US-based inland transport specialist Kirby Corporation recently announced net earnings attributable to Kirby for the second quarter ended June 30, 2025, of US$94.3 million or US$1.67 per share, compared with earnings of US$83.9 million, or US$1.43 per share for the second quarter of 2024.
The company's consolidated revenues for Q2 2025 were US$855.5 million compared with US$824.4 million reported for Q2 2024.
"Kirby delivered another solid quarter, with strong performance across both marine transportation and distribution and services," said David Grzebinski, Kirby’s Chief Executive Officer. "Our teams executed well in a dynamic environment, and we continued to benefit from healthy customer demand, disciplined pricing, and operational focus."
Grzebinski remarked that in inland marine transportation, market conditions remained "favourable" during Q2 2025. From a demand standpoint, customer activity was steady, with barge utilisation rates running in the low to mid-90 per cent range throughout the quarter.
"While we experienced some navigational and lock delays that challenged operational efficiency, our teams executed well," said Grzebinski. "Pricing continued to show improvement during the quarter with sequential and year-over-year increases in spot market prices and term contract renewals that were up in the low to mid-single digits year-over-year."
Grzebinski said the combination of improved pricing and disciplined execution helped drive operating margins to the low 20 per cent range.
Marine transportation revenues for Q2 2025 were US$492.6 million compared with US$484.8 million for Q2 2024. Operating income for the Q2 2025 was US$99.1 million compared with US$94.9 million for Q2 2024.
Segment operating margin for the 2025 second quarter was 20.1 per cent compared with 19.6 per cent for the 2024 second quarter.
In the inland market, Q2 2025 average barge utilisation was in the low to mid-90 per cent range and similar to that of Q2 2024. During the quarter, average spot market rates increased in the low-single digits sequentially and in the mid-single digit range as compared to Q2 2024.
Term contracts that renewed in the second quarter increased in the low to mid-single digits on average compared to a year ago. The inland market represented 81 per cent of segment revenues in the second quarter of 2025. The inland segment’s operating margin was in the low 20 per cent range for the quarter.
In coastal, market conditions were strong during the quarter, with Kirby’s barge utilisation in the mid to high-90 per cent range. Term contracts that renewed in the second quarter increased in the mid-20 per cent range on average compared to a year ago.
Coastal revenues increased three per cent year-over-year as increased pricing was partially offset by elevated levels of planned shipyards. The coastal segment represented 19 per cent of marine transportation segment revenues during the second quarter and had an operating margin in the high teens.
Distribution and services revenues for Q2 2025 were US$362.9 million compared with US$339.6 million for Q2 2024. Operating income for the Q2 2025 was US$35.4 million compared with US$29.4 million for Q2 2024. Operating margin was 9.8 per cent for Q2 2025 compared with 8.7 per cent for the 2024 second quarter.
In the power generation market, revenues increased 31 per cent compared to Q2 2024 driven by robust sales. Orders continued to grow as the need for 24/7 power and back up capabilities remains critical. Overall, power generation revenues represented approximately 39 per cent of segment revenues. Power generation operating margins were in the mid to high-single digits.
In the commercial and industrial market, revenues increased five per cent and operating income increased 24 per cent compared to Q2 2024, driven by strong activity levels in marine repair and a modest improvement in on-highway repair business levels.
Overall, commercial and industrial revenues represented approximately 48 per cent of segment revenues. Commercial and industrial operating margins were in the low double digits.
In the oil and gas market, revenues declined 27 per cent while operating income increased 182 per cent compared to Q2 2024 driven by lower levels of conventional oilfield activity, which resulted in decreased demand for new transmissions and parts partially offset by deliveries of e-frac equipment.
Overall, oil and gas revenues represented approximately 13 per cent of segment revenues. Oil and gas operating margins were in the low double digits.
For Q2 2025, gross operating profit was US$202.2 million compared with US$182.9 million for Q2 2024. During the quarter, net cash provided by operating activities was US$94.0 million, and capital expenditures were US$71.5 million.
During the quarter, the company had net proceeds from asset sales totaling US$11.6 million. Kirby also used US$31.2 million to repurchase stock at an average price of US$94.01. As of June 30, 2025, the company had US$68.4 million of cash and cash equivalents on the balance sheet and US$331.5 million of liquidity available. Total debt was US$1.118 billion and the debt-to-capitalisation ratio was 24.8 per cent.
"As we move into the second half of the year, we remain focused on execution, while closely monitoring the evolving macroeconomic and geopolitical environment and their potential impact to our volumes," said Grzebinski.
"We still expect 15 to 25 per cent year-over-year growth in earnings for all of 2025. However, recent shifts in trade policy have introduced new complexities to near-term planning for us and our customers and have contributed to some softness in areas. These complexities are impacting trade flows and demand including chemicals as well as sourcing for our power generation supply chain.
"If the current softness persists, we will likely be closer to the lower end of our prior full year EPS growth guidance, with movement closer to the higher end dependent on stronger economic conditions. While the environment has become less certain, we remain confident in our ability to adapt and execute.
"We are committed to maintaining capital discipline, and we are well-positioned to navigate the challenges ahead. Our balance sheet remains strong, and we are generating solid free cash flow, positioning us well to invest in disciplined capital allocation and long-term value creation opportunities."