Kirby Corporation reports earnings surge in Q1 2025 despite delays, weather challenges
US-based inland transport specialist Kirby Corporation has announced net earnings attributable to Kirby for the first quarter ended March 31, 2025, of US$76 million or US$1.33 per share, compared with earnings of US$70.1 million, or US$1.19 per share for the first quarter of 2024.
Consolidated revenues for Q1 2025 were US$785.7 million compared with US$808 million reported for Q1 2024.
"Our first quarter results reflected improved market fundamentals in marine transportation and continued strong demand for power generation in distribution and services," said David Grzebinski, Kirby’s Chief Executive Officer.
"These positive trends were partially offset by weather and navigational challenges in marine and continued supply delays in distribution and services. Overall, our combined businesses performed well during the quarter."
In inland marine transportation, Kirby's first quarter results were considerably impacted by delay days. Throughout the quarter, the company's operations were challenged by winter storms, high winds, and fog along the Gulf Coast, as well as lock delays throughout the system.
These weather and navigational issues slowed transit times and impacted the financial performance of the company's contracts of affreightment. Overall, delay days increased 50 per cent compared to Q4 2024 and increased 15 per cent year-on-year.
Despite the increase in delays, market conditions improved from the fourth quarter, due to better customer demand and limited barge availability, which contributed to favourable price improvements.
From a demand standpoint, customer activity was strong in the quarter with barge utilisation rates running in the low to mid-90 per cent range throughout the quarter. Spot prices were up in the low single digits sequentially and in the high single digit range year-over-year.
Term contract prices also renewed up higher with mid-single digit increases versus a year ago. Overall, margins were right around 20 per cent despite the poor operating conditions.
“In distribution and services, demand was mixed across our end markets with growth in some areas offset by slowness or delays in other areas," said Grzebinski. "In power generation, the pace of inbound orders was strong, adding to our backlog, with continued project wins from backup power and other industrial customers as the need for power remains critical."
In oil and gas, while an exceptionally soft conventional oil and gas business pushed revenues down 18 per cent YOY, operating income was up 123 per cent YOY driven by e-frac and cost management initiatives.
In the company's commercial and industrial market, revenues grew six per cent sequentially and 12 per cent YOY, driven by growth in marine repair activity, while operating income was up 23 per cent year-over-year due to favourable product mix and ongoing cost control initiatives.
