marine equipment		(95,800	)		(97,250	)
Proceeds from disposition of assets		6,681			11,580
Other		—			(3,000	)
Net cash used in investing activities		(208,883	)		(238,830	)

Cash flows from financing activities:
Borrowings on bank credit facilities, net		188,593			243,207
Payments on long-term debt		(70,000	)		—
Payment of debt issuance costs		(1,277	)		—
Proceeds from exercise of stock options		4,308			262
Payments related to tax withholding for share-based compensation		(6,681	)		(5,957	)
Treasury stock purchases		(112,390	)		(132,673	)
Other		(3,406	)		(2,533	)
Net cash provided by (used in) financing activities		(853	)		102,306
Decrease in cash and cash equivalents		(39,820	)		(6,061	)

Cash and cash equivalents, beginning of year		78,775			74,444
Cash and cash equivalents, end of period	$	38,955		$	68,383

Supplemental disclosures of cash flow information:
Cash paid during the period:
Interest paid	$	20,632		$	22,917
Income taxes paid, net	$	39,709		$	79,742
Operating cash outflow from operating leases	$	26,661		$	24,541
Non-cash investing activity:
Capital expenditures included in accounts payable	$	(3,587	)	$	(410	)
Right-of-use assets obtained in exchange for lease obligations	$	5,042		$	13,704

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 March 31, 2026		65,472	$	6,547	$	870,284		$	84,121		$	3,414,138		(11,962	)	$	(960,825	)	$	2,410	$	3,416,675
Issuance of stock for equity awards, net of forfeitures		—		—		(918	)		—			—		12			918			—		—
Tax withholdings on equity award vesting		—		—		—			—			—		—			(10	)		—		(10	)
Amortization of share-based compensation		—		—		2,291			—			—		—			—			—		2,291
Treasury stock purchases		—		—		—			—			—		(419	)		(59,715	)		—		(59,715	)
Excise taxes on treasury stock purchases		—		—		—			—			—		—			(598	)		—		(598	)
Total comprehensive income, net of taxes		—		—		—			(3,447	)		89,729		—			—			69		86,351
Balance at June 30, 2026		65,472	$	6,547	$	871,657		$	80,674		$	3,503,867		(12,369	)	$	(1,020,230	)	$	2,479	$	3,444,994


								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 March 31, 2025		65,472	$	6,547	$	865,007		$	69,633		$	3,054,358		(9,104	)	$	(669,510	)	$	1,719	$	3,327,754
Issuance of stock for equity awards, net of forfeitures		—		—		(1,164	)		—			—		16			1,164			—		—
Tax withholdings on equity award vesting		—		—		—			—			—		—			(7	)		—		(7	)
Amortization of share-based compensation		—		—		3,300			—			—		—			—			—		3,300
Treasury stock purchases		—		—		—			—			—		(332	)		(31,200	)		—		(31,200	)
Excise taxes on treasury stock purchases		—		—		—			—			—		—			(314	)		—		(314	)
Total comprehensive income, net of taxes		—		—		—			(4,021	)		94,277		—			—			101		90,357
Balance at June 30, 2025		65,472	$	6,547	$	867,143		$	65,612		$	3,148,635		(9,420	)	$	(699,867	)	$	1,820	$	3,389,890

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, 2025		65,472	$	6,547	$	873,249		$	86,342		$	3,332,941		(11,701	)	$	(918,567	)	$	2,281	$	3,382,793
Stock option exercises		—		—		(329	)		—			—		59			4,637			—		4,308
Issuance of stock for equity awards, net of forfeitures		—		—		(13,697	)		—			—		174			13,697			—		—
Tax withholdings on equity award vesting		—		—		—			—			—		(54	)		(6,681	)		—		(6,681	)
Amortization of share-based compensation		—		—		12,434			—			—		—			—			—		12,434
Treasury stock purchases		—		—		—			—			—		(847	)		(112,390	)		—		(112,390	)
Excise taxes on treasury stock purchases		—		—		—			—			—		—			(926	)		—		(926	)
Total comprehensive income, net of taxes		—		—		—			(5,668	)		170,926		—			—			198		165,456
Balance at June 30, 2026		65,472	$	6,547	$	871,657		$	80,674		$	3,503,867		(12,369	)	$	(1,020,230	)	$	2,479	$	3,444,994


					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		65,472	$	6,547	$	868,763		$	71,192		$	2,978,372		(8,215	)	$	(573,061	)	$	1,435	$	3,353,248
Stock option exercises		—		—		27			—			—		4			235			—		262
Issuance of stock for equity awards, net of forfeitures		—		—		(12,794	)		—			—		181			12,794			—		—
Tax withholdings on equity award vesting		—		—		—			—			—		(55	)		(5,957	)		—		(5,957	)
Amortization of share-based compensation		—		—		11,147			—			—		—			—			—		11,147
Treasury stock purchases		—		—		—			—			—		(1,335	)		(132,673	)		—		(132,673	)
Excise taxes on treasury stock purchases		—		—		—			—			—		—			(1,205	)		—		(1,205	)
Total comprehensive income, net of taxes		—		—		—			(5,580	)		170,263		—			—			385		165,068
Balance at June 30, 2025		65,472	$	6,547	$	867,143		$	65,612		$	3,148,635		(9,420	)	$	(699,867	)	$	1,820	$	3,389,890

KIRBY CORPORATION AND CONSOLIDATED SUBSIDIARIES

NOTES TO CONDENSED FINANCIAL STATEMENTS
(Unaudited)

(1) Basis for Preparation of the Condensed Financial Statements

The condensed financial statements included herein have been prepared by Kirby Corporation and its consolidated subsidiaries (“Kirby” or the “Company”), without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Although the Company believes that the disclosures are adequate to make the information presented not misleading, certain information and footnote disclosures, including significant accounting policies normally included in annual financial statements, have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Certain reclassifications have been made to reflect the current presentation of financial information.

(2) Acquisitions

On March 17, 2026, the Company purchased 23 inland tank barges with a total capacity of 653,000 barrels, including five specialty barges, and three high horsepower towboats from an undisclosed seller for $95.8 million. The Company paid $81.4 million in cash in March 2026 with the remaining $14.4 million paid in the 2026 second quarter upon delivery of remaining vessels. The 23 tank barges, including five specialty barges, transport petrochemicals and refined products on the Mississippi River System and Gulf Intracoastal Waterway. The average age of the 23 barges was 19 years.

On October 14, 2025, the Company purchased certain assets from an undisclosed seller in support of the KDS segment for $9.3 million in cash. The assets consisted of inventory and an authorized distributorship for EMD Power Products (“EMD”) for certain geographic regions including Mexico, Central America, the northern part of South America and the Caribbean islands.

