Kirby Q3 Earnings Surpass Estimates, Increase Year Over Year

Kirby Corporation (KEX) reported third-quarter 2025 earnings of $1.65 per share, which surpassed the Zacks Consensus Estimate of $1.60 and improved 6.5% year over year. Total revenues of $871.2 million missed the Zacks Consensus Estimate of $888.3 million but improved 4.8% year over year.

David Grzebinski, Kirby’s chief executive officer, stated, “Kirby’s third quarter performance reflects our ability to adapt and deliver results, with continued strength in coastal marine and power generation, and focused execution in the face of softer inland market conditions.”

Q3 Segmental Performance of KEX

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

Marine transportation revenues for the third quarter of 2025 were $484.9 million, down 0.2% year over year. Operating income for the third quarter came in at $88.6 million compared with $99.5 million in the year-ago quarter. Segment operating margin for the third quarter fell to 18.3% from 20.5% in the year-ago quarter.

In the inland market, third-quarter average barge utilization was in the mid-80% range. Average spot market rates were down in the low-to-mid single digits sequentially and year over year. Term contracts, which got renewed in the third quarter, were flat on average from the year-ago quarter. The inland market accounted for 80% of segment revenues in the third quarter of 2025. Inland’s operating margin was in the high teens range for the quarter.

In the coastal market, market conditions were solid during the reported quarter, with Kirby’s barge utilization in the mid to high-90% range. Term contracts, which got renewed in the third quarter, increased in the mid-teens range on average on a year-over-year basis. Coastal revenues grew 13% year over year owing to increased pricing. Coastal revenues accounted for 20% of the marine transportation segment revenues and had an operating margin of around 20%.

Distribution and services revenues for the third quarter of 2025 were $386.2 million, up 11.9% year over year. Operating income for the third quarter was $42.7 million compared with $30.4 million in the year-ago quarter. Operating margin rose to 11% from 8.8% in the year-ago quarter.

In the power generation market, revenues grew 56% and operating income rose 96% year over year, respectively, owing to solid execution on backlog. Overall, power generation revenues accounted for almost 45% of segment revenues. Power generation operating margins were in the low double digits.

In the commercial and industrial market, revenues grew 4% and operating income grew 12%, year over year, respectively, on the back of steady marine repair work and gradual gains in on-highway repair services. Commercial and industrial revenues accounted for 44% of segment revenues. Commercial and industrial operating margins were in the high single digits.

In the oil and gas market, revenues declined 38% 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. Operating income increased 5% year over year. Oil and gas revenues accounted for 11% of segment revenues. Oil and gas operating margins were in the low double digits.

Balance Sheet Highlights & Cash Flow

As of Sept. 30, 2025, Kirby had cash and cash equivalents of $47.02 million compared with $68.38 million at the end of the prior quarter.

During the reported quarter, KEX generated $227.5 million of net cash from operating activities, and capital expenditures were $67.2 million.

Kirby repurchased 1,314,009 shares for $120.0 million in the third quarter and an additional 428,955 shares for $36 million so far (till Oct. 29, 2025) in the fourth quarter of 2025.

KEX’s 2025 Outlook

For inland marine, market conditions are anticipated to remain stable, with some early signs of improvement evident. While term contract rates are expected to continue improving over the long term, driven by the slow pace of newbuild activity and tight vessel availability, spot market pricing could continue to face modest pressure in the near term if demand softness re-emerges. Overall, inland revenues and margins are expected to improve modestly from the third-quarter levels, assuming tighter barge availability holds in the fourth quarter.

In coastal marine, market fundamentals remain very favorable, with steady customer demand and barge utilization anticipated to hold in the mid to high-90% range. Kirby anticipates concluding the year with coastal revenues and operating margins comparable to the third quarter of 2025.

In distribution and services, the outlook reflects strength in growing markets with continued discipline in challenged areas. Power generation continues to be a strong contributor, with sustained demand from data centers and industrial customers driving order growth. In commercial and industrial, marine repair activity is solid, and the on-highway market continues to improve. Oil and gas growth remains limited by current market dynamics and customer capital discipline. For the segment, KEX anticipates full-year revenues to be up in the mid-single digits, 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.

Currently, Kirby carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q3 Performances of Other Transportation Companies

Delta Air Lines DAL reported third-quarter 2025 earnings (excluding 46 cents from non-recurring items) of $1.71 per share, which beat the Zacks Consensus Estimate of $1.52. Earnings increased 14% on a year-over-year basis due to low fuel costs.

Revenues in the September-end quarter were $16.67 billion, beating the Zacks Consensus Estimate of $15.79 billion and increasing 6.4% on a year-over-year basis. Due to improving air-travel demand, adjusted operating revenues (excluding third-party refinery sales) increased 4.1% year over year to $15.2 billion. 

J.B. Hunt Transport Services, Inc. (JBHT) reported third-quarter 2025 earnings of $1.76 per share, which surpassed the Zacks Consensus Estimate of $1.47 and improved 18.1% year over year.

Total operating revenues of $3.05 billion surpassed the Zacks Consensus Estimate of $3.02 billion and were down 0.5% year over year. JBHT’s third-quarter revenue performance was hurt by a 1% and 4% decline in gross revenue per load in Intermodal (JBI) and Truckload (JBT), respectively, a decrease in load volume of 8% and 1% in Integrated Capacity Solutions (ICS) and Dedicated Contract Services (DCS), and 8% fewer stops in Final Mile Services (FMS). These items were partially offset by a 3 % improvement in DCS productivity, a 9% increase in revenue per load in ICS and 14% load growth in JBT. Total operating revenue, excluding fuel surcharge revenue, fell less than 1% year over year.

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

UAL's third-quarter 2025 adjusted earnings per share (EPS) (excluding 12 cents from non-recurring items) of $2.78 surpassed the Zacks Consensus Estimate of $2.64 but declined 16.5% on a year-over-year basis. The reported figure lies above the guided range of $2.25 and $2.75.

Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.3 billion but increased 2.6% year over year. Passenger revenues (which accounted for 90.7% of the top line) increased 1.9% year over year to $13.8 billion. UAL flights transported 48,382 passengers in the third quarter, up 6.2% year over year.

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