KEX

This article first appeared on GuruFocus. - Earnings Per Share: Record Q3 EPS of $2.09, up 27% year-over-year. - Marine Transportation Revenue: $569 million, up 17% ($84 million) year-over-year and 6% sequentially. - Marine Transportation Operating Income: $112 million, up 26% ($23 million) year-over-year and 27% sequentially; operating margin of 20%. - Inland Marine Revenue: Up 21% year-over-year; contributed 81% of Marine Transportation segment revenue; operating margins in the 20% range. - Inland Barge Utilization: Low 90% range. - Inland Spot Rates: Up low to mid-single digits sequentially and mid-single digits year-over-year; term contract renewals up low single digits year-over-year. - Coastal Marine Revenue: Up 3% year-over-year; represented 19% of Marine Transportation segment revenue; operating margins in the mid-teens range. - Coastal Barge Utilization: High 90% range; one contract renewal up low double digits year-over-year. - Inland Fleet: 1,148 barges representing 25.7 million barrels of capacity; expected flat in Q4 2026. - Distribution and Services Revenue: $408 million, up 6% ($22 million) year-over-year and 6% ($23 million) sequentially. - Distribution and Services Operating Income: $48 million, up 13% ($6 million) year-over-year and 27% ($10 million) sequentially; operating margin of 12% (up 200 basis points sequentially). - Power Generation Revenue: Up 8% year-over-year; ~46% of segment revenue; operating margins in the low double digits. - Commercial and Industrial Revenue: Up 8% year-over-year with operating income up 23%; ~44% of segment revenue; operating margins in the low double digits. - Oil and Gas Revenue: Flat sequentially; operating income up 54% sequentially; ~10% of segment revenue; operating margins in the low double digits. - Operating Cash Flow: $143.5 million for the quarter. - Capital Expenditures: $69.5 million for the quarter; full-year guidance of $220 million to $260 million. - Free Cash Flow: $74 million for the quarter. - Balance Sheet: $38 million cash; total debt of $1.07 billion; debt-to-capitalization ratio of 23.7%; $530 million available liquidity. - Shareholder Returns: $112 million returned via share repurchases at an average price of $137. - Acquisition: Agreement to acquire inland marine assets for ~$115 million (9 towboats, 14 tank barges, 9 barges and the Rockport, Texas fleeting operation). - Full-Year Guidance: EPS growth narrowed to 10%15%, expected toward the upper end; operating cash flow of $575 million to $675 million. - Warning! GuruFocus has detected 4 Warning Signs with TER. - Is KEX fairly valued? Test your thesis with our free DCF calculator. Release Date: October 28, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Record Q3 EPS of $2.09, up 27% year-over-year, with strong momentum in both Marine Transportation and Distribution & Services. - Inland marine barge utilization in the low 90% range, spot rates up low-to-mid single digits sequentially, and term contract renewals increasing, with pricing momentum building into Q4. - Coastal marine utilization in the high 90% range, revenues up 3% year-over-year, and a contract renewal at low double-digit increase. - Distribution & Services segment revenues up 6% year-over-year, driven by robust power generation demand, especially behind-the-meter solutions, with operating margins improving 200 basis points sequentially. - Power generation backlog exceeds $1.5 billion with book-to-bill well above 1, and strong multiyear outlook supported by data center demand and aftermarket opportunities. - Rising fuel costs remained a near-term headwind in Q3, only partially mitigated by cost escalators and rate recovery mechanisms, with a lag in contract adjustments. - Inflationary pressures persist, including skilled labor (mariner wages) and steel costs, which are eating into margins. - Coastal marine margins were pressured by elevated shipyard activity in Q4 and market-specific pricing dynamics, with margins expected to be similar to Q2 (lower than Q3). - OEM engine availability remains constrained, limiting the rate at which power generation backlog can convert into revenue. - Working capital remained elevated during the quarter, reflecting higher revenues, timing of collections, and higher fuel-related receivables, though expected to normalize in Q4. Q: How are you thinking about inland marine pricing over the next 12 months, and how sustainable is that pricing power over the medium term? A: CEO David Grzebinski noted that Q3 spot pricing rose in the low to mid-single digits and term pricing rose in the low single digits, but momentum is building into the fourth quarter, when 35% to 40% of the term book renews. President and COO Christian O'Neil added that the spot-to-term spread is roughly 10% to 15%, near the high end, with utilization touching 95%-plus at times, refinery runs near record levels and only about 65 barges delivered industry-wide this year, mostly replacement capacity. Management expects pricing to exceed inflation and sees a constructive multiyear setup. Q: How quickly can service and parts become a more meaningful part of the Power Generation mix, and how much margin upside could that create? A: Grzebinski said roughly two-thirds of the power generation backlog is now behind-the-meter, or "bring your own power," which is higher-margin and gives Kirby the OEM right to service the balance-of-plant equipment. O'Neil said the aftermarket ramp should begin in about three to four years, describing a "new car effect," and could become a $100 million-plus business. Grzebinski added that aftermarket carries higher margins and that segment margins should improve to double digits within a year or two, though quarterly results will remain lumpy. Q: What does the Power Generation backlog look like versus prior quarters, and when should we expect backlog harvesting? A: Grzebinski said backlog has grown from $500 million to $1 billion in Q1, to $1 billion to $1.5 billion in Q2, and is now north of $1.5 billion, with book-to-bill well above 1 and inquiry levels still very high. He said demand remains robust, driven by data centers and political pressure to bring their own power, and that low natural gas prices favor Kirby's natural gas systems. Management declined to disclose backlog every quarter but said the direction remains strongly positive. Q: Can inland and coastal margins start growing again in 2027? A: Grzebinski said "absolutely." He noted that 2025 