Core Viewpoint - Albany International Corporation is under investigation for potential violations of federal securities laws and unlawful business practices, following disappointing financial results that led to a significant drop in share price [1][3]. Financial Performance - On July 30, 2025, Albany reported non-GAAP earnings per share of $0.57, which was $0.16 below consensus estimates [3]. - The company's President and CEO acknowledged that the financial results "lagged our expectations" due to "certain timing and operational issues" [3]. - Following the earnings announcement, Albany's share price fell by $16.77, or approximately 23.63%, from $70.96 to $54.19 [3]. Legal Investigation - Kirby McInerney LLP is investigating potential claims against Albany and its officers regarding possible violations of federal securities laws [1]. - The law firm is reaching out to individuals who purchased Albany securities or have relevant information to discuss their rights [4]. Law Firm Background - Kirby McInerney LLP specializes in securities, antitrust, whistleblower, and consumer litigation, with a history of achieving recoveries totaling billions of dollars for shareholders [6].

[PART I – FINANCIAL INFORMATION](index=2&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for Kirby Corporation [Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Kirby Corporation's unaudited condensed consolidated financial statements for Q2 2025, including balance sheets, earnings, cash flows, and detailed notes [Condensed Balance Sheets](index=2&type=section&id=Condensed%20Balance%20Sheets) As of June 30, 2025, total assets increased to $6.08 billion from $5.85 billion at year-end 2024, primarily driven by growth in property and equipment and current assets Condensed Balance Sheet Highlights (in thousands) | Account | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total current assets** | $1,185,033 | $1,068,559 | | **Property and equipment – net** | $4,135,050 | $4,022,966 | | **Total assets** | **$6,079,965** | **$5,851,952** | | **Total current liabilities** | $679,457 | $734,753 | | **Long-term debt, net** | $1,111,332 | $866,722 | | **Total liabilities** | $2,690,075 | $2,498,704 | | **Total equity** | **$3,389,890** | **$3,353,248** | [Condensed Statements of Earnings](index=4&type=section&id=Condensed%20Statements%20of%20Earnings) For the second quarter of 2025, Kirby reported a 3.8% year-over-year increase in total revenues to $855.5 million, with operating income growing 9.4% and net earnings attributable to Kirby rising 12.4% Statement of Earnings Summary (in thousands, except per share data) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | YoY Change | H1 2025 (in thousands) | H1 2024 (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $855,455 | $824,390 | +3.8% | $1,641,114 | $1,632,412 | +0.5% | | **Operating Income** | $131,846 | $120,498 | +9.4% | $237,392 | $222,021 | +6.9% | | **Net Earnings Attributable to Kirby** | $94,277 | $83,854 | +12.4% | $170,263 | $153,922 | +10.6% | | **Diluted EPS** | $1.67 | $1.43 | +16.8% | $2.99 | $2.62 | +14.1% | [Condensed Statements of Cash Flows](index=6&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) For the first six months of 2025, net cash provided by operating activities decreased significantly to $130.5 million, while investing activities used $238.8 million and financing activities provided $102.3 million Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Category | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $130,463 | $302,607 | | **Net cash used in investing activities** | ($238,830) | ($225,785) | | **Net cash provided by (used in) financing activities** | $102,306 | ($55,859) | | **Increase (decrease) in cash** | ($6,061) | $20,963 | [Notes to Condensed Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Financial%20Statements) The notes detail key financial events and accounting policies, including a Q1 2025 acquisition, revenue growth in both segments, and a significant increase in long-term debt - On March 27, 2025, the Company acquired **14 inland tank barges** and **four high horsepower towboats** for **$97.3 million** in cash[25](index=25&type=chunk) Revenues by Segment (in thousands) | Segment | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Marine transportation** | $492,562 | $484,808 | $968,711 | $960,220 | | **Distribution and services** | $362,893 | $339,582 | $672,403 | $672,192 | Segment Operating Income (in thousands) | Segment | Q2 2025 (in