KEX

It has been about a month since the last earnings report for International Seaways (INSW). Shares have added about 16.6% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is International Seaways due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. International Seaways reported second-quarter 2026 earnings of $5.91 per share, surpassing the Zacks Consensus Estimate of $5.28 by 11.9%. Earnings increased sharply from $1.25 per share in the year-ago quarter as tanker rates strengthened across the fleet. Shipping revenues of $467.3 million surged 138.8% year over year and topped the consensus estimate of $406 million by 15%. Higher spot earnings and improved profit-sharing results from applicable time charters drove the outperformance. Consolidated time charter equivalent (TCE) revenues climbed to $434 million from $189 million a year earlier. The blended average spot rate advanced to approximately $79,000 per day from $27,500 in the prior-year quarter. Net income reached a record $295 million compared with $61.6 million a year ago. Adjusted EBITDA rose to a record $345 million from $102 million, reflecting the stronger rate environment and profit-sharing income. Crude Tankers revenues increased to $285 million from $104 million in the year-ago quarter, while segment TCE revenues advanced to $253 million from $99 million. Average spot earnings exceeded $64,500 per day, while average time-charter earnings were approximately $75,700 per day, including higher profit-sharing results. Spot rates were strong across the crude fleet. VLCC earnings averaged $118,900 per day, Suezmax earnings were $100,500 per day and Aframax earnings reached $69,100 per day. The year-over-year improvement more than offset fewer revenue days stemming partly from vessel sales and increased VLCC off-hire time. Product Carriers' revenues rose to $182 million from $92 million a year earlier. Segment TCE revenues increased to $181 million from $90 million, supported by average spot earnings of approximately $42,600 per day across the product fleet. On an asset-class basis, LR1 spot earnings averaged $79,200 per day and MR spot earnings averaged $60,300 per day. The rate-driven gains were partly tempered by fewer MR revenue days following the sale of older vessels as International Seaways continued to renew its fleet. International Seaways contracted four additional scrubber-fitted, dual-fuel-ready LR1 newbuildings for an aggregate $244 million. Delivery is expected in the second half of 2028, with the vessels slated to enter the Panamax International Pool. The company took delivery of Seaways Cristobal during the second quarter, the fourth vessel in its original six-LR1 program. The remaining two vessels are expected to arrive in the third quarter of 2026. As of July 1, the company had 13 vessels on time charters, with approximately $240 million of contracted revenues through expiry, excluding profit-sharing provisions. As of July 30, 2026, 48% of projected spot revenue days for the third quarter were booked at a blended average rate of approximately $61,000 per day. Booked spot rates included $118,300 per day for VLCCs, $91,800 for Suezmaxes, $48,900 for Aframax/LR2 vessels, $37,200 for LR1s and $34,700 for MRs. Management expects third-quarter vessel expenses of $61-$66 million, general and administrative expenses of $16-$17 million, interest expense of $11-$12 million and depreciation of $40-$42 million. Capital expenditures, including drydock costs but excluding newbuilding payments, are projected at $13-$16 million for the third quarter and $37-$40 million for the second half of 2026.The company estimates an all-in forward 12-month spot cash break-even rate of about $14,400 per day. Its high booked rates, low leverage and substantial liquidity position International Seaways to continue fleet renewal, debt reduction and shareholder returns while retaining flexibility for strategic opportunities. In the past month, investors have witnessed a upward trend in fresh estimates. The consensus estimate has shifted 24.63% due to these changes. Currently, International Seaways has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, International Seaways has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. International Seaways is part of the Zacks Transportation - Shipping industry. Over the past month, Kirby (KEX), a stock from the same industry, has gained 4%. The company reported its results for the quarter ended June 2026 more than a month ago. Kirby reported revenues of $922.4 million in the last reported quarter, representing a year-over-year change of +7.8%. EPS of $1.67 for the same period compares with $1.67 a year ago. Kirby is expected to post earnings of $1.95 per share for the current quarter, representing a year-over-year change of +18.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.6%. Kirby has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Seaways Inc. (INSW) : Free Stock Analysis Report Kirby Corporation (KEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Kirby (KEX). Shares have added about 5.7% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Kirby due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. Kirby reported second-quarter 2026 earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.70 by 1.8%. Earnings were unchanged year over year, as fuel-cost headwinds and elevated shipyard activity pressured marine transportation profitability. Revenues of $922.4 million increased 7.8% year over year and surpassed the consensus estimate of $863 million by 6.9%. Marine transportation benefited from healthy demand, with inland barge utilization in the low-90% range and coastal utilization in the high-90% range. Marine transportation revenues increased 9% year over year to $537 million. Strong customer demand and improving market fundamentals supported growth across both inland and coastal operations. However, segment operating income declined 11% to $87.8 million. Operating margin contracted to 16.4% from 20.1% in the year-ago quarter, reflecting higher fuel expenses in inland marine and increased planned shipyard activity in coastal marine. Inland marine contributed 80% of marine transportation revenues. Average spot market rates improved in the low-to-mid-single-digit range sequentially, while term contract renewals increased in the low-single-digit range from the prior-year level. Inland operating margin remained in the high-teens range. Management expects cost escalators and rate-recovery mechanisms to reverse the fuel-related margin pressure during the third quarter. Coastal marine generated the remaining 20% of segment revenues. Coastal revenues rose 10% year over year, but term contract renewal rates declined in the low-single-digit range because of increased vessel availability in the 80,000-to-100,000-barrel articulated tug-barge market. Distribution and services revenues increased 6% year over year to $385.4 million. Operating income rose 8% to $38.2 million, while operating margin expanded slightly to 9.9% from 9.8%. Power generation revenues increased 8%, while operating income advanced 27%. Demand remained strong for behind-the-meter and backup power solutions, particularly from data center and industrial customers. Power generation represented roughly 40% of segment revenues. Commercial and industrial revenues grew 12%, supported by strong marine repair activity and healthy demand in other industrial markets. Operating income increased 11%, and the business accounted for about 50% of segment revenues. Oil and gas revenues declined 17% year over year, while operating income fell 45%. The business remained affected by subdued oilfield activity and represented approximately 10% of distribution and services revenues. Sequential trends were more encouraging. Revenues increased 20% from the first quarter, while operating income climbed 67%, driven by improving demand for parts and services. Operating margin was in the mid-to-high-single-digit range. Net cash provided by operating activities was $72.2 million, while capital expenditures totaled $71.5 million. This resulted in free cash flow of $0.7 million. Working capital requirements were elevated because of stronger business activity, shipment and collection timing, growth in power generation and higher fuel-related receivables. Kirby ended June with $39 million in cash and cash equivalents, total debt of $1.04 billion and available liquidity of $565.9 million. The company repurchased 419,398 shares for $59.7 million during the quarter at an average price of $142.38. It bought back an additional $29 million of shares early in the third quarter at an average price of $139.92. Kirby maintained its full-year earnings growth guidance of 5-15% and expects results to trend toward the upper end of the range. The company continues to anticipate operating cash flow of $575-$675 million and capital spending of $220-$260 million. Inland marine revenues are expected to increase in the mid-to-high-single-digit range, with full-year operating margin in the high-teens to low-20% range. Coastal revenues are projected to grow in the mid-single-digit range, supported by high utilization and healthy customer demand. Distribution and services revenues are expected to rise in the mid-single-digit range, with operating margin in the mid-to-high-single-digit range. Power generation and marine repair demand should support results, although OEM engine-delivery timing could continue to create quarterly variability. It turns out, estimates revision have trended upward during the past month. At this time, Kirby has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Kirby has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kirby Corporation (KEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). 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Kirby Corporation (KEX) reported second-quarter 2026 earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.70 by 1.8%. Earnings were unchanged year over year as fuel-cost headwinds and elevated shipyard activity pressured marine transportation profitability. Revenues of $922.4 million increased 7.8% year over year and surpassed the consensus estimate of $863 million by 6.9%. Marine transportation benefited from healthy demand, with inland barge utilization in the low-90% range and coastal utilization in the high-90% range. Kirby Corporation price-consensus-eps-surprise-chart | Kirby Corporation Quote Marine transportation revenues increased 9% year over year to $537 million. Strong customer demand and improving market fundamentals supported growth across both inland and coastal operations. However, segment operating income declined 11% to $87.8 million. Operating margin contracted to 16.4% from 20.1% in the year-ago quarter, reflecting higher fuel expenses in inland marine and increased planned shipyard activity in coastal marine. Inland marine contributed 80% of marine transportation revenues. Average spot market rates improved in the low-to-mid-single-digit range sequentially, while term contract renewals increased in the low-single-digit range from the prior-year level. Inland operating margin remained in the high-teens range. Management expects cost escalators and rate-recovery mechanisms to reverse the fuel-related margin pressure during the third quarter. Coastal marine generated the remaining 20% of segment revenues. Coastal revenues rose 10% year over year, but term contract renewal rates declined in the low-single-digit range because of increased vessel availability in the 80,000-to-100,000-barrel articulated tug-barge market. Distribution and services revenues increased 6% year over year to $385.4 million. Operating income rose 8% to $38.2 million, while operating margin expanded slightly to 9.9% from 9.8%. Power generation revenues increased 8%, while operating income advanced 27%. Demand remained strong for behind-the-meter and backup power solutions, particularly from data center and industrial customers. Power generation represented roughly 40% of segment revenues. Commercial and industrial revenues grew 12%, supported by strong marine repair activity and healthy demand in other industrial markets. Operating income increased 11%, and the business accounted for about 50% of segment revenues. Oil and gas revenues declined 17% year over year, while operating income fell 45%. The business remained affected by subdued oilfield activity and represented approximately 10% of distribution and services revenues. Sequential trends were more encouraging. Revenues increased 20% from the first quarter, while operating income climbed 67%, driven by improving demand for parts and services. Operating margin was in the mid-to-high-single-digit range. Net cash provided by operating activities was $72.2 million, while capital expenditures totaled $71.5 million. This resulted in free cash flow of $0.7 million. Working capital requirements were elevated because of stronger business activity, shipment and collection timing, growth in power generation and higher fuel-related receivables. Kirby ended June with $39 million in cash and cash equivalents, total debt of $1.04 billion and available liquidity of $565.9 million. The company repurchased 419,398 shares for $59.7 million during the quarter at an average price of $142.38. It bought back an additional $29 million of shares early in the third quarter at an average price of $139.92. Kirby maintained its full-year earnings growth guidance of 5-15% and expects results to trend toward the upper end of the range. The company continues to anticipate operating cash flow of $575-$675 million and capital spending of $220-$260 million. Inland marine revenues are expected to increase in the mid-to-high-single-digit range, with full-year operating margin in the high-teens to low-20% range. Coastal revenues are projected to grow in the mid-single-digit range, supported by high utilization and healthy customer demand. Distribution and services revenues are expected to rise in the mid-single-digit range, with operating margin in the mid-to-high-single-digit range. Power generation and marine repair demand should support results, although OEM engine-delivery timing could continue to create quarterly variability. Currently, Kirby carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Delta Air Lines (DAL) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability. Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand. United Airlines Holdings, Inc. (UAL) reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%. Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs. J.B. Hunt Transport Services, Inc. (JBHT) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%. Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kirby Corporation (KEX) : Free Stock Analysis Report Delta Air Lines, Inc. (DAL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report J.B. Hunt Transport Services, Inc. (JBHT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Kirby stock has delivered a strong 132.6% return over the past 5 years, yet the latest checks suggest a more nuanced picture, with the Discounted Cash Flow (DCF) intrinsic value estimate pointing to meaningful upside while market based multiples look closer to fair value. Over 5 years, Kirby has returned 132.6%, which puts recent pullbacks into context as part of a longer, constructive share price journey. Recent earnings strength and firm marine transportation demand can support expectations for cash flow, while any slowdown in customer activity or pricing could quickly change what looks like an attractive valuation today. Kirby scores 4 out of 6 on our broader valuation checks. This is a mixed picture rather than a clear bargain or clear overpricing, and you can see that breakdown in more detail at 4 out of 6. The issue now is whether the current share price already reflects Kirby's improved performance or if the intrinsic value estimate still offers a margin of safety. Find out why Kirby's 38.9% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model estimates what Kirby is worth based on the cash it can generate for shareholders. Kirby produced latest twelve month free cash flow of about $393.2 million in $ and the model assumes growing cash flows from here rather than a sharp step up or down. On those assumptions, the DCF model points to an intrinsic value of about $196 per share. That compares to the current share price, with the DCF implying the stock trades at roughly a 32.6% discount and appears undervalued on this measure. Kirby’s recent second quarter 2026 results, with steady earnings and firm marine transportation demand, help explain why the cash flow outlook in the model remains supportive even if the market price has been more cautious. Taken together, the cash flow projections indicate that Kirby stock appears undervalued relative to the DCF intrinsic value estimate. Our Discounted Cash Flow (DCF) analysis suggests Kirby is undervalued by 32.6%. Track this in your watchlist or portfolio, or discover 56 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Kirby. The P/E ratio is a useful cross check for Kirby because earnings per share are a key focus for many investors following this stock. Kirby currently trades at about 19.9x earnings, which is higher than the Shipping industry average of 11.8x but close to a peer group average of 18.2x. The Fair P/E Ratio for Kirby is estimated at about 20.0x based on its profile, which is very close to where the stock is currently priced. This indicates that while Kirby trades at a premium to the broader industry, its P/E is near the level implied by its own fundamentals rather than pointing to a clear discount or excess. On the P/E multiple, Kirby stock appears roughly fairly valued compared with what the Fair Ratio indicates. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Kirby pick up where the valuation work leaves off and explain what kind of future for Kirby's growth, margins and earnings would need to occur for the stock to be worth significantly more or less than today's price. Instead of a single output from a ratio or model, you see the specific future that figure relies on, so you can watch how closely reality tracks it on the Community page. Share a Kirby narrative that presents your own numbers-driven case on the stock, including a view on whether Kirby's earnings per share of $1.67 and marine transportation revenue trends can continue to support today's valuation. Add your voice to the Simply Wall St community and track how your thesis holds up as new results come through. Do you think there's more to the story for Kirby? Head over to our Community to see what others are saying! For Kirby, the Discounted Cash Flow (DCF) work suggests the intrinsic value sits well above the current share price, while the P/E cross check says the stock is priced close to what its current earnings profile supports. That split reflects a DCF that leans on the durability of cash flows and capital needs, against a market multiple that is more anchored to how peers are currently valued. The crux for investors is whether Kirby can continue to translate marine transportation demand into steady cash generation without a setback in customer activity or pricing. That assumption largely decides whether today’s discount is an opportunity or deserved. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KEX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Interested in Kirby Corporation? Here are five stocks we like better. Kirby reaffirmed and raised its earnings outlook: Second-quarter EPS was $1.67, flat year over year but up 11% sequentially, and management now expects full-year EPS growth toward the upper end of its 5%–15% range. Marine transportation remained well utilized despite margin pressure: Revenue increased 9% year over year, while operating income fell 11% due to temporarily higher fuel costs and elevated shipyard activity. Kirby expects to recover most of the fuel-cost impact through contractual adjustments in the third quarter. Power generation and marine repair drove Distribution and Services growth: Segment revenue rose 6%, while the power-generation backlog expanded to $1 billion–$1.5 billion, supported by demand from data centers and industrial customers. Kirby also repurchased nearly $60 million of stock during the quarter and about $29 million more early in the third quarter. This Freight Stock Just Got an Upgrade and Institutional Buyers Kirby (NYSE:KEX) reported second-quarter 2026 earnings per share of $1.67, up 11% sequentially and unchanged from the prior-year quarter, as strong marine transportation utilization and growth in power generation and marine repair supported results. Chief Executive Officer David Grzebinski said the company’s businesses benefited from “constructive marine transportation fundamentals, high asset utilization,” and continued momentum in Distribution and Services. Kirby reaffirmed its full-year earnings-per-share growth outlook of 5% to 15% and said it now expects results to trend toward the upper end of that range. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Marine transportation revenue totaled $537 million in the quarter, up 9% from a year earlier and 8% sequentially. Segment operating income was $88 million, down 11% year over year and down 2% from the first quarter, producing a 16.4% operating margin. Chief Financial Officer Raj Kumar said the year-over-year decline in operating income reflected temporarily higher fuel costs ahead of contractual recovery mechanisms and elevated shipyard activity in the coastal business. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Inland marine, which represented 80% of segment revenue, recorded average barge utilization in the low 90% range. Spot market rates increased in the low- to mid-single-digit range from the first quarter but remained down in the low-single-digit range from the prior-year period. Renewing term contracts increased in the low-single-digit range year over year. Grzebinski said inland conditions were supported by refinery utilization, refined-product and crude movements, petrochemical activity and limited industry capacity additions. He added that Venezuelan crude imports into the Gulf Coast had recovered to more than 600,000 barrels per day from prior lows of about 200,000 barrels per day. → AMD’s AI Bubble Could Burst Into Explosive Upside Management said the fuel-cost effect created a roughly $0.05 to $0.10 per-share headwind in the second quarter, toward the higher end of that range. The company expects to recover most of the impact in the third quarter through fuel-adjustment clauses in customer contracts. For the full year, Kirby expects inland revenue growth in the mid- to high-single-digit range and operating margins in the high teens to low 20% range. Grzebinski said spot pricing is currently about 10% to 15% above contract pricing, which he views as constructive ahead of the company’s heavy fourth-quarter contract renewal season. Coastal marine revenue, representing 20% of marine segment revenue, rose 10% year over year. Barge utilization was in the high 90% range, while term-contract renewals declined in the low-single-digit range due to market dynamics affecting 80,000- to 100,000-barrel articulated tug-barge vessels. Christian O’Neil, Kirby’s president and chief operating officer, said the pricing pressure was limited to a small subsection of the fleet and did not reflect broad weakness in coastal markets. Management expects full-year coastal revenue to increase in the mid-single-digit range, with margins in the mid- to high-teens range. Distribution and Services revenue was $385 million, up 6% from the prior-year quarter and 11% sequentially. Operating income increased 8% year over year to $38 million and rose 63% from the first quarter, while operating margin reached 10%. Power generation revenue increased 8% from a year earlier, supported by demand for behind-the-meter and backup power systems used by data centers and industrial customers. Kumar said original equipment manufacturer engine availability continues to determine how quickly order demand converts into revenue. Grzebinski said the company’s power-generation backlog has grown to between $1 billion and $1.5 billion, up from its previous estimate of $500 million to $1 billion. He said much of the incoming demand involves behind-the-meter systems that operate continuously and could create future service and parts opportunities. O’Neil said Kirby is expanding its aftermarket approach through Kirby Integrated Power Systems, an operation intended to provide service support for data-center and power customers seeking uptime and turnkey solutions. Commercial and industrial revenue rose 12% year over year, aided by strong marine repair activity. Oil and gas revenue increased 20% sequentially and operating income rose 67% sequentially, though both remained below prior-year levels as market activity stayed subdued. Kirby expects full-year Distribution and Services revenue to rise in the mid-single-digit range, with operating margins in the mid- to high-single-digit range. Kirby ended the quarter with $39 million in cash, $1.04 billion in total debt and $566 million in available liquidity. Its debt-to-capitalization ratio was 23.1%. Cash flow from operations was $72.2 million during the quarter, while capital expenditures totaled $71.5 million. Kumar said working-capital needs were elevated because of stronger activity, collection timing and higher marine fuel receivables, but the company expects those requirements to normalize during the second half and support improved free cash flow. The company maintained its full-year capital spending forecast of $220 million to $260 million and its operating cash-flow outlook of $575 million to $675 million. It repurchased $59.7 million of stock during the second quarter at an average price of $142 per share, followed by approximately $29 million of additional repurchases early in the third quarter at an average price of $140. Management said it will continue to evaluate acquisitions, particularly in marine transportation, while using free cash flow for buybacks when acquisition opportunities do not materialize. Kirby Corporation is a leading domestic maritime transporter of bulk liquid products in the United States. Through its Marine Transportation segment, the company operates one of North America's largest fleets of inland tank barges and towing vessels. Kirby's fleet moves petrochemicals, black oil, refined petroleum products and agricultural chemicals along coastal and inland waterways, providing critical logistical support to energy, chemical and agricultural producers. In addition to its marine operations, Kirby's Distribution and Services segment offers diesel engine and power generation services, along with aftermarket parts sales. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Kirby Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Image source: The Motley Fool. Wednesday, July 29, 2026 at 8:30 a.m. ET Vice President of Investor Relations - Matthew P. Kerin Chief Executive Officer - David W. Grzebinski President and Chief Operating Officer - Christian G. O'Neil Executive Vice President and Chief Financial Officer - Raj Kumar Operator: Good day, and thank you for standing by. Welcome to the Kirby Corporation Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Matthew P. Kerin, Vice President of Investor Relations. Please go ahead. Matthew P. Kerin: Good morning, and thank you for joining the Kirby Corporation Second Quarter 2026 Earnings Call. With me today are David Grzebinski, Kirby's Chief Executive Officer; Christian G. O'Neil, Kirby's President and Chief Operating Officer and Raj Kumar, Kirby's Executive Vice President and Chief Financial Officer. A slide presentation for today's conference call as well as the earnings release which was issued earlier today, can be found on our website. During this conference call, we may refer to certain non-GAAP or adjusted financial measures. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in our earnings press release and are also available on our website in the Investor Relations section under Financials. As a reminder, statements contained in this conference call with respect to the future are forward-looking statements. These statements reflect management's reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties, our actual results could differ materially from those anticipated as a result of various factors. A list of these risk factors can be found in Kirby's latest Form 10-K filing and in our other filings made with the SEC from time to time. I will now turn the call over to David. David W. Grzebinski: Thank you, Matthew, and good morning, everyone. Earlier today, we announced second quarter earnings per share of $1.67 up 11%, sequentially and in line with the prior year quarter. Our results reflected solid execution across both our businesses supported by constructive marine transportation fundamentals, high asset utilization, and ongoing momentum in key distribution and services end markets. In marine transportation, customer demand remained healthy. Utilization levels were strong, and inland marine pricing continued to improve. In distribution and services, results benefited from continued demand growth in Power Generation and strong marine repair activity. Overall, our businesses performed well during the quarter, supported by healthy end-market conditions. Disciplined execution, and our continued focus on operating safely and efficiently. In inland marine, market fundamentals strengthened during the quarter. Supported by strong refinery utilization, increased refined product and crude-related movements, and healthy petrochemical activity. These factors combined with limited industry capacity additions supported barge utilization in the low 90% range. We continued to see positive pricing momentum during the quarter with spot market rates improving sequentially and term contract renewals increasing year-over-year. Notably, current spot market pricing has improved from recent lows in the fourth quarter of last year and has returned to levels last seen a year ago. You will recall that in mid-2025, a sharp reduction in heavy crude imports into the Gulf Coast primarily from Venezuela, weighed on refining activity and related byproduct movements. Those conditions have since improved with Venezuelan imports now well above first-half 2025 levels. However, as previously communicated, rising fuel costs created a temporary margin headwind during the quarter. Although we expect this impact to reverse in the third quarter, as contractual recovery mechanisms take effect. Overall, the inland business delivered operating margins in the high-teens range, reflecting healthy demand, strong utilization, and improving pricing. In coastal marine, customer demand remained healthy during the quarter with barge utilization in the high 90% range. Market-specific dynamics affecting certain small capacity ATBs in the 80,000- to 100,000-barrel range resulted in low-single-digit declines in term contract renewal rates. However, overall market conditions remain favorable supported by strong refinery utilization, strong customer demand, and limited availability of large-capacity vessels. Our coastal business delivered operating margins in the low to mid-teen range, reflecting the impact of elevated shipyard activity as previously disclosed. Turning to distribution and services. Our performance reflected the strength of our positioning across a diverse set of end markets. Segment revenues increased 6% year-over-year supported by sustained growth in Power Generation and continued strength in our commercial and industrial business. Operating margins improved more than 300 basis points sequentially reflecting a favorable mix including greater activity on behind-the-meter power solutions in our Power Generation business. In Power Generation, revenues increased 8% year-over-year with demand for behind-the-meter and backup power solutions continuing to be driven by durable secular trends. While demand remains robust, the timing of OEM engine deliveries continues to govern how quickly we can fulfill orders. In commercial and industrial, revenues increased 12% year-over-year supported by healthy marine repair activity and continued growth across several end markets. In oil and gas, revenues improved sequentially from the first quarter but were still down year-over-year. As the activity remains subdued despite modest improvement in market conditions from recent lows. Overall, the segment delivered solid results across the portfolio, demonstrating the strength of the company's market positions and the momentum in several key growth areas. In summary, Kirby delivered a solid second quarter, underscoring the strength of our operating model, and the momentum we are seeing across both businesses. In marine transportation, inland performance continued to improve driven by pricing gains and healthy barge utilization. While coastal demand and utilization remained strong despite market-specific pricing pressure in certain areas of the fleet. In distribution and services, Power Generation remained a key growth driver. Commercial and industrial activity performed well. And oil and gas showed sequential improvement from recent lows. Taken together, these trends reinforce our confidence in the outlook for the remainder of the year which I will discuss in more detail later in the call. But first, I will turn it over to Raj to walk through the segment results, balance sheet, and capital allocation. Raj Kumar: Thank you, David, and good morning, everyone. In the second quarter of 2026, Marine Transportation segment revenues were $537 million and operating income was $88 million with an operating margin of 16.4%. Compared to the second quarter of 2025, total Marine transportation revenues increased $44 million or 9%, while operating income decreased $11 million or 11%. The year-over-year decline in operating income primarily reflected the temporary impact of higher fuel costs before contractual recovery mechanisms take effect, as well as elevated shipyard activity in coastal marine. Compared to the first quarter of 2026, total Marine revenues increased 8% while operating income decreased 2%. Looking at the inland business in more detail, inland contributed 80% of Marine Transportation segment revenue, with average barge utilization in the low 90% range for the quarter. Long-term contracts or those with a term of one year or longer contributed approximately 65% of inland revenues, with 57% from time charters and 43% from contracts of affreightment. Improved market conditions resulted in average spot market rates increasing in the low to mid-single-digit range sequentially while remaining down in the low-single-digit range year-over-year. Term contracts that renewed during the second quarter increased in the low-single-digit range year-over-year. Compared to the second quarter of 2025, inland revenues increased 9% while operating margins were in the high-teens range. Moving to the coastal business. Coastal represented 20% of revenues in the marine transportation segment with average barge utilization in the high 90% range above both the first quarter of 2026 and the second quarter of 2025. For the quarter, the percentage of Coastal revenue under term contracts was approximately 93% of which approximately 100% were time charters. Renewals of term contracts were down in the low-single-digit range year-over-year due to previously mentioned market dynamics in the 80,000- to 100,000-barrel ATB market. Coastal revenues increased 10% year-over-year with operating margins in the low- to mid-teens range. Coastal was impacted by elevated shipyard activity as anticipated and modestly lower year-over-year term pricing. With respect to our tank barge fleet, for both the inland and coastal businesses, we have provided a reconciliation of the changes during the second quarter as well as projections for the full-year. This is included in our earnings call presentation posted on our website. At the end of the second quarter, the inland fleet had 1,034 barges representing 25.2 million barrels of capacity, and is expected to be slightly up in 2026. Coastal Marine is expected to remain unchanged from the second quarter of 2026. Now I will review the performance of the distribution and services segment. Revenues for the second quarter of 2026 were $385 million with operating income of $38 million and an operating margin of 10%. Compared to the second quarter of 2025, Distribution and Services segment revenues increased by $23 million or 6% with operating income increasing by $3 million or 8%. This growth was primarily driven by continued strength in the Power Generation business and higher marine repair activity. Compared to the first quarter of 2026, revenues increased by $39 million or 11% and operating income increased by $15 million or 63% reflecting improved activity levels, favorable mix, and stronger performance across several end markets. Moving through the segment in more detail, in Power Generation, we continue to see meaningful order activity for the behind-the-meter and backup power solutions for data centers and other industrial applications. This has supported continued growth in backlog. However, OEM engine availability continues to influence the pace at which demand converts to revenue. Overall, Power Generation revenues increased 8% year-over-year, with operating margins in the high-single-digit range. Power Generation represents approximately 40% of total segment revenues. In Commercial and Industrial, strong marine repair activity contributed to a 12% year-over-year increase in revenues and an 11% increase in operating income. The business represented approximately 50% of segment revenues and generated operating margins in the low-double-digit range. In oil and gas, activity improved sequentially during the quarter, driven by better demand for parts and services. Revenues increased 20% sequentially, and operating income increased 67% sequentially although results remain below prior year levels, despite the modest improvement we have seen in market conditions from recent lows. Oil and gas represented approximately 10% of segment revenues and generated operating margin in the mid- to high-single-digit range. Now I will move on to the balance sheet. As of quarter end, we had $39 million of cash on hand, and total debt of $1.04 billion with a debt-to-capitalization ratio of 23.1%. We ended the second quarter with $566 million of available liquidity. During the quarter, net cash provided by operating activities was $72.2 