weakness set up a heavy term-renewal cycle in the fourth quarter that pressured margins, but the company is now "crawling out of that hole." Inland margins were in the 20% range in Q3, and with a strong Q4 renewal cycle, margins should improve from here. Q: Can the price/cost spread accelerate from 2026 to 2027, especially if fuel prices moderate? A: Grzebinski said Kirby should achieve real price increases over inflation. Fuel has been a headwind, with diesel above $4 a gallon and contract escalators carrying lags of up to 120 days, but that should mitigate as clauses adjust in Q4 and early 2027, assuming fuel does not rise further. He added that skilled labor, particularly mariner wages, and steel remain inflationary, but pricing should still outpace costs. Q: What percentage of the inland book reprices in Q4, and were Q3 term renewals above inflation? A: Grzebinski said Q4 typically accounts for 35% to 40% of the portfolio. Q3 renewals covered only a handful of contracts and were roughly in line with inflation, maybe slightly better. Given the spot-to-term spread and the Q4 lineup, he expects renewals to easily exceed inflation, noting that pricing remains about 40% below new-build economics, which limits industry capacity additions and supports a strong three-to-five-year backdrop. Q: What is driving the strength in chemicals, and can that optimism extend to the 10,000-barrel market? A: Grzebinski cited European chemical plant rationalization, Middle East war damage and the U.S. Gulf Coast's cheap natural gas and competitive assets, which are letting domestic producers fill the global gap. Chemical volumes are improving, though there is still room to reach peak demand. He added that 10,000-barrel barge utilization has reached near-record levels, with the fleet nearly fully deployed and new contracts won. Q: What is the update on coastal pricing dynamics for specific vessel sizes, and what is driving cost pressures? A: O'Neil said reduced European refined product imports into the Northeast have pressured rates for smaller 80,000- and 100,000-barrel barges that redistribute those barrels, while larger thermal oil and chemical units remain in high demand with good and improving rates. Grzebinski noted that Q4 margins will resemble Q2 because large, high-day-rate units will be in shipyards. Cost pressures include skilled labor, particularly mariners, and steel and other shipyard inputs. Q: Following the recent inland asset acquisition, are you seeing more opportunities from smaller operators and private fleets? A: Grzebinski said Kirby is in more active acquisition discussions than it has been in a long time but remains disciplined and will not overpay. O'Neil described the roughly $115 million deal as a modern fleet with a strategic 65-acre fleeting operation in the Corpus Christi area, plus fueling, potable water, cranage and balusters that improve efficiency on the west end. Q: How do you view the timing of tailwinds such as Venezuelan heavy crude imports, Middle East disruptions, the Calcasieu maintenance bump and chemical recovery? A: Grzebinski agreed the long tail is supportive and said it "almost feels like a super cycle." He noted that the Army Corps managed the Calcasieu lock work well, limiting industry disruption, and that a significant refinery maintenance cycle is coming in 2028. He added that the U.S. refinery complex is the most efficient in the world and is running flat out, while geopolitical disruptions in Iran and Russia-Ukraine do not appear likely to resolve soon. Q: Do you maintain the 10% to 20% longer-term Power Generation revenue growth outlook given OEM capacity constraints? A: Grzebinski maintained the 10% to 20% outlook. He said OEM engine availability remains stretched, but that slower OEM ramp is actually helping Kirby execute better. Kirby expanded a plant about 18 months ago with a new generator assembly building and is hiring 200 to 300 people, while OEMs are For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Third quarter 2026 earnings per share of $2.09, up 27% year-over-year - Marine transportation revenues increased 17% year-over-year as market fundamentals continued to improve, driven by strong customer demand - Distribution and services revenues grew 6% year-over-year, driven by robust demand for behind-the-meter and backup power solutions - Returned $112 million of capital to shareholders through share repurchases during the third quarter of 2026 - Entered into an agreement to acquire certain inland marine assets from undisclosed sellers for $115 million, including nine inland towboats, 14 inland tank barges, nine bow thrusters, and a fleeting operation serving the Corpus Christi area - Updated full-year earnings per share growth guidance range of 10% to 15% based on current outlook HOUSTON, Oct. 28, 2026 (GLOBE NEWSWIRE) -- Kirby Corporation ("Kirby" or "the Company") (NYSE: KEX) today announced net earnings attributable to Kirby for the third quarter ended September 30, 2026, of $110.8 million, or $2.09 per share, compared with earnings of $92.5 million, or $1.65 per share, for the 2025 third quarter. Total revenues for the 2026 third quarter were $977.2 million compared with $871.2 million for the 2025 third quarter. David Grzebinski, Kirby's Chief Executive Officer, commented, "Our third quarter results reflected strong continued momentum across both businesses and solid execution throughout the organization. In marine transportation, strong barge utilization and favorable pricing trends supported performance during the quarter, though rising fuel costs continued to impact margins. In distribution and services, results benefited from robust demand in power generation and the strong growth of behind-the-meter solutions. Overall, the company executed well during the quarter and delivered solid financial and operating results, reflecting our continued focus on safety and operational excellence." "In inland marine, market fundamentals remained constructive during the quarter. Strong refinery operating rates, healthy petrochemical activity, and limited new industry capacity supported barge utilization in the low-90% range. Spot market rates improved sequentially in the low- to mid-single-digit range during the quarter, and term contract renewals increased in the low-single-digits compared with the prior year. Rising fuel costs remained a near-term headwind as higher costs were mitigated but not fully offset by cost escalators and