thousands) | Q2 2024 (in thousands) | H1 2025 (in thousands) | H1 2024 (in thousands) | | :--- | :--- | :--- | :--- | :--- | | **Marine transportation (KMT)** | $99,052 | $94,876 | $185,636 | $177,859 | | **Distribution and services (KDS)** | $35,435 | $29,436 | $58,026 | $51,450 | [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management provides a detailed analysis of the company's financial performance, segment results, and liquidity, highlighting improved revenue and operating income in both segments and a positive outlook for 2025 [Results of Operations](index=19&type=section&id=Results%20of%20Operations) This section details the performance of the company's two primary segments, Marine Transportation (KMT) and Distribution and Services (KDS), both showing increased revenue and operating income [Marine Transportation (KMT)](index=19&type=section&id=Marine%20Transportation) KMT revenues increased 2% in Q2 2025 and 1% in H1 2025 year-over-year, with operating income rising 4% for both periods, driven by higher pricing and strong barge utilization KMT Financial Performance (in thousands) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | H1 2025 (in thousands) | H1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $492,562 | $484,808 | 2% | $968,711 | $960,220 | 1% | | **Operating Income** | $99,052 | $94,876 | 4% | $185,636 | $177,859 | 4% | | **Operating Margin** | 20.1% | 19.6% | | 19.2% | 18.5% | | Contract Pricing Increases (2025 vs. 2024 Renewals) | Market | Q1 2025 | Q2 2025 | | :--- | :--- | :--- | | **Inland Term** | 3% – 5% | 2% – 4% | | **Inland Spot** | 6% – 8% | 6% – 8% | | **Coastal Term** | 24% – 26% | 24% – 26% | - Inland tank barge utilization averaged in the **low to mid-90% range**, while coastal tank barge utilization was in the **mid to high 90% range** during the second quarter of 2025[68](index=68&type=chunk)[90](index=90&type=chunk) [Distribution and Services (KDS)](index=21&type=section&id=Distribution%20and%20Services) KDS revenues grew 7% in Q2 2025 year-over-year, with operating income increasing 20%, driven by strong performance in marine repair and power generation, offsetting weakness in oil and gas KDS Financial Performance (in thousands) | Metric | Q2 2025 (in thousands) | Q2 2024 (in thousands) | % Change | H1 2025 (in thousands) | H1 2024 (in thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Revenues** | $362,893 | $339,582 | 7% | $672,403 | $672,192 | — | | **Operating Income** | $35,435 | $29,436 | 20% | $58,026 | $51,450 | 13% | | **Operating Margin** | 9.8% | 8.7% | | 8.6% | 7.7% | | - In Q2 2025, the commercial and industrial market contributed **48% of KDS revenues**, power generation **39%**, and oil and gas **13%**; growth in the first two markets offset a decline in oil and gas[107](index=107&type=chunk)[108](index=108&type=chunk) [Outlook](index=23&type=section&id=Outlook) The company anticipates improved financial results for the full year 2025, driven by positive market dynamics in marine transportation and strong growth in power generation for distribution and services - The company expects positive market dynamics in inland marine transportation due to limited new barge construction, which should support **high utilization** and put **upward pressure on term contract prices**[79](index=79&type=chunk) - In the KDS segment, continued strong growth is anticipated in power generation orders, driven by **data center demand** and the need for backup power, which is expected to offset lower activity in the oil and gas market[80](index=80&type=chunk) [Financial Condition, Capital Resources and Liquidity](index=32&type=section&id=Financial%20Condition,%20Capital%20Resources%20and%20Liquidity) The company's financial condition is marked by a 57% decrease in operating cash flow for H1 2025, a 28% increase in long-term debt to fund acquisitions and share buybacks, and projected 2025 capital expenditures between $260 million and $290 million - Net cash provided by operating activities decreased by **57%** to **$130.5 million** in the first six months of 2025, down from **$302.6 million** in the same period of 2024[129](index=129&type=chunk) - During the first six months of 2025, the company purchased **1.3 million shares** of its common stock for **$132.7 million**[131](index=131&type=chunk) - Long-term debt increased by **28%** to **$1.11 billion** as of June 30, 2025, compared to December 31, 2024, primarily due to increased borrowings under the 2027 Revolving Credit