million and capital expenditures were $71.5 million. The second quarter included elevated working capital requirements, primarily associated with stronger business activity and the timing of collections, as well as higher fuel rebills in our marine business. We expect these working capital requirements to normalize during the second half supporting a meaningful improvement in free cash flow. With respect to capital expenditures, we continue to expect full-year capital spending to range between $220 million to $260 million. Approximately $170 to $210 million is associated with marine maintenance capital including improvements to existing inland and coastal marine equipment and facilities. Approximately $65 million is associated with growth capital spending across both businesses. For the full-year, we remain on track to generate cash flow from operations of $575 million to $675 million. Our capital allocation strategy remains focused on maximizing long-term shareholder value balancing disciplined investment in our businesses with consistent return of capital to shareholders. In the second quarter of 2026, we returned $59.7 million to shareholders through share repurchases at an average price of $142 and we have repurchased approximately $25 million to $29 million of additional shares quarter-to-date in the third quarter at an average price of $140. These repurchases reflect our confidence in the long-term earnings power of the business and our view that at recent levels, share repurchases represent an attractive use of free cash flow. At the same time, we continue to evaluate disciplined acquisition opportunities within our core businesses. Particularly in marine, where we see the potential to enhance our service capabilities, drive fleet efficiency and generate attractive long-term returns. Taken together, our balanced approach allows us to invest in high-return opportunities across our portfolio, while consistently returning capital to shareholders. With that, I will now turn the call back to David to discuss our outlook for the second half of the year. David W. Grzebinski: Thank you, Raj. As we look at the balance of the year, we remain encouraged by the direction of the business. Across our portfolio, we are seeing the continuation of many of the same tailwinds that supported our second quarter results, including healthy demand, solid asset utilization, and continued inland pricing improvement. While the broader operating environment remains dynamic, we believe our market-leading businesses and disciplined operating approach position us well for the second half of 2026. As a result, we have reaffirmed our full-year earnings per share growth guidance of 5% to 15%, and currently expect results to trend toward the upper end of that range. Our confidence is supported by continued inland pricing momentum, the expected recovery of fuel cost timing impacts, healthy utilization across marine transportation, and improving second-half conversion of Power Generation backlog as OEM engine availability improves. In inland marine, we continue to see a favorable operating environment. Demand from refining and petrochemical customers remains healthy, supported by strong refinery utilization and steady petrochemical activity, while barge availability across the industry remains relatively tight and pricing momentum continues to build. With spot pricing continuing to lead term pricing, we believe the setup remains constructive as additional contracts renew through the balance of the year, particularly during the seasonally heavy fourth quarter renewal period. Together, these factors give us confidence in our outlook for the inland business. Overall, inland revenues are expected to grow in the high-teens to 20% range for the full-year, although the fuel-related headwind in the second quarter may make the upper end of that range difficult to achieve. In coastal marine, underlying market conditions remain supportive with healthy customer demand and strong barge utilization. Overall, revenues are expected to increase in the mid-single-digit range for the full-year with operating margin in the mid to high-teens range, reflecting the impact of lower margins in the second quarter due to elevated shipyard activity and the market-specific pricing dynamics for the 80,000- to 100,000-barrel portion of our fleet. In distribution and services, growth in Power Generation and strong marine repair activity are expected to continue driving segment results. In Power Generation, customer demand remains exceptionally strong particularly for behind-the-meter power solutions serving data centers and other industrial applications. While OEM engine availability continues to affect the timing of customer deliveries, our backlog and customer conversations continue to support a strong multiyear outlook. Importantly, growth in behind-the-meter power applications also creates longer-term service and parts opportunities as our growing installed base begins to operate at higher utilization levels. Within commercial and industrial, marine repair demand is expected to remain healthy while on-highway activity remains constrained. In oil and gas, activity is expected to remain subdued but has modestly improved from recent lows. Overall, we expect segment revenues to increase in the mid-single-digit range for the full-year with operating margins in the mid- to high-single-digit range. To conclude, we delivered solid second quarter results and remain well positioned for the second half of the year. Marine transportation fundamentals remain favorable, supported by healthy demand, strong utilization, and improving inland pricing. In distribution and services, Power Generation continues to be a key growth driver, while commercial and industrial activity remains healthy. Supported by our market-leading positions, enhanced service capabilities, fleet efficiency, and disciplined operating approach, we remain confident in our outlook and our ability to deliver toward the upper end of our full-year earnings per share growth guidance. Operator, this concludes our prepared remarks. Christian, Raj, and I are now ready to take questions. Operator: Thank you. As a reminder, to ask a question, please press star one. To withdraw your question, please press star one again. And our first question comes from John Chappell of Evercore ISI. Your line is open. Jonathan Chappell: Thank you. Good morning. Hey, good morning, gentlemen. David, last quarter, you spoke to the potential from inland margins to exceed the last peak. Given what has been happening with the rate of change on both term and spot, what you are seeing from a demand perspective and also from a capacity add perspective, would you say that still holds? And if so, can you kind of help with your path on timing? Is that kind of a 12- to 18-month return to those types of levels, or is it more of a prolonged kind of steady, move higher? David W. Grzebinski: Yeah. It is the latter, John. Right now, you know, the supply and demand are in balance and tight. Nobody's really building any equipment. We are pursuing and getting slow, steady increases. You heard low to mid-single-digit increases. It is going to take a while to get up to the past peak in margins, which was about 28%. I absolutely believe we will get there. It is slow and steady. As you heard in our prepared remarks, we are setting up for a good, you know, fourth quarter renewal season. And that will bode well for 2027. And we just see that continuing. You will recall we had the maintenance bubble, that rolled off last year. Well, that maintenance bubble's gonna start again in late 2027 and 2028. So I think we are set up for a multiyear, slow march up. Yeah. I would say this. Newbuild economics are still 40% away. So nobody's really or should be building equipment, at these prices. So it should be a good, long five-year march up. Yeah. I do not know exactly when we will hit peak margins, but, it is set up for a good long run. Jonathan Chappell: Awesome. That is great. Hate to ask about this, but have to. The Jones Act waiver, have you seen any impact either in coastal, I would imagine more in coastal than inland, from the waivers. And I guess maybe more importantly, from some of your contacts in DC, do you have a sense for if the waivers will continue to be extended? Obviously, the war headlines kind of change from day to day, but, just any sense as we approach mid-August with the potential for another waiver extension. Anything you are hearing on that? David W. Grzebinski: Sure. You know, There has been no impact at all in the inland side, just a tiny bit on the coastwise side. You know, for us, we are pretty termed up. And we do not even have much exposure. Christian can chime in on that. But some of the industry participants have seen it. The waiver, you know, there has probably been 150 non-Jones Act moves, maybe a little more. I you know, the vast majority, 85%-plus of those have been really nothing to do with national security or homeland resilience. It is really just been traders making profits. And, so we do not think the waiver makes sense. We understand what the administration's trying to do, which is trying to help the consumer. But, frankly, the Jones Act really does not add much cost at all, maybe a penny a gallon. So, it is not achieving what I think the waiver was intended, which was to help, prices at the pump. It is a blanket waiver. That is what we do not like. I mean, we support the administration. But we think it should be a specific waiver. You know? In other words, if Jones Act equipment's not available, then sure. Use non-Jones Act equipment. We certainly do not want to stand in the way of supporting the administration's goals. The, you know, the waiver was extended, another 90 days to August 16, I think, is the last day of the waiver. Obviously, with the conflict in the Middle East and the Strait of Hormuz, the administration's considering extending the waiver. You know, we are hopeful that if they do extend it, it will be a specific waiver. You could even see it being as specific as Gulf Coast to the West Coast. Because the West Coast is where there may be a problem if there is a problem. So we will see. You know, the administration has not done anything yet. I know they are contemplating it. Our view is it-- you know, we would prefer if they do it, it should be a specific waiver, not a blanket waiver. You know, we have not really seen a big impact for Kirby. You know, we have heard of a couple participants losing some contracts because of non-Jones Act equipment. You know, so far, it is benign. I do not know, Christian, if you want to tell them about our exposure? No. Christian G. O'Neil: I think, secularly, Kirby's really been unaffected. You know, maybe some barrels on the edges, particularly in the offshore space. We are fully utilized at Kirby Offshore Marine. And David hit it on the head. There has been, you know, perhaps some ripples for some other competitors that are more exposed to the spot market. We have been in a good spot. We remain in a good spot. In our utility and our contract portfolio. However, the waiver does need to go away. If not alone for the benefit of the hardworking American mariner, the hardworking workforce that supports the American mariners. What is going on here is just while we understand the intentions in supporting the war effort, the effect of it is I do not think, as advertised. And it is time for the waiver to end. David and I have the pleasure of meeting with 50-plus captains here in the next day or so. And we gotta look them in the face and explain this and explain why the administration's made this decision. It is just very difficult on the workforce. We are out there recruiting and retaining. And trying to motivate mariners, and they see their jobs being taken by foreign mariners. It is just not fair. So time for it to end. I got a little political there. Sorry. But from a supply-demand perspective, we have not really felt it, but I think there are some competitors who have felt some pressure. David W. Grzebinski: Yep. Makes sense. Thanks, Christian. Thanks, David. Jonathan Chappell: Yeah. Thanks, John. Operator: Thank you. And our next question comes from Benjamin Mohr of Citi. Your line is open. Benjamin Mohr Mok: Hi, good morning, David, Christian, Raj and Matthew. Congrats on the beat and raise. Thanks for taking the questions. I wanted to see if we could discern the drivers behind your raise towards the upper end. Can you maybe talk to rank and maybe kind of the Impact On Your Rates On The Marine Side From The Venezuela heavy crude imports perhaps stepping up further Calcasieu Lock, maybe a higher impact than maybe what you thought before. Crack spread widening, maybe sustained longer even after an eventual, end the Iran war. And then petrochem's exports with you being a part of the inland supply chain? And then