Kirby Surpasses Q4 Earnings Estimates, Lags on Revenues

Core Viewpoint - Kirby Corporation (KEX) reported a fourth-quarter 2024 earnings per share (EPS) of $1.29, exceeding the Zacks Consensus Estimate of$1.27 and reflecting a 24% year-over-year improvement. However, total revenues of $802.3 million fell short of the Zacks Consensus Estimate of$813.1 million, although they still represented a 0.4% year-over-year increase [1]. Financial Performance - Total costs and expenses increased by 6.5% year over year to $752.16 million [1]. - Marine transportation revenues reached$466.77 million, up 3.1% year over year, with operating income rising to $86.0 million from$68.2 million in the previous year, resulting in an operating margin increase to 18.4% from 15.1% [2]. - Inland market conditions showed an average barge utilization of 90%, with revenues growing 3% year over year due to higher pricing, accounting for 82% of segment revenues and operating margins near 20% [3]. - Coastal market conditions remained favorable, with revenues increasing by 6% year over year and operating margins in the low teens [4]. - Distribution and services revenues decreased by 3.1% year over year to $335.5 million, with operating income at$26.8 million and a slight decline in operating margin to 8.0% [5]. - Power generation revenues surged by 36% year over year, accounting for 39% of the segment's revenues, with operating margins in the high single digits [6]. - Commercial and industrial market revenues fell by 7% year over year, while operating income grew by 28% [7]. - Oil and gas revenues plummeted by 38% year over year, accounting for nearly 16% of the segment's revenues, with operating margins in the mid to high single digits [8]. Balance Sheet and Cash Flow - As of December 31, 2024, Kirby had cash and cash equivalents of $74.4 million, up from$67.07 million at the end of the previous quarter. The company reduced debt by $105 million in the fourth quarter and repurchased 286,697 shares for$33.3 million [9]. 2025 Outlook - Kirby anticipates 15-25% year-over-year growth in EPS for 2025, with positive market dynamics expected in the marine transportation segment due to limited new barge construction [11][12]. - Inland revenues are projected to grow in the mid to high single-digit range, while coastal revenues are expected to increase in the high-single to low-double-digit range [12][13]. - Distribution and services segment revenues are expected to remain flat to slightly down, with operating margins in the high-single digits [14].