Facility[122](index=122&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company states that its exposure to market risk has not materially changed since December 31, 2024, referring to its Annual Report on Form 10-K for detailed disclosures - The Company's exposure to market risk has not changed materially since December 31, 2024[140](index=140&type=chunk) [Controls and Procedures](index=36&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting during the second quarter - The Chief Executive Officer and Chief Financial Officer concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[141](index=141&type=chunk) - No changes in internal control over financial reporting occurred during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, the company's internal control[143](index=143&type=chunk) [PART II – OTHER INFORMATION](index=37&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This section includes disclosures on legal proceedings, risk factors, and details on issuer purchases of equity securities [Legal Proceedings, Risk Factors, and Other Information](index=37&type=section&id=Other%20Information%20Items) This section provides other required disclosures, referring to Note 13 for legal proceedings and the 2024 Form 10-K for risk factors, and reports the purchase of 331,900 shares of common stock for approximately $31.2 million during Q2 2025 - For details on legal proceedings, the company refers to Note 13 of the financial statements[145](index=145&type=chunk) - The company is subject to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024[146](index=146&type=chunk) Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | **Total Q2 2025** | 331,900 | $94.01 |

Core Insights - Kirby Corporation (KEX) reported a strong second-quarter performance with earnings per share of $1.67, exceeding the Zacks Consensus Estimate of $1.59 and reflecting a 17% year-over-year increase [2][10] - Total revenues reached $855.5 million, which, while missing the Zacks Consensus Estimate of $885 million, still represented a 3.7% year-over-year improvement [2][10] Financial Performance - Marine transportation revenues were $492.6 million, up 1.5% year over year, with operating income increasing to $99.1 million and operating margin rising to 20.1% [4] - Distribution and services revenues were $362.89 million, reflecting a 6.9% year-over-year increase, with operating income at $35.4 million and operating margin at 9.8% [7] - In the power generation market, revenues surged by 31% year over year, driven by strong sales, while commercial and industrial revenues grew by 5% and operating income by 24% [8][9] Segment Analysis - Inland marine segment accounted for 81% of marine transportation revenues, with average barge utilization in the low to mid-90% range and operating margins in the low 20% [5] - Coastal marine segment saw revenues grow by 3% year over year, with barge utilization in the mid to high-90% range and operating margins in the high teens [6] - Oil and gas market revenues declined by 27%, but operating income increased by 182% due to lower conventional oilfield activity [10][11] Outlook - Kirby anticipates 15-25% year-over-year earnings growth for 2025, with capital expenditures expected between $260 million and $290 million [13][17] - The inland marine segment is expected to see barge utilization soften slightly, while coastal marine fundamentals remain strong with continued pricing momentum [14][15] - Distribution and services outlook is mixed, with power generation showing strength, while oil and gas growth remains constrained [16]

Core Viewpoint - XPLR Infrastructure, LP is facing a federal securities class action lawsuit due to significant operational changes and alleged misleading statements regarding its business model and financial practices [1][4]. Group 1: Company Actions and Changes - On January 28, 2025, XPLR announced the suspension of cash distributions to common unitholders and a shift from its yieldco model to a new strategy focused on utilizing retained operating cash flows for investments [3]. - The announcement led to a decline in the price of XPLR's common units by $5.31, approximately 33.6%, from $15.80 on January 27, 2025, to $10.49 on January 29, 2025 [3]. Group 2: Allegations in the Lawsuit - The lawsuit claims that XPLR made materially false and/or misleading statements regarding its operational struggles as a yieldco, financing arrangements, and plans to halt cash distributions while redirecting funds to resolve financing issues [4].

