Kirby Corp (NYSE:KEX) Q3 2025 Earnings Beat Estimates

Kirby Corporation (NYSE:KEX) has announced its financial results for the third quarter of 2025, delivering a performance that surpassed analyst expectations on the top and bottom lines. The market responded positively to the news, with the stock showing notable upward momentum in pre-market trading following the release.

Earnings and Revenue Performance

The marine transportation and services company reported quarterly revenue of $871.2 million, which represents a 4.8% increase compared to the $831.1 million reported in the same quarter last year. This figure came in ahead of the analyst consensus estimate of $854.7 million for the period.

On the profitability front, Kirby reported net earnings of $92.5 million, or $1.65 per diluted share. This exceeded the analyst estimate of $1.64 per share and marked a 6% improvement over the $1.55 per share earned in the third quarter of 2024.

The company's performance highlights include:

• Revenue Beat: $871.2 million actual vs. $854.7 million estimated
• EPS Beat: $1.65 actual vs. $1.64 estimated
• Year-over-Year Growth: Revenue up 4.8% and EPS up 6%

Market Reaction and Price Action

The better-than-expected results were met with positive sentiment from investors. In pre-market trading, Kirby's stock price advanced significantly, reflecting approval of the company's ability to exceed financial targets. This pre-market surge adds to gains seen over recent weeks, suggesting building positive momentum leading into the earnings announcement.

Segment Performance and Business Highlights

A review of the earnings release reveals a mixed performance across Kirby's business segments, with one division facing headwinds while another showed substantial strength.

Marine Transportation revenues were relatively flat at $484.9 million compared to the prior year. The inland market experienced softer conditions, with barge utilization averaging in the mid-80% range due to seasonal factors and muted petrochemical customer activity. This led to a decline in operating income for the segment from $99.5 million to $88.6 million. In contrast, the coastal market remained strong with utilization in the mid to high-90% range and operating margins of approximately 20%.

Distribution and Services was the standout performer, with revenues climbing to $386.2 million, a significant increase from $345.1 million in the third quarter of 2024. The power generation market was particularly robust, delivering a 56% year-over-year revenue increase driven by demand from data centers and prime power customers. This strength helped push the segment's operating margin to 11.0%, up from 8.8% a year ago.

Capital Allocation and Financial Position

Kirby demonstrated disciplined capital management during the quarter, repurchasing 1.3 million shares of its common stock for $120 million. The company has continued this program into the fourth quarter, buying an additional 429,000 shares for $36 million. Kirby ended the quarter with a solid balance sheet, reporting a debt-to-capitalization ratio of 23.8% and maintaining ample liquidity.

Outlook and Analyst Estimates

Looking ahead, management expressed confidence in the inland barge cycle's longevity due to supply constraints and highlighted growing backlogs in power generation. For the full year 2025, Kirby expects to generate net cash from operating activities between $620 million and $720 million.

Analysts currently project the company will deliver revenue of $855 million and earnings per share of $1.63 for the fourth quarter of 2025. For the full fiscal year 2025, the consensus estimates stand at $3.37 billion in revenue and $6.29 in earnings per share.

For a detailed look at historical earnings performance and future analyst estimates for Kirby Corporation, visit the earnings estimates page for KEX.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.