rate recovery mechanisms in the quarter. Overall, the inland business delivered margins in the 20% range driven by a combination of steady demand, disciplined execution and limited industry capacity additions." "In coastal marine, customer demand remained stable with barge utilization in the high-90% range while third quarter coastal revenues increased slightly year-over-year. We had one contract renewal in the third quarter with an increase in the low-double-digit range. Operating margins were in the mid-teens range reflecting market specific dynamics and ongoing cost pressures." "In distribution and services, results reflected favorable market conditions for power generation and strong execution by our commercial and operational teams. Third quarter revenues increased 6% year-over-year, driven by strong demand for behind-the-meter and backup power generation solutions and a healthy environment for commercial and industrial." Mr. Grzebinski concluded. Segment Results – Marine Transportation Marine transportation revenues for the 2026 third quarter were $568.7 million compared with $484.9 million for the 2025 third quarter. Operating income for the 2026 third quarter was $111.9 million compared with $88.6 million for the 2025 third quarter. Operating margin for the 2026 third quarter was 20% compared with 18% for the 2025 third quarter. In inland marine, average barge utilization was in the low-90% range during the third 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 81% of segment revenues in the third quarter of 2026. Inland operating margins were in the 20% range despite the impact of ongoing fuel cost headwinds. In coastal marine, market activity remained strong, with barge utilization in the high-90% range. Coastal marine revenues increased slightly year-over-year and operating margins were in the mid-teens range, primarily reflecting fewer shipyard days compared to the second quarter of 2026. Coastal marine had a single term contract renewal in the third quarter with an increase in the low-double-digit range. Coastal marine represented 19% of segment revenues in the third quarter of 2026. Segment Results – Distribution and Services Distribution and services revenues for the 2026 third quarter were $408.5 million compared with $386.2 million for the 2025 third quarter. Operating income for the 2026 third quarter was $48.4 million compared with $42.7 million for the 2025 third quarter. Operating margin was 12% for the 2026 third quarter compared with 11% for the 2025 third quarter. In the power generation market, revenues increased 8% and operating income increased 13% compared with the 2025 third quarter, reflecting continued demand for behind-the-meter and backup power solutions and solid execution even as OEM supply conditions remained dynamic. Order activity continued to strengthen, driven by demand from data center and industrial customers. Power generation represented approximately 46% of segment revenues for the quarter, with operating margins in the low-double-digit range. In the commercial and industrial market, revenues increased 8% and operating income increased 23% compared with the 2025 third quarter, primarily reflecting strong marine repair activity and healthy demand across other industrial end markets. Commercial and industrial represented approximately 44% of segment revenues for the quarter, with operating margins in the low-double-digit range. In the oil and gas market, revenues decreased 9% and operating income decreased 15% compared with the 2025 third quarter; however, revenues were flat and operating income was up 54% sequentially driven by higher-margin parts and service activity and ongoing cost management. Oil and gas revenues represented approximately 10% of segment revenues for the quarter, with operating margins in the low-double-digit range. Acquisition of Inland Marine Assets During the third quarter, Kirby entered into an agreement to acquire certain inland marine assets from undisclosed sellers for $115 million. The acquisition includes nine inland towboats, fourteen inland tank barges, nine bow thrusters, and a fleeting operation in Rockport, Texas, which is located on a 65-acre facility serving the Corpus Christi area. The acquired assets will enhance Kirby's inland marine network in South Texas, expand fleeting and fueling capabilities near Corpus Christi, and support continued demand in the West End linehaul system. The transaction is expected to close in the fourth quarter of 2026 subject to customary closing conditions. Financial Highlights For the 2026 third quarter, EBITDA (non-GAAP) was $229.7 million compared with $201.4 million for the 2025 third quarter. During the quarter, net cash provided by operating activities was $143.5 million, and capital expenditures were $69.5 million, resulting in free cash flow (non-GAAP) of $74.0 million. Working capital remained elevated during the quarter, reflecting higher revenues in both segments, timing of collections, and higher fuel-related receivables in marine transportation. In the 2026 third quarter, Kirby returned $112 million of capital through share repurchases at an average share price of $137.04. As of September 30, 2026, the Company had $38.3 million of cash and cash equivalents and $530 million of liquidity available. Total debt was $1,072 million and the debt-to-capitalization ratio was 23.7%. 2026 Outlook Commenting on the outlook for the fourth quarter of 2026, Mr. Grzebinski stated, "As we enter the fourth quarter of 2026, we remain encouraged by the momentum across our businesses. Driven by strong operational execution and favorable market conditions, we believe Kirby is well positioned to capitalize on opportunities across our end markets and deliver solid performance in the remainder of the year. Despite ongoing macroeconomic and geopolitical uncertainty, customer demand remains healthy across many of our end markets. Based on current market conditions, we are narrowing our full-year earnings per share growth guidance to 10% to 15% and currently expect results toward the upper end of the range." In inland marine, market fundamentals are expected to remain constructive, supported by robust supply-demand dynamics and strong refinery and petrochemical operating rates. 