Kirby Corporation Announces 2025 First Quarter Results
- Net earnings increased to $76.0 million ($1.33 per share) from $70.1 million ($1.19 per share) YoY
- Strong marine transportation performance with 18.2% operating margin, up from 17.5% YoY
- Strategic acquisition of 14 barges and four boats for $97.3 million strengthening fleet capacity
- Significant share repurchase program with 1.25M shares bought for $124.7M showing confidence in business
- Strong balance sheet with $334.2M available liquidity and moderate 24.8% debt-to-capitalization ratio
- Revenue declined to $785.7M from $808.0M YoY
- Distribution and services revenue dropped 7% YoY to $309.5M
- Oil and gas revenues declined 18% YoY due to soft conventional business
- 50% increase in delay days due to weather and navigational challenges
- Ongoing inflationary pressures and acute mariner shortage driving up labor costs
Insights
Kirby posted 11.8% EPS growth to $1.33 despite revenue decline, repurchased $124.7M in shares, and maintained strong margins while investing in fleet expansion.
Kirby Corporation's Q1 2025 delivered EPS of $1.33, an 11.8% improvement from Q1 2024's $1.19, despite a 2.8% revenue decline to
The company's capital allocation strategy heavily favors shareholder returns, with 1.26 million shares repurchased at an average price of
Kirby's balance sheet remains robust with
The acquisition of 14 barges and four high-horsepower boats for
EBITDA improved to
With projected strong cash flow and continuing share repurchases, Kirby demonstrates confidence in its business trajectory throughout 2025.
Marine transportation shows impressive pricing power with mid-20% coastal contract renewals despite operational challenges, tight capacity driving rates higher amid limited fleet additions.
Kirby's marine transportation segment demonstrated remarkable resilience despite significant operational challenges in Q1. The company faced a 50% sequential increase in delay days due to winter storms, high winds, fog, and lock delays, yet still maintained inland operating margins around
The inland marine market exhibits classic tight supply-demand fundamentals, with barge utilization in the low to mid-90% range. This constrained capacity enabled sequential spot rate increases in the low single digits and high single-digit year-over-year growth. Term contracts renewed with mid-single digit increases compared to 2024.
The coastal market shows even stronger pricing power, with term contract renewals achieving mid-20% range increases year-over-year. This exceptional pricing strength reflects mid to high-90% utilization rates and limited availability of large capacity vessels industry-wide.
An industry-wide mariner shortage continues driving labor cost inflation, while equipment costs also rise. However, these cost pressures are translating into higher pricing rather than margin compression – a clear indicator of Kirby's strong market position.
The strategic acquisition of 14 barges and four high-horsepower boats for
Management projects continued strength throughout 2025, with inland revenues expected to grow in the mid to high single digits and margins improving 200-300 basis points from Q1 levels. Coastal revenues are forecast to increase in the high-single to low-double digit range with margins reaching the mid-teens.
These favorable market dynamics, characterized by tight capacity, limited fleet growth, and strong pricing power, indicate the marine transportation segment will drive Kirby's performance throughout 2025.
- First quarter 2025 earnings per share of
$1.33 - Inland marine experienced improved market conditions with a sequential increase in spot market prices and operating margins around
20% despite an increase in delay days - Kirby repurchased 1,258,031 shares at an average price of
$99.16 for$124.7 million year-to-date through April 30, 2025 - Acquired 14 barges, including four specialty barges, and four high horsepower boats from undisclosed seller for
$97.3 million - Quarterly earnings and free cash flow expected to strengthen as the year progresses
HOUSTON, May 01, 2025 (GLOBE NEWSWIRE) -- Kirby Corporation (“Kirby”) (NYSE: KEX) today announced net earnings attributable to Kirby for the first quarter ended March 31, 2025, of
David Grzebinski, Kirby’s Chief Executive Officer, commented, “Our first quarter results reflected improved market fundamentals in marine transportation and continued strong demand for power generation in distribution and services. These positive trends were partially offset by weather and navigational challenges in marine and continued supply delays in distribution and services. Overall, our combined businesses performed well during the quarter.
