Kirby Corporation Reports Q1 2025 Financial Results with Revenue of $785.7 Million

Kirby Corporation reported its financial results for the first quarter of 2025, revealing total revenues of $785.7 million, a decrease of 2.9% from $808.0 million in the same period of 2024. The marine transportation segment generated $476.1 million, slightly up from $475.4 million, while the distribution and services segment saw a decline to $309.5 million from $332.6 million. Net earnings attributable to Kirby increased to $76.0 million, or $1.33 per diluted share, compared to $70.1 million, or $1.19 per diluted share, in the prior year.

The company experienced a notable reduction in total costs and expenses, which fell to $680.1 million from $706.5 million, primarily due to a 7% decrease in costs of sales and operating expenses. This reduction was attributed to lower fuel costs, despite inflationary pressures impacting wages and other operational costs. Operating income rose to $105.5 million, up from $101.5 million, reflecting improved margins in the marine transportation segment, which benefited from higher pricing in both term and spot markets.

Strategically, Kirby made significant acquisitions during the quarter, purchasing 14 inland tank barges and four high horsepower towboats for $97.3 million. This acquisition is expected to enhance the company's capacity to transport petrochemicals and refined products across the Mississippi River System and Gulf Intracoastal Waterway. The company also reported a 3% increase in capital expenditures, totaling $78.7 million, which included investments in marine maintenance and growth initiatives across its segments.

Operationally, Kirby's marine transportation fleet expanded, with the number of owned inland tank barges increasing to 1,074 from 1,044 year-over-year. The company reported that approximately 70% of inland revenues were generated from term contracts, indicating a stable customer base. However, the distribution and services segment faced challenges, with revenues declining due to supply chain delays affecting power generation equipment deliveries, although operating income improved due to effective cost management.

Looking ahead, Kirby anticipates improved financial results for 2025, driven by favorable market dynamics in the marine transportation sector and expected growth in the power generation market. However, the company remains cautious about potential economic headwinds, including inflation and labor shortages, which could impact operational costs and overall performance. The company projects capital expenditures for the year to be in the range of $280 million to $320 million, focusing on both maintenance and growth initiatives.