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Dec 31, 2023
Kirby Q4 2023 Earnings Report
Kirby Corporation reported strong fourth quarter results driven by continued strength in both the marine transportation and distribution and services segments.
Key Takeaways
Kirby Corporation announced net earnings attributable to Kirby for the fourth quarter ended December 31, 2023, of $61.9 million, or $1.04 per share, compared with earnings of $37.3 million, or $0.62 per share for the 2022 fourth quarter. Consolidated revenues for the 2023 fourth quarter were $799.2 million compared with $730.2 million in the 2022 fourth quarter. The company anticipates strong growth in 2024.
Inland marine experienced strong market conditions with a sequential increase in spot market prices and high-teens operating margins despite an increase in delay days
Distribution and services revenue up sequentially and year-over-year despite supply chain delays
Kirby repurchased 673,279 shares at an average price of $77.08 for $51.9 million in the 2023 fourth quarter
2024 expected earnings growth of 30% to 40% year-over-year
Kirby
Kirby
Kirby Revenue by Segment
Revenue by Segment
Marine Transportation Revenue
CapyFin.comDistribution and Services Revenue
CapyFin.com Forward Guidance
Kirby expects to generate net cash provided from operating activities of $600 million to $700 million in 2024 and capital spending is expected to range between $290 million to $330 million. 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 year-over-year due to mix. Overall, we anticipate our businesses to deliver 30% to 40% earnings growth in 2024.
Positive Outlook
- In marine transportation, barge utilization and customer demand remain strong, and rates continue to increase.
- In distribution and services, demand for our products and services remains strong, and we continue to receive new orders in manufacturing.
- In inland marine, our 2024 outlook anticipates positive market dynamics with steady customer demand and tight conditions due to limited new barge construction in the industry.
- In coastal marine, strong customer demand is expected throughout the year with barge utilization in the low to mid-90% range.
- In commercial and industrial, strong demand for power generation and stable marine repair is expected to help drive full year revenue growth in the high single-digit to low double-digit percentage range.
Challenges Ahead
- Key risks putting us at the lower end of this range or below would be the impact from a recession or lingering inflation.
- A potential recession along with a drop in demand could impact expected growth in inland marine.
- Uncertainty from volatile commodity prices.
- Lower activity levels in the oilfield market.
- We anticipate extended lead times in the near-term to continue contributing to a volatile delivery schedule of new products in 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income