Kirby Corporation Announces Third Quarter Earnings

Kirby Corporation has announced net earnings for the third quarter ending September 30 of $92.5 million or $1.65 per share, compared with earnings of $90.0 million, or $1.55 per share, for the 2024 third quarter.

Consolidated revenues for the 2025 third quarter were $871.2 million compared with $831.1 million reported for the 2024 third quarter.

“Kirby’s third quarter performance reflects our ability to adapt and deliver results, with continued strength in coastal marine and power generation and focused execution in the face of softer inland market conditions,” CEO David Grzebinski said.

Marine transportation revenues for the 2025 third quarter were $484.9 million compared with $486.1 million for the 2024 third quarter. Operating income for the 2025 third quarter was $88.6 million compared with $99.5 million for the 2024 third quarter. Segment operating margin for the 2025 third quarter was 18.3 percent compared with 20.5 percent for the 2024 third quarter.

Inland ‘Softness’

In the inland market, 2025 third quarter average barge utilization was in the mid-80% range, down from the 2024 third quarter. During the quarter, average spot market rates were down in the low-to-mid single digits sequentially and compared to the 2024 third quarter. Term contracts that renewed in the third quarter were flat on average compared to a year ago. The inland market represented approximately 80 percent of segment revenues in the third quarter of 2025. Inland’s operating margin was in the high teens range for the quarter.

“In inland marine, market conditions experienced near-term softness during the third quarter, primarily due to seasonally favorable weather, improved navigational conditions, a lighter feedstock mix for our refinery and chemical customers and fewer barges undergoing maintenance across the industry,” Grzebinski said. “At the same time, general petrochemical customer activity remained muted with ongoing softness in the chemical industry.

“These factors contributed to our barge utilization averaging in the mid-80-percent range. On the pricing front, we observed temporary weakness in the spot market. Spot market rates declined in the low-to-mid single digits both sequentially and year-over-year, while term contract renewals were flat when compared to the prior year. In the fourth quarter, we are already seeing market conditions improve and expect this trend to continue. We also continue to see constraints in long-term barge construction keeping new supply in check.”

Coastal Marine Strength

In coastal, market conditions were strong during the quarter, with Kirby’s barge utilization in the mid to high-90 percent range. Term contracts that renewed in the third quarter increased in the mid-teens range on average compared to a year ago. Coastal revenues increased 13 percent year-over-year, driven by increased pricing. Coastal represented approximately 20 percent of marine transportation segment revenues during the third quarter and had an operating margin around 20 percent.

“In coastal marine, market fundamentals remained strong during the third quarter,” Grzebinski said. “Barge utilization levels were in the mid to high-90-percent range, supported by consistent customer demand and tight industry supply. Pricing continued to meaningfully improve, with term contract renewals up in the mid-teens range year-over-year. The combination of strong demand and limited vessel availability contributed to operating margins reaching around 20 percent for the quarter.”

Power Generation

In power generation, revenues increased 56 percent year-over-year as demand from data centers and prime power customers continued to show strength. As inbound orders accelerated, the segment’s backlog grew, and Kirby secured more opportunities in backup and behind-the-meter power applications.

In the commercial and industrial market, revenues increased 4 percent year-over-year, supported by consistent marine repair activity and continued improvement in on-highway service. In oil and gas, while revenues declined year-over-year due to softness in conventional activity, Kirby achieved a 5 percent increase in operating income driven by strong execution, strategic cost management, and sustained execution in e-frac equipment.

Despite near-term challenges in the inland market, Grzebinski said, “We remain confident the inland barge cycle still has years to go, given supply constraints.”

He added that with a strong balance sheet and robust free cash flow, the company is well positioned to pursue strategic investments.

Inland Conditions

“In inland marine, market conditions are expected to remain stable, with some early signs of improvement evident,” Grzebinski said. “Seasonal weather factors could work to further reduce barge availability across the industry, which should support higher barge utilization for the full quarter. While term contract rates are expected to continue improving over the long term, driven by the slow pace of newbuild activity and tight vessel availability, spot market pricing could continue to face modest pressure in the near term if demand softness re-emerges.”

Thus far in the fourth quarter, the company said, there has been a “meaningful improvement in demand.” Overall, inland revenues and margins were expected to improve “modestly” from the third quarter levels, assuming tighter barge availability holds in the fourth quarter.Kirby expects to generate net cash provided from operating activities of $620 million to $720 million in 2025 and capital spending is expected to range between $260 million to $290 million. Approximately $180 million to $210 million is associated with marine maintenance capital and improvements to existing inland and coastal marine equipment, and facility improvements. Up to approximately $80 million is associated with growth capital spending in both our businesses.