Core Viewpoint - Kirby reported strong Q2 2025 earnings with GAAP EPS of $1.67 and revenue of $855.5 million, exceeding analyst expectations, but management expressed caution regarding future demand uncertainties [1][5][12] Financial Performance - Q2 2025 GAAP EPS was $1.67, up 17% from $1.43 in Q2 2024 [2] - Total GAAP revenue reached $855.5 million, a 3.8% increase from $824.4 million in Q2 2024 [2] - Operating margin improved to 15.4%, up from 14.6% in Q2 2024 [2] - EBITDA increased to $202.2 million, a 10.6% rise from $182.9 million in Q2 2024 [2] - Free cash flow significantly decreased to $22.5 million from $90.7 million in Q2 2024, a decline of 75.2% [2][7] Business Overview - Kirby holds approximately 27% of the U.S. inland tank barge market and 11% of the coastal market, operating over 1,100 inland and 28 coastal tank barges [3] - The company focuses on marine transportation of bulk liquids and industrial equipment repair and parts distribution [3] Key Success Factors - Kirby's success is driven by scale in marine services, regulatory compliance, and diversification into industrial equipment sales [4] - Demand for petrochemicals and petroleum, along with tight shipyard capacity, are critical for performance [4] Segment Performance - Marine transportation revenue rose 1.6% to $492.6 million, with operating income increasing 4.4% and margins reaching 20.1% [6] - Distribution and Services revenue increased by 6.9% to $362.9 million, with power generation revenue up 31% year-over-year [7] Industry Dynamics - Kirby's operations are influenced by the Jones Act, which protects the tank barge industry from foreign competition [10] - High steel prices and labor shortages limit rapid fleet expansion, with new orders primarily for replacement rather than growth [11] Future Guidance - Management expects FY2025 EPS growth of 15% to 25%, but cautioned about potential softness in demand [12] - Marine transportation utilization is projected to dip into the low 90% range in Q3 2025 [12] - Distribution and Services revenue is expected to be flat or slightly up, with operating margins in the high single digits [13]

[Overall Performance Summary](index=1&type=section&id=Overall%20Performance%20Summary) Kirby Corporation reported solid Q2 2025 results with net earnings of $94.3 million and consolidated revenues of $855.5 million, driven by strong performance across both marine transportation and distribution and services segments Q2 2025 Key Financial Results | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenues** | $855.5M | $824.4M | +3.8% | | **Net Earnings** | $94.3M | $83.9M | +12.4% | | **Diluted EPS** | $1.67 | $1.43 | +16.8% | - The strong quarterly performance was attributed to healthy customer demand, disciplined pricing, and operational focus across both primary business segments[3](index=3&type=chunk) - The company repurchased **331,900 shares** of its common stock during the quarter for **$31.2 million**, at an average price of **$94.01 per share**[4](index=4&type=chunk)[12](index=12&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) Both Marine Transportation and Distribution and Services segments achieved year-over-year growth in revenue and operating income, driven by strong utilization, higher pricing, and robust power generation demand [Marine Transportation](index=3&type=section&id=Marine%20Transportation) The Marine Transportation segment's revenue increased to $492.6 million with a 20.1% operating margin, driven by strong utilization and price increases in both inland and coastal markets Marine Transportation Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Revenues** | $492.6M | $484.8M | | **Operating Income** | $99.1M | $94.9M | | **Operating Margin** | 20.1% | 19.6% | - Inland market: Barge utilization was in the **low to mid-90% range**. Term contracts renewed with **low to mid-single-digit price increases** year-over-year[3](index=3&type=chunk)[6](index=6&type=chunk) - Coastal market: Barge utilization was strong, in the **mid to high-90% range**. Term contract renewals saw significant price increases in the **mid-20% range** compared to the prior year[3](index=3&type=chunk)[7](index=7&type=chunk) [Distribution and Services](index=3&type=section&id=Distribution%20and%20Services) Distribution and Services revenue grew to $362.9 million with a 9.8% operating margin, primarily due to a 31% increase in power generation revenue, despite a decline in the oil and gas market Distribution and Services Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Revenues** | $362.9M | $339.6M | | **Operating Income** | $35.4M | $29.4M | | **Operating Margin** | 9.8% | 8.7% | - Power generation revenue increased **31% YoY**, driven by robust demand from data centers and industrial customers, representing **39% of segment revenue**[3](index=3&type=chunk)[9](index=9&type=chunk) - Commercial and industrial revenue grew **5% YoY**, supported by marine repair and