on the D&S side, any impact from trucking capacity exits driving, trucking spot rates? David W. Grzebinski: Yeah. Well, hey. Good morning, Ben. Let me start with marine and go to D&S, and Christian can chime in here with some more specifics as well. Look, we are comfortable with the high end of the range. We did not bring up the low end because just the geopolitical dynamics out there could give us a curveball that we have not anticipated. But we feel very positive as we enter the second half, and many of the things you mentioned are the reasons. You know, Venezuelan crude is up over 600,000 barrels a day. From lows of, you know, 200,000. Calcasieu Lock is coming into play, and Christian can give you some color on that. Crack spreads are pretty much at a record even our petrochemical customers are doing a little better. So you know, we are seeing good, solid demand, in the inland space in particular. And you know, given that, we are capacity-wise and nobody's really adding new capacity, you know, rates are going up. And they are slow and steady. These are not big double-digit raises. These are, low to mid-single-digit, which is what we are comfortable with. We are happy at those kind of price increases. They offset inflation a little bit. You know, when inflation has been real, by the way. But you hit on most of it. That is giving us a very solid backdrop in the inland side. It gives us a lot of comfort as we head into the second half. And, you know, that is a very important fourth quarter renewal period where about 40% of our term contracts renew, is setting up nice, and that you know, that sets up for 2027. You know, D&S is very similar. We are seeing really healthy demand for behind-the-meter power systems, and we like that. Obviously, we are still getting standby diesel for backup, but the behind-the-meter has been the bulk of our inbound, and that we like because behind-the-meter is gonna run 24/7 to generate power. There is going to be a very nice service component that starts to kick in a few years once that equipment has seen a lot of, duty cycles. So we are excited that Power Gen is obviously a big part of why we are comfortable in the second half. But in commercial and industrial, you know, on-highway, I would say the trucking sector has bottomed finally, and we are starting to see a little sign of life there. Marine repair has been very solid. So, you know, a lot of things are going right now, and we feel really good about it. I do not know, Christian, if you want to dive into a little more detail about some of the crack spreads and Venezuela. Christian G. O'Neil: Yeah, Benjamin. When I think about the four items you just referenced, I think about why PADD 3 refining and chemical manufacturing wins globally every quarter. Crack spreads, pet chem improving, Venezuelan crude imports, and the Calcasieu Lock. All of those things baked together to represent why PADD 3 and why servicing PADD 3 is a marine transportation vendor is important and profitable and has a lot of momentum right now. Crack spreads, want to say they touched $16.09 a barrel, an all-time record high last week. The Calcasieu Lock that you referenced, work continues on Calcasieu. It should wrap up September 18. Calcasieu Lock closes every day from 7:00 a.m. to 7:00 p.m. It creates a small traffic jam on the intercoastal waterway where there is a lot of traffic. Between Texas and Louisiana. Right now, they are working inside the gate. When they work inside the gate, it is a bit more disruptive. You have to have an assist boat to get through the lock. And so we will see that increase here, but it will wrap up, you know, hopefully, in September. You know, we are always battling something whether it is weather, locks, ice, or storms. You know? So those types of delays are kind of par for the course in the industry. But, Calcasieu is an issue today. But, yeah, I think you hit all those tailwinds well, and I think it is just all part of being blessed to work in PADD 3 like we do every day. Benjamin Mohr Mok: Thanks so much for the great insights there. What is assumed for your buyback and other income as part of your guide. David W. Grzebinski: Yeah. Well, you have seen we have continued to buy back our stock. We were fairly aggressive, in the second quarter. We like the stock price where it is at, and we are happy to continue to buy it. You know, you have heard Raj, talk that we like using our free cash flow to buy back stock when we do not have acquisitions. You know, we are always looking for acquisitions, particularly in our core businesses. But in the absence of those, we are very happy to use our free cash flow. I would say this, you know, free cash flow was a little lower, in the second quarter than we expect. We still think our full-year, guidance on free cash flow is going to be there. What has happened is that we have had a lot of working capital build, principally around receivables because business has been good. Big portion of that is related to Power Gen receivables and then we also have a lot of fuel rebills that have built up in the receivables. So, you know, as that working capital frees up, we will have more free cash flow and you know, we are happy to buy back our stock with our free cash flow. So now that said, again, we always prefer to do an acquisition or to buy assets, and we will take those as they come. They are hard to predict. In the absence of those, we are very excited to buy back shares. You know, in terms of our guidance, we really you know, do not include the benefits of the share buyback. But as you know, it is an average for the year, so as you get into the second half, it matters less in terms of this year's earnings, but certainly matters for next year's earnings. Benjamin Mohr Mok: Appreciate that. Last one from me. You have noted the supply side is still very favorable with very low newbuilds. A concern is that it could increase eventually with the strong market you mentioned that maybe roughly five years of continued spot rate increases. What is the range of your age of fleet, if you could share that currently, versus kind of, you know, historical average? And then at what age do you typically currently retire your fleet? David W. Grzebinski: Yeah. Yeah. There are two ways to look at this, both the barge and the boat side. You know, our average barge age is maybe 18 years old somewhere in that ZIP code. You know, we have 1,100 of them. So that is on the inland side. They typically can run until about age 30. You can stretch it to 35, but it starts to make less sense from a maintenance, upkeep standpoint. So we are quite comfortable with the age of our fleet. And then you have the towboat side, which is also important. The towboats can go 35 years roughly speaking. You know, the average age of our towboat fleet has come down a lot. From our purchases over the last three to five years. So we are very comfortable with the age of our fleet. I would say, you know, from an industry standpoint, as I have mentioned before, pricing has to be 40% higher to justify new capital deployment. We are not seeing-- Christian could share the actual number we think is in the shipyards, but it does not make sense to build right now. I think we need those price increases for a number of years to get there. And Christian can comment on the shipyard capacity as well. Christian G. O'Neil: Yeah. You know, we think it is an inexact science, but we think we have line of sight of about 60 barges getting built this year. That represents pretty much replacement capacity for us and our competitors that are retiring equipment. Construction remains very much in balance with current capacity. David nailed it. The economics simply do not work. To build a two-barge tow, a new boat, two new barges, you are still 40% below where you need to be to earn an adequate return. Also, shipyard capacity is somewhat reduced from the pre-COVID era when you saw a lot of construction. It is just expensive labor in the shipyard, and the price of steel itself remains highly elevated. You know, a lot of these inflationary pressures that weigh on our transportation business labor, paint, steel, electronics, those remain very high. And so we still face some pretty tough inflationary pressures. And so the rates still have a way to go, I mean, 40% more before you really get to the economics that would justify it, a newbuild cycle in earnest. Benjamin Mohr Mok: Wonderful. Appreciate the time and insights always. Operator: Thanks. Thank you. And our next question comes from Bascome Majors of Stephens. Your line is open. Bascome Majors: Yep. Thanks for taking my questions. David, I know There is not much that you can say in specificity, but I was wondering if you could walk us through your thoughts on you know, the high level value creation for yourselves and shareholders. From, from the D and S segment, including Power Generation? Like, you know, what is the long-term thought process on, you know, capitalizable earnings when you get to the point where the aftermarket's really started to flow through. In that business versus and how do you balance that nearer term versus the ability to or interest in something that is growing really heavily, along with any know, cash flow or tax leakage considerations on that side? Thank you. David W. Grzebinski: Yeah. Tough question, but good question to ask them. I appreciate it. Look, we always look at our portfolio and our capital deployment. Look over the years, you have seen Kirby do a lot of acquisitions in the marine side, probably in the last I think Christian and I have worked on 25 marine acquisitions in the last 10, 15 years and probably a dozen D&S acquisitions. We are always looking to add, but, look, we have got 2 very different businesses here. So at the board level, we talk about, you know, what makes sense. I would say what drives us and the board is shareholder value. If there is a way to increase shareholder value, we are gonna do it. We are gonna look at it. That said, we are very happy with our portfolio. You know, the marine business is rock solid. The Power Gen business just continues to surprise to the upside from our expectations. I think you hit on it. There is gonna be a massive service annuity that is gonna emerge from this installed base. I think you have heard us talk about our Power Gen installed base doubling in the next 18 months. That is absolutely gonna happen when we look at our backlog and our deliveries. You know, I will use this opportunity to update our backlog. I think that I said on the last call, we were between $500 million to $1 billion, and then I will update it when we go through the top end and we have. So, you know, our new backlog guidance is a $1 billion to $1.5 billion. And the good news is most of the inbound has been behind-the-meter power. Which is what we like. David W. Grzebinski: You know, if you think about the engine business, standby diesel, they are not really running. They are sitting at data centers waiting for a blip in the power, and they do not run a lot. There is still service related to them. But it is not as real. As much service as you get with natural gas recips that are running 24/7 to provide prime power. You know, though those engines will run. They will have a lot of what we call balance of plant equipment around them, which would be things like cooling systems, after-treatment systems, sound attenuation systems. And they are all gonna get duty cycles. So, you know, in about four years, maybe five years, all those engines that we are putting out, in the behind-the-meter space will need some service. You know, we are working hard, and you know, I think Christian's got a project he should tell you about right now. Christian G. O'Neil: You know, when you look at the opportunity in the aftermarket, our data center and our power service customers are looking for turnkey solutions for uptime. Downtime is the absolute enemy. Chad, Jost, and his team are putting together an enhancement, an operation called Kirby Integrated Power Systems, I am very excited to announce on this call. We will be going after that aftermarket. We believe that the CapEx cycle is amazing. We are enjoying it now, but we think we can generate value exceeding the original product value in the aftermarket and the out years. And so you look at the urgency of data centers, the uptime required for data centers there is an outstanding service opportunity here. We do this every day. We are just enhancing it with some talented techs and a focused management team. You know, the job site for these techs will be the data center and we are gonna go after that aftermarket opportunity that you referenced on a high-level value-creation through the cycle. And so this is just one little piece of it that we are highly focused on. Bascome Majors: Thank you both. Thank you. Operator: And our next question comes from Scott Group