Kirby Narrows 2026 Earnings Growth Guidance to 10%–15%

The Tip Desk · November 2, 2026 · 4 min read

Third-quarter diluted earnings were $2.09 a share, up 27% from a year earlier, as marine transportation revenue rose 17% and the company lifted its full-year growth floor.

Kirby Corporation (KEX), the Houston-based tank barge operator, reported net earnings attributable to the company of $110.8 million, or $2.09 a share, for the third quarter ended September 30, 2026, compared with $92.5 million, or $1.65 a share, a year earlier.

Total revenues were $977.2 million. Chief Executive Officer David Grzebinski said the quarter reflected continued momentum across both businesses, with strong barge utilization and favorable pricing in marine transportation and robust demand for behind-the-meter and backup power in distribution and services.

Marine transportation was the quarter’s defining turn. Segment revenues were $568.7 million, up 17% from $484.9 million a year earlier, after a 9% year-over-year increase in the second quarter. Operating income was $111.9 million versus $88.6 million a year earlier, and the operating margin was 20% versus 18% a year earlier, after a 16.4% margin in the second quarter.

Inland marine, 81% of segment revenues, carried the recovery. Average barge utilization was in the low-90% range. Spot market rates improved sequentially in the low- to mid-single-digit range, and term contract renewals increased in the low-single-digit range versus the prior year. Inland operating margins were in the 20% range despite fuel costs. Inland ton miles were 4,183 million versus 3,497 million a year earlier, and revenue per ton mile was 11.0 cents versus 10.8 cents. Average fuel cost was $3.91 a gallon versus $2.46 a year earlier. Grzebinski said rising fuel costs remained a near-term headwind, mitigated but not fully offset by cost escalators and rate recovery.

Coastal marine, 19% of segment revenues, posted a slight year-over-year revenue increase and mid-teens operating margins, which the company said primarily reflected fewer shipyard days compared with the second quarter. Barge utilization was in the high-90% range. There was one term contract renewal in the quarter with an increase in the low-double-digit range.

Distribution and services revenues were $408.5 million, up 6% from $386.2 million a year earlier, matching the second quarter’s 6% year-over-year growth. Operating income was $48.4 million versus $42.7 million a year earlier, and the operating margin was 12% versus 11% a year earlier.

Power generation, about 46% of segment revenues, saw revenues increase 8% and operating income increase 13% versus the 2025 third quarter. The company attributed the result to demand for behind-the-meter and backup power solutions; order activity continued to strengthen, it said, driven by data center and industrial customers. Commercial and industrial, about 44% of segment revenues, saw revenues increase 8% and operating income increase 23%, primarily reflecting strong marine repair activity. Oil and gas, about 10% of segment revenues, saw revenues decrease 9% and operating income decrease 15% versus the year-ago quarter; revenues were flat and operating income was up 54% sequentially.

EBITDA was $229.7 million versus $201.4 million a year earlier. Net cash provided by operating activities was $143.5 million and capital expenditures were $69.5 million, producing free cash flow of $74.0 million, down from $160.3 million a year earlier. Working capital remained elevated, the company said, reflecting higher revenues, timing of collections, and higher fuel-related receivables.

Kirby returned $112 million through share repurchases in the third quarter at an average price of $137.04, after $59.7 million of buybacks in the second quarter. Cash and cash equivalents were $38.3 million and available liquidity was $530 million as of September 30. Total debt was $1,072 million and the debt-to-capitalization ratio was 23.7%.

During the quarter the company agreed to acquire inland marine assets from undisclosed sellers for $115 million, including nine inland towboats, 14 inland tank barges, nine bow thrusters, and a fleeting operation in Rockport, Texas, serving the Corpus Christi area. The deal is expected to close in the fourth quarter of 2026 subject to customary conditions.

The company narrowed full-year 2026 earnings per share growth guidance to 10% to 15% from the prior 5% to 15% range and said it currently expects results toward the upper end of the range. Inland revenues are expected to grow in the low-double-digit range for the full year, with operating margins in the high-teens to low-20% range. Coastal revenues are expected to increase in the mid-to-high-single-digit range, with margins in the mid-teens. Distribution and services segment revenues are expected to grow in the high-single-digit range, with operating margins in the high-single-digit range. The company expects net cash provided by operating activities of $575 million to $675 million in 2026 and capital spending of $220 million to $260 million.