Kirby Corporation Reports 3.8% Revenue Growth in Q2 2025, Net Earnings Rise

Kirby Corporation reported a solid financial performance for the second quarter and first half of 2025, with total revenues reaching $855.5 million for the quarter, a 3.8% increase from $824.4 million in the same period last year. For the first six months, revenues totaled $1.64 billion, slightly up from $1.63 billion in 2024. The company’s net earnings attributable to Kirby increased to $94.3 million, or $1.67 per diluted share, compared to $83.9 million, or $1.43 per diluted share, in the prior year quarter. For the first half, net earnings rose to $170.3 million, or $2.99 per diluted share, from $153.9 million, or $2.62 per diluted share, in 2024.

The company experienced notable changes in its operational metrics, particularly in its Marine Transportation segment, which generated 58% of total revenues. Marine transportation revenues increased by 2% to $492.6 million for the second quarter, driven by higher term and spot market pricing, despite lower fuel rebills. The Distribution and Services segment also saw a 7% revenue increase to $362.9 million for the quarter, attributed to higher business levels in marine repair and increased demand in the power generation market. Operating income for the Marine Transportation segment rose by 4% to $99.1 million, while the Distribution and Services segment's operating income surged by 20% to $35.4 million.

Strategically, Kirby Corporation made significant acquisitions, including the purchase of 14 inland tank barges for $97.3 million in March 2025, enhancing its capacity to transport petrochemicals and refined products. The company also reported a 28% increase in long-term debt, primarily due to borrowings under its revolving credit facility, which now stands at $1.12 billion. This increase in debt reflects the company's ongoing investments in expanding its fleet and operational capabilities.

Operationally, Kirby's inland tank barge fleet utilization levels averaged in the low to mid-90% range, with the coastal fleet maintaining high utilization rates. The company reported a total of 1,109 inland tank barges as of June 30, 2025, up from 1,093 a year earlier. The company’s total assets increased by 4% to $6.08 billion, driven by a rise in current assets and property and equipment. However, cash flows from operating activities decreased significantly to $130.5 million for the first half of 2025, down from $302.6 million in the same period last year, primarily due to unfavorable working capital changes.

Looking ahead, Kirby Corporation anticipates improved financial results for the remainder of 2025, with favorable market dynamics in the inland marine transportation sector and continued growth in the power generation market. However, the company remains cautious about potential economic headwinds, including high interest rates and supply chain challenges. The company expects capital expenditures for 2025 to be in the range of $260 million to $290 million, focusing on marine maintenance and growth initiatives across its segments.