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What Changed
Risk factors · Feb 18, 2025 → Feb 17, 2026
61 added · 50 removed between the two most recent 10-Ks. The risks a company starts — or stops — disclosing are often the story.
Newly disclosed
The 2028 Notes also specify certain events of default, upon the occurrence of which the maturity of the notes may be accelerated, including failure to pay principal and interest, violation of covenants or default on other indebtedness, among others.
The increase in revenues for 2025 was primarily due to higher term pricing in the coastal market and higher term and spot pricing in the inland market during the 2025 first half, partially offset by lower fuel rebills in both the inland and coastal markets.
The increase in operating income for 2025 as compared to 2024 was primarily due to higher term pricing in the coastal market and higher term and spot pricing in the inland market over the 2025 first half, partially offset by lower barge utilization and moderating prices in the inland market in the 2025 35 second half.
For both 2025 and 2024, the commercial and industrial market contributed 46% of the distribution and services revenues. 36 In the power generation market, revenues increased 26% compared to 2024 due to increased demand for backup, prime power and critical power applications.
The increase in revenues for 2025 was primarily due to higher term pricing in the coastal market and higher term and spot pricing in the inland market during the 2025 first half, partially offset by lower fuel rebills in both the inland and coastal markets.
The increase in operating income for 2025 as compared to 2024 was primarily due to higher term pricing in the coastal market and higher term and spot pricing in the inland market over the 2025 first half, partially offset by lower barge utilization and moderating prices in the inland market in the 2025 second half.
Delay days reflected very favorable seasonal weather and improved navigational conditions in the 2025 third quarter, and poor operating conditions due to heavy wind and fog along the Gulf Coast and lock delays during the 2025 and 2024 first quarters.
Costs of sales and operating expenses for 2025 decreased 1% compared to 2024 primarily reflecting lower fuel costs which was partially offset by inflationary cost pressures including salary and wage increases that went into effect on July 1, 2025. 40 The inland marine transportation fleet operated an average of 279 towboats during 2025, of which an average of 69 were chartered, compared to 285 during 2024, of which an average of 70 were chartered.
The increase in operating income and operating margin were primarily due to higher term pricing in the coastal market and higher spot and term pricing in the inland market over the 2025 first half, partially offset by lower barge utilization and moderating prices in the inland market in the 2025 second half.
Distribution and Services Costs and Expenses Total costs and expenses for 2025 increased 4% compared to 2024 reflecting higher deliveries of power generation equipment and higher business activity levels in marine repair and salary and wage increases that went into effect July 1, 2025, partially offset by lower on-highway and conventional oilfield activity.
The aggregate fair value of plan assets of the Company’s pension plans was $461.2 million and $411.4 million at December 31, 2025, and 2024, respectively. 44 The Company’s investment strategy focuses on total return on invested assets (capital appreciation plus dividend and interest income).
On February 3, 2022, the Company entered into a note purchase agreement for the issuance of $300 million of unsecured senior notes with a group of institutional investors, consisting of $60 million of 3.46% series A notes (“Series A Notes”) and $240 million of 3.51% series B notes (“Series B Notes”), each due January 19, 2033 (collectively, the “2033 Notes”).
No longer disclosed
The 2028 Notes also specify certain events of default, upon the occurrence of which the maturity of the notes may be accelerated, including failure to pay principal and interest, violation of covenants or default on other indebtedness, among others. 44 On February 3, 2022, the Company entered into a note purchase agreement for the issuance of $300 million of unsecured senior notes with a group of institutional investors, consisting of $60 million of 3.46% series A notes (“Series A Notes”) and $240 million of 3.51% series B notes (“Series B Notes”), each due January 19, 2033 (collectively, the “2033 Notes”).
Inventories – net decreased by 13% primarily due to the impairment of conventional diesel fracturing equipment inventory and deliveries of power generation units and oilfield service equipment during 2024.
For 2023, coastal tank barge utilization levels averaged in the mid to high 90% range during both the 2023 first and second quarters, the mid-90% range during the 2023 third quarter and the low to mid-90% range during the 2023 fourth quarter.
In the commercial and industrial market, revenues decreased 1% in 2024 compared to 2023 primarily due to lower business levels in Thermo King and on-highway businesses due to the ongoing trucking recession, partially offset by higher business levels in marine repair.
For both 2024 and 2023, the commercial and industrial market contributed 46% of the distribution and services revenues. 35 In the power generation market, revenues increased 20% compared to 2023 due to several large project awards from data center customers as well as other backup power industrial customers.
In the coastal marine transportation market in 2025, market conditions remain very favorable with steady customer demand expected to keep barge utilization at high levels with improved rates as the availability of equipment is limited across the industry due to no further ATBs currently under construction and favorable economic conditions.
For 2023, coastal tank barge utilization levels averaged in the mid to high 90% range during both the 2023 first and second quarters, the mid-90% range during the 2023 third quarter and the low to mid-90% range during the 2023 fourth quarter.
The petrochemical market, the Company’s largest market, contributed 51% of marine transportation revenues for 2024, reflecting increased rates, volumes and utilization from Gulf Coast petrochemical plants as a result of improved economic conditions and a reduced supply of barges across the industry due to a heavier than normal maintenance cycle as compared to 2023. 38 The black oil market, which contributed 25% of marine transportation revenues for 2024, reflecting improved demand as refinery utilization and production levels of refined petroleum products and fuel oils increased.
Delay days for 2024 and 2023 were impacted by hurricanes and tropical storms, poor operating conditions due to heavy wind and fog along the Gulf Coast, low and high water conditions on the Mississippi River System, and various lock closures, due in part to lock maintenance projects.
The Company has historically used chartered towboats for approximately one-fourth of its horsepower requirements. 39 Inland operations consumed 46.8 million gallons of diesel fuel in 2024 compared to 48.1 million gallons consumed during 2023.
In the commercial and industrial market, revenues decreased 1% in 2024 compared to 2023 primarily due to lower business levels in Thermo King and on-highway businesses due to the ongoing trucking recession, partially offset by higher business levels in marine repair.
For 2024 and 2023, the power generation market contributed 36% and 29%, respectively, of the distribution and services revenues. 40 In the oil and gas market, revenues declined 28% compared to 2023 due to lower levels of conventional oilfield activity, partially offset by deliveries of electric fracturing equipment.