Kirby reiterates 2026 growth guidance as revenues rise 7.7%
The marine transportation company reported second-quarter revenues of $922.4 million.
Kirby (KEX), the marine transportation company, reported second-quarter earnings per share of $1.67. The result was flat year-over-year but represented an 11% increase from the $1.50 a share reported in the first quarter.
Total revenues for the quarter rose 7.7% year-over-year to $922.4 million, compared to $855.5 million in the same period last year. Non-GAAP EBITDA declined slightly to $199.7 million from $202.2 million in the prior-year quarter.
Marine transportation revenues increased 9% year-over-year to $537.0 million. However, operating margins for the segment compressed to 16.4% from 20.1% in the second quarter of 2024. The decline in inland marine operating margins, which fell from the low-20% range to the high-teens range, was due to fuel cost headwinds.
Coastal marine revenues grew 10% year-over-year. Term contract renewal rates for the segment saw low-single-digit declines year-over-year, reversing a 20% range increase recorded in the first quarter. Inland marine spot market rates increased in the low-to-mid-single digit range sequentially, continuing a trend of increases established in the first quarter.
Distribution and services revenues rose 6% year-over-year to $385.4 million, with operating margins holding steady at 9.9% compared to 9.8% in the prior-year period. Within this segment, oil and gas revenues decreased 17% and operating income fell 45% year-over-year, though both metrics grew on a sequential basis from the first quarter by 20% and 67%, respectively.
Kirby reiterated its full-year 2024 earnings per share growth guidance of 5% to 15%. Results are expected to trend toward the upper end of that range, which had been raised from a prior guide of 0% to 12% in the first quarter.
The company returned $59.7 million to shareholders through repurchases during the second quarter, up from $52.7 million in the first quarter.