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 remainder of the year. Inland operating conditions are expected to reflect normal seasonal weather impacts during the fourth quarter. Overall, inland revenues are expected to grow in the low-double-digit range, with operating margins expected to be in the high-teens to low-20% range for the full year. In coastal marine, customer demand remains stable with barge utilization expected to remain in the high-90% range. Overall market conditions remain constructive, and pricing trends continue to improve, although elevated planned shipyard activity and higher fuel costs are expected to pressure margins during the fourth quarter. Overall, revenues are expected to increase in the mid-to-high-single-digit range for the full year, with operating margins expected to be in the mid-teens range. In distribution and services, continued growth in power generation and strong marine repair activity are expected to support full-year 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, customer activity is expected to remain healthy driven by strong demand in marine repair. In oil and gas, activity is expected to remain stable, subject to changes in the market environment. Overall, the Company expects segment revenues to grow in the high-single-digit range for the full year, with operating margins in the high-single-digit range. 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, October 28, 2026, to discuss the 2026 third 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 June 30, 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. CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS | | Third Quarter | | | Nine Months | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | (unaudited, $ in thousands, except per share amounts) | Revenues: | | | | | | | | | | | | Marine transportation | | $ | 568,725 | | | $ | 484,941 | | | $ | 1,602,882 | | | $ | 1,453,652 | Distribution and services | | | 408,482 | | | | 386,220 | | | | 1,140,823 | | | | 1,058,623 | Total revenues | | | 977,207 | | | | 871,161 | | | | 2,743,705 | | | | 2,512,275 | | | | | | | | | | | | | Costs and expenses: | | | | | | | | | | | | Costs of sales and operating expenses | | | 651,342 | | | | 580,491 | | | | 1,841,470 | | | | 1,656,065 | Selling, general and administrative | | | 92,499 | | | | 87,812 | | | | 282,468 | | | | 268,945 | Taxes, other than on income | | | 10,062 | | | | 9,768 | | | | 29,995 | | | | 29,140 | Depreciation and amortization | | | 71,580 | | | | 66,873 | | | | 210,179 | | | | 196,273 | (Gain) loss on disposition of assets | | | 813 | | | | (3,002 | ) | | | (1,348 | ) | | | (4,759 | ) Total costs and expenses | | | 826,296 | | | | 741,942 | | | | 2,362,764 | | | | 2,145,664 | Operating income | | | 150,911 | | | | 129,219 | | | | 380,941 | | | | 366,611 | Other income | | | 7,261 | | | | 5,557 | | | | 21,569 | | | | 15,703 | Interest expense | | | (11,269 | ) | | | (11,838 | ) | | | (32,496 | ) | | | (35,105 | ) Earnings before taxes on income | | | 146,903 | | | | 122,938 | | | | 370,014 | | | | 347,209 | Provision for taxes on income | | | (35,994 | ) | | | (30,200 | ) | | | (87,981 | ) | | | (83,823 | ) Net earnings | | | 110,909 | | | | 92,738 | | | | 282,033 | | | | 263,386 | Net earnings attributable to noncontrolling interests | | | (94 | ) | | | (242 | ) | | | (292 | ) | | | (627 | ) Net earnings attributable to Kirby | | $ | 110,815 | | | $ | 92,496 | | | $ | 281,741 | | | $ | 262,759 | Net earnings per share attributable to Kirby common stockholders: | | | | | | | | | | | | Basic | | $ | 2.10 | | | $ | 1.66 | | | $ | 5.29 | | | $ | 4.67 | Diluted | | $ | 2.09 | | | $ | 1.65 | | | $ | 5.26 | | | $ | 4.64 | Common stock outstanding (in thousands): | | | | | | | | | | | | Basic | | | 52,690 | | | | 55,626 | | | | 53,234 | | | | 56,212 | Diluted | | | 53,019 | | | | 55,970 | | | | 53,568 | | | | 56,560 | CONDENSED CONSOLIDATED FINANCIAL INFORMATION | | Third Quarter | | | Nine Months | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | (unaudited, $ in thousands) | EBITDA:(1) | | | | | | | | | | | | Net earnings attributable to Kirby | | $ | 110,815 | | | $ | 92,496 | | | $ | 281,741 | | | $ | 262,759 | Interest expense | | | 11,269 | | | | 11,838 | | | | 32,496 | | | | 35,105 | Provision for taxes on income | | | 35,994 | | | | 30,200 | | | | 87,981 | | | | 83,823 | Depreciation and amortization | | | 71,580 | | | | 66,873 | | | | 210,179 | | | | 196,273 | | | $ | 229,658 | | | $ | 201,407 | | | $ | 612,397 | | | $ | 577,960 | | | | | | | | | | | | | Capital expenditures | | $ | 69,531 | | | $ | 67,280 | | | $ | 189,295 | | | $ | 217,440 | Acquisitions of businesses and marine equipment | | $ | — | | | $ | 9,200 | | | $ | 95,800 | | | $ | 106,450 | | | September 30, 2026 | | | December 31, 2025 | | | (unaudited, $ in thousands) | Cash and cash equivalents | | $ | 38,290 | | | $ | 78,775 | Long-term debt, including current portion | | $ | 1,071,751 | | | $ | 919,281 | Total equity | | $ | 3,443,292 | | | $ | 3,382,793 | Debt to capitalization ratio | | | 23.7 | % | | | 21.4 | % MARINE TRANSPORTATION STATEMENTS OF EARNINGS | | Third Quarter | | | Nine Months | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | (unaudited, $ in thousands) | Marine transportation revenues | | $ | 568,725 | | | $ | 484,941 | | | $ | 1,602,882 | | | $ | 1,453,652 | | | | | | | | | | | | | Costs and expenses: | | | | | | | | | | | | Costs of sales and operating expenses | | | 353,991 | | | | 300,021 | | | | 1,003,280 | | | | 889,797 | Selling, general and administrative | | | 36,663 | | | | 34,985 | | | | 115,927 | | | | 108,854 | Taxes, other than on income | | | 7,597 | | | | 7,266 | | | | 22,816 | | | | 21,842 | Depreciation and amortization | | | 58,564 | | | | 54,100 | | | | 171,492 | | | | 158,954 | Total costs and expenses | | | 456,815 | | | | 396,372 | | | | 1,313,515 | | | | 1,179,447 | | | | | | | | | | | | | Operating income | | $ | 111,910 | | | $ | 88,569 | | | $ | 289,367 | | | $ | 274,205 | Operating margin | | | 19.7 | % | | | 18.3 | % | | | 18.1 | % | | | 18.9 | % DISTRIBUTION AND SERVICES STATEMENTS OF EARNINGS | | Third Quarter | | | Nine Months | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | (unaudited, $ in thousands) | Distribution and services revenues | | $ | 408,482 | | | $ | 386,220 | | | $ | 1,140,823 | | | $ | 1,058,623 | | | | | | | | | | | | | Costs and expenses: | | | | | | | | | | | | Costs of sales and operating expenses | | | 296,861 | | | | 280,049 | | | | 836,859 | | | | 766,608 | Selling, general and administrative | | | 50,014 | | | | 50,081 | | | | 154,516 | | | | 152,154 | Taxes, other than on