Kirby Q4 Earnings Surpass Estimates, Increase Year Over Year

Kirby Corporation (KEX) reported fourth-quarter 2025 earnings of $1.68 per share, which surpassed the Zacks Consensus Estimate of $1.62 and improved 30.2% year over year. Total revenues of $851.8 million missed the Zacks Consensus Estimate of $859.2 million but improved 6.2% year over year.

David Grzebinski, Kirby’s chief executive officer, stated, “2025 was a record year for Kirby capped off by a solid final quarter. During the fourth quarter, we navigated typical seasonal weather and year-end softness, with exceptional execution by both our Marine Transportation and Distribution & Services teams. Earnings per share and free cash flow grew meaningfully, and we closed the year with strong momentum. Looking ahead, we expect sustained growth and solid performance as we move into 2026.”

Q4 Segmental Performance of KEX

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

Marine transportation revenues for the fourth quarter of 2025 were $481.7 million, up 3.2% year over year. Operating income for the fourth quarter rose to $100.3 million from $86 million in the year-ago quarter. Segment operating margin for the fourth quarter rose to 20.8% from 18.4% in the year-ago quarter.

In inland, fourth-quarter barge utilization was in the mid to high-80% range. Operating conditions were mostly unfavorable in the quarter, with an 82% sequential increase in delay days, driven by the onset of seasonal winter weather. Average spot market rates were down low single digits sequentially and mid-single digit range year over year. Term contracts, which were renewed in the fourth quarter, were down in the low single-digit range. Revenues in the inland market decreased 1% year over year, owing to lower utilization and pricing. Operating margins were in the low 20% range. The inland market accounted for 79% of segment revenues in the fourth quarter of 2025.

In coastal, market conditions remained favorable during the quarter, with Kirby’s barge utilization remaining in the mid to high-90% range. There were no contracts scheduled for renewal during the fourth quarter. Revenues in the coastal market were up 22% year over year and accounted for 21% of segment revenues. The coastal business operating margin was around 20% for the reported quarter.

Distribution and services revenues for the fourth quarter of 2025 were $370.1 million, up 10.3% year over year. Operating income for the fourth quarter came in at $30.1 million compared with $26.8 million in the year-ago quarter. Operating margin rose to 8.1% for the fourth quarter from 8% in the year-ago quarter.

In the power generation market, fourth-quarter revenues increased 47%, and operating income increased 41% year over year, driven by strong execution on backlog. Orders continued to grow as the need for behind-the-meter power and backup capabilities remains critical. Overall, power generation revenues accounted for 52% of segment revenues. Power generation operating margins were in the high single digits.

In the commercial and industrial market, fourth-quarter revenues fell 1% year over year, owing to lower business levels in the on-highway businesses due to the slowly recovering trucking market. Commercial and industrial accounted for 40% of segment revenues, and operating margins were in the high single digits.

In the oil and gas market, fourth-quarter revenues and operating income results were down year over year. Demand for equipment for electric fracturing is partially offset by soft oil and gas activity, which continues to weigh on conventional fracturing equipment. Overall, oil and gas revenues decreased 45% year over year and accounted for 8% of segment revenues. Oil and gas operating margins were in the high single digits.

Balance Sheet Highlights & Cash Flow

As of Dec. 31, 2025, Kirby had cash and cash equivalents of $78.77 million compared with $47.02 million at the end of the prior quarter.

During the reported quarter, KEX generated $312.2 million of net cash from operating activities, and capital expenditures were $47 million.

Kirby repurchased 1,030,729 shares at an average price of $98.53 for $101.6 million.

KEX’s 2026 Outlook

For 2026, Kirby anticipates delivering consistent, year-over-year earnings growth, aided by stable operations, improving market fundamentals, and solid execution across the company. Earnings per share for 2026 are expected to be flat to up 12% year over year.

Under inland marine, limited new barge construction continues to support stable market fundamentals. Refinery utilization is anticipated to remain solid, and petrochemicals customer demand is expected to improve. Barge utilization rates are expected to be in the low 90% range for 2026, with pricing improving as the year progresses. Inland revenues for 2026 are anticipated to increase by low to mid-single digits year over year. Operating margins are expected to gradually improve over the course of the year, with the first quarter expected to be the lowest, averaging in the high-teens to low 20% range for 2026.