of Wolfe Research. Your line is open. Scott Group: So a couple of things on pricing I wanted to ask. Where are we on spot relative to contract in inland right now? When do you think we start? Do you think we can accelerate out of this low-single-digit contract range? And then, I guess, I understood you had the Jones Act question earlier. All the stuff that you are talking about in terms of the Q2 issue with coastal pricing down, is this related to this Jones Act waiver, or is this a separate issue? I just want to understand exactly What is going on in Coastal right now. Christian G. O'Neil: Yeah. Let me take your Coastal question right now. I think we spoiled everybody with four years of continuous rate increases at coastal. Let me frame this up. So what we talked about in the announcement is just the normal ebb and flow of negotiation. We had a couple of units trade off their all-time highs. This is what happens. Fundamentally, the fleet remains in a great spot. We are fully utilized. This is not a Jones Act associated issue on price pressure. This was just normal ebb and flow negotiation. And a slight tick down from all-time highs ever earned while we have owned these 10% to 15% above term contracts right now. David W. Grzebinski: We like that. That is the way to hand into the contract-heavy renewal in the second half. You know, we are very constructive around that. You know, I hear you about double-digit increases instead of single-digit increases. You know, we are all for increases, but, you know, slow and steady, kind of wins the race. We have very sophisticated customers. They know, you know, what kind of inflation hedge we have, and they know the supply-and-demand market. And so we like the slow and steady, because it is, you know, it is easier to achieve. That does not mean we are not trying to push for higher price increases. It is just, you know, the market is the market, but we are not unhappy with slow and steady. Scott Group: Yeah. And just follow-up on Coastal. So what percentage of the market is this 80,000- to 100,000-barrel market and is this-- I do not know, is this your view? Is this a temporary? We had a couple things that sort of renewed down slightly. And this is sort of a blip, or is this sort of like it is coastal getting to a peak around this 20% margin, which we have really never been at before. So maybe we are peaking. I do not know. I am curious your thoughts. Christian G. O'Neil: No. You know, I think when you break down the offshore fleet, you have different sizes, different classes. You have a class of equipment that is 150,000 to 180,000. And we compete against MR tankers that are 330,000. All of those rate renewals this year have increased. We called out a very small subsection here, 20% to 25% of the market-ish. That is the 80,000s and 100,000s. These trade in refined products many of them in the Northeast, it is a very competitive part of the world. There has been some supply dynamics changing with European imports that get moved around in the New York Harbor and up on the Northeast. That impacted these particular trade lanes and these particular deals. So you know, I would not read too much into these two renewals that we are talking about as far as the whole fleet. The rest of the fleet did enjoy rate increases year-to-date. David W. Grzebinski: Yeah. And when we give the rate increases, it is an average. Remember, it is an average. It is a simple average, not a weighted average. You know, we actually did have a couple eighties that renewed higher. But, you know, the simple average brought the 80,000s and 100,000s down a little bit. So I think it is a temporary thing. Nobody's building capacity in the offshore side. Even if they started now, it would be 3 years before any capacity is delivered. So we are still very constructive about the long-term for Coastal. Yeah. We do not like price declines, but this is kind of, as Christian described it, the, you know, the ebb and flow of renewals after four years of up-renewals. Scott Group: Okay. And if I can just ask Raj one quick one. You know, some years, we get the full-year guide. In some years, Q3 is higher than Q4. Some years, Q4 is higher than Q3. Any just, like, thoughts on, like, the cadence of the back half of the year? Raj Kumar: Yeah. You know, Scott, I probably do not want to get into the, you know, the quarterly flows here. Just, you know, what I am gonna say is the second half is looking really strong. Right? With everything that is happening right now and the comments that David and Christian made, I mean, pricing should continue to go up. The supply dynamics are very favorable. You know, if I could give you some color, I will say Q3 is probably better than Q4. But, overall, very excited as to what we are seeing in the second half of the year. Scott Group: Thank you, guys. Appreciate the time. David W. Grzebinski: Thanks. Thanks, Scott. Operator: Thank you. And our next question comes from Gregory Lewis of BTIG. Your line is open. Gregory Lewis: Morning. Christian, hey. I was hoping you could talk a little bit about the impact in the higher diesel prices and the fuel pass-throughs. I mean, I guess, just looking at diesel prices, I guess they ripped, like, 30%, like, March and April. Just kind of curious, how should we be thinking about just if we are going to be in a more volatile oil price market given I guess, you know, who knows? But, like, how should we think about the time lag of that and just, you know, as we think about where we are now, I mean, I guess, you know, just looking, is the New York diesel price a good proxy to be looking at? You know, just as we try to understand this. And then, you know, I do not know how much color you can provide, but kind of curious how much of a headwind that you know, the higher fuel prices was the Q2 numbers. David W. Grzebinski: Yeah. Gregory, it is we, you know, we did talk a little bit about it in the second quarter call. I think we said $0.05 to $0.10. Yeah. Headwind to second quarter, and that and that is about what it was, probably on the higher end of that. That we will catch all that up in the third quarter or the fourth quarter, most of it in the third quarter. Yeah. We work really hard to make fuel a pass-through. We do not want to make money on fuel. We do not want to lose money on fuel. You know, our customers by and large are they trade in fuel. They are best able to absorb fluctuations in fuel. So we work really hard with them on our contract escalation and deescalation clauses to make sure we come in neutral. There is a lag. You know, some of them reset 30 days, some 60, some 90, and we have a one or two that are longer than 90, which we should probably look at. But, we can get pencil whipped. You know, we buy it, and then there is a lag to get reimbursed for it. But by and large, we think we will come out neutral on fuel this year. Third quarter is gonna be a good third quarter. And part of that is the fuel coming back in and collecting that. I would not use New York fuel prices, though. Gulf Coast prices are a better proxy because that is where we buy the bulk of our fuel, and you know, it has been pretty sporty, as you said. We will see what happens with the war and where fuel prices go. But we work, you know,, just to keep reiterating it, we work hard to be neutral and we do not want to make money on fuel. We do not want to lose money on fuel. And you know, in our history, we have actually gone back to customers and said, hey. We need to adjust the fuel cost because we made a little money in fuel. So they get it. They work with us. And we try and stay neutral. That is a long-winded answer to say that, we are pretty neutral. Gregory Lewis: Sounds . Alright. Thanks for the time. David W. Grzebinski: Thanks, Gregory. Operator: Thank you. And our next question comes from Ken Hoexter of Bank of America. Your line is open. Ken Hoexter: Good morning. So kind of a big change of tone, I guess, in two directions on the call. Right? So the outlook seems to jump to the top this quarter, but it sounds like you are now talking about five years to get to peak at inland versus, you know, I think what was expected to be maybe a faster move given the tight supply-demand. Why do you think the changing thought process here just given from quarter to quarter? It seems like this may be a longer lead time to get to those peaks. David W. Grzebinski: Maybe some conservatism, but also the realization of what we saw last year, Ken. I mean, you saw us lose a little pricing even though we were, you know, in a supply-demand kind of balance situation. We got a little more conservative, because last year was a bit of a surprise to us. And really what drove it was you know, the lack of heavy crude into the Gulf Coast refineries, and it just hit us. And you know, spot pricing was down in the second half of last year. We got a little more conservative here. You know, could it go faster? For sure. We would certainly be in favor of that. But slow and steady is also okay with us. It is a funny way to look at slow and steady for us, you know, free cash flow just continues to come in, and we use it to buy back stock. So slow and steady feels pretty good to us. We do get, you know, the urgency to try and get margins up. But, I would tell you the change in tone is really driven by what we saw last year, and we do not think that will repeat, but you never know, particularly given the, global, you know, political and crude market dynamics right now. They are just I do not want to say unpredictable, but certainly can get a curveball thrown here or there. Yeah. I know there is a management team across the nation that does not struggle with some of the geopolitical and administrative challenges. Yeah. There is just more volatility. Ken, when you try to get the crystal ball out. But I mean, fundamentally, things are very, very good in all the businesses, as you know. And we are still fighting inflation. I mean, that, you know, that continues to be an issue. We keep pushing price, but you are still fighting inflation. Ken Hoexter: Yeah. So what is leading to the improving outlook? Right? If we are I am hearing things are at peak at coastal and maybe rolling a bit, margin pressure inland, got the fuel contracts are going slower than expected. You know, this issue with the 80,000- to 100,000-barrel on the coastwise water. Right? In terms of seeing some of the all-time peaks going down. So where is the upside in confidence? And by the way, Power Gen seems to be a big deceleration in growth this quarter, right, from 45% to single digits. So what is giving you the confidence that the top of your target given all that commentary? David W. Grzebinski: Well, let me take each one of those, and Christian and I will tag team this. But certainly do not believe we are at peak on margins on coastal. Gosh. I fully expect coastal margins to get north of 20% in the next couple of years. There is no equipment being built. It is a very tight market. There is some noise around the 80s and the 100s. The 80,000s and 100,000s are probably the most commodity kind of area in coastal that is the one that has the most noise in it. But certainly believe, strongly that coastal margins are gonna continue marching up. You know, look at it from a year-over-year standpoint, and I fully expect coastal margins to go up next year. You know, inland, is not decelerating. We, you know, we got through the second half of last year. There was a little headwind there. If anything, I think inland's improving. Certainly the war helps a bit, but it is it is, It is really more a supply-demand picture, and I do not see that changing. In the near term or-- and I only see it improving in the longer-term. Power Gen is-- look, I mean, the backlog grew a lot. You know, we have gotta ship to produce the revenue, and we will. You will notice margins improved. We are working on margins. We are constrained by engine deliveries, but I would tell you that the inbound is the key. That inbound continues to grow, and It is the right inbound. It is the behind-the-meter stuff that is gonna have a service deal. So yeah, we are not, we are not dour at all. We are quite the opposite. We are very excited about what is in front of us. Thanks, Ken. Ken Hoexter: Thanks, Ken. Operator: Thank you. And our next question comes from Gregory Wasikowski of Webber Research. Your line is open. Gregory Wasikowski: Hey, guys. Good morning. How are you doing? Good morning. Just a higher-level one on inland. I am just curious your overall thoughts on efficiency gains in the market over the years. Just from an asset performance perspective, overall technology, AI, whatever it is. I am just curious. Do you think that has had a material impact on, like, the net demand or impacted the rate of improvement that we have seen in spot and term markets and maybe this is a contributing factor to Ken's question