Kirby Posts Revenue Increase, Acquires Marine Assets

Kirby Corporation has reported marine transportation revenues that increased 17 percent year-over-year as market fundamentals continued to improve, driven by strong customer demand.

The information was included in the company’s third-quarter earnings report released October 28. The company reported third-quarter earnings per share of $2.09, up by 27 percent year-over-year.

Kirby also agreed to acquire certain inland marine assets from undisclosed sellers for $115 million, including nine inland towboats, 14 inland tank barges, nine bow thrusters and a fleeting operation in Rockport, Texas, which is located on a 65-acre facility serving the Corpus Christi area. The acquired assets will enhance Kirby’s inland marine network in south Texas, expand fleeting and fueling capabilities near Corpus Christi and support continued demand in the West End linehaul system. The transaction is expected to close in the fourth quarter of 2026, subject to customary closing conditions.

Kirby announced net earnings for the third quarter ending September 30 of $110.8 million, or $2.09 per share, compared with earnings of $92.5 million, or $1.65 per share, for the 2025 third quarter. Total revenues for the 2026 third quarter were $977.2 million compared with $871.2 million for the 2025 third quarter.

“Our third quarter results reflected strong continued momentum across both businesses and solid execution throughout the organization,” Kirby CEO David Grzebinski said. “In marine transportation, strong barge utilization and favorable pricing trends supported performance during the quarter, though rising fuel costs continued to impact margins.”

Inland And Coastal Marine

“In inland marine, market fundamentals remained constructive during the quarter,” Grzebinski said. “Strong refinery operating rates, healthy petrochemical activity and limited new industry capacity supported barge utilization in the low-90-percent range. Spot market rates improved sequentially in the low- to mid-single-digit range during the quarter, and term contract renewals increased in the low-single-digits compared with the prior year.”

“Rising fuel costs remained a near-term headwind as higher costs were mitigated but not fully offset by cost escalators and rate recovery mechanisms in the quarter,” he continued. “Overall, the inland business delivered margins in the 20 percent range, driven by a combination of steady demand, disciplined execution and limited industry capacity additions.”

He added that in the coastal marine market, customer demand “remained stable with barge utilization in the high-90-percent range while third quarter coastal revenues increased slightly year-over-year.”

“We had one contract renewal in the third quarter with an increase in the low-double-digit range, Grzebinski said. “Operating margins were in the mid-teens range, reflecting market specific dynamics and ongoing cost pressures.”

Coastal marine operating margins primarily reflected fewer shipyard days compared to the second quarter of 2026. Coastal marine represented 19 percent of segment revenues in the third quarter of 2026.

Marine transportation revenues for the 2026 third quarter were $568.7 million, compared with $484.9 million for the 2025 third quarter. Operating income for the 2026 third quarter was $111.9 million compared with $88.6 million for the 2025 third quarter. Operating margin for the 2026 third quarter was 20 percent compared with 18 percent for the 2025 third quarter.

Financial Highlights

For the 2026 third quarter, EBITDA (non-GAAP) was $229.7 million compared with $201.4 million for the 2025 third quarter. During the quarter, net cash provided by operating activities was $143.5 million, and capital expenditures were $69.5 million, resulting in free cash flow (non-GAAP) of $74 million. Working capital remained elevated during the quarter, reflecting higher revenues in both segments, timing of collections and higher fuel-related receivables in marine transportation.

In the 2026 third quarter, Kirby returned $112 million of capital through share repurchases at an average share price of $137.04. As of September 30, the company had $38.3 million in cash and cash equivalents and $530 million of liquidity available. Total debt was $1.072 million, and the debt-to-capitalization ratio was 23.7 percent.

2026 Outlook

Commenting on the outlook for the fourth quarter of 2026, Grzebinski said, “As we enter the fourth quarter of 2026, we remain encouraged by the momentum across our businesses. Driven by strong operational execution and favorable market conditions, we believe Kirby is well positioned to capitalize on opportunities across our end markets and deliver solid performance in the remainder of the year. Despite ongoing macroeconomic and geopolitical uncertainty, customer demand remains healthy across many of our end markets. Based on current market conditions, we are narrowing our full-year earnings per share growth guidance to 10 percent to 15 percent and currently expect results toward the upper end of the range.”

In inland marine, market fundamentals are expected to remain constructive, supported by robust supply-demand dynamics and strong refinery and petrochemical operating rates, he said. Barge utilization is expected to remain in the low-90%-percent range, while both spot pricing and term contract renewal rates are expected to improve further during the remainder of the year.

Inland operating conditions are expected to reflect normal seasonal weather impacts during the fourth quarter. Overall, inland revenues are expected to grow in the low-double-digit range, with operating margins expected to be in the high-teens to low-20 percent range for the full year.

In coastal marine, customer demand remains stable with barge utilization expected to remain in the high-90 percent-range, Grzebinski said. Overall market conditions remain constructive, and pricing trends continue to improve, although elevated planned shipyard activity and higher fuel costs are expected to pressure margins during the fourth quarter.

The company expects to generate net cash provided by operating activities of $575 million to $675 million in 2027, 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.

Kirby Corporation, based in Houston, Texas, is the nation’s largest domestic tank barge operator, transporting bulk liquid products throughout the Mississippi River System, on the Gulf Intracoastal Waterway and coastwise along all three United States coasts. Kirby transports petrochemicals, black oil, refined petroleum products and agricultural chemicals by tank barge. In addition, Kirby participates in the transportation of dry-bulk commodities in United States coastwise trade.