Kirby beat Q3 expectations as cash flow surged and disciplined capital spending supported a 15% stock jump. ...

Financial Performance - Net earnings for Q3 2025 were $92.5 million, or $1.65 per share, a 6% increase from $90.0 million, or $1.55 per share in Q3 2024[2] - Consolidated revenues for Q3 2025 reached $871.2 million, up from $831.1 million in Q3 2024, reflecting a year-over-year growth of approximately 4.5%[2] - Operating income for Q3 2025 was $129,219,000, compared to $126,930,000 in Q3 2024, reflecting a stable operating performance[24] - Net earnings attributable to Kirby for Q3 2025 were $92,496,000, up from $89,968,000 in Q3 2024, resulting in a diluted earnings per share of $1.65[24][26] - EBITDA for Q3 2025 was $201.4 million, compared to $190.5 million in Q3 2024, indicating a year-over-year increase of approximately 6%[13] - EBITDA for Q3 2025 was $201,407,000, an increase from $190,469,000 in Q3 2024, indicating improved operational efficiency[26] - Free cash flow for Q3 2025 was $160.3 million, compared to $130.1 million in Q3 2024, highlighting enhanced cash generation capabilities[34] Revenue Breakdown - Distribution and services revenues for Q3 2025 were $386.2 million, a 12% increase from $345.1 million in Q3 2024, with operating margins improving to 11%[9] - Marine transportation revenues were $484,941,000, slightly down from $486,054,000 in Q3 2024, while distribution and services revenues increased by 12% to $386,220,000 from $345,095,000[28][30] - Power generation revenues surged 56% year-over-year, contributing to a 96% increase in operating income, driven by strong demand from data centers and industrial customers[10] - Coastal marine revenues increased by 13% year-over-year, with barge utilization in the mid to high-90% range and operating margins around 20%[8] Operational Metrics - Inland marine barge utilization averaged in the mid-80% range during Q3 2025, with expectations for improvement into the 85-90% range in Q4 2025[4] - The company operated an average of 270 towboats in Q3 2025, down from 287 in Q3 2024, indicating a potential optimization in fleet management[36] Capital and Cash Flow - The company expects to generate net cash from operating activities of $620 million to $720 million in 2025, with capital spending projected between $260 million to $290 million[17] - Capital expenditures in Q3 2025 totaled $67,280,000, down from $76,383,000 in Q3 2024, reflecting a more disciplined investment approach[26] - Kirby repurchased 1,314,009 shares at an average price of $91.30 for a total of $120.0 million in Q3 2025[4] Cost and Leverage - Average cost per gallon of fuel consumed decreased to $2.46 in Q3 2025 from $2.65 in Q3 2024, contributing to cost savings[36] - The debt to capitalization ratio increased to 23.8% in Q3 2025 from 20.7% in Q4 2024, indicating a rise in leverage[26] Future Outlook - Kirby anticipates full-year revenues in distribution and services to increase in the mid-single digits, with operating margins in the high-single digits[16]