On August 7, 2025, the Company purchased two inland tank barges and one towboat from an undisclosed seller for $9.2 million in cash.

On March 27, 2025, the Company purchased 14 inland tank barges with a total capacity of 364,000 barrels, including four specialty barges, and four high horsepower towboats from an undisclosed seller for $97.3 million in cash. The 14 tank barges, including four specialty barges, transport petrochemicals and refined products on the Mississippi River System and Gulf Intracoastal Waterway. The average age of the 14 barges was 16 years.

(3) Revenues

The following table sets forth the Company’s revenues by major source (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Marine transportation segment:
Inland transportation	$	431,894	$	397,141	$	826,019	$	789,640
Coastal transportation		105,080		95,421		208,138		179,071
	$	536,974	$	492,562	$	1,034,157	$	968,711
Distribution and services segment:
Commercial and industrial	$	193,886	$	173,606	$	355,532	$	333,834
Power generation		151,317		140,739		303,071		245,241
Oil and gas		40,222		48,548		73,738		93,328
	$	385,425	$	362,893	$	732,341	$	672,403

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 six months ended June 30, 2026 and 2025 that were included in the opening contract liability balances were $89.6 million and $94.7 million, respectively. The Company presents all contract liabilities within the deferred revenues financial statement caption on the balance sheets. The Company did not have any contract assets as of June 30, 2026 or December 31, 2025.

(4) Segment Data

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

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

Distribution and Services Segment (“KDS”) — Provides equipment, after-market parts and services for power generation systems in applications that include behind the meter power systems and emergency backup systems, after-market and genuine replacement parts and services for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and controls systems, and related equipment used in power generation, marine, on-highway, oilfield services, and other industrial applications. The Company also rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment, and refrigeration trailers for use in a variety of industrial markets. The Company also manufactures and remanufactures specialized equipment, including pressure pumping units and electric fracturing systems, electric power generation equipment, and specialized electrical distribution and control equipment for data centers, oilfield service, railroad, and other industrial customers.

The Company’s two reportable business segments are managed separately by the Company’s chief operating decision maker (“CODM”), its Chief Executive Officer, based on fundamental differences in their operations. The Company’s accounting policies for the business segments are the same as those described in Note 1, Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Company’s 2025 Annual Report on Form 10-K. The CODM evaluates the performance of the Company’s segments based on the contributions to operating income of the respective segments, and before income taxes, interest, gains or losses on disposition of assets, other nonoperating income, noncontrolling interests, accounting changes, and nonrecurring items. The CODM uses segment operating income to allocate resources for each segment during the annual budget and forecasting process. The CODM considers budget-to-actual variances on a monthly basis for segment operating income when making decisions about allocating capital and personnel to the segments. The CODM also uses segment operating income to assess the performance for each segment by comparing the results and return on invested capital of each segment. Intersegment revenues, based on market-based pricing, of KDS from KMT of $9.6 million and $17.4 million for the three months and six months ended June 30, 2026, respectively, and $11.3 million and $22.5 million for the three months and six months ended June 30, 2025, respectively, as well as the related intersegment profit of $1.0 million and $1.7 million for the three months and six months ended June 30, 2026, respectively, and $1.1 million and $2.2 million for the three months and six months ended June 30, 2025, 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,
	2026							2025
	KMT		KDS		Total			KMT		KDS		Total
Revenue from external customers	$	536,974	$	385,425	$	922,399		$	492,562	$	362,893	$	855,455

Less:
Costs of sales and operating expenses		348,465		282,714		631,179			298,789		264,331		563,120
Administrative payroll expense		19,788		23,191		42,979			18,378		23,206		41,584
Taxes, other than on income		7,652		2,406		10,058			8,124		2,391		10,515
Depreciation and amortization		57,592		10,723		68,315			53,182		10,682		63,864
Other segment items (a)		15,675		28,240		43,915			15,037		26,848		41,885
Segment operating income	$	87,802	$	38,151	$	125,953		$	99,052	$	35,435	$	134,487

Reconciliation of segment operating income
Unallocated amounts:
General corporate expenses						(4,304	)						(4,328	)
Gain on disposition of assets						708							1,687
Operating income					$	122,357						$	131,846
Other income						7,027							4,812
Interest expense						(10,977	)						(12,730	)
Earnings before taxes on income					$	118,407						$	123,928


	Six Months Ended June 30,
	2026							2025
	KMT		KDS		Total			KMT		KDS		Total
Revenue from external customers	$	1,034,157	$	732,341	$	1,766,498		$	968,711	$	672,403	$	1,641,114

Less:
Costs of sales and operating expenses		649,289		539,998		1,189,287			589,776		486,559		1,076,335
Administrative payroll expense		42,176		48,677		90,853			39,608		48,142		87,750
Taxes, other than on income		15,219		4,667		19,886			14,576		4,744		19,320
Depreciation and amortization		112,928		21,677		134,605			104,854		21,001		125,855
Other segment items (a)		37,088		55,825		92,913			34,261		53,931		88,192
Segment operating income	$	177,457	$	61,497	$	238,954		$	185,636	$	58,026	$	243,662

Reconciliation of segment operating income
Unallocated amounts:
General corporate expenses						(11,085	)						(8,027	)
Gain on disposition of assets						2,161							1,757
Operating income					$	230,030						$	237,392
Other income						14,308							10,146
Interest expense						(21,227	)						(23,267	)
Earnings before taxes on income					$	223,111						$	224,271

(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, 2026		December 31, 2025
Total assets:
Marine transportation	$	4,823,614	$	4,705,692
Distribution and services		1,224,676		1,111,549
Other		171,977		190,804
	$	6,220,267	$	6,008,045

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


	June 30, 2026		December 31, 2025
General corporate assets	$	169,442	$	187,616
Investment in affiliates		2,535		3,188
	$	171,977	$	190,804

(5) Long-Term Debt

The following table presents the carrying value and fair value (determined using inputs characteristic of a Level 2 fair value measurement) of debt outstanding (in thousands):


	June 30, 2026					December 31, 2025
	Carrying Value			Fair Value		Carrying Value			Fair Value
Revolving Credit Facility due March 26, 2031 (a)	$	235,000		$	235,000	$	45,000		$	45,000
Term Loan due July 29, 2027 (b)		—			—		70,000			70,000
4.2% senior notes due March 1, 2028		500,000			502,011		500,000			506,089
3.46% senior notes due January 19, 2033		60,000			54,387		60,000			55,093
3.51% senior notes due January 19, 2033		240,000			218,255		240,000			221,128
Credit line due June 30, 2028		—			—		—			—
Bank notes payable		5,950			5,950		7,357			7,357
		1,040,950			1,015,603		922,357			904,667
Unamortized debt discounts and issuance costs		(3,602	)		—		(3,076	)		—
	$	1,037,348		$	1,015,603	$	919,281		$	904,667

(a)

Variable interest rate of 4.6% at June 30, 2026 and 5.0% at December 31, 2025.