income | | | 2,438 | | | | 2,472 | | | | 7,105 | | | | 7,216 | Depreciation and amortization | | | 10,745 | | | | 10,949 | | | | 32,422 | | | | 31,950 | Total costs and expenses | | | 360,058 | | | | 343,551 | | | | 1,030,902 | | | | 957,928 | | | | | | | | | | | | | Operating income | | $ | 48,424 | | | $ | 42,669 | | | $ | 109,921 | | | $ | 100,695 | Operating margin | | | 11.9 | % | | | 11.0 | % | | | 9.6 | % | | | 9.5 | % OTHER COSTS AND EXPENSES | | Third Quarter | | | Nine Months | | | 2026 | | | 2025 | | | 2026 | | | 2025 | | | (unaudited, $ in thousands) | General corporate expenses | | $ | 8,610 | | | $ | 5,021 | | | $ | 19,695 | | | $ | 13,048 | | | | | | | | | | | | | (Gain) loss on disposition of assets | | $ | 813 | | | $ | (3,002 | ) | | $ | (1,348 | ) | | $ | (4,759 | ) 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): | | Third Quarter | | | Nine Months | | | 2026 | | | 2025(3) | | | 2026 | | | 2025(3) | | | (unaudited, $ in millions) | Net cash provided by operating activities | | $ | 143.5 | | | $ | 227.5 | | | $ | 313.4 | | | $ | 358.0 | Less: Capital expenditures | | | (69.5 | ) | | | (67.2 | ) | | | (189.3 | ) | | | (217.4 | ) Free cash flow(2) | | $ | 74.0 | | | $ | 160.3 | | | $ | 124.1 | | | $ | 140.6 | MARINE TRANSPORTATION PERFORMANCE MEASUREMENTS | | Third Quarter | | | Nine Months | | | 2026 | | | 2025 | | | 2026 | | | 2025 | Inland Performance Measurements: | | | | | | | | | | | | Ton Miles (in millions)(4) | | | 4,183 | | | | 3,497 | | | | 11,831 | | | | 10,485 | Revenue/Ton Mile (cents/tm)(5) | | | 11.0 | | | | 10.8 | | | | 10.9 | | | | 11.1 | Towboats operated (average)(6) | | | 294 | | | | 270 | | | | 290 | | | | 283 | Delay Days(7) | | | 1,809 | | | | 1,442 | | | | 7,640 | | | | 8,791 | Average cost per gallon of fuel consumed | | $ | 3.91 | | | $ | 2.46 | | | $ | 3.49 | | | $ | 2.46 | | | | | | | | | | | | | Barges (active): | | | | | | | | | | | | Inland tank barges | | | | | | | | | 1,148 | | | | 1,105 | Coastal tank barges | | | | | | | | | 27 | | | | 28 | Offshore dry-cargo barges | | | | | | | | | 2 | | | | 2 | Barrel capacities (in millions): | | | | | | | | | | | | Inland tank barges | | | | | | | | | 25.7 | | | | 24.5 | Coastal tank barges | | | | | | | | | 2.9 | | | | 2.9 | | | | | | | | | | | | | | | - Kirby has historically evaluated its operating performance using numerous measures, one of which is EBITDA, a non-GAAP financial measure. Kirby defines EBITDA as net earnings attributable to Kirby before interest expense, taxes on income, and depreciation and amortization. EBITDA is presented because of its wide acceptance as a financial indicator. EBITDA is one of the performance measures used in calculating performance compensation pursuant to Kirby's annual incentive plan. EBITDA is also used by rating agencies in determining Kirby's credit rating and by analysts publishing research reports on Kirby, as well as by investors and investment bankers generally in valuing companies. EBITDA is not a calculation based on generally accepted accounting principles and should not be considered as an alternative to, but should only be considered in conjunction with, Kirby's GAAP financial information. - Kirby uses certain non-GAAP financial measures to review performance excluding 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. 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 the company's normal operating results. Kirby also uses free cash flow, which is defined as net cash provided by operating activities less capital expenditures, 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. These non-GAAP financial measures are not calculations based on generally accepted accounting principles and should not be considered as an alternative to but should only be considered in conjunction with Kirby's GAAP financial information. - See Kirby's annual report on Form 10-K for the year ended December 31, 2025, and its quarterly report on Form 10-Q for the quarter ended September 30, 2025 for amounts provided by (used in) investing and financing activities. - Ton miles indicate fleet productivity by measuring the distance (in miles) a loaded tank barge is moved. Example: A typical 30,000 barrel tank barge loaded with 3,300 tons of liquid cargo is moved 100 miles, thus generating 330,000 ton miles. - Inland marine transportation revenues divided by ton miles. Example: Third quarter 2026 inland marine transportation revenues of $460.1 million divided by 4,183 million inland marine transportation ton miles = 11.0 cents. - Towboats operated are the average number of owned and chartered towboats operated during the period. - Delay days measures the lost time incurred by a tow (towboat and one or more tank barges) during transit. The measure includes transit delays caused by weather, lock congestion and other navigational factors. Contact: Donny Chia 713-435-1077

Kirby (KEX) came out with quarterly earnings of $2.09 per share, beating the Zacks Consensus Estimate of $1.96 per share. This compares to earnings of $1.65 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +6.63%. A quarter ago, it was expected that this barge operator would post earnings of $1.7 per share when it actually produced earnings of $1.67, delivering a surprise of -1.76%. 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 $977.21 million for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 3.66%. This compares to year-ago revenues of $871.16 million. The company has topped consensus revenue estimates three 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 24.4% since the beginning of the year versus the S&P 500's gain of 12.8%. 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 mixed. 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 #3 (Hold) for the stock. So, the shares are expected to perform in line with 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 $1.92 on $917.44 million in revenues for the coming quarter and $7.10 on $3.63 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 20% 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, EuroDry (EDRY), has yet to report results for the quarter ended September 2026. This company is expected to post quarterly earnings of $1.70 per share in its upcoming report, which represents a year-over-year change of +839.