Kirby Corp shares rise as Q1 earnings top estimates

Published 01/05/2025, 16:38
Kirby Corp shares rise as Q1 earnings top estimates

Investing.com -- Kirby Corporation (NYSE:KEX) shares gained 2.5% after the marine transportation and diesel engine services provider reported first-quarter earnings that exceeded analyst expectations, despite revenue falling short of estimates.

The company posted adjusted earnings per share of $1.33 for the quarter ended March 31, 2025, surpassing the analyst consensus of $1.30. However, revenue came in at $785.66 million, below the $822.36 million analysts had projected and down 2.8% YoY from $808.0 million.

Kirby’s inland marine transportation segment saw improved market conditions, with spot market prices increasing sequentially and operating margins reaching around 20% despite a 50% rise in delay days compared to the previous quarter. The company attributed the delays to winter storms, high winds, and fog along the Gulf Coast, as well as lock delays throughout the system.

"Our first quarter results reflected improved market fundamentals in marine transportation and continued strong demand for power generation in distribution and services," said David Grzebinski, Kirby’s Chief Executive Officer. "These positive trends were partially offset by weather and navigational challenges in marine and continued supply delays in distribution and services."

The company’s coastal marine transportation business experienced strong market fundamentals, with barge utilization levels in the mid to high-90% range. Term contract renewals saw price increases in the mid-20% range compared to the previous year.

Kirby repurchased 1,258,031 shares at an average price of $99.16 for $124.7 million year-to-date through April 30, 2025. The company also acquired 14 barges and four high horsepower boats for $97.3 million.

Looking ahead, Kirby expects its quarterly earnings and free cash flow to strengthen as the year progresses, with favorable markets continuing and improving financial results anticipated throughout 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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