(b)

Variable interest rate of 5.0% at December 31, 2025.

On March 26, 2026, the Company entered into an amended and restated credit agreement (the “2031 Credit Agreement”) with JPMorgan Chase Bank, N.A. (“JPMorgan”), as administrative agent, and certain lenders and issuing banks party thereto. The 2031 Credit Agreement amends and restates in its entirety the Company’s existing credit agreement, dated as of July 29, 2022 (the “2027 Credit Agreement”), extending the term of the facility to March 26, 2031 (the “Maturity Date”), increasing the revolving credit facility commitments to $750 million, and removing the term loan credit facility. Under the 2031 Credit Agreement, the Company has the option, subject to customary conditions and consent of the participating lenders, to increase the size of the revolving credit facility commitments and to add term loan commitments up to an aggregate additional $500 million.

Borrowings under the 2031 Credit Agreement bear interest at a rate per annum equal to, at the Company’s option, either a Secured Overnight Financing Rate (“SOFR”) or a base rate, plus an interest rate margin which ranges from 87.5 to 150 basis points for SOFR loans and 0 to 50 basis points for base rate loans based on the Company’s credit rating. The commitment fee on the unused available credit ranges from 7 to 20 basis points based on the Company’s credit rating. The Maturity Date may be extended for up to two additional one-year periods with the consent of the Company and lenders holding at least 50 percent of the commitments under the 2031 Credit Agreement. The 2031 Credit Agreement contains customary provisions regarding permitted uses, events of default, and covenants substantively similar to those in the 2027 Credit Agreement, including the maintenance of an interest coverage ratio of no less than 2.5 to 1.0 and a debt to capitalization of no more than or equal to 60 percent (with all calculations based on definitions contained in the 2031 Credit Agreement). Outstanding letters of credit under the 2031 Revolving Credit Facility were $6,000 and available borrowing capacity was $515.0 million as of June 30, 2026.

The Company has a $20 million line of credit (“Credit Line”) with Bank of America, N.A. (“Bank of America”) for short-term liquidity needs and letters of credit, with a maturity date of June 30, 2028. Outstanding letters of credit under the Credit Line were $8.0 million and available borrowing capacity was $12.0 million as of June 30, 2026.

(6) Leases

The Company currently leases various facilities and equipment under cancelable and noncancelable operating leases. The accounting for the Company’s leases may require judgments, which include determining whether a contract contains a lease, allocating the consideration between lease and non-lease components, and determining the incremental borrowing rates. Leases with an initial noncancelable term of 12 months or less are not recorded on the balance sheets and related lease expense is recognized on a straight-line basis over the lease term. The Company has also elected to combine lease and non-lease components on all classes of leased assets, except for leased towing vessels, for which the Company estimates approximately 70% of the costs relate to service costs and other non-lease components. Variable lease costs relate primarily to real estate executory costs (i.e. taxes, insurance and maintenance).

Future minimum lease payments under operating leases that have initial noncancelable lease terms in excess of one year were as follows (in thousands):


	June 30, 2026			December 31, 2025
2026	$	24,687		$	54,278
2027		41,159			44,246
2028		31,821			33,245
2029		19,590			18,855
2030		15,281			14,522
Thereafter		99,908			97,566
Total lease payments		232,446			262,712
Less: imputed interest		(42,767	)		(47,092	)
Operating lease liabilities	$	189,679		$	215,620

The following table summarizes lease costs (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Operating lease cost	$	12,673		$	11,958		$	25,914		$	23,943
Variable lease cost		512			(309	)		(139	)		(324	)
Short-term lease cost		10,393			11,013			18,946			21,688
Sublease income		(1,244	)		(1,011	)		(2,149	)		(1,871	)
	$	22,334		$	21,651		$	42,572		$	43,436

The following table summarizes other supplemental information about the Company’s operating leases:


	June 30, 2026			December 31, 2025
Weighted average discount rate		4.7	%		4.7	%
Weighted average remaining lease term	9 years			8 years

(7) Stock Award Plans

The compensation cost that has been charged against earnings for the Company’s stock award plans and the income tax benefit recognized in the statement of earnings for stock awards were as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Compensation cost	$	2,291	$	3,300	$	12,434	$	11,147
Income tax benefit	$	635	$	781	$	2,897	$	2,664

During the six months ended June 30, 2026, the Company granted 131,971 restricted stock units (“RSUs”) to selected officers and other key employees under the employee stock award plan that vest ratably over five years. During May 2026, the Company granted 11,136 shares of restricted stock to nonemployee directors of the Company under the director stock plan which vest six months after the date of grant.

(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 June 30,						Six Months Ended June 30,
	2026			2025			2026		2025
Earnings (loss) before taxes on income:
United States	$	118,303		$	124,387		$	223,049	$	224,961
Foreign		104			(459	)		62		(690	)
	$	118,407		$	123,928		$	223,111	$	224,271
Provision (benefit) for taxes on income:
Federal:
Current	$	18,528		$	19,642		$	30,803	$	37,808
Deferred		6,440			6,939			14,380		8,484
State and local:
Current		1,612			2,861			2,705		6,198
Deferred		2,037			108			3,910		1,133
Foreign - current		(8	)		—			189		—
	$	28,609		$	29,550		$	51,987	$	53,623

The Company is currently under examination by the Internal Revenue Service ("IRS") for the 2024 tax year. In addition, the Company's federal income tax returns for the 2022 through 2023 tax years remain open to examination under the applicable statutes of limitations.

The Company believes its tax positions are more likely than not to be sustained upon examination and has recorded liabilities for uncertain tax positions when appropriate. However, the ultimate resolution of tax examinations and related matters could differ from amounts currently recorded and may affect the Company's effective tax rate, results of operations, and cash flows in future periods. The Company is also subject to examination by various state and local taxing authorities.

(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 June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Net earnings attributable to Kirby	$	89,729		$	94,277		$	170,926		$	170,263
Undistributed earnings allocated to restricted shares		(13	)		(17	)		(12	)		(15	)
Earnings available to Kirby common stockholders – basic		89,716			94,260			170,914			170,248
Undistributed earnings allocated to restricted shares		13			17			12			15
Undistributed earnings reallocated to restricted shares		(13	)		(17	)		(12	)		(15	)
Earnings available to Kirby common stockholders – diluted	$	89,716		$	94,260		$	170,914		$	170,248

Shares outstanding:
Weighted average common stock issued and outstanding		53,382			56,115			53,521			56,525
Weighted average unvested restricted stock		(7	)		(10	)		(3	)		(5	)
Weighted average common stock outstanding – basic		53,375			56,105			53,518			56,520
Dilutive effect of stock options and restricted stock units		321			332			336			349
Weighted average common stock outstanding – diluted		53,696			56,437			53,854			56,869

Net earnings per share attributable to Kirby common stockholders:
Basic	$	1.68		$	1.68		$	3.19		$	3.01
Diluted	$	1.67		$	1.67		$	3.17		$	2.99

There were no antidilutive RSUs or stock options as of June 30, 2026 and 2025.