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. EuroDry's revenues are expected to be $19.14 million, up 33% 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 EuroDry (EDRY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended September 2026, Kirby (KEX) reported revenue of $977.21 million, up 12.2% over the same period last year. EPS came in at $2.09, compared to $1.65 in the year-ago quarter. The reported revenue represents a surprise of +3.66% over the Zacks Consensus Estimate of $942.69 million. With the consensus EPS estimate being $1.96, the EPS surprise was +6.63%. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Kirby performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Marine transportation - Inland Performance Measurements - Revenue/Ton Mile: $11.00 compared to the $11.18 average estimate based on two analysts. - Marine transportation - Inland Performance Measurements - Ton Miles: 4.18 billion versus the two-analyst average estimate of 3.86 billion. - Barrel capacities - Coastal tank barges: 2.9 million versus the two-analyst average estimate of 2.95 million. - Barges (active) - Coastal tank barges: 27 versus 27 estimated by two analysts on average. - Barrel capacities - Inland tank barges: 25.7 million compared to the 25.04 million average estimate based on two analysts. - Barges (active) - Inland tank barges: 1,148 versus 1,128 estimated by two analysts on average. - Revenues- Distribution and services: $408.48 million versus the two-analyst average estimate of $404.43 million. The reported number represents a year-over-year change of +5.8%. - Revenues- Marine transportation: $568.73 million versus the two-analyst average estimate of $538.27 million. The reported number represents a year-over-year change of +17.3%. - Operating income- Distribution and services: $48.42 million versus $42.63 million estimated by two analysts on average. - Operating income- Marine transportation: $111.91 million compared to the $106.96 million average estimate based on two analysts. View all Key Company Metrics for Kirby here>>> Shares of Kirby have returned +3.9% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. 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). Zacks Investment Research

- Interested in Kirby Corporation? Here are five stocks we like better. - Record quarterly performance: Kirby reported third-quarter EPS of $2.09, up 27% year over year, driven by strong utilization, pricing and demand across its marine transportation and Distribution & Services businesses. The company expects full-year 2026 earnings growth near the upper end of its 10%–15% outlook. - Marine transportation remains strong: Segment revenue rose 17% and operating income increased 26%, supported by tight inland barge supply, high utilization and improved pricing. Coastal operations face near-term margin pressure from elevated shipyard activity, labor and material costs. - Power-generation backlog and capital deployment: Distribution & Services benefited from demand for behind-the-meter and backup power systems, with power-generation backlog exceeding $1.5 billion, though engine availability limits revenue conversion. Kirby agreed to acquire $115 million of inland marine assets and repurchased $112 million of stock during the quarter. - This Freight Stock Just Got an Upgrade and Institutional Buyers Kirby (NYSE:KEX) reported record third-quarter earnings per share of $2.09, up 27% from a year earlier, as its marine transportation and Distribution & Services businesses benefited from strong utilization, pricing and demand for power-generation equipment. Chief Executive Officer David Grzebinski said the company's results reflected "strong continued momentum across both businesses" and execution across its operations. Kirby narrowed its full-year 2026 earnings growth outlook to 10% to 15% and said it expects results near the upper end of that range. → Comfort Systems Earnings: AI Slowdown or More Growth Ahead? Marine transportation generated third-quarter revenue of $569 million, up $84 million, or 17%, from the prior-year quarter. Operating income rose 26% to $112 million, producing a 20% operating margin. Sequentially, marine revenue increased 6% and operating income rose 27%. Kirby's inland business accounted for 81% of marine segment revenue. Average inland barge utilization was in the low 90% range, supported by refinery operating rates, petrochemical activity and limited additions to industry capacity. → A 70% Rally Isn't Chord Energy's Only Selling Point Spot market rates increased in the low- to mid-single-digit percentage range from the second quarter and in the mid-single-digit range from a year earlier. Term contracts renewed during the quarter increased in the low-single-digit range year over year. Inland revenue increased 21% from the prior-year period, while operating margins were in the 20% range. Grzebinski said higher fuel costs remained a near-term headwind because rate-recovery mechanisms and cost escalators only partially offset the increased expense during the quarter. He said Kirby expects the timing impact from fuel costs to recover as contract clauses adjust, assuming fuel prices do not rise further. → Not All Tech Is Getting Crushed: 5 Names Holding Up Through the AI Sell-Off Coastal marine represented 19% of segment revenue and maintained average utilization in the high 90% range. Coastal revenue increased 3% year over year, while operating margins were in the mid-teens range. The business had one contract renewal during the quarter, which rose in the low-double-digit percentage range. Management said coastal margins are expected to face pressure in the fourth quarter from elevated shipyard activity involving larger vessels. Christian O'Neil, Kirby's president and chief operating officer, also cited inflation in skilled labor, steel and other shipyard inputs, as well as pricing pressure on smaller vessels serving refined-product movements on the East Coast. Kirby expects inland revenue to grow in the low-double-digit percentage range for the full year, with operating margins in the high teens to low 20% range. The company said approximately 35% to 40% of its inland term-contract portfolio typically renews in the fourth quarter, positioning the business for a more substantial renewal period than the third quarter. O'Neil said the company's spot-to-term pricing spread was approximately 10% to 15%, toward the higher end of that range, and noted that the company's utilization had exceeded 95% at times during recent weeks. He said approximately 65 barges are expected to be delivered industrywide this year, with much of that