Under coastal marine, market conditions remain favorable, and supply and demand remain balanced across the industry fleet. Steady customer demand is anticipated to keep the barge utilization in the mid-90% range. Even with a high number of shipyards throughout the year, revenues for 2026 are anticipated to increase in the mid-single digits year over year. Coastal operating margins are expected to be in the high-teens range on a full-year basis, with some pressure early in the year due to planned shipyards.

In distribution and services, stable growth is anticipated on the back of rising customer demand in several areas, offsetting weakness in others. Power generation will continue to be a strong contributor to the segment, driven by solid demand trends, a growing backlog, and heightened customer focus on dependable prime power and backup solutions. Marine repair activity is anticipated to remain steady, and on-highway service and repair are anticipated to continue to recover. Revenues in oil and gas are anticipated to decline in the double-digit range as demand continues to soften. Overall, total distribution and services revenues are anticipated to be flat to slightly higher year over year, with strength in power generation helping to offset lower oil and gas activity. Operating margins are anticipated to be in the mid-to-high single-digit range on average for the full year.

Kirby anticipates generating $575-$675 million of net cash provided from operating activities in 2026.

Capital spending is expected to be between $220 million and $260 million. Almost $170 million to $210 million is associated with marine maintenance capital and improvements to existing inland and coastal marine equipment and facility improvements. Up to nearly $65 million is associated with growth capital spending in Kirby's businesses.

Currently, Kirby carries a Zacks Rank #4 (Sell).

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

Q4 Performances of Other Transportation Companies

Delta Air Lines DALreported fourth-quarter 2025 earnings (excluding 31 cents from non-recurring items) of $1.55 per share, which beat the Zacks Consensus Estimate of $1.53. Earnings decreased 16.22% on a year-over-year basis due to high labor costs.

Revenues in the December-end quarter were $16 billion, beating the Zacks Consensus Estimate of $15.63 billion and increasing 2.9% on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1.2% year over year to $14.6 billion. Revenue growth was impacted by about 2 points due to the government shutdown, mainly in the domestic segment, consistent with the company's disclosure last month.

J.B. Hunt Transport Services, Inc. (JBHT) reported fourth-quarter 2025 earnings of $1.90 per share, which surpassed the Zacks Consensus Estimate of $1.81 and improved 24.2% year over year.

Total operating revenues of $3.09 billion lagged the Zacks Consensus Estimate of $3.12 billion and were down 1.6% year over year. JBHT’s fourth-quarter revenue performance was hurt by a 2% and 4% decline in revenue per load excluding fuel surcharge revenue in Intermodal (JBI) and Truckload (JBT), respectively, a 1% decrease in average trucks in Dedicated Contract Services (DCS), and a 7% and 2% decline in load volume in Integrated Capacity Solutions (ICS) and JBI, respectively. The decrease in revenue, excluding fuel surcharge revenue, was partially offset by a 15% increase in volume in JBT, a 1% uptick in productivity, excluding fuel surcharge revenue, in DCS, and an increase in revenue per load in ICS. Total operating revenue, excluding fuel surcharge revenue, decreased 2% year over year.

United Airlines Holdings, Inc. (UAL) reported solid fourth-quarter 2025 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate. UAL's fourth-quarter 2025 adjusted earnings per share (excluding 9 cents from non-recurring items) of $3.10 surpassed the Zacks Consensus Estimate of $2.98 but declined 4.9% on a year-over-year basis. The reported figure lies within the guided range of $3.00-$3.50.

Operating revenues of $15.4 billion outpaced the Zacks Consensus Estimate marginally by 0.1% and increased 4.8% year over year. Passenger revenues (which accounted for 90.4% of the top line) increased 4.9% year over year to $13.9 billion. UAL flights transported 45,679 passengers in the fourth quarter, up 3% year over year. Cargo revenues fell 6% year over year to $490 million. Revenues from other sources rose 9.1% year over year to $981 million.

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