Kirby(US:KEX)2025-11-10 19:44Financial Performance - Total revenues for the third quarter of 2025 were $871.2 million, a 4.8% increase from $831.1 million in the same period of 2024[62] - Net earnings attributable to Kirby for the third quarter of 2025 were $92.5 million, compared to $90.0 million in the third quarter of 2024, representing a 1.7% increase[62] - For the third quarter of 2025, marine transportation revenues were $484,941,000, a slight decrease from $486,054,000 in the same quarter of 2024, while revenues for the first nine months of 2025 were $1,453,652,000, up 1% from $1,446,274,000 in 2024[88] - Operating income for the third quarter of 2025 decreased by 11% to $88,569,000 compared to $99,476,000 in the third quarter of 2024, and for the first nine months, it decreased by 1% to $274,205,000 from $277,335,000[89] - Marine Transportation operating income decreased by 11% in Q3 2025 and 1% in the first nine months compared to 2024, with operating margins of 18.3% and 18.9%, respectively[105] Revenue Sources - KMT generated 56% of the Company's revenues in the third quarter of 2025, down from 58% in the same quarter of 2024[65] - KDS revenues increased by 12% in the third quarter of 2025 compared to the same quarter in 2024, with operating income rising by 40%[75] - The inland tank barge fleet contributed 78% of KMT revenues in the third quarter of 2025, while the coastal fleet contributed 22%[68] - The refined petroleum products market contributed 24% of KMT revenues in the third quarter of 2025, reflecting stable volumes and refinery utilization[95] - Approximately 70% of KMT inland revenues were under term contracts in both the third quarter and first nine months of 2025, compared to 65% in the same periods of 2024[98] Operating Costs and Expenses - The Company expects inflationary pressures to continue affecting operating costs in the inland marine transportation market, with limited new barge construction and increasing equipment costs contributing to long-term price increases[80] - Selling, general and administrative expenses increased by 3% in Q3 2025 and 5% in the first nine months compared to the same periods in 2024, primarily due to inflationary pressures and salary increases[103] - Depreciation and amortization rose by 8% in Q3 2025 and the first nine months compared to 2024, driven by capital additions and equipment acquisitions[104] Capital Expenditures and Debt - Capital expenditures for the first nine months of 2025 totaled $217.4 million, with projections for 2025 expected to be between $260 million and $290 million[63] - Long-term debt increased by 20% to $1,041.6 million as of September 30, 2025, primarily due to increased borrowings under the 2027 Revolving Credit Facility[123] - As of September 30, 2025, the company's total long-term debt was $1,048.9 million, an increase from $874.9 million on December 31, 2024, representing a 19.9% increase[125] - The debt-to-capitalization ratio increased to 23.8% as of September 30, 2025, up from 20.7% at the end of 2024[64] Cash Flow and Liquidity - Net cash provided by operating activities for the first nine months of 2025 was $358.0 million, a decrease from $509.1 million in the same period of 2024[62] - The company generated net cash from operating activities of $358.0 million in the first nine months of 2025, a 30% decrease compared to $509.1 million in the same period of 2024[130] - As of September 30, 2025, the company had cash and cash equivalents of $70 million and $345 million available under its 2027 Revolving Credit Facility[133] - The company expects to fund future expenditures through a combination of available cash, operating cash flows, and financing arrangements[135] Operational Efficiency - The Company experienced a 30% reduction in delay days for inland operations in the third quarter of 2025, with 1,442 delay days compared to 2,061 in the same quarter of 2024[97] - The average inland barge utilization was in the mid-80% range during the third quarter of 2025, down from the 90% range in the third quarter of 2024[92] - Inland operations consumed 12.5 million gallons of diesel fuel in Q3 2025, up from 11.3 million gallons in Q3 2024, with an average price of $2.46 per gallon compared to $2.65 per gallon in Q3 2024[102] Future Outlook - The Company expects improved financial results in 2025, with anticipated barge utilization rates in the fourth quarter to exceed those of the third quarter[79] - The company anticipates continued strong growth in power generation orders driven by data center demand and the need for backup power, despite near-term volatility in the oil and gas market[81]