Kirby(KEX) - 2025 Q2 - Quarterly Results

Overall Performance Summary 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] - 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][12] Segment Performance 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 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][6] - 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][7] Distribution and Services 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][9] - Commercial and industrial revenue grew 5% YoY, supported by marine repair and modest on-highway service improvement[10] - 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][11] Cash Flow and Financial Position 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 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] - 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] - Coastal marine fundamentals remain strong, with utilization expected in the mid-90% range and operating margins in the mid to high teens[15] - 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] 2025 Full-Year Guidance | Metric | Projected Range | | :--- | :--- | | Net Cash from Operations | $620M - $720M | | Capital Spending | $260M - $290M | Financial Statements and Reconciliations 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 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 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 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 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 |