Financial Data and Key Metrics Changes - The company reported third quarter earnings per share of $1.65, a 6% increase year over year [5] - Total marine revenues decreased by $1.2 million compared to Q3 2024, with operating income down by 11% sequentially [12] - Operating margins for the inland marine transportation business were in the high teens for the fourth quarter, while coastal marine operating margins were around 20% [10][12] Business Line Data and Key Metrics Changes - In the inland marine transportation business, barge utilization averaged in the mid-80% range, down from previous quarters, with revenues declining 3% year over year [7][14] - Coastal revenues increased 13% year over year, supported by improved pricing and fewer planned shipyard activities [15] - Power generation revenues surged 56% year over year, driven by strong demand from data centers and industrial customers [9][17] Market Data and Key Metrics Changes - The inland market faced near-term softness due to favorable weather and lower demand, while coastal marine fundamentals remained strong with utilization in the mid to high 90% range [6][8] - Spot market rates for inland transportation declined in the low to mid-single digits both sequentially and year over year [7][14] - The company expects barge utilization to improve entering the fourth quarter, now running in the high 80% range [25] Company Strategy and Development Direction - The company aims to navigate near-term challenges while focusing on long-term growth, particularly in power generation and maintaining strong operational execution [5][24] - The management emphasizes a balanced capital allocation approach, planning to return capital to shareholders while pursuing strategic investments [22][23] - The company is committed to enhancing its service offerings in power generation, leveraging its capabilities in EFRAC technologies [72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the inland barge cycle, anticipating years of growth despite current market challenges [24] - The company noted early signs of improvement in market conditions for the fourth quarter, with expectations for higher barge utilization and improved pricing [25][26] - Management remains cautious about potential softness in demand for refined products and chemicals but sees positive momentum in the inland market [25][26] Other Important Information - The company had $47 million in cash and total debt of around $1.05 billion as of September 30, 2025, with a debt to capital ratio of 23.8% [19] - Free cash flow improved to $160 million for the quarter, with expectations to unwind working capital in the fourth quarter [20][22] - The company plans capital expenditures between $260 and $290 million for the year, focusing on maintenance and growth capital [22] Q&A Session Summary Question: Insights on Power Generation Growth - Management acknowledged that while there will be some lumpiness in revenue, the backlog is at a record level, indicating robust demand [34][35] Question: Update on Inland Market Conditions - Management noted that the inland market faced challenges in Q3 but is seeing improvements in Q4, with barge utilization currently at 87.6% [36][40] Question: Spot Market Rates Trends - Management indicated that spot pricing has started to firm up, with expectations for a constructive pricing environment moving forward [46][48] Question: Guidance on Earnings - Management confirmed that they expect to be around the low end of their earnings guidance due to ongoing market conditions [51][52] Question: Fleet and Contract Renewals - Management stated that approximately 40% of the term contract portfolio renews in Q4, which is critical for revenue stability [88] Question: Strategic Opportunities in Inland Market - Management acknowledged that some operators may be reevaluating their positions, creating potential acquisition opportunities [96][97] Question: Coastal Market Sensitivity - Management clarified that the coastal market is less sensitive to crude slate changes compared to inland, with a stable supply-demand balance [98][99]

Financial Data and Key Metrics Changes - The company reported third quarter earnings per share of $1.65, reflecting a 6% year-over-year increase [5] - Total marine revenues decreased by $1.2 million compared to Q3 2024, with operating income down by $11 million or 11% sequentially [12] - Cash flow from operating activities was $227 million, with free cash flow improving to $160 million for the quarter [20][21] Business Line Data and Key Metrics Changes - Inland marine transportation experienced near-term softness, with barge utilization averaging in the mid-80% range and spot market rates declining in the low to mid-single digits [6][7] - Coastal marine transportation fundamentals remained strong, with barge utilization in the mid to high 90% range and operating margins around 20% [8][15] - Power generation revenues increased by 56% year-over-year, driven by robust demand from data centers and prime power customers [9][17] Market Data and Key Metrics Changes - The inland business contributed approximately 80% of marine transportation segment revenue, with revenues declining 3% compared to Q3 2024 [12][14] - Coastal revenues increased 13% year-over-year, supported by improved pricing and fewer planned shipyards [15] - The distribution and services segment saw revenues of $386 million, a 12% increase year-over-year, with operating income rising by 40% [16] Company Strategy and Development Direction - The company remains focused on maintaining strong operational execution and cost management to navigate challenging market conditions [5][10] - There is a commitment to return capital to shareholders while pursuing long-term value-creating investments and acquisitions [22][23] - The company anticipates stable market conditions with early signs of improvement in the fourth quarter, particularly in inland barge utilization [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the inland barge cycle, indicating it still has years to go despite near-term challenges [24] - There are expectations for modest improvements in inland revenues and margins, assuming tighter barge availability holds in the fourth quarter [26] - The outlook for the distribution and services segment reflects strength in expanding markets, particularly in power generation [27][29] Other Important Information - The company expects capital expenditures to range between $260 million and $290 million for the year, with a focus on marine maintenance and growth capital spending [22] - The balance sheet remains strong, with total available liquidity of approximately $380 million as of September 30, 2025 [21] Q&A Session Summary Question: Insights on Power Generation Growth - Management acknowledged that while there will be some lumpiness in the power generation business, the backlog is at a record level and is expected to continue growing [34][35] Question: Update on Inland Market Conditions - Management noted that the inland market experienced a confluence of factors leading to lower utilization in Q3, but there are signs of improvement entering Q4 [36][38] Question: Spot Market Rates Trends - Spot pricing was reported to be down 4%-5% in Q3, but there are expectations for firming up in Q4 [46][47] Question: Fleet and Contract Renewals - Approximately 40% of the inland term contract portfolio is expected to renew in Q4, which is a significant portion of the business [85] Question: Strategic Opportunities in Inland Market - Management indicated that there are some strategic opportunities arising from the current softness in the inland market, although the overall market remains strong [93] Question: Coastal Market Sensitivity - The coastal market is less sensitive to crude slate changes compared to inland, with a stable supply-demand balance expected [95]

