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Jun 30, 2024
Kirby Q2 2024 Earnings Report
Kirby's Q2 2024 performance reflected steady fundamentals in both marine transportation and distribution and services, offset by good execution amidst weather, navigational challenges, and supply constraints.
Key Takeaways
Kirby Corporation announced net earnings attributable to Kirby for the second quarter ended June 30, 2024, of $83.9 million, or $1.43 per share, compared with earnings of $57.4 million, or $0.95 per share for the 2023 second quarter. Consolidated revenues for the quarter were $824.4 million compared with $777.2 million reported for the 2023 second quarter.
Second quarter 2024 earnings per share of $1.43.
Continued strong market conditions in inland marine with a sequential increase in spot market prices and operating margins in the low 20% range.
Continued strong market conditions in coastal marine with operating margins improving to the low teens range.
Kirby repurchased 372,265 shares at an average price of $117.33 for $43.7 million in the 2024 second quarter.
Kirby
Kirby
Kirby Revenue by Segment
Revenue by Segment
Marine Transportation Revenue
CapyFin.comDistribution and Services Revenue
CapyFin.com Forward Guidance
Overall, solid execution and favorable market conditions led to a strong first half of the year for us and we have a favorable outlook for the remainder of the year. We see growth coming in at the higher end of our previously guided range, our balance sheet is strong and we expect to generate significant free cash flow this year. We see favorable markets continuing and expect our businesses will produce strong financial results as we move through the remainder of this year and into next year.
Positive Outlook
- In inland marine, our outlook for the remainder of 2024 anticipates continued positive market dynamics with steady customer demand and limited new barge construction in the industry.
- With these favorable market conditions, we expect our barge utilization rates to remain in the low to mid-90% range throughout the remainder of the year.
- In coastal marine, strong customer demand is expected throughout the year with barge utilization in the low to mid-90% range.
- In power generation, we anticipate continued strong growth as data center demand and the need for backup power is very strong.
- Overall, the Company expects segment revenues to be flat to slightly down on a full year basis with operating margins in the mid to high-single digits but slightly lower full year 2024 compared to full year 2023 due to mix.
Challenges Ahead
- However, although not expected, a potential recession with a drop in demand could impact expected growth in inland marine.
- With some planned shipyards in the fourth quarter of 2024, coastal operating margins are expected to average in the low double-digit range on a full year basis.
- In distribution and services segment, despite the uncertainty from volatile commodity prices, we expect incremental demand for products, parts, and services in the segment.
- In commercial and industrial, the demand outlook in marine repair is strong while on-highway is somewhat weak with the exception of refrigeration products and services.
- We do anticipate extended lead times for certain OEM products to continue contributing to a volatile delivery schedule of new products in 2024 and into 2025.
Revenue & Expenses
Visualization of income flow from segment revenue to net income