modest on-highway service improvement[10](index=10&type=chunk) - Oil and gas operating income increased **182% YoY** despite a **27% revenue decline**, attributed to cost management and growth in e-frac equipment sales[3](index=3&type=chunk)[11](index=11&type=chunk) [Cash Flow and Financial Position](index=3&type=section&id=Cash%20Flow%20and%20Financial%20Position) Kirby generated $202.2 million in EBITDA and $94.0 million in net cash from operations in Q2 2025, maintaining a solid financial position with $331.5 million in liquidity and a 24.8% debt-to-capitalization ratio Q2 2025 Financial Position & Cash Flow | Metric | Q2 2025 | | :--- | :--- | | **EBITDA** | $202.2M | | **Net Cash from Operations** | $94.0M | | **Capital Expenditures** | $71.5M | | **Share Repurchases** | $31.2M | | **Cash and Cash Equivalents** | $68.4M | | **Total Debt** | $1,117.8M | | **Debt-to-Capitalization Ratio** | 24.8% | [2025 Full-Year Outlook](index=3&type=section&id=2025%20Outlook) Kirby reaffirms its 2025 earnings growth forecast of 15% to 25% YoY, with results likely at the lower end due to trade policy complexities and mixed segment outlooks - The company expects full-year 2025 earnings growth to be between **15% and 25% YoY**, but cautions that results will likely be at the **lower end of this range** if current softness caused by trade policy complexities persists[13](index=13&type=chunk) - Inland marine operating margins are expected to remain in the **20% range**, though barge utilization has softened slightly to the **low 90% range** for Q3[14](index=14&type=chunk) - Coastal marine fundamentals remain strong, with utilization expected in the **mid-90% range** and operating margins in the **mid to high teens**[15](index=15&type=chunk) - For Distribution and Services, full-year revenue is now expected to be **flat to slightly up**, with operating margins in the **high-single digits**[16](index=16&type=chunk) 2025 Full-Year Guidance | Metric | Projected Range | | :--- | :--- | | **Net Cash from Operations** | $620M - $720M | | **Capital Spending** | $260M - $290M | [Financial Statements and Reconciliations](index=7&type=section&id=Financial%20Statements%20and%20Reconciliations) This section presents detailed unaudited financial tables for Q2 and H1 2025, including consolidated and segment earnings, EBITDA and free cash flow reconciliations, balance sheet data, and marine operational metrics [Condensed Consolidated Statements of Earnings](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Earnings) The company's consolidated revenues for Q2 2025 were $855.5 million, leading to an operating income of $131.8 million and net earnings attributable to Kirby of $94.3 million, or $1.67 per diluted share Condensed Consolidated Statements of Earnings (Q2 2025 vs Q2 2024, in thousands) | Description | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Total revenues** | **$855,455** | **$824,390** | | Operating income | $131,846 | $120,498 | | Earnings before taxes on income | $123,928 | $110,767 | | **Net earnings attributable to Kirby** | **$94,277** | **$83,854** | | Diluted EPS | $1.67 | $1.43 | [Condensed Consolidated Financial Information](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Information) This section reconciles net earnings to EBITDA, showing Q2 2025 EBITDA at $202.2 million. It also presents key balance sheet figures as of June 30, 2025, including $68.4 million in cash and a debt-to-capitalization ratio of 24.8% EBITDA Reconciliation (Q2 2025, in thousands) | Description | Amount | | :--- | :--- | | Net earnings attributable to Kirby | $94,277 | | Interest expense | $12,730 | | Provision for taxes on income | $29,550 | | Depreciation and amortization | $65,670 | | **EBITDA** | **$202,227** | Balance Sheet Highlights (as of June 30, 2025, in thousands) | Description | Amount | | :--- | :--- | | Cash and cash equivalents | $68,383 | | Long-term debt | $1,117,765 | | Total equity | $3,389,890 | | Debt to capitalization ratio | 24.8% | [Segment Statements of Earnings](index=8&type=section&id=Segment%20Statements%20of%20Earnings) Provides a detailed earnings breakdown for each segment. For Q2 2025, Marine Transportation generated $99.1 million in operating income on $492.6 million in revenue (20.1% margin). Distribution and Services generated $35.4 million in operating income on $362.9 million in revenue (9.8% margin) Marine Transportation Statement of Earnings (Q2 2025, in thousands) | Description | Amount | | :--- | :--- | | Revenues | $492,562 | | **Operating income** | **$99,052** | | Operating margin | 20.1% | Distribution and Services Statement of Earnings (Q2 2025, in thousands) | Description | Amount | | :--- | :--- | | Revenues | $362,893 | | **Operating income** | **$35,435** | | Operating margin | 9.8% | [Other Financial Data](index=9&type=section&id=Other%20Financial%20Data) This section includes a reconciliation of free cash flow and key performance metrics for the marine business. For Q2 2025, free cash flow was $22.5 million. Inland ton miles increased year-over-year, while revenue per ton mile decreased Reconciliation of Free Cash Flow (Q2 2025, in millions) | Description | Amount | | :--- | :--- | | Net cash provided by operating activities | $94.0 | | Less: Capital expenditures | $(71.5) | | **Free cash flow** | **$22.5** | Inland Performance Measurements (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Ton Miles (in millions) | 3,659 | 3,330 | | Revenue/Ton Mile (cents/tm) | 10.9 | 11.8 | | Towboats operated (average) | 290 | 287 |