(10) Inventories

The following table presents the details of inventories – net (in thousands):


	June 30, 2026		December 31, 2025
Finished goods	$	359,756	$	340,740
Work in process		56,185		57,286
	$	415,941	$	398,026

(11) Retirement Plans

The Company sponsors a defined benefit plan for certain of its inland vessel personnel and shore based tankermen. The plan benefits are based on an employee’s years of service and compensation. The plan assets consist primarily of equity and fixed income securities.

On April 12, 2017, the Company amended its pension plan to cease all benefit accruals for periods after May 31, 2017 for certain participants. Participants grandfathered and not impacted were those, as of the close of business on May 31, 2017, who either (a) had completed 15 years of pension service or (b) had attained age 50 and completed 10 years of pension service. Participants non-grandfathered are eligible to receive discretionary 401(k) plan contributions.

The Company’s pension plan funding strategy is to make annual contributions in amounts equal to or greater than amounts necessary to meet minimum government funding requirements. The plan’s benefit obligations are based on a variety of demographic and economic assumptions, and the pension plan assets’ returns are subject to various risks, including market and interest rate risk, making an accurate prediction of the pension plan contribution difficult. Based on current pension plan assets and market conditions, the Company does not expect to make a contribution to the Kirby pension plan during 2026.

On February 14, 2018, with the acquisition of Higman Marine, Inc. and its affiliated companies (“Higman”), the Company assumed Higman’s pension plan for its inland vessel personnel and office staff. On March 27, 2018, the Company amended the Higman pension plan to close it to all new entrants and cease all benefit accruals for periods after May 15, 2018 for all participants. The Company made contributions of $0.5 million to the Higman pension plan during the six months ended June 30, 2026. The Company does not expect to make additional contributions during the remainder of 2026.

The Company sponsors an unfunded defined benefit health care plan that provides limited postretirement medical benefits to employees who meet minimum age and service requirements, and to eligible dependents. The plan is contributory, with retiree contributions adjusted annually. The plan eliminated coverage for future retirees as of December 31, 2011. The Company also has an unfunded defined benefit supplemental executive retirement plan (“SERP”) that was assumed in an acquisition in 1999. That plan ceased to accrue additional benefits effective January 1, 2000.

The components of net periodic benefit cost for the Company’s defined benefit plans were as follows (in thousands):


	Pension Benefits
	Pension Plans						SERP
	Three Months Ended June 30,						Three Months Ended June 30,
	2026			2025			2026		2025
Components of net periodic benefit cost:
Service cost	$	741		$	878		$	—	$	—
Interest cost		4,617			4,608			9		10
Expected return on plan assets		(7,649	)		(6,812	)		—		—
Amortization of actuarial (gain) loss		(2,931	)		(2,067	)		8		7
Net periodic benefit cost	$	(5,222	)	$	(3,393	)	$	17	$	17


	Pension Benefits
	Pension Plans						SERP
	Six Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026		2025
Components of net periodic benefit cost:
Service cost	$	1,350		$	1,483		$	—	$	—
Interest cost		9,161			9,095			18		20
Expected return on plan assets		(15,280	)		(13,621	)		—		—
Amortization of actuarial (gain) loss		(6,030	)		(4,501	)		16		14
Net periodic benefit cost	$	(10,799	)	$	(7,544	)	$	34	$	34

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 June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Components of net periodic benefit cost:
Interest cost	$	4		$	6		$	9		$	11
Amortization of actuarial gain		(58	)		(66	)		(115	)		(131	)
Net periodic benefit cost	$	(54	)	$	(60	)	$	(106	)	$	(120	)

(12) Other Comprehensive Income

The Company’s changes in other comprehensive loss were as follows (in thousands):


	Three Months Ended June 30,
	2026								2025
	Gross Amount			Income Tax Benefit		Net Amount			Gross Amount			Income Tax Benefit		Net Amount
Pension and postretirement benefits (a):
Amortization of net actuarial gain	$	(2,981	)	$	747	$	(2,234	)	$	(2,126	)	$	533	$	(1,593	)
Actuarial losses		(2,185	)		549		(1,636	)		(3,477	)		871		(2,606	)
Foreign currency translation		423			—		423			178			—		178
Total	$	(4,743	)	$	1,296	$	(3,447	)	$	(5,425	)	$	1,404	$	(4,021	)


	Six Months Ended June 30,
	2026								2025
	Gross Amount			Income Tax Benefit		Net Amount			Gross Amount			Income Tax Benefit		Net Amount
Pension and postretirement benefits (a):
Amortization of net actuarial gain	$	(6,129	)	$	1,535	$	(4,594	)	$	(4,618	)	$	1,158	$	(3,460	)
Actuarial losses		(2,185	)		549		(1,636	)		(3,477	)		871		(2,606	)
Foreign currency translation		562			—		562			486			—		486
Total	$	(7,752	)	$	2,084	$	(5,668	)	$	(7,609	)	$	2,029	$	(5,580	)

(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.

During the second quarter of 2026, the Company entered into a settlement agreement with the Heiltsuk First Nation that resolves the claims asserted by the Heiltsuk First Nation against the Company and its affiliates arising from the incident, subject to implementation of certain settlement terms and related court approvals and orders. Proceedings in the Federal Court of Canada remain pending to effectuate certain aspects of the settlement. The Company maintains various insurance policies covering liabilities, including pollution, property, marine and general liability. The Company believes its reserves and insurance recoveries related to the incident are adequate and does not expect any remaining matters associated with the incident to have a material adverse effect on its business, financial condition, or results of operations.

In addition, the Company is involved in various legal and other proceedings which are incidental to the conduct of its business, none of which in the opinion of management will have a material effect on the Company’s financial condition, results of operations, or cash flows. Management believes its accrual of such estimated liability is adequate and believes that it has adequate insurance coverage or has meritorious defenses for these other claims and contingencies.

The Company has issued guaranties or obtained standby letters of credit and performance bonds supporting performance by the Company and its subsidiaries of contractual or contingent legal obligations of the Company and its subsidiaries incurred in the ordinary course of business. The aggregate notional value of these instruments is $31.1 million at June 30, 2026, including $12.6 million in letters of credit and $18.5 million in performance bonds. All of these instruments have an expiration date within approximately two years. The Company does not believe demand for payment under these instruments is likely and expects no material cash outlays to occur regarding these instruments.

