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Mar 31
Kirby Q1 2025 Earnings Report
Reported net earnings of $76.0 million for the first quarter of 2025, with diluted EPS of $1.33
Key Takeaways
Kirby Corporation delivered solid first-quarter 2025 results, with net earnings increasing to $76.0 million compared to $70.1 million in the prior year. While marine transportation faced challenges from weather and navigational delays, improved market conditions and pricing supported performance. The distribution and services segment saw mixed demand, with strong growth in power generation partially offset by weakness in oil and gas.
Net earnings attributable to Kirby increased to $76.0 million, or $1.33 per diluted share, in Q1 2025.
Consolidated revenues for Q1 2025 were $785.7 million, a decrease from $808.0 million in Q1 2024.
Marine transportation revenues were $476.1 million with operating income of $86.6 million, showing improved market fundamentals despite increased delay days.
Distribution and services revenues were $309.5 million with operating income of $22.6 million, driven by strong power generation demand and cost management.
Kirby
Kirby
Kirby Revenue by Segment
Revenue by Segment
Marine Transportation Revenue
CapyFin.comDistribution and Services Revenue
CapyFin.com Forward Guidance
Kirby expects favorable market fundamentals to continue throughout 2025, with improving financial results. They anticipate generating significant free cash flow and using the majority for share repurchases, absent meaningful acquisitions.
Positive Outlook
- Positive market dynamics in inland marine due to limited new barge construction.
- Continued improvement in inland term contract pricing.
- Very favorable market conditions and balanced supply and demand in coastal marine.
- Expected increase in coastal revenues driven by higher pricing on contracts.
- Anticipated robust growth in power generation orders fueled by data center demand and the need for backup power.
Challenges Ahead
- Continued inflationary pressures and acute mariner shortage driving up labor costs in inland marine.
- Increasing cost of equipment in inland marine.
- Near-term volatility in distribution and services from supply issues and customers deferring maintenance.
- Lower overall levels of activity in oil and gas within distribution and services.
- Expected extended lead times for certain OEM products contributing to a volatile delivery schedule in power generation.