Financial Data and Key Metrics Changes - The company reported second quarter earnings per share of $1.67, a 17% increase year over year from $1.43 in 2024 [5] - Total Marine revenues increased by $7.8 million or 2% compared to 2024, and operating income increased by $4.2 million or 4% [13] - Distribution and Services segment revenues were $363 million with operating income of $35 million and operating margin of 9.8% [19] Business Line Data and Key Metrics Changes - Inland marine transportation saw barge utilization rates in the low to mid 90% range, with pricing gains and operating margins in the low 20% range [6][7] - Coastal marine transportation revenues increased 3% year over year and 14% sequentially, with operating margins in the high teens [17] - Power generation revenues increased 31% year over year, driven by robust demand from data centers and industrial customers [9] Market Data and Key Metrics Changes - Spot market rates increased in the low single digits sequentially and in the mid single digits year over year [7] - Average coastal barge utilization was in the mid to high 90% range, reflecting strong customer demand [8] - The oil and gas segment experienced a 27% year over year decline in revenues, although operating income increased significantly due to cost management [22] Company Strategy and Development Direction - The company aims to maintain capital discipline while pursuing long-term value creation through strategic investments and acquisitions [30] - There is a focus on adapting to macroeconomic conditions and maintaining strong operational performance despite challenges [28] - The company anticipates continued growth in inland marine revenues in the low to mid single digits for the full year [31] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has become more complex, with trade policy shifts introducing uncertainty [28] - Despite some demand softness, the company expects 15% to 25% year over year growth in earnings for 2025 [29] - The outlook for the power generation segment remains strong, with a growing backlog and increased orders [53] Other Important Information - The company expects to generate cash flow from operations of $620 million to $720 million for 2025 [25] - Capital expenditures are projected to range between $60 million and $290 million for the year, with some growth initiatives deferred to 2026 [26] - The company has a strong balance sheet with $68 million in cash and total debt of approximately $1.12 billion [23] Q&A Session Summary Question: Update on inland business demand and spot pricing - Management indicated that while the second quarter was strong, there are signs of demand pullback in July, particularly from chemical customers [40][41] Question: Clarification on growth guidance and margin impacts - Management stated that if demand remains muted, they may finish closer to the lower end of their guidance range, but there is potential for recovery [61][62] Question: Insights on power generation segment and backlog - Management confirmed that the power generation segment is seeing strong demand, with a backlog increase of 15% to 20% [52][105] Question: Discussion on capital allocation between M&A and stock buybacks - Management expressed a preference for stock buybacks in the absence of acquisitions, while remaining open to potential M&A opportunities [78][80] Question: Inquiry about the frac market and power generation quotes - Management noted that most power generation orders are now coming from data centers, with a significant increase in inquiries compared to previous periods [104][106]

Financial Data and Key Metrics Changes - The company reported second quarter earnings per share of $1.67, a 17% increase year over year from $1.43 in 2024 [5] - Total Marine Transportation segment revenues were $493 million with an operating income of $99 million, resulting in an operating margin of 20.1% [14] - Distribution and Services segment revenues were $363 million with an operating income of $35 million, yielding an operating margin of 9.8% [20] Business Line Data and Key Metrics Changes - Inland marine transportation saw barge utilization rates in the low to mid 90% range, with revenues increasing 1% year over year due to improved pricing [16] - Coastal marine transportation revenues increased 3% year over year and 14% sequentially, with