10-Q - KIRBY CORP (0000056047) (Filer)

Mon, May 12, 4:23 PM (32 days ago)

**Kirby Corporation (KEX) Q1 2025 Financial Summary** Kirby Corporation reported a mixed Q1 2025 performance with revenues of $785.7 million, down 2.8% from $808.0 million in Q1 2024. The company's net earnings attributable to Kirby were $75.99 million, up 8.4% from $70.07 million in the same period last year. Earnings per share (EPS) increased to $1.33 from $1.20. **Revenue and Profit Margins:** - **Marine Transportation:** Revenues were flat at $476.1 million, with operating income increasing by 4% due to higher term and spot pricing. - **Distribution and Services:** Revenues decreased by 7% to $309.5 million, but operating income increased by 3% due to higher marine repair activity and deliveries of electric fracturing equipment. **Cash Flow:** - Operating cash flow decreased by 70% to $36.5 million due to unfavorable working capital changes, primarily driven by inventory buildup in the Distribution and Services segment. - Capital expenditures were $78.7 million, including $64.6 million for marine maintenance and $14.1 million for growth spending. **Earnings Changes:** - Net earnings increased by 8.4% to $75.99 million, driven by higher operating income in both segments. - EPS increased to $1.33 from $1.20, reflecting the earnings growth. **Quarterly Performance Discussion:** - **Marine Transportation:** Utilization rates remained high, with inland barges at 90% and coastal barges at 95%. Term contract pricing increased by 3-5% for inland and 24-26% for coastal markets. - **Distribution and Services:** Revenues were impacted by supply delays and lower conventional oilfield activity, but marine repair and electric fracturing equipment deliveries drove operating income growth. **Trends and Uncertainties:** - **Positive Trends:** Strong barge utilization, increasing term contract pricing, and growth in marine repair and electric fracturing equipment. - **Uncertainties:** Inflationary pressures, mariner shortages, supply delays, and potential economic headwinds. **Future Operations Impact:** - Kirby expects to deliver improved financial results in 2025, with continued growth in marine transportation and mixed results in distribution and services due to supply issues and lower oil and gas activity. The company plans to invest $280-$320 million in capital expenditures, with a focus on marine maintenance and growth spending. **Financial Health:** - Total assets increased by 3% to $6.01 billion, driven by higher property and equipment, net of accumulated depreciation. - Long-term debt increased by 26% to $1.09 billion, primarily due to increased borrowings under the 2027 Revolving Credit Facility. - Total equity decreased by 1% to $3.33 billion due to treasury stock purchases and tax withholdings on RSU vestings.