Kirby Shares Gain 7.2% Since Q2 Earnings Release, Revenues Up Y/Y

Core Insights - Kirby Corporation (KEX) reported a strong second-quarter performance with earnings per share of $1.67, exceeding the Zacks Consensus Estimate of $1.59 and reflecting a 17% year-over-year increase [2][10] - Total revenues reached $855.5 million, which, while missing the Zacks Consensus Estimate of $885 million, still represented a 3.7% year-over-year improvement [2][10] Financial Performance - Marine transportation revenues were $492.6 million, up 1.5% year over year, with operating income increasing to $99.1 million and operating margin rising to 20.1% [4] - Distribution and services revenues were $362.89 million, reflecting a 6.9% year-over-year increase, with operating income at $35.4 million and operating margin at 9.8% [7] - In the power generation market, revenues surged by 31% year over year, driven by strong sales, while commercial and industrial revenues grew by 5% and operating income by 24% [8][9] Segment Analysis - Inland marine segment accounted for 81% of marine transportation revenues, with average barge utilization in the low to mid-90% range and operating margins in the low 20% [5] - Coastal marine segment saw revenues grow by 3% year over year, with barge utilization in the mid to high-90% range and operating margins in the high teens [6] - Oil and gas market revenues declined by 27%, but operating income increased by 182% due to lower conventional oilfield activity [10][11] Outlook - Kirby anticipates 15-25% year-over-year earnings growth for 2025, with capital expenditures expected between $260 million and $290 million [13][17] - The inland marine segment is expected to see barge utilization soften slightly, while coastal marine fundamentals remain strong with continued pricing momentum [14][15] - Distribution and services outlook is mixed, with power generation showing strength, while oil and gas growth remains constrained [16]