“In inland marine transportation, our first quarter results were considerably impacted by delay days. Throughout the quarter, our operations were challenged by winter storms, high winds, and fog along the Gulf Coast, as well as lock delays throughout the system. These weather and navigational issues slowed transit times and impacted the financial performance of our contracts of affreightment. Overall, delay days increased
“In coastal, market fundamentals remained strong with our barge utilization levels running in the mid to high
“In distribution and services, demand was mixed across our end markets with growth in some areas offset by slowness or delays in other areas. In power generation, the pace of inbound orders was strong, adding to our backlog, with continued project wins from backup power and other industrial customers as the need for power remains critical. In oil and gas, while an exceptionally soft conventional oil and gas business pushed revenues down
Segment Results – Marine Transportation
Marine transportation revenues for the 2025 first quarter were
In the inland market, 2025 first quarter average barge utilization was in the low to mid
In coastal, market conditions were strong during the quarter, with Kirby’s barge utilization in the mid to high
Segment Results – Distribution and Services
Distribution and services revenues for the 2025 first quarter were
In the power generation market, revenues declined
In the commercial and industrial market, revenues increased
In the oil and gas market, revenues declined
Cash Generation
For the 2025 first quarter, EBITDA was
2025 Outlook
Commenting on the outlook for the remainder of 2025, Mr. Grzebinski said, “We’re off to a solid start in 2025. While recent macro events have created some near-term uncertainty in places, we continue to see favorable fundamentals as 2025 progresses. Our balance sheet is strong, and we expect to generate significant free cash flow despite high levels of capital expenditures this year and, absent meaningful acquisitions, we expect to use the majority of free cash flow for share repurchases. We see favorable markets continuing and expect our businesses will produce improving financial results as we move through this year.”
In inland marine, we anticipate positive market dynamics due to limited new barge construction. We expect our barge utilization rates to be in the low to mid
In coastal marine, market conditions remain very favorable, and supply and demand remain balanced across the industry fleet. Steady customer demand is expected to keep our barge utilization in the mid
In the distribution and services segment, we see mixed results as near-term volatility from supply issues, customers deferring maintenance, and lower overall levels of activity in oil and gas, are partially offset by orders for power generation. In commercial and industrial, the demand outlook in marine repair remains steady while on-highway service and repair remains weak in the current environment. In oil and gas, we expect revenues to be down in the high-single to low-double digit range as the shift away from conventional frac to e-frac continues to take place. In power generation, we anticipate continued robust growth in orders as data center demand and the need for backup power is strong. We expect extended lead times for certain OEM products to continue contributing to a volatile delivery schedule of new products throughout 2025. Overall, the Company expects segment revenues to be flat to slightly down for the full year with operating margins in the high-single digits but slightly lower year-over-year.
Kirby expects to generate net cash provided from operating activities of
Conference Call
A conference call is scheduled for 7:30 a.m. Central Daylight Time today, Thursday, May 1, 2025, to discuss the 2025 first quarter performance as well as the outlook for 2025. To listen to the webcast, please visit the Investor Relations section of Kirby’s website at www.kirbycorp.com. For listeners who wish to participate in the question and answer session via telephone, please pre-register at Kirby Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing them to access the live call. A slide presentation for this conference call will be posted on Kirby’s website approximately 15 minutes before the start of the webcast. A replay of the webcast will be available for a period of one year by visiting the News & Events page in the Investor Relations section of Kirby’s website.
