Kirby (KEX) Q1 2025 earnings summary

Executive summary

• First-quarter 2025 EPS was $1.33, up from $1.19 in Q1 2024, with net earnings of $76.0 million, an 8% year-over-year increase, driven by improved marine transportation fundamentals and strong power generation demand, partially offset by weather and supply delays.

• Total revenues declined 3% year-over-year to $785.7 million, mainly due to lower Distribution and Services segment sales, while operating income rose 4% year-over-year.

• Marine transportation fundamentals improved, but operations were challenged by a 50% sequential and 15% year-over-year increase in weather and navigational delays.

• Distribution and services saw mixed demand, with power generation revenues down due to supply delays, but a strong backlog and commercial/industrial growth offsetting oil and gas weakness.

• Share repurchases totaled $101.5 million in Q1, with 1.26 million shares repurchased YTD, and $97.3 million spent on acquiring 14 barges and 4 high-horsepower boats.

Financial highlights

• Marine transportation segment Q1 revenues were $476.1 million (flat year-over-year), operating income $86.6 million, and margin 18.2%.

• Distribution and services Q1 revenues were $309.5 million, down 7% year-over-year; operating income $22.6 million, margin 7.3%.

• Total operating income was $105.5 million, up 4% year-over-year; net earnings were $76.0 million.

• Net cash from operations was $36.5 million, impacted by a $122 million working capital build and KDS inventory increase.

• Total debt stood at $1.1 billion, with cash and equivalents of $51.1 million and available liquidity of $334 million as of March 31, 2025.

Outlook and guidance

• Marine market outlook remains strong for 2025, with high refinery activity, strong barge utilization, and rising rates; inland revenues expected to grow mid to high single digits, with operating margins 200–300 basis points higher than Q1.

• Coastal revenues expected to increase high single to low double digits, with margins improving to mid-teens.

• Distribution and services revenues expected flat to slightly down for the year, with high single-digit margins slightly lower year-over-year.

• Full-year 2025 net cash from operations expected between $620–$720 million; capital expenditures forecasted at $280–$320 million.

• EPS growth guidance for 2025 reaffirmed at 15%-25%.