Kirby (KEX) investor relations material

Executive summary

• Second quarter 2026 EPS was $1.67, flat year-over-year and up 11% sequentially, with revenues of $922.4 million, up 8% year-over-year and 9% sequentially, reflecting strong execution and healthy demand across both marine transportation and distribution/services segments.

• Net earnings attributable to shareholders were $89.7 million for Q2 2026, with total revenues for the first half at $1.77 billion and diluted EPS of $3.17.

• Marine transportation contributed 58% of revenues, while distribution and services accounted for 42%, both segments showing revenue growth but marine transportation experiencing margin compression due to higher fuel costs.

• $59.7 million was returned to shareholders via share repurchases in Q2 2026, with an additional $29.0 million repurchased in Q3 to date.

• Operating cash flow increased 30% to $169.9 million for the first half, driven by favorable working capital changes.

Financial highlights

• Q2 2026 revenues rose 8% year-over-year to $922.4 million; net earnings for the quarter were $89.7 million, with diluted EPS of $1.67.

• Marine transportation revenues were $537 million (+9% YoY), with operating income of $87.8 million (-11% YoY) and a 16.4% margin; distribution & services revenues reached $385.4 million (+6% YoY), with operating income of $38.2 million (+8% YoY) and a 9.9% margin.

• Operating income for Q2 2026 was $122.4 million, down 7% year-over-year but up 14% sequentially.

• Free cash flow was $0.7 million, with net cash from operations at $72.2 million and capital expenditures of $71.5 million.

• Debt-to-capitalization ratio stood at 23.1% as of June 30, 2026, with total debt at $1.04 billion and $39 million in cash.

Outlook and guidance

• Full-year 2026 EPS growth guidance of 5%-15% reaffirmed, with expectations to trend toward the upper end.

• Marine transportation revenues expected to grow mid- to high-single digits, with inland margins in the high teens to low 20% range and coastal margins in the mid- to high teens.

• Distribution & services revenues expected to grow mid-single digits, with operating margins in the mid- to high-single-digit range.

• Free cash flow for the year projected at $575 million to $675 million; capital expenditures for 2026 expected at $220M-$260M.

• Management expects improved financial results for 2026, with steady barge utilization and customer demand in marine transportation and growth in power generation offsetting softness in oil and gas and on-highway markets.