on the dichotomy between the you know, sentiment improving, but the slope seems to be flattening. And maybe that is not a bad thing as you have outlined in the past. David, but I am just curious in your overall thoughts there. Christian G. O'Neil: While we do see every customer you know, trying to gain efficiency, using AI in various ways. One of the wonderful things about the Kirby value proposition is we bring that efficiency every day with our scale, with the diversity of the bottoms of our barges, with our line-haul network, with our ability not to dedicate as much horsepower as our competitors. And so we deliver this efficiency and this value proposition every day. It is a big part of what we do, our geographic footprint, and just the depth of our relationships and the range of cargoes we are capable of moving. So you know, you might think there is always optimization when you are running a refinery or a chemical plant. You know, you are always optimizing. You are always messing with the inputs, looking at the right crude oil to run. And barging is an essential part of sort of balancing the refineries and servicing the chemical plant. So I think, you know, in my opinion, we have not seen any major reduction in you know, the need for barges because we already are really, really highly efficient at Kirby. That is the value proposition that we deliver every day. And then when you get to the sort of the technology side, you know, fuel, Tier 4 engines, are a little more fuel efficient than their ancestors. You see some efficiencies like that and in technology. You know, electronics are better, safer. The industry as a whole is safer. You know, there are some gains like that when it comes to technology. Gregory Wasikowski: And then another one, just going back to the maintenance schedule that you guys brought up a little bit. Can you give your thoughts on the other end of that, the redelivery schedule? I know we are getting out into, like, the 2030s here, so it is a bit of crystal ball. But I think just this past redelivery cycle seemed to impact the market. A little bit more than we were expecting at least, and maybe that is just because it was combined with other factors. But with this next one coming up in a few years, it is back half of the decade, just wanted to get your thoughts on that chunk versus what we saw last year. Christian G. O'Neil: Yeah. You know, what you get into in 2027 to 2028, is barges that are five years older. And so the intensity of the work and the level of the U.S. Coast Guard major that you have to do is higher. And so you could see the barges will be in the shipyard for longer periods of time. They will require more steel replacement. They will require more paint. And so, you know, in theory, not knowing the subjective condition of everybody's barges that is going in, you should see a cycle where the length of the shipyard stay is increased. Meaning more available days are consumed. Yeah. Gregory Wasikowski: Okay. I appreciate that color. Alright, guys. Thanks for fitting me in. Appreciate it. Christian G. O'Neil: Thanks, Gregory. You bet, Gregory. Operator: Thank you. I am showing no further questions at this time. I would like to turn it back to Matthew P. Kerin for closing remarks. Matthew P. Kerin: Thank you, David, and everyone on the call for participating in our call today. If you have any additional questions or comments, please feel free to contact me. Thank you, and have a good day. Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect. Before you buy stock in Kirby, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kirby wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $390,394!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,209,184!* Now, it’s worth noting Stock Advisor’s total average return is 899% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of July 29, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Kirby (KEX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Inland marine performance strengthened due to high refinery utilization and a recovery in Venezuelan heavy crude imports, which are now well above first-half 2025 levels. Marine transportation margins faced a temporary headwind from rising fuel costs, though management expects this to reverse in Q3 as contractual recovery mechanisms take effect. Coastal marine barge utilization remained strong in the high 90% range., despite low-single-digit pricing declines in the 80,000- to 100,000-barrel ATB market due to specific regional competitive dynamics. Distribution and Services (D&S) growth was propelled by behind-the-meter power solutions for data centers, which offer higher utilization and better long-term service potential than standby units. Operating margins in D&S improved by over 300 basis points sequentially, benefiting from a favorable product mix and increased activity in behind-the-meter power applications. The inland barge market remains tight with utilization in the low 90% range, supported by limited industry-wide capacity additions and newbuild economics that remain 40% away from justifying capital deployment. Management reaffirmed full-year EPS growth guidance of 5% to 15%, with expectations now trending toward the upper end of that range. Inland revenue is projected to grow in the high-teens to 20% range for the full year, though the Q2 fuel headwind may make the absolute upper end difficult to achieve. Power Generation backlog has expanded to a range of $1 billion to $1.5 billion, with revenue conversion dependent on the pace of OEM engine deliveries. A new initiative, Kirby Integrated Power Systems, was launched to capture the high-margin aftermarket service opportunity created by the rapidly growing installed base of data center power units. Free cash flow is expected to improve significantly in the second half of 2026 as working capital requirements for receivables and fuel rebills normalize. The Jones Act blanket waiver remains a point of concern; while Kirby's impact has been 'benign' due to term contracts, management argues it unfairly benefits foreign mariners without lowering consumer costs. Elevated shipyard activity in the coastal business acted as a margin drag in Q2, though this was anticipated as part of the scheduled maintenance cycle. A 'maintenance bubble' for the inland fleet is projected to begin in late 2027 and 2028, which may increase shipyard stay duration as vessels require more intensive steel and paint work. Oil and gas segment revenues remain below prior-year levels despite a 20% sequential improvement, as overall market activity in that sector remains subdued. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management anticipates a 'slow, steady march' back to peak margins of approximately 28%, rather than a rapid spike. The recovery is supported by the fact that newbuild economics are still 40% below the levels needed to justify industry-wide capacity expansion. Kirby has seen no impact on the inland side and only 'benign' effects on coastal due to being heavily termed up. Management expressed strong opposition to 'blanket' waivers, suggesting any future waivers should be specific to regions like the West Coast where supply issues actually exist. The Power Generation installed base is expected to double in the next 18 months based on current backlog. Behind-the-meter natural gas units run 24/7, creating a massive service annuity that management expects to yield significant value 4-5 years after installation. The $0.05 to $0.10 EPS headwind from fuel in Q2 is expected to be largely recovered in Q3 as price escalators kick in. Management expects Q3 performance to be seasonally stronger than Q4, though the overall second half remains robust.

This article first appeared on GuruFocus. Earnings Per Share (EPS): $1.67, up 11% sequentially. Marine Transportation Revenue: $537 million, a 9% increase year-over-year. Marine Transportation Operating Income: $88 million, with a margin of 16.4%. Inland Marine Utilization: Low 90% range. Coastal Marine Utilization: High 90% range. Distribution and Services Revenue: $385 million, a 6% increase year-over-year. Distribution and Services Operating Income: $38 million, with a margin of 10%. Power Generation Revenue Growth: 8% year-over-year. Commercial and Industrial Revenue Growth: 12% year-over-year. Oil and Gas Revenue Sequential Growth: 20% increase. Cash on Hand: $39 million. Total Debt: $1.04 billion, with a debt to capitalization ratio of 23.1%. Net Cash Provided by Operating Activities: $72.2 million. Capital Expenditures: $71.5 million for the quarter. Share Repurchases: $59.7 million returned to shareholders. Warning! GuruFocus has detected 5 Warning Sign with MIR. Is KEX fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Kirby Corp (NYSE:KEX) reported a second-quarter earnings per share of $1.67, up 11% sequentially, reflecting solid execution across its businesses. Marine Transportation segment saw strong customer demand, with inland marine pricing improving and barge utilization in the low 90% range. Distribution and Services segment revenues increased 6% year-over-year, driven by sustained growth in power generation and strong marine repair activity. The company has a strong balance sheet with $566 million of available liquidity and a debt to capitalization ratio of 23.1%. Kirby Corp (NYSE:KEX) reaffirmed its full-year earnings per share growth guidance of 5% to 15%, expecting results to trend toward the upper end of that range. Higher fuel costs created a temporary margin headwind during the quarter, impacting operating income in the Marine Transportation segment. Coastal marine segment experienced low single-digit declines in term contract renewal rates due to market-specific dynamics. OEM engine availability continues to affect the timing of customer deliveries in the power generation business. The oil and gas segment's revenues were still down year-over-year, despite modest improvement in market conditions. The company faces ongoing inflationary pressures, impacting labor, paint, steel, and electronics costs. Q: David, last quarter, you spoke to the potential for inland margins to exceed the last peak. Given the current rate changes and demand, do you still see this happening, and what is the expected timeline? A: David Grzebinski, CEO: It's a slow and steady process. Supply and demand are balanced, and no new equipment is being built. We expect a gradual increase in margins, potentially reaching past peaks over a multi-year period. The setup for a good fourth quarter renewal season bodes well for 2027. Q: Have you seen any impact from the Jones Act waiver, particularly in coastal operations? A: David Grzebinski, CEO: There's been minimal impact on the inland side and only a slight effect on the coastal side. The waiver has mostly been used for profit by traders rather than for national security. We hope any future waivers will be specific rather than blanket. Christian O'Neil, President, added that Kirby has been largely unaffected, though some competitors have felt pressure. Q: Can you discuss the drivers behind your guidance towards the upper end of the range? A: David Grzebinski, CEO: We are optimistic due to several factors, including increased Venezuelan crude imports, favorable crack spreads, and strong demand in the inland space. The power generation segment also shows strong demand, particularly for behind-the-meter power systems, which will create long-term service opportunities. Q: What is the impact of higher diesel prices and fuel pass-throughs on your operations? A: David Grzebinski, CEO: We aim to be neutral on fuel costs, with pass-through mechanisms in place. There is a lag in cost recovery, but we expect to catch up in the third quarter. We primarily buy fuel on the Gulf Coast, and while prices have been volatile, we work to ensure we neither profit nor lose from fuel price changes. Q: How do you view the long-term value creation potential of the Distribution and Services segment, particularly power generation? A: David Grzebinski, CEO: We see significant potential in the power generation segment, especially with the growing demand for behind-the-meter power solutions. This will lead to a substantial service annuity as the installed base grows. Christian O'Neil, President, announced the launch of Kirby Integrated Power Systems to capitalize on aftermarket opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Kirby (KEX) came out with quarterly earnings of $1.67 per share, missing the Zacks Consensus Estimate of $1.7 per share. This compares to earnings of $1.67 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -1.77%. A quarter ago, it was expected that this barge operator would post earnings of $1.41 per share when it actually produced earnings of $1.5, delivering a surprise of +6.38%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Kirby, which belongs to the Zacks Transportation - Shipping industry, posted revenues of $922.4 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.94%. This compares to year-ago revenues of $855.46 million. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Kirby shares have added about 32% since the beginning of the year versus the S&P 500's gain of 8.5%. While Kirby has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Kirby was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.90 on $882.9 million in revenues for the coming quarter and $7.06 on $3.44 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Shipping is currently in the top 18% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Seanergy Maritime Holdings Corp (SHIP), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30. This company is expected to post quarterly earnings of $1.07 per share in its upcoming report, which represents a year-over-year change of +494.4%. The consensus EPS estimate for the quarter has been revised 4.5% lower over the last 30 days to the current level. Seanergy Maritime Holdings Corp's revenues are expected to be $55.41 million, up 47.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kirby Corporation (KEX) : Free Stock Analysis Report Seanergy Maritime Holdings Corp (SHIP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Second quarter 2026 earnings per share of $1.67, in line with the prior year and up 11% sequentially Marine transportation revenues increased 9% year-over-year as market fundamentals strengthened, 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 Returned $59.7 million of capital to shareholders through share repurchases during the second quarter of 2026 at an average share price of $142.38, and an additional $29.0 million during the third quarter of 2026 to date at an average share price of $139.92 Expects results to trend toward the upper end of the full-year earnings per share growth guidance range of 5% - 15% based on current market conditions HOUSTON, July 29, 2026 (GLOBE NEWSWIRE) -- Kirby Corporation (“Kirby” or “the Company”) (NYSE: KEX) today announced net earnings attributable to Kirby for the second quarter ended June 30, 2026, 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, commented, "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.” “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% year-over-year. Operating margins were in the low-to-mid-teens range, primarily due to elevated shipyard activity.” “In distribution and services, results reflected strong performance across several end markets. Second quarter revenues increased 6% year-over-year, driven by strong demand for behind-the-meter and backup power generation solutions and continued growth in commercial and industrial activity. Oil and gas activity also improved compared with the first quarter of 2026. Overall, the segment delivered solid results across its portfolio, demonstrating the strength of the Company’s market positions and momentum in several key growth areas,” Mr. Grzebinski concluded. Segment Results – Marine Transportation Marine transportation revenues for the 2026 second quarter were $537.0 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% 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 coastal marine, market activity remained strong, with barge utilization in the high-90% range. Coastal marine revenues increased 10% year-over-year and operating margins were in the low-to-mid-teens range, primarily reflecting a higher number of planned shipyard days during the quarter. While overall market conditions remained favorable, term contract renewals decreased in the low-single-digit range on average compared with the prior year, reflecting increased vessel availability in the 80,000 to 100,000 barrel ATB market. Coastal marine represented approximately 20% of segment revenues in the second quarter of 2026. Segment Results – Distribution and Services Distribution and services revenues for the 2026 second quarter were $385.4 million compared with $362.9 million for the 2025 second quarter. Operating income for the 2026 second quarter was $38.2 million compared with $35.4 million for the 2025 second quarter. Operating margin was 9.9% for the 2026 second quarter compared with 9.8% for the 2025 second quarter. In the power generation market, revenues increased 8% and operating income increased 27% compared with the 2025 second quarter, reflecting continued demand for behind-the-meter and backup power solutions and solid execution despite ongoing OEM-related supply constraints. Order activity remained strong, driven by demand from data center and industrial customers. Power generation represented approximately 40% of segment revenues for the quarter, with operating margins in the high-single-digit range. In the commercial and industrial market, revenues increased 12% and operating income increased 11% compared with the 2025 second quarter, primarily reflecting strong marine repair activity and healthy demand across other industrial end markets. Commercial and industrial represented approximately 50% of segment revenues for the quarter, with operating margins in the low-double-digit range. In the oil and gas market, revenues decreased 17% and operating income decreased 45% compared with the 2025 second quarter; however, revenues and operating income increased 20% and 67%, respectively, on a sequential basis, reflecting improved demand for parts and services. Oil and gas revenues represented approximately 10% of segment revenues for the quarter, with operating margins in the mid-to-high-single-digit range. Financial Highlights For the 2026 second quarter, EBITDA (non-GAAP) was $199.7 million compared with $202.2 million for the 2025 second quarter. During the quarter, net cash provided by operating activities was $72.2 million, and capital expenditures were $71.5 million, resulting in free cash flow (non-GAAP) of $0.7 million. Working capital requirements were elevated during the quarter, primarily reflecting stronger business activity across both segments, including continued growth in power generation, timing of collections and shipments, and higher fuel-related receivables in marine transportation. In the 2026 second quarter, Kirby returned $59.7 million of capital through share repurchases at an average share price of $142.38. Additionally, the Company repurchased $29.0 million of shares during the third quarter of 2026 to date at an average share price of $139.92. As of June 30, 2026, the Company had $39.0 million of cash and cash equivalents and $565.9 million of liquidity available. Total debt was $1,037.3 million and the debt-to-capitalization ratio was 23.1%. 2026 Outlook Commenting on the outlook for the remainder of 2026, Mr. Grzebinski stated, "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, 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. In distribution and services, ongoing growth in power generation and strong marine repair activity are expected to continue driving segment results. In power generation, order momentum remains strong, supported by data center demand and the need for behind‑the‑meter and backup power solutions. While OEM engine delivery timing continues to create some variability in quarterly results, underlying customer demand remains robust. In commercial and industrial, marine repair demand is expected to remain healthy, while on‑highway activity remains constrained. In oil and gas, activity is expected to remain subdued, although market conditions have improved modestly from recent lows. Overall, the Company expects segment revenues to be up mid-single digits for the full year, with operating margins in the mid-to-high‑single‑digits. The Company 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 across both of our businesses. Conference Call A conference call is scheduled for 7:30 a.m. Central Daylight Time today, Wednesday, July 29, 2026, to discuss the 2026 second quarter performance as well as the outlook for 2026. To listen to the webcast, please visit the Investor Relations section of Kirby’s website at www.kirbycorp.com. For listeners who wish to participate in the question and answer session via telephone, please pre-register at Kirby Earnings Call Registration. All registrants will receive dial-in information and a PIN allowing them to access the live call. A slide presentation for this conference call will be posted on Kirby’s website approximately 15 minutes before the start of the webcast. 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. GAAP to Non-GAAP Financial Measures The financial and other information to be discussed in the conference call is available in this press release and in a Form 8-K filed with the Securities and Exchange Commission. This press release and the Form 8-K includes a non-GAAP financial measure, EBITDA, which Kirby defines as net earnings attributable to Kirby before interest expense, taxes on income, and depreciation and amortization. A reconciliation of EBITDA with GAAP net earnings attributable to Kirby is included in this press release. This press release also includes non-GAAP financial measures which exclude certain one-time items, including earnings before taxes on income (excluding one-time items), net earnings attributable to Kirby (excluding one-time items), and diluted earnings per share (excluding one-time items). A reconciliation of these measures with GAAP is included in this press release. Management believes the exclusion of certain one-time items from these financial measures enables it and investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Kirby’s normal operating results. This press release additionally includes a non-GAAP financial measure, free cash flow, which Kirby defines as net cash provided by operating activities less capital expenditures. A reconciliation of free cash flow with GAAP is included in this press release. Kirby uses free cash flow to assess and forecast cash flow and to provide additional disclosures on the Company’s liquidity. Free cash flow does not imply the amount of residual cash flow available for discretionary expenditures as it excludes mandatory debt service requirements and other non-discretionary expenditures. This press release also includes marine transportation performance measures, consisting of ton miles, revenue per ton mile, towboats operated and delay days. Comparable marine transportation performance measures for the 2025 year and quarters are available in the Investor Relations section of Kirby’s website, www.kirbycorp.com, under Financials. Forward-Looking Statements Statements contained in this press release with respect to the future are forward-looking statements. These statements reflect management’s reasonable judgment with respect to future events. Forward-looking statements involve risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including adverse economic conditions, industry competition and other competitive factors, adverse weather conditions such as high water, low water, tropical storms, hurricanes, tsunamis, fog and ice, tornados, marine accidents, lock delays, fuel costs, interest rates, construction of new equipment by competitors, government and environmental laws and regulations, and the timing, magnitude and number of acquisitions made by the Company. Forward-looking statements are based on currently available information and Kirby assumes no obligation to update any such statements. A list of additional risk factors can be found in Kirby’s annual report on Form 10-K for the year ended December 31, 2025 and quarterly report on Form 10-Q for the quarter ended March 31, 2026. About Kirby Corporation 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. Through the distribution and services segment, Kirby provides equipment, after-market parts and services for power generation systems in applications that include behind the meter power systems and emergency backup systems, after-market and genuine replacement parts and services for engines, transmissions, reduction gears, electric motors, drives, and controls, specialized electrical distribution and controls systems, and related equipment used in power generation, marine, on-highway, oilfield services, and other industrial applications. Kirby also rents equipment including generators, industrial compressors, high-capacity lift trucks, construction equipment, and refrigeration trailers for use in a variety of industrial markets. Kirby also manufactures and remanufactures specialized equipment, including pressure pumping units and electric fracturing systems, electric power generation equipment, and specialized electrical distribution and control equipment for data centers, oilfield service, railroad, and other industrial customers. RECONCILIATION OF FREE CASH FLOW The following is a reconciliation of GAAP net cash provided by operating activities to non-GAAP free cash flow(2): CONTACT: Contact: Matt Kerin 713-435-1077