Kirby reports Q2 EPS $1.67, consensus $1.65

Reports Q2 revenue $855.5M, consensus $851.93M. David Grzebinski, CEO, commented, “Kirby (KEX) delivered another solid quarter, with strong performance across both marine transportation and distribution and services. Our teams executed well in a dynamic environment, and we continued to benefit from healthy customer demand, disciplined pricing, and operational focus.” “In inland marine transportation, market conditions remained favorable during the second quarter. From a demand standpoint, customer activity was steady, with barge utilization rates running in the low to mid-90% range throughout the quarter. While we experienced some navigational and lock delays that challenged operational efficiency, our teams executed well. Pricing continued to show improvement during the quarter with sequential and year-over-year increases in spot market prices and term contract renewals that were up in the low to mid-single digits year-over-year. The combination of improved pricing and disciplined execution helped drive operating margins to the low 20% range.” “In coastal, market fundamentals remained strong with barge utilization levels running in the mid to high-90% range. Customer demand remained consistent throughout the quarter, and a limited availability of large capacity vessels continued to support pricing gains. Term contract renewals increased in the mid-20% range compared to a year ago, reflecting ongoing strength in the market. The combined impact of fewer planned shipyards and strong pricing worked to push coastal operating margins to the high teens. In distribution and services, our teams performed well and delivered year-over-year growth in both revenue and operating income, with solid contributions across most of our end markets. In power generation, revenues increased 31% year-over-year as demand from data centers and industrial customers remained robust. The pace of inbound orders continued to build our backlog, and we secured additional project wins for backup and critical power applications. In the commercial and industrial market, revenues increased 5% year-over-year, supported by steady marine repair activity and a modest improvement in on-highway service. In oil and gas, while revenues declined year-over-year due to softness in conventional activity, we achieved a 182% increase in operating income driven by strong execution, disciplined cost management, and continued growth in e-frac equipment. Overall, the segment performed well and demonstrated our ability to adapt and deliver results in a mixed demand environment.”