Kirby Corporation authorizes 8 million share repurchase program

Published 08/09/2025, 18:06
Kirby Corporation authorizes 8 million share repurchase program

HOUSTON - Kirby Corporation (NYSE:KEX), currently valued at approximately $5 billion, announced Monday that its Board of Directors has approved a new share repurchase program for up to 8 million additional shares of common stock. According to InvestingPro data, the company has demonstrated strong financial health with a current ratio of 1.74, indicating solid liquidity to support such initiatives.

The new authorization comes in addition to the company’s previous 5 million share repurchase program, of which approximately 0.8 million shares remained available as of September 5, 2025. With the new approval, Kirby now has authorization to repurchase approximately 8.8 million shares in total.

"The additional share repurchase authorization reflects confidence in the ultimate earnings power of our company and our ability to consistently generate strong free cash flow," said Chief Executive Officer David Grzebinski in the press release. This confidence appears well-founded, as InvestingPro analysis shows the company maintaining healthy profitability with earnings per share of $5.27 over the last twelve months. InvestingPro subscribers have access to 12 additional key insights about KEX’s financial performance and market position.

The company stated the action demonstrates confidence in its commercial and operational execution aimed at delivering consistent and sustainable free cash flow generation amid dynamic market conditions.

According to the announcement, the authorization allows Kirby to make purchases of its common stock through various means, including open market transactions, privately negotiated deals, block transactions, or through Rule 10b5-1 trading plans. The Board’s authorization has no expiration date.

Kirby Corporation, based in Houston, is the largest domestic tank barge operator in the United States, transporting bulk liquid products throughout the Mississippi River System, the Gulf Intracoastal Waterway, and along all three U.S. coasts. The company also provides after-market services for industrial equipment and manufactures specialized equipment for various industries. With annual revenue of $3.27 billion and an overall financial health score rated as "GOOD" by InvestingPro, Kirby maintains a moderate debt level while operating with strong market presence. Detailed analysis of KEX’s financial metrics and growth potential is available in InvestingPro’s comprehensive research report, part of their coverage of over 1,400 US equities.

The announcement reaffirms the company’s capital allocation priorities, which include pursuing inland marine acquisitions, investing in growth areas like power generation, and returning capital to shareholders, according to the press release.

In other recent news, Kirby Corporation reported its second-quarter 2025 earnings, slightly surpassing expectations. The company achieved an earnings per share (EPS) of $1.67, marginally exceeding the forecast of $1.66. Revenue also saw a slight uptick, reaching $855.45 million compared to the anticipated $852.51 million. Despite these positive results, Kirby’s stock experienced a notable decline, influenced by broader market uncertainties and specific challenges the company is facing. Additionally, BofA Securities adjusted its price target for Kirby to $107 from $110, maintaining a Buy rating. This adjustment reflects concerns about weakening demand in Kirby’s inland barge business. The firm anticipates a decrease in barge utilization to the high-80% range in the third quarter of 2025. This is a slight drop from the previous quarter’s low to mid-90% range and below the company’s target of approximately 90% for the period.

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