Kirby Corporation Reports 5.6% Revenue Growth to $3.27 Billion for Fiscal Year 2024

Kirby Corporation reported a strong financial performance for the fiscal year ending December 31, 2024, with total revenues reaching $3.27 billion, a 5.6% increase from $3.09 billion in 2023. The company’s net earnings attributable to Kirby increased by 28.7% to $286.7 million, translating to diluted earnings per share of $4.91, up from $3.72 in the previous year. The marine transportation segment, which accounted for 59% of total revenues, saw an 11% increase in revenues to $1.91 billion, while the distribution and services segment contributed $1.35 billion, a slight decrease of 1% compared to 2023.

The company experienced significant operational changes, including a non-cash impairment charge of $56.3 million in the distribution and services segment, primarily related to conventional diesel fracturing equipment inventory. This impairment was attributed to a shift in industry demand towards electric fracturing equipment. Additionally, Kirby recognized a one-time deferred tax credit of $10.9 million due to a change in Louisiana tax law, which lowered the corporate income tax rate. These adjustments impacted the overall financial results but were offset by improved pricing in both inland and coastal markets.

Kirby’s operational metrics remained stable, with inland tank barge utilization averaging in the low to mid-90% range throughout 2024. The company operated a fleet of 1,094 inland tank barges and 281 inland towboats, with the inland fleet contributing 81% of marine transportation revenues. The coastal fleet, which includes 28 tank barges, accounted for 19% of revenues. The company’s strategic focus on long-term contracts continued to provide a predictable revenue stream, with approximately 65% of inland marine transportation revenues generated from term contracts.

Looking ahead, Kirby Corporation anticipates continued growth in 2025, driven by stable barge utilization and increasing customer demand. The company expects to generate net cash flow from operations between $620 million and $720 million, with capital expenditures projected to range from $280 million to $320 million. However, Kirby remains cautious of potential economic headwinds, including high interest rates and inflationary pressures, which could impact operational costs and overall market conditions. The company is also mindful of the ongoing transition in the oil and gas sector, particularly the shift from conventional diesel to electric hydraulic fracturing, which may affect future revenues in the distribution and services segment.