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, 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 Part II, Item 1A-Risk Factors of this Form 10-Q and the Form 10-Q for the quarter ended March 31, 2026, and Item 1A-Risk Factors found in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2025. Forward-looking statements are based on currently available information and the Company assumes no obligation to update any such statements. 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 equipment, after-market parts and services for power generation systems in applications that include behind the meter power systems and emergency backup systems, after-market and genuine replacement parts and services for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and controls systems, and related equipment used in power generation, marine, on-highway, oilfield services, and other industrial applications. The Company also rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment, and refrigeration trailers for use in a variety of industrial markets. The Company also manufactures and remanufactures specialized equipment, including pressure pumping units and electric fracturing systems, electric power generation equipment, and specialized electrical distribution and control equipment for data centers, oilfield service, railroad, and other industrial customers.

The following table summarizes key operating results of the Company (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Total revenues	$	922,399	$	855,455	$	1,766,498	$	1,641,114
Net earnings attributable to Kirby	$	89,729	$	94,277	$	170,926	$	170,263
Net earnings per share attributable to Kirby common stockholders – diluted	$	1.67	$	1.67	$	3.17	$	2.99
Net cash provided by operating activities					$	169,916	$	130,463
Capital expenditures					$	119,764	$	150,160

Cash provided by operating activities for the 2026 first six months increased in comparison to the 2025 first six months primarily due to favorable working capital changes. The favorable working capital changes were driven by the timing of accounts payable and income tax payments, partially offset by the timing of accounts receivable collections. The 2025 first six months included $73.4 million of estimated federal income tax payments as compared to $35.0 million in the 2026 first six months. For the 2026 first six months, capital expenditures of $119.8 million included $80.6 million in KMT and $39.2 million in KDS and corporate, each more fully described under Cash Flow and Capital Expenditures below.

The Company projects that capital expenditures for 2026 will be in the $220 million to $260 million range. Approximately $170 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 $65 million is associated with growth capital spending in both segments.

The Company’s debt-to-capitalization ratio increased to 23.1% at June 30, 2026 compared to 21.4% at December 31, 2025, primarily due to an increase in debt outstanding. Total equity at June 30, 2026 increased as compared to December 31, 2025 primarily from net earnings attributable to Kirby of $170.9 million, partially offset by treasury stock purchases of $112.4 million. The Company’s debt outstanding as of June 30, 2026 and December 31, 2025 is detailed in Long-Term Financing below.

Marine Transportation

For the 2026 and 2025 second quarter and first six months, KMT generated 58% and 59%, respectively, of the Company’s revenues. 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:


	June 30,
	2026		2025
Inland tank barges:
Owned		1,102		1,073
Leased		32		36
Total		1,134		1,109
Barrel capacity (in millions)		25.2		24.5

Active inland towboats (quarter average):
Owned		205		215
Chartered		86		75
Total		291		290

Coastal tank barges:
Owned		27		28
Leased		-		-
Total		27		28
Barrel capacity (in millions)		2.9		2.9

Coastal tugboats:
Owned		23		23
Chartered		1		1
Total		24		24

Offshore dry-bulk cargo barges (owned)		2		3
Offshore tugboats and docking tugboat (owned and chartered)		3		4

The Company also operates shifting and fleeting facilities for dry cargo barges and tank barges on the Houston Ship Channel, in Freeport and Port Arthur, Texas, and Lake Charles, Louisiana, and its San Jac shipyard for building inland towboats and performing routine maintenance on marine vessels near the Houston Ship Channel. The Company also owns a two-thirds interest in Osprey Line, L.L.C., which transports project cargoes and cargo containers by barge on the United States inland waterway system.

During the 2026 first six months, the Company purchased 28 inland tank barges, brought back into service six inland tank barges, and retired five inland tank barges, increasing its capacity by approximately 0.7 million barrels.

KMT revenues for the 2026 second quarter and first six months increased 9% and 7%, respectively, compared to the 2025 second quarter and first six months, primarily due to higher term pricing in the inland market and increased fuel rebills in the inland and coastal markets, partially offset by lower spot pricing in the inland market as compared to the 2025 second quarter and first six months. KMT operating income for the 2026 second quarter and first six months decreased 11% and 4%, respectively, compared to the 2025 second quarter and first six months, primarily due to higher fuel costs as a result of the Iran conflict. During the second quarter of 2026, rapidly rising fuel prices temporarily compressed operating income and operating margins in the inland market due to the inherent lag in the Company's contractual fuel escalation mechanisms. Because fuel-related pricing adjustments under term contracts generally become effective 30 to 120 days after fuel cost increases are incurred, the Company was unable to fully recover the impact of higher fuel costs during the quarter. The Company expects these costs to be substantially recovered in subsequent quarters as contractual fuel escalation provisions take effect. The 2026 and 2025 first quarters were impacted by poor operating conditions including seasonal wind and fog along the Gulf Coast, ice on the Illinois and Upper Mississippi Rivers and various lock closures. For both the 2026 second quarter and first six months, the inland tank barge fleet contributed 80% and the coastal fleet contributed 20% of KMT revenues. For the 2025

second quarter and first six months, the inland tank barge fleet contributed 81% and 82%, respectively, and the coastal fleet contributed 19% and 18%, respectively, of KMT revenues.

Inland tank barge utilization levels averaged in the low-90% range during both the 2026 first and second quarters and the low-to-mid-90% range during both the 2025 first and second quarters. The 2026 and 2025 first quarters were impacted by high winds and heavy fog along the Gulf Coast, ice on the Illinois and Upper Mississippi Rivers and various lock delays. Coastal tank barge utilization levels averaged in the mid-to-high-90% range during the 2026 first quarter and the high-90% range during the 2026 second quarter. Coastal tank barge utilization levels averaged in the mid-to-high-90% range during both the 2025 first and second quarters.

During both the 2026 second quarter and first six months, approximately 65% of KMT inland revenues were under term contracts and 35% were spot contract revenues. During both the 2025 second quarter and first six months, approximately 70% of KMT inland revenues were under term contracts and 30% were spot contract revenues. Inland time charters during both the 2026 second quarter and first six months represented approximately 57% of inland revenues under term contracts compared with 60% in the 2025 second quarter and first six months. During the 2026 second quarter and first six months, approximately 93% and 92%, respectively, of KMT coastal revenues were under term contracts and 7% and 8%, respectively, were under spot contracts. During both the 2025 second quarter and first six months, approximately 100% of KMT coastal revenues were under term contracts and none were under spot contracts. Coastal time charters represented approximately 100% of coastal revenues under term contracts during both the 2026 and 2025 second quarter and first six months. 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 2026 compared to contracts renewed during the corresponding quarter of 2025:


	Three Months Ended
	March 31, 2026	June 30, 2026
Inland market:
Term	0% – 2%	1% – 3%
Spot	(4)% – (6)%	(2)% – (4)%
Coastal market (a):
Term	19% – 21%	(2)% – (4)%

(a)

Term contract pricing in the coastal market is contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.