GAAP to Non-GAAP Financial Measures
The financial and other information to be discussed in the conference call is available in this press release and in a Form 8-K filed with the Securities and Exchange Commission. This press release and the Form 8-K includes a non-GAAP financial measure, EBITDA, which Kirby defines as net earnings attributable to Kirby before interest expense, taxes on income, and depreciation and amortization. A reconciliation of EBITDA with GAAP net earnings attributable to Kirby is included in this press release. This press release also includes non-GAAP financial measures which exclude certain one-time items, including earnings before taxes on income (excluding one-time items), net earnings attributable to Kirby (excluding one-time items), and diluted earnings per share (excluding one-time items). A reconciliation of these measures with GAAP is included in this press release. Management believes the exclusion of certain one-time items from these financial measures enables it and investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Kirby’s normal operating results. This press release additionally includes a non-GAAP financial measure, free cash flow, which Kirby defines as net cash provided by operating activities less capital expenditures. A reconciliation of free cash flow with GAAP is included in this press release. Kirby uses free cash flow to assess and forecast cash flow and to provide additional disclosures on the Company’s liquidity. Free cash flow does not imply the amount of residual cash flow available for discretionary expenditures as it excludes mandatory debt service requirements and other non-discretionary expenditures. This press release also includes marine transportation performance measures, consisting of ton miles, revenue per ton mile, towboats operated and delay days. Comparable marine transportation performance measures for the 2024 year and quarters are available in the Investor Relations section of Kirby’s website, www.kirbycorp.com, under Financials.
Forward-Looking Statements
Statements contained in this press release with respect to the future are forward-looking statements. These statements reflect management’s reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including 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, marine accidents, lock delays, 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. Forward-looking statements are based on currently available information and Kirby assumes no obligation to update any such statements. A list of additional risk factors can be found in Kirby’s annual report on Form 10-K for the year ended December 31, 2024.
About Kirby Corporation
Kirby Corporation, based in Houston, Texas, 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. Kirby transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. In addition, Kirby participates in the transportation of dry-bulk commodities in United States coastwise trade. Through the distribution and services segment, Kirby provides after-market service and genuine replacement parts for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and control systems, and related equipment used in oilfield services, marine, power generation, on-highway, and other industrial applications. Kirby also rents equipment including generators, industrial compressors, high capacity lift trucks, construction equipment, and refrigeration trailers for use in a variety of industrial markets. Kirby also manufactures and remanufactures specialized equipment, including pressure pumping units, electric power generation equipment, and specialized electrical distribution and control equipment for oilfield service, railroad and other industrial customers.
| Contact: | Kurt Niemietz | |
| 713-435-1077 | ||
| CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | ||||||||
| Three Months | ||||||||
| 2025 | 2024 | |||||||
| (unaudited, $ in thousands, except per share amounts) | ||||||||
| Revenues: | ||||||||
| Marine transportation | $ | 476,149 | $ | 475,412 | ||||
| Distribution and services | 309,510 | 332,610 | ||||||
