American inland shipping operator Kirby Corporation announced net earnings of $92.5 million, or $1.65 per share, for the third quarter ended September 30, 2025, a six per cent increase compared to the $90 million, or $1.55 per share, reported in the third quarter of 2024. Consolidated revenues rose to $871.2 million from $831.1 million year-on-year.
David Grzebinski, Kirby’s CEO, said the results reflect the company's adaptability, with continued strength in coastal marine and power generation offsetting softer inland market conditions.
In the marine transportation segment, revenues were slightly down at $484.9 million compared to $486.1 million in Q3 2024. Operating income decreased to $88.6 million from $99.5 million.
The inland market experienced near-term softness, with barge utilization averaging in the mid-80% range due to favourable weather, improved navigation, a lighter customer feedstock mix, and fewer industry-wide maintenance activities. Spot market rates declined slightly, while term contract renewals were flat year-over-year. Inland operating margins were in the high teens.
In contrast, the coastal market remained strong, with utilization in the mid to high-90% range and term contract renewals up in the mid-teens year-over-year. Coastal revenues increased 13 per cent, and operating margins reached around 20 per cent.
The distribution and services segment saw revenues increase to $386.2 million from $345.1 million in Q3 2024, with operating income rising significantly to $42.7 million from $30.4 million. Operating margin improved to 11 per cent. Growth was driven by the power generation market, where revenues surged 56 per cent year-over-year due to strong demand from data centres and prime power customers.
Commercial and industrial markets also showed growth, while the oil and gas market saw lower revenue but higher operating income due to strong execution and cost management.
Kirby generated $201.4 million in EBITDA during the quarter. Net cash provided by operating activities was $227.5 million. The company repurchased $120 million of its stock in Q3 and an additional $36 million so far in Q4.
Looking ahead, Grzebinski expressed confidence in the long-term inland barge cycle despite near-term softness, citing supply constraints. He anticipates modest improvement in inland revenues and margins in Q4, assuming tighter barge availability holds. Coastal market fundamentals are expected to remain favourable.
For the distribution and services segment, full-year revenues are expected to be up mid-single digits with high-single-digit operating margins. Kirby expects to generate $620 million to $720 million in net cash from operating activities for the full year 2025.
