v3.26.1
Segment Data
 6 Months Ended
Jun. 30, 2026
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 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