operating margins in the high teens [17][19] - Power generation revenues increased 31% year over year, driven by strong demand from data centers and industrial customers [10] Market Data and Key Metrics Changes - Spot market rates increased in the low single digits sequentially and in the mid single digits year over year, supported by limited barge availability [7] - The inland fleet had over 1,100 barges representing 24.5 million barrels of capacity, with expectations to end 2025 with 1,110 inland barges [19] - The oil and gas segment experienced a 27% year over year decline in revenues, although operating income increased significantly due to cost management [23] Company Strategy and Development Direction - The company aims to maintain capital discipline while pursuing long-term value creation through strategic investments and acquisitions [31] - The outlook for inland marine is positive due to limited new barge construction, although some price moderation is expected [32] - The company plans to use free cash flow primarily for share repurchases, absent any acquisitions [80] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment has become more complex, with trade policy shifts introducing uncertainty [29] - Despite challenges, the company expects 15% to 25% year over year growth in earnings for 2025, with potential adjustments based on demand trends [30] - The company remains confident in its ability to adapt and execute, with a strong balance sheet and solid free cash flow generation [31] Other Important Information - The company expects to unwind some working capital as the year progresses, with capital expenditures projected between $60 million and $290 million for the year [26] - The backlog in power generation projects increased by 15% to 20% in the second quarter, indicating strong future demand [53] Q&A Session Summary Question: Insights on inland business demand and spot pricing - Management acknowledged a slight pullback in chemical customer volumes but maintained a cautious outlook for the third quarter with expected barge utilization around 90% [41][42] Question: Update on power generation segment performance - The strong performance was attributed to deliveries and a growing backlog, with expectations for continued strong shipments in the third quarter [51][52] Question: Clarification on capital expenditures and M&A strategy - The company plans to defer some growth-related capital expenditures into 2026 while focusing on stock buybacks in the absence of acquisitions [78][80] Question: Outlook on inland and coastal margins - Management indicated that while inland margins are expected to remain in the low 20% range, coastal margins are anticipated to improve significantly due to supply constraints [66][67]

Core Insights - Kirby (KEX) reported quarterly earnings of $1.67 per share, exceeding the Zacks Consensus Estimate of $1.59 per share, and up from $1.43 per share a year ago, representing an earnings surprise of +5.03% [1] - The company posted revenues of $855.46 million for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 3.34%, compared to $824.39 million in the same quarter last year [2] - Kirby has surpassed consensus EPS estimates in all four of the last quarters, but has only topped revenue estimates once during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.85 on revenues of $888.02 million, and for the current fiscal year, it is $6.48 on revenues of $3.45 billion [7] - The estimate revisions trend for Kirby was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Transportation - Shipping industry, to which Kirby belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Kirby's Q2 2025 revenues increased by 4% year-over-year to $855.5 million[5] - Operating income for Q2 2025 rose by 9% year-over-year to $131.8 million[5] - Net earnings attributable to Kirby in Q2 2025 increased by 12% year-over-year to $94.3 million[5] - Earnings per share for Q2 2025 increased by 17% year-over-year to $1.67[5] - Kirby repurchased $31 million of its stock during the quarter[6] Marine Transportation - Inland marine transportation contributed 81% of marine transportation revenues[21] - Coastal marine transportation contributed 19% of marine transportation revenues[21] - Inland barge utilization was in the low to mid-90% range[21] - Coastal barge utilization was in the mid to high-90% range[21] - Term contract renewals for inland were up in the low to mid-single digits year-over-year[11] - Term contract renewals for coastal were up in the mid-20% range year-over-year[11] Distribution & Services - Distribution & Services revenues increased by 7% year-over-year to $362.9 million[25] - Power generation revenues increased by 31% year-over-year[17] - Oil and Gas revenues decreased by 27% year-over-year[17] Balance Sheet and Liquidity - Total debt stood at $1.1 billion as of June 30, 2025[30] - Available liquidity was $332 million as of June 30, 2025[30]