Kirby Corporation (NYSE:KEX), the nation's largest domestic tank barge operator, closed its 2025 fiscal year with a record performance, as detailed in its fourth-quarter earnings release. The company reported solid top and bottom-line growth, though the results presented a mixed picture against Wall Street's expectations, which appears to be reflected in the stock's initial market reaction.
Earnings Snapshot: A Record Year with a Mixed Quarter
The company reported fourth-quarter earnings that demonstrated significant year-over-year improvement but came in slightly below analyst forecasts on the top line. For the three months ended December 31, 2025, Kirby posted revenue of $851.8 million, a 6.2% increase from the $802.3 million reported in the prior-year period. However, this figure fell short of the consensus analyst estimate of $865.6 million.
On the bottom line, the performance was stronger. Net earnings attributable to Kirby surged to $91.8 million, or $1.68 per diluted share. This compares to $42.8 million, or $0.74 per share, in the fourth quarter of 2024. Excluding one-time items from the prior year, adjusted earnings for Q4 2024 were $1.29 per share, making the 2025 quarter's growth even more pronounced. The reported $1.68 EPS narrowly edged out the analyst estimate of $1.65.
The full-year 2025 results set a new benchmark for the company:
- Full-Year EPS: $6.33, up from $4.91 in 2024 (or $5.46 on an adjusted basis).
- Full-Year Revenue: $3.36 billion, compared to $3.27 billion in 2024.
Market Reaction and Segment Performance
Following the earnings release, Kirby's stock traded lower in pre-market activity, indicating a cautious investor response likely tied to the revenue miss and the company's forward outlook. The market's focus seems to be balancing the strong annual profit growth against near-term guidance and segment-specific dynamics.
The earnings release highlighted several key operational successes that drove the annual record:
- Marine Transportation Stability: The segment saw revenues of $481.7 million with an operating margin of 20.8%. Inland barge utilization improved throughout the quarter to the mid-to-high 80% range, with further improvement into the low 90s already seen in early 2026. The coastal business maintained steady conditions with operating margins around 20%.
- Power Generation Strength: Within the Distribution and Services segment, the power generation business was a standout, with revenue soaring 47% year-over-year in the quarter. This growth is driven by strong order activity and large project wins as customers prioritize reliable power solutions.
- Shareholder Returns and Balance Sheet: The company aggressively returned capital to shareholders, repurchasing over 1 million shares for $101.6 million in the quarter. It also reduced total debt by $130 million, ending the year with a healthy debt-to-capitalization ratio of 21.4%.
2026 Outlook Versus Analyst Expectations
Management provided guidance for the coming year, projecting 2026 earnings per share to be "flat to up 12% year-over-year." Using the 2025 EPS of $6.33 as a base, this implies a 2026 EPS range of approximately $6.33 to $7.09.
This outlook sets up an interesting comparison with current analyst expectations. Prior to the report, the consensus sales estimate for full-year 2026 stood at approximately $3.53 billion. The company's commentary suggests a year of stable growth, with inland marine revenues anticipated to increase in the low-to-mid single digits and coastal marine revenues expected to grow in the mid-single digits. The Distribution and Services segment is projected to be flat to slightly higher, with strength in power generation offsetting continued softness in the oil and gas market.
For the upcoming first quarter of 2026, analysts had estimated revenue of approximately $855.4 million. Kirby noted that typical seasonal winter weather will weigh on first-quarter results in its inland business, which may temper near-term performance against these estimates.
Conclusion
Kirby Corporation capped a record 2025 with a quarter of robust earnings growth, even as revenue slightly missed the mark. The company's fundamentals appear solid, characterized by improving barge utilization, a powerhouse performance in power generation services, and a strong, shareholder-friendly capital allocation strategy. The initial negative market reaction suggests investors are weighing the revenue miss and a cautious, albeit growth-oriented, 2026 outlook against these positive operational trends. The coming quarters will be crucial in demonstrating whether the momentum in key business lines can fully offset areas of softness and meet elevated expectations.
For a detailed look at historical earnings and future analyst estimates for KIRBY CORP (NYSE:KEX), you can review the data here.
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