volume appearing to be replacement capacity. Management also pointed to stronger chemical demand, saying European capacity rationalization, damage to Middle East infrastructure and the Gulf Coast's feedstock advantages have supported activity. O'Neil said Kirby's 10,000-barrel barges were nearly fully deployed and operating near record utilization levels. For coastal marine, Kirby expects full-year revenue growth in the mid- to high-single-digit percentage range and operating margins in the mid-teens range. Distribution & Services revenue rose 6% year over year to $408 million, while operating income increased 13% to $48 million. The segment's operating margin was 12%, up 200 basis points sequentially. The company attributed the performance primarily to demand for behind-the-meter and backup power systems, as well as higher marine repair activity. Power generation revenue increased 8% year over year and represented about 46% of segment revenue. Commercial and industrial revenue increased 8%, aided by marine repair work, while operating income in that business increased 23%. Kirby said power-generation backlog exceeded $1.5 billion and that orders continued to exceed revenue, with book-to-bill above one. Grzebinski said approximately two-thirds of the backlog was related to behind-the-meter, or customer-supplied, power systems. However, constrained engine availability from original equipment manufacturers continues to limit the pace at which Kirby can convert backlog into revenue. Management said behind-the-meter systems could create future parts and service demand because Kirby supplies equipment around the engines, including cooling, air-intake, sound-attenuation and power-distribution systems. O'Neil said the company expects the maintenance cycle for these installations to begin becoming more meaningful in roughly three to four years. Kirby ended the quarter with $38 million in cash, $1.07 billion in total debt and $530 million of available liquidity. Net cash from operations totaled $143.5 million, while capital expenditures were $69.5 million, resulting in free cash flow of $74 million. The company said working capital remained elevated due to higher revenue, collection timing and fuel-related receivables, but it expects requirements to normalize in the fourth quarter. Kirby maintained its full-year operating cash flow outlook of $575 million to $675 million and its capital-spending forecast of $220 million to $260 million. During the quarter, Kirby agreed to acquire certain inland marine assets for approximately $115 million. The transaction includes nine towboats, 14 tank barges, nine bow thrusters and a fleeting operation in Rockport, Texas. Management said the assets would enhance Kirby's network in South Texas. Kirby also repurchased $112 million of stock during the quarter at an average price of $137 per share. The company said it will continue to evaluate acquisition opportunities while returning capital to shareholders. Kirby Corporation is a Houston-based marine transportation and industrial services company. Through its marine transportation operations, the company is the largest tank barge operator in the United States, transporting bulk liquid products on the nation's inland and coastal waterways. Kirby's marine transportation business carries petrochemicals, refined petroleum products, black oil, agricultural chemicals and other bulk liquids for industrial customers. Its operations primarily serve the U.S. 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 Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Image source: The Motley Fool. Wednesday, Oct. 28, 2026 - Vice President of Finance and Investor Relations - Donny Chia - Chief Executive Officer - David Grzebinski - president and chief operating officer - Christian 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 26 Third Quarter 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 then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Donny Chia, Vice President of Finance and Investor Relations. Please go ahead. Donny Chia: Good morning, and thank you for joining the Kirby Corporation 26 Third Quarter Earnings Call. With me today are David Grzebinski, Kirby's Chief Executive Officer Christian O'Neil, Kirby's president and chief operating officer and Raj Kumar, Kirby's executive vice president and chief Financial Officer. Slide presentation for today's 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, and 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, Donny, and good morning, everyone. Earlier today, we announced record third quarter earnings per share of $2.09 up 27% year over year. Our results reflected strong continued momentum across both businesses and solid execution throughout the organization. In marine transportation, strong barge utilization and favorable pricing trends supported performance during the quarter. In distribution and services, results benefited from robust demand in power generation and strong growth in behind-the-meter power solutions. Overall, the company executed well during the quarter and delivered solid financial and operating results, reflecting our continued focus on safety and operational excellence. In inland marine, market fundamentals remain constructive during the quarter. Strong refinery operating rates healthy petrochemical activity, and limited new industry capacity supported barge utilization in the low 90% range. Spot market rates improved sequentially in the low to mid single digit range, while term contract renewals increased in the low single digit range compared with the prior year. Increased levels of Venezuelan crude imports resulted in heavier refinery feed slates and more byproduct moves. However, rising fuel costs remained a near term headwind as higher cost were only partially mitigated by cost escalators and rate recovery mechanisms during the quarter. The inland business delivered margins in the 20% range, driven by a combination of steady demand, disciplined execution, and limited industry capacity addition. In coastal marine, customer demand remained stable with barge utilization in the high 90% range. In third quarter coastal revenues increased 3% year over year while operating margins were in the mid teens range. There was only 1 contract renewal in the third quarter which increased in the low double digit range. Turning to distribution and services. Our performance reflected favorable market conditions for power