Key Highlights

  • Consensus EPS of 2.00 compares with second-quarter diluted EPS of 1.67, matching the 1.67 reported a year earlier.
  • Consensus revenue of USD 938.84 million compares with second-quarter revenue of USD 922,399 thousand, against USD 855,455 thousand.
  • Management reaffirmed its full-year EPS growth guidance of 5% to 15% alongside second-quarter diluted EPS of 1.67.
  • Marine transportation revenue was USD 537 million, while distribution and services operating income was USD 38.2 million.

Kirby (NYSE:KEX) reports third-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of 2.00 on revenue of USD 938.84 million, and the company has a market capitalization of USD 7.11 billion.

Kirby operates inland and coastal tank barges and provides distribution and services products, including power generation equipment. Second-quarter revenue was USD 922,399 thousand against USD 855,455 thousand, and net income was USD 89,729 thousand against USD 94,277 thousand.

Estimates Against Second-Quarter Results and 2026 Guidance

The EPS estimate of 2.00 is above the second-quarter diluted EPS of 1.67, which matched the prior-year figure, and the estimates table does not state its EPS basis. The revenue estimate of USD 938.84 million is above the USD 922,399 thousand reported.

Management reaffirmed 2026 EPS growth guidance of 5% to 15% and said it currently anticipates results toward the upper end of that range. Operating cash flow is guided at USD 575 million to USD 675 million and capital expenditures at USD 220 million to USD 260 million.

What Management Guided and What It Left Open

Management guided inland revenue growth to the high-teens to 20% range for the year, though the fuel-related headwind may make the upper end difficult. Coastal revenue is guided to mid-single-digit growth with operating margins in the mid to high teens.

Management left open the timing of fuel cost recovery, estimating a headwind of 0.05 to 0.10 per share in the quarter that it anticipates recovering through contractual mechanisms in the third quarter. Delivery timing for OEM engines also governs power generation revenue.

Marine Margins and Fuel Cost Timing

Marine transportation revenue was USD 537 million, up 9%, and marine operating income was USD 87.8 million, down 11%. The Kirby Marine Transportation operating margin was 16.4% against 20.1%. Inland utilization was in the low 90% range and coastal utilization in the high 90% range.

Inland spot rates rose in the low to mid-single-digit range sequentially, and inland term renewals rose in the low-single-digit range year over year. Coastal term renewals declined in the low-single-digit range, which management tied to the 80,000 to 100,000 barrel vessel market.

Distribution and Services, Backlog and Capital

Distribution and services revenue was USD 385.4 million, up 6%, and operating income was USD 38.2 million, up 8%, with a margin of 9.9%. Power generation revenue rose 8% and made up 40% of segment revenue, and the power generation backlog guidance was raised to USD 1 billion to USD 1.5 billion.

The company returned USD 59.7 million through repurchases at an average price of 142.38 and repurchased USD 29 million more in the third quarter to date. Total debt was USD 1.04 billion, debt to capitalization was 23.1% and available liquidity was USD 566 million. The estimates table lists a market capitalization of USD 7.11 billion.

Figures to Follow in the Release

Reported EPS against 2.00 and revenue against USD 938.84 million are the headline comparisons. Other markers are fuel cost recovery, inland pricing and the power generation backlog.