Kirby Corporation Announces 2025 Second Quarter Results

Core Insights - Kirby Corporation reported net earnings of $94.3 million or $1.67 per share for Q2 2025, an increase from $83.9 million or $1.43 per share in Q2 2024, with consolidated revenues rising to $855.5 million from $824.4 million year-over-year [1][2]. Financial Performance - Marine transportation revenues for Q2 2025 were $492.6 million, up from $484.8 million in Q2 2024, with operating income increasing to $99.1 million from $94.9 million, resulting in an operating margin of 20.1% compared to 19.6% in the previous year [3][6]. - Distribution and services revenues rose to $362.9 million from $339.6 million year-over-year, with operating income increasing to $35.4 million from $29.4 million, leading to an operating margin of 9.8%, up from 8.7% [7][9]. Segment Analysis - In inland marine transportation, barge utilization rates remained steady in the low to mid-90% range, with average spot market rates increasing in the low-single digits sequentially and mid-single digits year-over-year [4][5]. - Coastal marine conditions were strong, with barge utilization in the mid to high-90% range and term contract renewals increasing in the mid-20% range compared to the previous year [5][6]. - Power generation revenues increased by 31% year-over-year, driven by robust demand from data centers and industrial customers, while oil and gas revenues declined by 27% but operating income surged by 182% due to strong execution and cost management [8][10]. Cash Flow and Capital Management - For Q2 2025, EBITDA was reported at $202.2 million, up from $182.9 million in Q2 2024, with net cash provided by operating activities at $94.0 million and capital expenditures at $71.5 million [11][24]. - The company repurchased 331,900 shares at an average price of $94.01, totaling $31.2 million during the quarter [5][11]. Outlook - Kirby expects 15% to 25% year-over-year growth in earnings for the full year 2025, although recent trade policy shifts may impact near-term planning and demand [12][15]. - The company anticipates continued strong performance in power generation, while the oil and gas segment may face constraints due to current market conditions [15][16].