Effective January 1, 2026, annual escalators for labor and the producer price index on a number of inland multi-year contracts resulted in rate increases on those contracts of approximately 3%, excluding fuel.

KMT operating margin was 16.4% and 17.2% for the 2026 second quarter and first six months, respectively, compared to 20.1% and 19.2% for the 2025 second quarter and first six months, respectively.

Distribution and Services

The Company, through KDS, provides equipment, after-market parts and services for power generation systems in applications that include behind the meter power systems and emergency backup systems, after-market and genuine replacement parts and services for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and controls systems, and related equipment used in power generation, marine, on-highway, oilfield services, and other industrial applications. The Company also rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment, and refrigeration trailers for use in a variety of industrial markets. The Company also manufactures and remanufactures specialized equipment, including pressure pumping units and electric fracturing systems, electric power generation equipment, and specialized electrical distribution and control equipment for data centers, oilfield service, railroad, and other industrial customers.

For the 2026 second quarter and first six months, KDS generated 42% and 41%, respectively, of the Company’s revenues. The results of KDS are largely influenced by cycles of the power generation, marine, on-highway, oilfield service industry and oil and gas operator and producer markets, and other industrial markets.

KDS revenues for the 2026 second quarter and first six months increased 6% and 9%, respectively, compared with the 2025 second quarter and first six months. KDS operating income for the 2026 second quarter and first six months increased 8% and 6%, respectively, compared with the 2025 second quarter and first six months. In the commercial and industrial market, revenues and operating income increased compared to the 2025 second quarter and first six months due to higher business levels in marine repair. For the 2026 second quarter and first six months, the commercial and industrial market contributed 50% and 49%, respectively, of KDS revenues.

In the power generation market, revenues and operating income increased compared to the 2025 second quarter and first six months due to increased demand for backup, prime power and critical power applications. For the 2026 second quarter and first six months, the power generation market contributed 40% and 41%, respectively, of KDS revenues.

In the oil and gas market, revenues and operating income decreased compared to the 2025 second quarter and first six 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. For both the 2026 second quarter and first six months, the oil and gas market contributed 10% of KDS revenues.

KDS operating margin was 9.9% and 8.4% for the 2026 second quarter and first six months, respectively, compared to 9.8% and 8.6% for the 2025 second quarter and first six months, respectively.

Outlook

Overall, the Company expects to deliver improved financial results in 2026. In KMT, barge utilization and customer demand remain favorable. In KDS, growth in the power generation market is expected to offset softness in oil and gas markets, and the continuing trucking recession impacting the on-highway service and repair business. The Company remains mindful of the ever-changing economic landscape related to the possible impact of high interest rates, tariffs, geopolitical tensions and possible recessionary headwinds as it moves through 2026.

In 2026, the inland marine transportation market is expected to experience positive market dynamics due to limited new barge construction. The Company expects barge utilization rates to remain steady for the year with continued improvement in pricing as the year progresses. The Company also continues to see inflationary pressures and there remains an acute mariner shortage in the industry which continues to drive up labor costs. These pressures, along with the increasing cost of equipment, should continue to put upward pressure on spot and term contract prices. The coastal marine transportation market is also expected to see favorable market conditions in 2026. The coastal marine transportation market should experience steady customer demand, keeping barge utilization at high levels with improving rates as the availability of equipment remains limited across the industry. There are no coastal barges currently under construction. The Company does expect more shipyard days in the coastal marine transportation market as compared to 2025.

The Company did experience some near-term cost headwinds in its inland marine transportation operations during the 2026 second quarter from rising fuel costs. Term and affreightment contracts contain fuel escalation clauses or provides for the customer to pay for fuel. Cost escalators and rate recovery mechanisms in the Company’s term contracts, while effective over time in allowing the Company to recover changes in fuel costs, create a delay that will lag near-term fuel cost increases. As a result, periods of rapidly rising fuel prices may temporarily compress margins and operating income until escalation adjustments are fully realized. The Company did experience that lag during the 2026 second quarter but this should be ultimately realized in subsequent quarters as there is generally a 30 to 120 day delay before term contracts are adjusted for fuel costs. Fuel escalation clauses in term contracts and their effectiveness are discussed in more detail in Liquidity below and Item 1A – Risk Factors found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

The Company expects stable growth in KDS in 2026 as near-term volatility from supply issues, customers deferring maintenance, and lower overall levels of activity in the oil and gas market are offset by increased orders in the power generation market. In commercial and industrial, the demand outlook in marine repair remains steady while on-highway service and repair remains soft but has shown some recent modest improvement. In power generation, the Company anticipates continued strong growth in orders as data center demand and the increasing need for prime behind the meter and backup power continues to be strong. In oil and gas, the Company expects revenues to be down as the transition from conventional diesel hydraulic fracturing to electric hydraulic fracturing continues to take place. The Company anticipates extended lead times and supply delays for certain original equipment manufacturer (“OEM”) products, especially in the power generation market, to continue throughout 2026. The Company was impacted in the 2026 second quarter by delayed OEM engine deliveries as certain impacted projects shifted from the 2026 second quarter into the 2026 second half.

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.

Financing of these purchases was through borrowings under the Company’s Revolving Credit Facility and cash provided by operating activities.

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 June 30,										Six Months Ended June 30,
	2026		%			2025		%			2026		%			2025		%
Marine transportation	$	536,974		58	%	$	492,562		58	%	$	1,034,157		59	%	$	968,711		59	%
Distribution and services		385,425		42			362,893		42			732,341		41			672,403		41
	$	922,399		100	%	$	855,455		100	%	$	1,766,498		100	%	$	1,641,114		100	%

Marine Transportation

The following table sets forth KMT revenues, costs and expenses, operating income, and operating margin (dollars in thousands):


	Three Months Ended June 30,									Six Months Ended June 30,
	2026			2025			% Change			2026			2025			% Change
Marine transportation revenues	$	536,974		$	492,562			9	%	$	1,034,157		$	968,711			7	%

Costs and expenses:
Costs of sales and operating expenses		348,465			298,789			17			649,289			589,776			10
Selling, general and administrative		35,463			33,415			6			79,264			73,869			7
Taxes, other than on income		7,652			8,124			(6	)		15,219			14,576			4
Depreciation and amortization		57,592			53,182			8			112,928			104,854			8
		449,172			393,510			14			856,700			783,075			9
Operating income	$	87,802		$	99,052			(11	)%	$	177,457		$	185,636			(4	)%
Operating margins		16.4	%		20.1	%					17.2	%		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 Serviced	2026 Second Quarter Revenue Distribution	2026 Six Months Revenue Distribution	Products Moved	Drivers
Petrochemicals	49%	48%	Benzene, Styrene, Methanol, Acrylonitrile, Xylene, Naphtha, Caustic Soda, Butadiene, Propylene	Consumer non-durables – 70%, Consumer durables – 30%
Black Oil	27%	27%	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	21%	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

The petrochemical market, which is the Company’s largest market, contributed 49% and 48% of KMT revenues for the 2026 second quarter and first six months, respectively, reflecting steady rates, volumes and utilization from Gulf Coast petrochemical plants as compared to the 2025 second quarter and first six months.