Financial Data and Key Metrics Changes - The company reported third quarter earnings per share of $1.65, a 6% increase year over year [4] - Total marine revenues decreased by $1.2 million compared to Q3 2024, and operating income decreased by $11 million, or 11%, sequentially [10] - Cash flow from operating activities was $227 million, with free cash flow improving to $160 million for the quarter [17] Business Line Data and Key Metrics Changes - Inland marine transportation experienced near-term softness, with barge utilization averaging in the mid-80% range [5] - Coastal marine transportation revenues increased 13% year over year, with operating margins around 20% [12] - Power generation revenues were up 56% year over year, driven by robust demand from data centers and prime power customers [7] Market Data and Key Metrics Changes - Spot market rates declined in the low to mid-single digits both sequentially and year over year [5] - Coastal barge utilization remained strong in the mid to high 90% range, supported by steady customer demand [6] - The inland business contributed approximately 80% of the marine transportation segment revenue [10] Company Strategy and Development Direction - The company remains focused on capital allocation, balancing between returning capital to shareholders and pursuing long-term value-creating investments [18] - The management expressed confidence in the inland barge cycle, anticipating years of growth due to supply constraints [20] - The company is committed to maintaining operational excellence and cost discipline to navigate market volatility [22] Management Comments on Operating Environment and Future Outlook - Management noted that while there are near-term challenges in the inland market, they expect market conditions to improve [21] - The company anticipates stable market conditions with early signs of improvement in the fourth quarter [21] - Management highlighted the importance of disciplined cost management and operational execution in maintaining margins [22] Other Important Information - The company expects capital expenditures to range between $260 and $290 million for the year, with a focus on marine maintenance and growth capital spending [18] - Total available liquidity as of September 30, 2025, was approximately $380 million [17] Q&A Session Summary Question: Insights on Power Generation Growth - Management acknowledged that while there will be some lumpiness in revenue, the backlog is at a record level and is expected to grow [31] Question: Update on Inland Market Conditions - Management indicated that the inland market has shown signs of improvement, with barge utilization currently at 87.6% [35] Question: Spot Market Rates Trends - Management noted that spot pricing has started to firm up, with expectations for positive momentum in the fourth quarter [42] Question: Fleet Status and Strategic Opportunities - Management confirmed that the fleet is stable, with no significant changes expected, and they are open to strategic acquisitions if opportunities arise [96] Question: Term Contract Renewals - Approximately 40% of the inland term contract portfolio is expected to renew in the fourth quarter [88]

分组1 - Kirby reported quarterly earnings of $1.65 per share, exceeding the Zacks Consensus Estimate of $1.60 per share, and showing an increase from $1.55 per share a year ago, resulting in an earnings surprise of +3.12% [1] - The company posted revenues of $871.16 million for the quarter ended September 2025, which was 1.93% below the Zacks Consensus Estimate, but an increase from $831.15 million year-over-year [2] - Kirby has surpassed consensus EPS estimates for the last four quarters, but has not beaten revenue estimates during the same period [2] 分组2 - Kirby shares have declined approximately 16.2% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $1.66 for the upcoming quarter and $6.24 for the current fiscal year, alongside projected revenues of $888.38 million and $3.42 billion respectively [7] - The Transportation - Shipping industry, to which Kirby belongs, is currently ranked in the top 35% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Performance - 3Q 2025 revenue reached $871.2 million, a 5% increase compared to $831.1 million in 3Q 2024[5] - Net earnings attributable to Kirby were $92.5 million in 3Q 2025, up 3% from $90.0 million in 3Q 2024[5] - Earnings per share increased by 6% year-over-year, reaching $1.65 in 3Q 2025 compared to $1.55 in 3Q 2024[5] - The company generated $160 million of free cash flow during the quarter[6] - $120 million was used to repurchase stock in the third quarter of 2025, with an additional ~$36 million repurchased so far in the fourth quarter of 2025[6] Marine Transportation - Inland barge utilization was in the mid-80% range, contributing approximately 80% of marine transportation revenues[20] - Coastal barge utilization was in the mid to high-90% range, contributing approximately 20% of marine transportation revenues[20] - Inland spot prices decreased in the low-to-mid single digits sequentially and year-over-year, while term contracts renewed flat year-over-year[11] - Coastal term contracts renewed higher in the mid-teens range, and reduced planned shipyard maintenance enhanced asset availability and supported margin expansion to ~20%[11] Distribution & Services - Power generation revenues increased by 56% year-over-year, and operating income increased by 96% year-over-year[16] - Oil and Gas revenues decreased by 38% year-over-year, but operating income increased by 5% year-over-year[16] - Full year revenues for the segment are expected to be up in the mid-single digit range year-over-year, with operating margins expected to be in the high-single digits for the full year[39]