| Total revenues | 785,659 | 808,022 | ||||||
| Costs and expenses: | ||||||||
| Costs of sales and operating expenses | 512,336 | 550,681 | ||||||
| Selling, general and administrative | 95,287 | 90,206 | ||||||
| Taxes, other than on income | 8,830 | 8,044 | ||||||
| Depreciation and amortization | 63,730 | 57,642 | ||||||
| Gain on disposition of assets | (70 | ) | (74 | ) | ||||
| Total costs and expenses | 680,113 | 706,499 | ||||||
| Operating income | 105,546 | 101,523 | ||||||
| Other income | 5,334 | 3,269 | ||||||
| Interest expense | (10,537 | ) | (13,151 | ) | ||||
| Earnings before taxes on income | 100,343 | 91,641 | ||||||
| Provision for taxes on income | (24,073 | ) | (21,726 | ) | ||||
| Net earnings | 76,270 | 69,915 | ||||||
| Net (earnings) loss attributable to noncontrolling interests | (284 | ) | 153 | |||||
| Net earnings attributable to Kirby | $ | 75,986 | $ | 70,068 | ||||
| Net earnings per share attributable to Kirby common stockholders: | ||||||||
| Basic | $ | 1.33 | $ | 1.20 | ||||
| Diluted | $ | 1.33 | $ | 1.19 | ||||
| Common stock outstanding (in thousands): | ||||||||
| Basic | 56,949 | 58,472 | ||||||
| Diluted | 57,316 | 58,819 | ||||||
| CONDENSED CONSOLIDATED FINANCIAL INFORMATION | ||||||||
| Three Months | ||||||||
| 2025 | 2024 | |||||||
| (unaudited, $ in thousands) | ||||||||
| EBITDA: (1) | ||||||||
| Net earnings attributable to Kirby | $ | 75,986 | $ | 70,068 | ||||
| Interest expense | 10,537 | 13,151 | ||||||
| Provision for taxes on income | 24,073 | 21,726 | ||||||
| Depreciation and amortization | 63,730 | 57,642 | ||||||
| $ | 174,326 | $ | 162,587 | |||||
| Capital expenditures | $ | 78,687 | $ | 81,047 | ||||
| Acquisitions of businesses and marine equipment | $ | 97,250 | $ | — | ||||
| March 31, 2025 | December 31, 2024 | |||||||
| (unaudited, $ in thousands) | ||||||||
| Cash and cash equivalents | $ | 51,078 | $ | 74,444 | ||||
| Long-term debt, including current portion | $ | 1,098,369 | $ | 874,948 | ||||
| Total equity | $ | 3,327,754 | $ | 3,353,248 | ||||
| Debt to capitalization ratio | 24.8 | % | 20.7 | % | ||||
| MARINE TRANSPORTATION STATEMENTS OF EARNINGS | ||||||||
| Three Months | ||||||||
| 2025 | 2024 | |||||||
| (unaudited, $ in thousands) | ||||||||
| Marine transportation revenues | $ | 476,149 | $ | 475,412 | ||||
| Costs and expenses: | ||||||||
| Costs of sales and operating expenses | 290,987 | 301,262 | ||||||
| Selling, general and administrative | 40,454 | 37,121 | ||||||
| Taxes, other than on income | 6,452 | 6,197 | ||||||
| Depreciation and amortization | 51,672 | 47,849 | ||||||
| Total costs and expenses | 389,565 | 392,429 | ||||||
| Operating income | $ | 86,584 | $ | 82,983 | ||||
| Operating margin | 18.2 | % | 17.5 | % | ||||
| DISTRIBUTION AND SERVICES STATEMENTS OF EARNINGS | ||||||||
| Three Months | ||||||||
| 2025 | 2024 | |||||||
| (unaudited, $ in thousands) | ||||||||
| Distribution and services revenues | $ | 309,510 | $ | 332,610 | ||||
| Costs and expenses: | ||||||||
| Costs of sales and operating expenses | 222,228 | 249,403 | ||||||
| Selling, general and administrative | 52,019 | 51,521 | ||||||
| Taxes, other than on income | 2,353 | 1,828 | ||||||
| Depreciation and amortization | 10,319 | 7,844 | ||||||
| Total costs and expenses | 286,919 | 310,596 | ||||||
| Operating income | $ | 22,591 | $ | 22,014 | ||||
| Operating margin | 7.3 | % | 6.6 | % | ||||
| OTHER COSTS AND EXPENSES | ||||||||
| Three Months | ||||||||
| 2025 | 2024 | |||||||
| (unaudited, $ in thousands) | ||||||||
| General corporate expenses | $ | 3,699 | $ | 3,548 | ||||
| Gain on disposition of assets | $ | (70 | ) | $ | (74 | ) | ||
| RECONCILIATION OF FREE CASH FLOW | ||||||||
| The following is a reconciliation of GAAP net cash provided by operating activities to non-GAAP free cash flow(2): | ||||||||
| Three Months | ||||||||
| 2025 | 2024(3) | |||||||
| (unaudited, $ in millions) | ||||||||
| Net cash provided by operating activities | $ | 36.5 | $ | 123.3 | ||||
| Less: Capital expenditures | (78.7 | ) | (81.0 | ) | ||||