The black oil market, which contributed 27% of KMT revenues for both the 2026 second quarter and first six months reflected stable demand as refinery utilization and production levels of refined petroleum products and fuel oils increased. During the 2026 first six 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 21% and 22% of KMT revenues for the 2026 second quarter and first six months, respectively, reflected stable volumes in the inland market with steady refinery utilization and product levels as compared to the 2025 second quarter and first six months.

The agricultural chemical market, which contributed 3% of KMT revenues for both the 2026 second quarter and first six months reflected stable demand for transportation of both domestically produced and imported products as compared to the 2025 second quarter and first six months.

For the 2026 second quarter, inland operations incurred 2,567 delay days, 23% fewer than the 3,320 delay days that occurred during the 2025 second quarter. For the 2026 first six months, inland operations incurred 5,831 delay days, 21% fewer than the 7,349 delay days that occurred during the 2025 first six 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 poor operating conditions due to heavy wind and fog along the Gulf Coast and lock delays during the 2026 and 2025 first quarters.

The following table summarizes the average range of pricing changes in term and spot contracts renewed during 2026 compared to contracts renewed during the corresponding quarter of 2025:


	Three Months Ended
	March 31, 2026	June 30, 2026
Inland market:
Term	0% – 2%	1% – 3%
Spot	(4)% – (6)%	(2)% – (4)%
Coastal market (a):
Term	19% – 21%	(2)% – (4)%

(a)

Term contract pricing in the coastal market is contingent on various factors including geographic location, vessel capacity, vessel type, and product serviced.

Marine Transportation Costs and Expenses

Costs and expenses for the 2026 second quarter and first six months increased 14% and 9%, respectively, compared to the 2025 second quarter and first six months. Costs of sales and operating expenses for the 2026 second quarter and first six months increased 17% and 10%, respectively, compared with the 2025 second quarter and first six months. The results for the 2026 second quarter and first six months were driven by higher fuel costs and inflationary cost pressures including wage increases that went into effect on July 1, 2025.

The inland marine transportation fleet operated an average of 291 towboats during the 2026 second quarter, of which an average of 86 were chartered, compared to 290 during the 2025 second quarter, of which an average of 75 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 2026 second quarter, inland operations consumed 13.0 million gallons of diesel fuel compared to 12.8 million gallons consumed during the 2025 second quarter. The average price per gallon of diesel fuel consumed during the 2026 second quarter was $4.23 per gallon compared with $2.35 per gallon for the 2025 second quarter. During the 2026 first six months, inland operations consumed 25.5 million gallons of diesel fuel compared to 24.5 million gallons consumed during the 2025 first six months. The average price per gallon of diesel fuel consumed during the 2026 first six months was $3.26 per gallon compared with $2.45 per gallon for the 2025 first six 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 2026 second quarter and first six months increased 6% and 7%, respectively, compared to the 2025 second quarter and first six months. The increase in selling, general and administrative expenses for the 2026 second quarter and first six months as compared to the 2025 second quarter and first six months was primarily due to continued inflationary cost pressures, including salary and wage increases that went into effect on July 1, 2025.

Depreciation and amortization for the 2026 second quarter and first six months increased 8% compared to the 2025 second quarter and first six months. The increase was primarily due to capital additions during 2025 and the first six months of 2026, as well as equipment acquisitions.

Marine Transportation Operating Income and Operating Margin

KMT operating income for the 2026 second quarter and first six months decreased 11% and 4%, respectively, compared with the 2025 second quarter and first six months. The 2026 second quarter operating margin was 16.4% compared with 20.1% for the 2025 second quarter. The 2026 first six months operating margin was 17.2% compared with 19.2% for the 2025 first six months. The decrease in operating income as compared to the 2025 second quarter and first six months was primarily due to higher fuel costs due to the Iran conflict. During the second quarter of 2026, rapidly rising fuel prices temporarily compressed operating income and operating margins in the inland market due to the inherent lag in the Company's contractual fuel escalation mechanisms. Because fuel-related pricing adjustments under term contracts generally become effective 30 to 120 days after fuel cost increases are incurred, the Company was unable to fully recover the impact of higher fuel costs during the quarter. The Company expects these costs to be substantially recovered in subsequent quarters as contractual fuel escalation provisions take effect.

Distribution and Services

The following table sets forth KDS revenues, costs and expenses, operating income, and operating margin (dollars in thousands):


	Three Months Ended June 30,									Six Months Ended June 30,
	2026			2025			% Change			2026			2025			% Change
Distribution and services revenues	$	385,425		$	362,893			6	%	$	732,341		$	672,403			9	%

Costs and expenses:
Costs of sales and operating expenses		282,714			264,331			7			539,998			486,559			11
Selling, general and administrative		51,431			50,054			3			104,502			102,073			2
Taxes, other than on income		2,406			2,391			1			4,667			4,744			(2	)
Depreciation and amortization		10,723			10,682			—			21,677			21,001			3
		347,274			327,458			6			670,844			614,377			9
Operating income	$	38,151		$	35,435			8	%	$	61,497		$	58,026			6	%
Operating margins		9.9	%		9.8	%					8.4	%		8.6	%

Distribution and Services Revenues

The following table shows the markets serviced by KDS, the revenue distribution, and the customers for each market:


Markets Serviced	2026 Second Quarter Revenue Distribution	2026 Six Months Revenue Distribution	Customers
Commercial and Industrial	50%	49%	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	40%	41%	Power Generation & Standby Power Generation Equipment, Power Generation Rentals & Related Service, Data Centers
Oil and Gas	10%	10%	Oilfield Services, Oil and Gas Operators and Producers

In the commercial and industrial market, revenues and operating income increased compared to the 2025 second quarter and first six months due to higher business levels in marine repair. In the power generation market, revenues and operating income increased compared to the 2025 second quarter and first six months due to increased demand for backup, prime power and critical power applications. In the oil and gas market, revenues and operating income decreased compared to the 2025 second quarter and first six 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.