Core Insights - Kirby Corporation reported net earnings of $92.5 million or $1.65 per share for Q3 2025, a 6% increase from $90.0 million or $1.55 per share in Q3 2024 [1][5] - Consolidated revenues for Q3 2025 were $871.2 million, up from $831.1 million in Q3 2024 [1] Segment Performance - **Marine Transportation**: Revenues were $484.9 million, slightly down from $486.1 million in Q3 2024. Operating income decreased to $88.6 million from $99.5 million, with an operating margin of 18.3% compared to 20.5% [3][4][6] - **Inland Marine**: Average barge utilization was in the mid-80% range, impacted by seasonal weather and softer market conditions. Spot market rates declined in the low-to-mid single digits, while term contracts remained flat [2][4][5] - **Coastal Marine**: Strong market fundamentals with barge utilization in the mid to high-90% range. Revenues increased by 13% year-over-year, and operating margins reached around 20% [6][12] - **Distribution and Services**: Revenues rose to $386.2 million from $345.1 million, with operating income increasing to $42.7 million from $30.4 million. Operating margin improved to 11.0% from 8.8% [7][9] Financial Metrics - **EBITDA**: For Q3 2025, EBITDA was $201.4 million, up from $190.5 million in Q3 2024 [11][24] - **Cash Flow**: Net cash provided by operating activities was $227.5 million, with capital expenditures of $67.2 million. Free cash flow for the quarter was $160.3 million [11][32] - **Debt and Liquidity**: Total debt stood at $1,048.9 million, with a debt-to-capitalization ratio of 23.8%. The company had $47.0 million in cash and cash equivalents [11][24] Market Outlook - **Inland Marine**: Expected to see stable market conditions with signs of improvement. Higher barge utilization is anticipated due to seasonal factors [12][15] - **Coastal Marine**: Favorable market fundamentals are expected to continue, with steady customer demand and pricing benefiting from limited vessel availability [12][13] - **Distribution and Services**: Continued strength in power generation and marine repair markets, with full-year revenues expected to rise in the mid-single digits [15][16]

Core Viewpoint - Baxter International, Inc. is facing a federal securities class action lawsuit due to safety concerns regarding its Novum IQ Large Volume Pump, which has been linked to serious patient injuries and deaths, leading to a significant decline in the company's stock price [4][5]. Summary by Sections Incident Overview - On April 7, 2025, safety issues regarding Baxter's Novum IQ Large Volume Pump emerged after a whistleblower reported inaccuracies in infusion [4]. - Baxter issued warning letters on April 24 and July 14, 2025, acknowledging risks of underinfusion and overinfusion, with reports of 79 serious injuries and two patient deaths [4]. - Following the announcement of a temporary pause in shipments on July 31, 2025, Baxter's stock price fell by $6.29, approximately 22.4%, from $28.05 to $21.76 [4]. Lawsuit Details - The lawsuit is on behalf of investors who purchased Baxter securities from February 23, 2022, to July 30, 2025 [5]. - Allegations include failure to disclose systemic defects in the Novum LVP, inadequate responses to reported malfunctions, and the heightened risk of halting new sales of the pumps [5].

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...