Kirby (KEX) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenues reached $824.4 million, up 6% year-over-year, with net earnings of $83.9 million, a 46% increase, and EPS of $1.43, up from $0.95 in Q2 2023, reflecting strong marine transportation and stable distribution and services demand.

• Operating income rose 38% to $120.5 million, with robust cash flow from operations at $179 million and free cash flow of $91 million.

• Both marine transportation and distribution & services segments saw steady demand and pricing momentum, with marine benefiting from tight supply and high utilization.

• Share repurchases totaled $43.7 million in Q2, and the company acquired 13 inland tank barges and two towboats for $65.2 million.

• Hurricane Beryl impacted operations at the start of Q3, but recovery was swift and fundamentals remain favorable.

Financial highlights

• Q2 2024 marine transportation revenues were $484.8 million (+14% YoY), operating income $94.9 million (+48% YoY), margin 19.6%.

• Distribution & Services revenues were $339.6 million (–3% YoY), operating income $29.4 million, margin 8.7%.

• Net cash from operations was $179 million in Q2; free cash flow $91 million; cash and equivalents $54 million; debt $1.05 billion; debt-to-cap ratio 24.3%.

• EBITDA for Q2 2024 was $182.9 million, up from $140.3 million in Q2 2023.

• Capital expenditures in Q2 2024 totaled $88.6 million.

Outlook and guidance

• Full-year EPS growth expected at the high end of 30%-40% guidance, with strong free cash flow and robust balance sheet.

• Marine transportation outlook strong, with high utilization and limited new builds; inland revenues expected to grow high single to low double digits, coastal revenues low double to mid-teens YoY.

• Distribution & Services segment revenues expected flat to slightly down YoY, with mid to high-single-digit margins.

• 2024 cash flow from operations targeted at $600M–$700M; free cash flow $300M–$350M; capital expenditures $300M–$330M.

• Power generation market expected to see strong growth, while oil and gas activity is stabilizing.