| Free cash flow(2) | $ | (42.2 | ) | $ | 42.3 | |||
| MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS | ||||||||
| Three Months | ||||||||
| 2025 | 2024 | |||||||
| Inland Performance Measurements: | ||||||||
| Ton Miles (in millions) (4) | 3,329 | 3,304 | ||||||
| Revenue/Ton Mile (cents/tm) (5) | 11.8 | 11.7 | ||||||
| Towboats operated (average) (6) | 291 | 286 | ||||||
| Delay Days (7) | 4,029 | 3,507 | ||||||
| Average cost per gallon of fuel consumed | $ | 2.57 | $ | 2.82 | ||||
| Barges (active): | ||||||||
| Inland tank barges | 1,111 | 1,078 | ||||||
| Coastal tank barges | 28 | 28 | ||||||
| Offshore dry-cargo barges | 3 | 4 | ||||||
| Barrel capacities (in millions): | ||||||||
| Inland tank barges | 24.6 | 23.8 | ||||||
| Coastal tank barges | 2.9 | 2.9 | ||||||
| (1) | Kirby has historically evaluated its operating performance using numerous measures, one of which is EBITDA, a non-GAAP financial measure. Kirby defines EBITDA as net earnings attributable to Kirby before interest expense, taxes on income, and depreciation and amortization. EBITDA is presented because of its wide acceptance as a financial indicator. EBITDA is one of the performance measures used in calculating performance compensation pursuant to Kirby’s annual incentive plan. EBITDA is also used by rating agencies in determining Kirby’s credit rating and by analysts publishing research reports on Kirby, as well as by investors and investment bankers generally in valuing companies. EBITDA is not a calculation based on generally accepted accounting principles and should not be considered as an alternative to, but should only be considered in conjunction with, Kirby’s GAAP financial information. | |
| (2) | Kirby uses certain non-GAAP financial measures to review performance excluding certain one-time items including: earnings before taxes on income, excluding one-time items; net earnings attributable to Kirby, excluding one-time items; and diluted earnings per share, excluding one-time items. Management believes the exclusion of certain one-time items from these financial measures enables it and investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of the company's normal operating results. Kirby also uses free cash flow, which is defined as net cash provided by operating activities less capital expenditures, to assess and forecast cash flow and to provide additional disclosures on the Company’s liquidity. Free cash flow does not imply the amount of residual cash flow available for discretionary expenditures as it excludes mandatory debt service requirements and other non-discretionary expenditures. These non-GAAP financial measures are not calculations based on generally accepted accounting principles and should not be considered as an alternative to but should only be considered in conjunction with Kirby’s GAAP financial information. | |
| (3) | See Kirby’s annual report on Form 10-K for the year ended December 31, 2024, and its quarterly report on Form 10-Q for the quarter ended March 31, 2024 for amounts provided by (used in) investing and financing activities. | |
| (4) | Ton miles indicate fleet productivity by measuring the distance (in miles) a loaded tank barge is moved. Example: A typical 30,000 barrel tank barge loaded with 3,300 tons of liquid cargo is moved 100 miles, thus generating 330,000 ton miles. | |
| (5) | Inland marine transportation revenues divided by ton miles. Example: First quarter 2025 inland marine transportation revenues of | |
| (6) | Towboats operated are the average number of owned and chartered towboats operated during the period. | |
| (7) | Delay days measures the lost time incurred by a tow (towboat and one or more tank barges) during transit. The measure includes transit delays caused by weather, lock congestion and other navigational factors. |
FAQ
What were Kirby Corporation's (KEX) earnings per share in Q1 2025?
How many shares did KEX repurchase in early 2025?
What was Kirby's marine transportation operating margin in Q1 2025?
What major acquisition did KEX make in Q1 2025?
What is Kirby's expected capital spending range for 2025?
