Kirby Shares Gain 7.2% Since Q2 Earnings Release, Revenues Up Y/Y

Shares of Kirby Corporation (KEX) have gained 7.2% since its second-quarter 2025 earnings release on July 31, 2025. The uptick can be attributed to the better-than-expected earnings performance.

Quarterly earnings of $1.67 per share surpassed the Zacks Consensus Estimate of $1.59 and improved 17% year over year. Total revenues of $855.5 million missed the Zacks Consensus Estimate of $885 million but improved 3.7% year over year.

David Grzebinski, Kirby’s chief executive officer, stated, “Kirby delivered another solid quarter, with strong performance across both marine transportation and distribution and services. Our teams executed well in a dynamic environment, and we continued to benefit from healthy customer demand, disciplined pricing, and operational focus.”

Q2 Segmental Performance of KEX

The company operates via two segments, namely, marine transportation and distribution and services.

Marine transportation revenues for the second quarter were $492.6 million, up 1.5% year over year. Operating income rose to $99.1 million from $94.9 million in the year-ago quarter. Segment operating margin rose to 20.1% from 19.6% in the year-ago quarter.

In the inland market, average barge utilization was in the low to mid-90% range in the second quarter. During the reported quarter, average spot market rates increased in the low single digits sequentially and in the mid-single digits on a year-over-year basis. Term contracts, which got renewed in the second quarter, grew in the low to mid-single digits on average on a year-over-year basis. The inland market accounted for 81% of segment revenues in the second quarter, with an operating margin in the low 20% range.

In coastal, market conditions were solid during the quarter, with Kirby’s barge utilization in the mid to high-90% range. Term contracts, which got renewed in the second quarter, grew in the mid-20% range on average on a year-over-year basis. Coastal revenues grew 3% year over year as increased pricing was partially offset by elevated levels of planned shipyards. Coastal revenues accounted for 19% of the marine transportation segment revenues during the second quarter, with an operating margin in the high teens.

Distribution and services revenues for the second quarter of 2025 were $362.89 million, up 6.9% year over year. Operating income for the second quarter was $35.4 million compared with $29.4 million in the year-ago quarter. Operating margin rose to 9.8% from 8.7% in the year-ago quarter.

In the power generation market, revenues increased 31% year over year on the back of robust sales. Orders continued to grow as the need for 24/7 power and backup capabilities remained critical. Power generation revenues accounted for 39% of segment revenues. Power generation operating margins were in the mid to high single digits.

In the commercial and industrial market, revenues and operating income grew 5% and 24% year over year, respectively, owing to solid activity levels in marine repair and a modest improvement in on-highway repair business levels. Commercial and industrial revenues accounted for 48% of segment revenues. Commercial and industrial operating margins were in the low double digits.

In the oil and gas market, revenues declined 27% while operating income grew 182% year over year, owing to lower levels of conventional oilfield activity, which resulted in decreased demand for new transmissions and parts, partially offset by deliveries of e-frac equipment. Oil and gas revenues accounted for 13% of segment revenues. Oil and gas operating margins were in the low double digits.

Balance Sheet Highlights & Cash Flow

As of June 30, 2025, Kirby had cash and cash equivalents of $68.38 million compared with $51.1 million at the end of the prior quarter.

During the reported quarter, KEX generated $94 million of net cash from operating activities, and capital expenditures were $71.5 million.

Kirby repurchased 331,900 shares at an average price of $94.01 for $31.2 million in the second quarter.

KEX’s 2025 Outlook

For 2025, Kirby anticipates 15-25% year-over-year earnings growth.

Under the Marine Transportation segment, for inland marine, barge utilization, while still healthy, has softened slightly to begin the third quarter and is now expected to be in the low 90% range for the third quarter. Pricing improvements in term contracts are expected to continue longer term, given the limited pace of newbuilds, but spot market pricing might be under pressure due to short-term demand softness. While the environment is more challenging than earlier in the year, operating margins are anticipated to remain in the 20% range, assuming no major disruptions from tariffs or broader economic conditions.

In coastal marine, market fundamentals remain strong. Contract renewals remain robust, and improved operating leverage is witnessed as shipyard activity winds down. Coastal barge utilization is expected to remain in the mid-90% range. Limited vessel availability across the industry and strong customer demand are driving continued pricing momentum. While inflationary pressures and labor constraints persist, the coastal business is anticipated to have operating margins in the mid to high teens range with modest improvement in the back half of the year.

In distribution and services, the outlook is mixed. Power generation continues to be a zone of strength, with solid demand from data centers and industrial customers driving order growth. In commercial and industrial, marine repair activity is steady, and the on-highway market has shown modest improvement. Oil and gas growth remains constrained due to current market conditions and customer capital discipline; strength is witnessed in e-frac and disciplined cost management. For the segment, full-year revenues are anticipated to be flat to slightly up, with operating margins in the high-single digits.

Net cash flow provided by operating activities is anticipated in the $620-$720 million band. Capital expenditures are now expected to be between $260 million and $290 million (prior view: $280 million and $320 million).

Currently, Kirby carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation Companies

Delta Air Lines (DAL) reported second-quarter 2025 earnings (excluding $1.17 per share from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.

Revenues in the June-end quarter were $16.65 billion, beating the Zacks Consensus Estimate of $16.2 billion and decreasing marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion. 

J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2025 earnings of $1.31 per share, which missed the Zacks Consensus Estimate of $1.34 and declined 0.8% year over year.

Total operating revenues of $2.93 billion missed the Zacks Consensus Estimate of $2.94 billion and were flat year over year. JBHT’s second-quarter revenue performance witnessed a 6% increase in Intermodal (JBI) loads, a 13% increase in Truckload (JBT) loads, a 3% increase in Dedicated Contract Services (DCS) productivity and a 6% increase in Integrated Capacity Solutions (ICS) revenue per load. These items were offset by Final Mile Services revenue declining 10%, lower revenue per load in both JBI and JBT, a 9% decrease in ICS load volume and a 3% decline in average trucks in DCS. Total operating revenues, excluding fuel surcharge revenue, increased 1% on a year-over-year basis.

United Airlines Holdings, Inc. (UAL) reported mixed second-quarter 2025 results wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.

UAL's second-quarter 2025 adjusted earnings per share of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research