Kirby(US:KEX)2025-08-11 16:50PART I – FINANCIAL INFORMATION This section provides the unaudited condensed consolidated financial statements and management's discussion and analysis for Kirby Corporation Financial Statements 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 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 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 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 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 cash25 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) 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 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) 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 20256890 Distribution and Services (KDS) 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 gas107108 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 prices79 - 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 market80 Financial Condition, Capital Resources and Liquidity 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 2024129 - During the first six months of 2025, the company purchased 1.3 million shares of its common stock for $132.7 million131 - 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 Facility122 Quantitative and Qualitative Disclosures about Market Risk 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, 2024140 Controls and Procedures 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 effective141 - 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 control143 PART II – OTHER INFORMATION This section includes disclosures on legal proceedings, risk factors, and details on issuer purchases of equity securities Legal Proceedings, Risk Factors, and Other Information 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 $31.2 million during Q2 2025 - For details on legal proceedings, the company refers to Note 13 of the financial statements145 - The company is subject to the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024146 Issuer Purchases of Equity Securities (Q2 2025) | Period | Total Shares Purchased | Average Price Paid Per Share ($) | | :--- | :--- | :--- | | Total Q2 2025 | 331,900 | $94.01 |