Kirby Corporation Announces Q2 Earnings

Reporting its second-quarter results on July 29, Kirby Corporation said its marine transportation revenues increased 9% year-over-year as market fundamentals strengthened, beating analysts’ expectations, supported by strong customer demand and healthy utilization across the portfolio.

Distribution and services revenues grew 6% year-over-year, driven by continued growth in power generation and strong commercial and industrial activity.

Kirby announced net earnings for the second quarter ending June 30, of $89.7 million, or $1.67 per share, compared with earnings of $94.3 million, or $1.67 per share, for the 2025 second quarter. Total revenues for the 2026 second quarter were $922.4 million compared with $855.5 million for the 2025 second quarter.

David Grzebinski, Kirby’s chief executive officer, said, “Our second-quarter results reflected strong execution across both businesses, driving an 11% sequential increase in earnings per share.

“In marine transportation, the inland market continued to strengthen, supported by steady customer demand, healthy barge utilization and pricing improvements across both term contract renewals and spot market activity. While marine transportation margins were impacted by previously disclosed fuel cost headwinds in inland marine and elevated shipyard activity in coastal marine, customer demand remained healthy, and overall marine transportation conditions were constructive during the quarter.

“In distribution and services, results benefited from continued demand growth in power generation and sustained growth in commercial and industrial markets. Overall, our businesses performed well during the quarter and delivered solid results, reflecting healthy end-market conditions and a continued focus on operational excellence.”

Marine Market Breakout

Marine transportation revenues for the 2026 second quarter were $537 million compared with $492.6 million for the 2025 second quarter. Operating income for the 2026 second quarter was $87.8 million compared with $99.1 million for the 2025 second quarter. Operating margin for the 2026 second quarter was 16.4 percent compared with 20.1% for the 2025 second quarter.

In inland marine, average barge utilization was in the low-90% range during the second quarter of 2026. Average spot market rates increased in the low-to-mid-single digit range sequentially during the quarter, reflecting improving market fundamentals. Term contract renewals increased in the low-single-digit range on average compared with the prior year. The inland market represented 80% of segment revenues in the second quarter of 2026.

Inland operating margins were in the high-teens range, reflecting the impact of previously disclosed fuel cost headwinds. “In inland marine, market fundamentals remained constructive during the quarter, supported by strong refinery utilization, favorable customer activity and barge utilization in the low-90% range. Spot market rates improved sequentially during the quarter, while term contract renewals increased in the low-single digits compared with the prior year. As previously communicated, rising fuel costs created a near-term headwind to margins during the quarter; however, cost escalators and rate recovery mechanisms are expected to reverse this margin headwind in the third quarter. The combination of steady demand, improving pricing and disciplined execution supported operating margins in the high-teens range.”

In coastal marine, customer demand remained healthy, with barge utilization in the high-90% range. However, market-specific dynamics affecting smaller-capacity ATBs in the 80,000- to 100,000-barrel range led to low-single-digit declines in term contract renewal rates year-over-year. Despite these pressures, second-quarter coastal revenues increased 10 percent year-over-year. Operating margins were in the low-to-mid-teens range, primarily due to elevated shipyard activity. Coastal marine represented approximately 20% of segment revenues in the second quarter of 2026.

2026 Outlook

Commenting on the outlook for the remainder of 2026, Grzebinski said, “As we enter the second half of 2026, we remain encouraged by the momentum across our businesses. Inland marine fundamentals continue to strengthen, supported by healthy utilization and improving pricing, while power generation remains a significant contributor to growth in distribution and services. Backed by our market-leading positions and disciplined operating approach, we believe Kirby is well positioned to capitalize on opportunities across our end markets and deliver solid performance in the second half of the year. Based on current market conditions, we remain comfortable with our full-year earnings per share growth guidance of 5% to 15% and currently expect results to trend toward the upper end of the range.”

In inland marine, he said, market fundamentals remain constructive, supported by strong refinery utilization and healthy petrochemical activity. Barge utilization is expected to remain in the low-90% range, while both spot pricing and term contract renewal rates are expected to improve further during the second half of the year. Overall, inland revenues are expected to grow in the mid-to-high-single-digit range, with operating margins expected to be in the high-teens to low-20% range for the full year.

In coastal marine, customer demand remains strong, and barge utilization is expected to be in the high-90% range. While certain contract renewals during the second quarter reflected market-specific dynamics, pricing trends are expected to remain healthy as the year progresses. Overall, revenues are expected to increase in the mid-single-digit range for the full year, with operating margins expected to be in the mid-to-high-teens range.

The company said it expects to generate net cash provided by operating activities of $575 million to $675 million in 2026, and capital spending is expected to range from $220 million to $260 million. Approximately $170 million to $210 million is expected to be allocated to marine maintenance capital and improvements to existing inland and coastal marine equipment and facility improvements. Up to approximately $65 million is expected to be allocated to growth capital spending.

A conference call to discuss the second-quarter results was scheduled for July 29. A replay of the webcast will be available for a period of one year by visiting the News & Events page in the Investor Relations section of Kirby’s website.