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Kirby Shares Gain 7.2% Since Q2 Earnings Release, Revenues Up Y/Y
ZACKS· 2025-08-06 18:22
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]
XIFR INVESTOR ALERT: Kirby McInerney LLP Reminds XPLR Infrastructure, LP f/k/a NextEra Energy Partners, LP Investors of Looming Lead Plaintiff Deadline in Class Action Lawsuit
GlobeNewswire News Room· 2025-08-05 22:00
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].
Kirby (KEX) Q2 EPS Jumps 17%
The Motley Fool· 2025-08-02 07:21
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]
Kirby(KEX) - 2025 Q2 - Quarterly Results
2025-07-31 16:01
[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 |
Kirby(KEX) - 2025 Q2 - Earnings Call Transcript
2025-07-31 13:32
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]
Kirby(KEX) - 2025 Q2 - Earnings Call Transcript
2025-07-31 13:30
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]
Kirby (KEX) Q2 Earnings Surpass Estimates
ZACKS· 2025-07-31 13:16
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]
Kirby(KEX) - 2025 Q2 - Earnings Call Presentation
2025-07-31 12:30
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]
Kirby Corporation Announces 2025 Second Quarter Results
Globenewswire· 2025-07-31 11:00
HOUSTON, July 31, 2025 (GLOBE NEWSWIRE) -- Kirby Corporation ("Kirby") (NYSE: KEX) today announced net earnings attributable to Kirby for the second quarter ended June 30, 2025, of $94.3 million or $1.67 per share, compared with earnings of $83.9 million, or $1.43 per share for the 2024 second quarter. Consolidated revenues for the 2025 second quarter were $855.5 million compared with $824.4 million reported for the 2024 second quarter. David Grzebinski, Kirby's Chief Executive Officer, commented, "Kirby de ...
Here's Why You Should Add Kirby Stock to Your Portfolio Now
ZACKS· 2025-07-04 16:51
Core Viewpoint - Kirby Corporation (KEX) is positioned as an impressive investment option due to multiple favorable factors impacting its performance [1]. Performance Overview - KEX has shown a strong price trend, gaining 32% over the past three months, outperforming the Zacks Transportation - Shipping industry's growth of 19.8% [2][7]. Investment Ratings - Kirby holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong investment potential [4]. Earnings Performance - KEX has a positive earnings surprise history, exceeding the Zacks Consensus Estimate in the last four quarters with an average beat of 5.02% [5]. - Earnings for Q2 2025 are projected to grow by 11.19% year over year, while the overall earnings for 2025 are expected to increase by 18.38% year over year [5][7]. Industry Context - The industry rank for Kirby is 29 out of 245, placing it in the top 12% of Zacks Industries, which is crucial for stock performance [8]. Growth Drivers - Kirby is experiencing favorable market conditions, including higher pricing, increased barge utilization, and improved pricing in both inland and coastal markets [9]. Financial Health - As of Q1 2025, Kirby reported cash and cash equivalents of $51 million against a current debt level of $7 million, indicating strong liquidity [10]. - The current ratio stands at 1.58, higher than the previous quarter's 1.45 and the industry average of 1.31, suggesting a lower risk of default [10]. Shareholder Returns - Kirby has been actively repurchasing shares, having bought back 1.6 million shares for $174.6 million in 2024 and 1.25 million shares for $124.7 million as of April 30, 2025 [11].