Distribution and Services Costs and Expenses

Costs and expenses for the 2026 second quarter and first six months increased 6% and 9%, respectively, compared with the 2025 second quarter and first six months. Costs of sales and operating expenses for the 2026 second quarter and first six months increased 7% and 11%, respectively, compared with the 2025 second quarter and first six months. The increase for the 2026 second quarter and first six 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 2026 second quarter and first six months increased 3% and 2%, respectively, compared to the 2025 second quarter and first six months, reflecting higher business activity levels and inflationary cost pressures, including salary and wage increases that went into effect July 1, 2025.

Depreciation and amortization for the 2026 first six months increased 3% compared to the 2025 first six months. The increase was primarily due to capital additions during 2025 and the first six months of 2026, including additions to the equipment rental fleet.

Distribution and Services Operating Income and Operating Margin

KDS operating income for the 2026 second quarter and first six months increased 8% and 6%, respectively, compared with the 2025 second quarter and first six months. The 2026 second quarter operating margin was 9.9% compared to 9.8% for the 2025 second quarter. The 2026 first six months operating margin was 8.4% compared to 8.6% for the 2025 first six 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.

General Corporate Expenses

General corporate expenses for the 2026 first six months increased compared to the 2025 first six months, driven primarily by increases in insurance costs, professional fees, and incentive compensation.

Gain on Disposition of Assets

The Company reported a net gain on disposition of assets of $0.7 million and $1.7 million for the 2026 and 2025 second quarter, respectively. The Company reported a net gain on disposition of assets of $2.2 million and $1.8 million for the 2026 and 2025 first six months, respectively. The net gains were primarily from sales of marine transportation equipment and the sale of a KDS facility in the 2026 first quarter.

Other Income and Expenses

The following table sets forth other income, noncontrolling interests, and interest expense (dollars in thousands):


	Three Months Ended June 30,									Six Months Ended June 30,
	2026			2025			% Change			2026			2025			% Change
Other income	$	7,027		$	4,812			46	%	$	14,308		$	10,146			41	%
Noncontrolling interests	$	(69	)	$	(101	)		(32	)%	$	(198	)	$	(385	)		49	%
Interest expense	$	(10,977	)	$	(12,730	)		(14	)%	$	(21,227	)	$	(23,267	)		(9	)%

Other Income

Other income for the 2026 and 2025 second quarters includes income of $6.0 million and $4.3 million, respectively, for all components of net benefit costs except the service cost component related to the Company’s defined benefit plans. Other income for the 2026 and 2025 first six months includes income of $12.2 million and $9.1 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 June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
Average debt	$	1,028,991		$	1,147,306		$	981,178		$	1,048,395
Average interest rate		4.3	%		4.6	%		4.4	%		4.5	%

Interest expense for the 2026 second quarter and first six months decreased 14% and 9%, respectively, compared with the 2025 second quarter and first six months, primarily due to lower average debt outstanding and a lower average interest rate in the 2026 second quarter and first six months. Interest expense excludes capitalized interest for the 2026 second quarter and first six months of $0.2 million and $0.4 million, respectively. Interest expense excludes capitalized interest for both the 2025 second quarter and first six months of $0.5 million.

Financial Condition, Capital Resources and Liquidity

Balance Sheets

The following table sets forth the significant components of the balance sheets (dollars in thousands):


	June 30, 2026		December 31, 2025		% Change
Assets:
Current assets	$	1,239,593	$	1,077,855		15	%
Property and equipment, net		4,177,456		4,098,058		2
Operating lease right-of-use assets		168,927		193,276		(13	)
Goodwill		438,748		438,748		—
Other intangibles, net		26,342		30,165		(13	)
Other assets		169,201		169,943		—
	$	6,220,267	$	6,008,045		4	%

Liabilities and stockholders’ equity:
Current liabilities	$	736,053	$	706,524		4	%
Long-term debt, net – less current portion		1,031,398		911,924		13
Deferred income taxes		842,577		826,373		2
Operating lease liabilities – less current portion		151,073		169,854		(11	)
Other long-term liabilities		14,172		10,577		34
Total equity		3,444,994		3,382,793		2
	$	6,220,267	$	6,008,045		4	%

Current assets as of June 30, 2026 increased 15% compared with December 31, 2025. Trade accounts receivable increased 36% primarily due to higher business activity levels in both KMT and KDS. Inventories – net increased 5% primarily due to the impact of higher business activity levels and supply delays in KDS resulting in the buildup of inventory for mainly power generation projects that are scheduled to be delivered later in 2026 and into 2027. Prepaid expenses and other current assets increased 4% primarily due to higher prepaid fuel as a result of an increase in the price of diesel fuel.

Property and equipment, net of accumulated depreciation, at June 30, 2026 increased 2% compared with December 31, 2025. The increase reflected $123.4 million of capital additions (including an increase in accrued capital expenditures of $3.6 million) and $95.8 million of equipment acquisitions in the 2026 first six months, partially offset by $134.7 million of depreciation expense and $5.1 million of property disposals more fully described under Cash Flow and Capital Expenditures below.

Operating lease right-of-use assets as of June 30, 2026 decreased 13% compared with December 31, 2025, primarily due to lease amortization expense, partially offset by new leases acquired in the 2026 first six months.

Other intangibles, net, as of June 30, 2026 decreased 13% compared with December 31, 2025, due to amortization during the 2026 first six months.


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	KEX	New York Stock Exchange


Large accelerated filer		Accelerated filer	
Non-accelerated filer		Smaller reporting company	
		Emerging growth company	


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
April 1 — April 30, 2026		—	$	—		—		—
May 1 — May 31, 2026		191,358	$	144.16		—		—
June 1 — June 30, 2026		228,040	$	140.89		—		—
Total		419,398	$	142.38		—		—


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).
10.1†	–	2005 Stock and Incentive Plan (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 30, 2026).
10.2†	–	2000 Nonemployee Director Stock Plan (incorporated by reference to Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed with the Commission on April 30, 2026).
31.1*	–	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)


Exhibit Number		Description of Exhibits
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)


	June 30, 2026			December 31, 2025
Long-term debt, including current portion:
Revolving Credit Facility due March 26, 2031 (a)	$	235,000		$	45,000
Term Loan due July 29, 2027 (b)		—			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, 2028		—			—
Bank notes payable		5,950			7,357
		1,040,950			922,357
Unamortized debt discounts and issuance costs		(3,602	)		(3,076	)
	$	1,037,348		$	919,281


	KIRBY CORPORATION
	(Registrant)

	By:	/s/ Raj Kumar
		Raj Kumar
		Executive Vice President and
		Chief Financial Officer

Dated: August 5, 2026