Kirby (KEX) Q4 2024 earnings summary

Executive summary

• Adjusted Q4 2024 EPS was $1.29, up 24% year-over-year, excluding a $56.3M non-cash inventory write-down and a $10.9M tax credit; GAAP EPS was $0.74.

• Full-year 2024 revenues were $3.27B, up 6%; adjusted EPS was $5.46, up 47% year-over-year.

• Free cash flow for Q4 was $151M and $414M for the year, used to pay down $105M in debt and repurchase $33M in stock.

• Both marine transportation and distribution & services faced seasonal softness, but strong execution led to robust financial performance.

• 2025 EPS expected to grow 15–25% year-over-year, driven by strong marine market fundamentals and improved capital structure.

Financial highlights

• Q4 2024 marine transportation revenue: $467M; operating income: $86M; margin: 18.4%.

• Distribution & services Q4 revenue: $336M; operating income: $27M; margin: 8%.

• Q4 free cash flow: $151M; full-year free cash flow: $414M, exceeding guidance.

• Debt-to-capital ratio improved to 20.7%; year-end liquidity: $583M; cash and equivalents: $74M.

• Q4 2024 net earnings attributable to Kirby were $42.8M; adjusted net earnings were $74.9M.

Outlook and guidance

• 2025 EPS expected to grow 15–25% year-over-year.

• Inland marine revenues projected to grow mid-to-high single digits; utilization rates expected in low-to-mid-90% range.

• Coastal revenues expected to rise high single-to-low double digits; operating margins in mid-teens.

• Distribution & services revenues expected flat to slightly down; operating margins in high single digits but slightly lower year-over-year.

• 2025 capex forecasted at $280M–$320M.