generation and strong execution by our commercial and operations team. Segment revenues increased 6% year over year driven by strong demand for behind-the-meter and backup power solutions in a healthy environment for commercial and industrial. For the quarter, operating margins were in the low double digits and up 200 basis points sequentially, reflecting the growing share of behind the meter power solutions in our power generation business as well as operational improvements throughout the segment. Overall, the segment delivered solid results across the portfolio, demonstrating the strength of the company's positions across multiple end markets. In summary, Kirby delivered a strong quarter, underscoring the strength of our portfolio and the disciplined approach that we bring to our operations every day. In marine transportation, inland delivered strong revenue growth year over year and coastal utilization remained high. In distribution and services, power generation remained a key growth driver Commercial and industrial activity performed well. And oil and gas remained stable. 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 third quarter of 26, Marine Transportation segment revenues were $569 million and operating income was $112 million with an operating margin of 20%. Compared to the third quarter of 25 total marine transportation revenues increased $84 million or 17% while operating income increased $23 million or 26%. The operating margin improvement came from strong utilization and improved pricing despite continuing inflationary pressures. Compared to the second quarter of 26, total marine revenues increased 6% while operating income increased 27%. Looking at the inland business in more detail, inland contributed 81% 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 1 year or longer contributed approximately 65% of inland revenue with 56% from time charters and 44% from contracts of affreightment. Improved market conditions resulted in average spot market rates increasing in the low to mid single digit range sequentially and increasing in the mid single digit range year over year. Term contracts that renewed during the during the third quarter increased in the low single digit range year over year. Compared to the third quarter of 25, inland revenues increased 21% while operating margins were in the 20% range. Moving to the Coastal business. Coastal represented 19% of revenues for the Marine Transportation segment with average barge utilization in the high 90% range. In line with the second quarter of 26 and the third quarter of 25. For the quarter, the percentage of coastal revenue under term contracts was approximately 95% of which approximately 100% were time charters. Coastal had 1 term contract renewal during the third quarter, which increased in the low double digit range year over year. Wholesale revenues increased 3% year over year with operating margins in the mid teens range driven by fewer shipyard days compared to the second quarter of 26. With respect to our tank barge fleet for both the inland and coastal businesses, we have provided a reconciliation of the changes during the 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 third quarter, the inland fleet had 1.15 thousand barges representing 25.7 million barrels of capacity and is expected to be flat in the fourth quarter of 26. Coastal marine expected to remain unchanged from the third quarter of 26. Now I will review the performance of the distribution and services segment. Revenue for the third quarter of 26 was $408 million with operating income of $48 million and operating margin of 12%. Compared to the third quarter of 25 the D&S segment revenues increased by $22 million or 6% with operating income increasing by $6 million or 13%. This growth was driven primarily by continued strength in the power generation business especially in our behind-the-meter applications and higher marine repair activity. Compared to the second quarter of 26, revenue increased by $23 million or 6% and operating income increased by $10 million or 27%, 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 strong demand for behind the meter and backup power solutions. Our backlog increasingly reflects a greater share of behind the meter power solutions which will be a tailwind for margins going forward. However, OEM engine availability remains constrained and limits the rate at which we can convert backlog into revenue. Overall, power generation revenues increased 8% year over year, with operating margins in the low double digit range. Power generation represented approximately 46% of total segment revenues. In Commercial and Industrial, strong Marine repair activity contributed to an 8% year over year increase in revenues and a 23% increase in operating income. The business represented approximately 44% of segment revenues and generated operating margins in the low double digit range. In Oil and Gas, activity remained stable during the quarter. Revenues were flat sequentially and operating income increased by 54% sequentially driven by higher margin parts and service activity and ongoing cost management efforts. Oil and gas represented approximately 10% of segment revenues and generated operating margins in the low double digit range. Now I will move on to the balance sheet. As of quarter end, we had $38 million of cash and a total. and total debt of $1.07 billion with a debt to capitalization ratio of 23.7%. We ended the third quarter with $530 million of available liquidity. During the quarter, net cash provided by operating activities was $143.5 million and capital expenditures were $69.5 million. Resulting in free cash flow of $74 million Working capital remained elevated during the quarter. Reflecting higher revenues in both segments timing of collections and higher fuel related receivables in marine transportation. We expect these working capital requirements to normalize during the remain remainder of the year supporting meaningful improvement in free cash flow in Q4. In the third quarter, Kirby entered into an agreement to acquire certain inland marine assets from undisclosed sellers for approximately $115 million The acquisition includes 9 inland towboats, 14 inland tank barges, 9 valve thrusters, and the Rockport, Texas, fleeting operation. The acquired assets are expected to enhance Kirby's inland marine network in South Texas and further highlight our focus and disciplined acquisition strategy. With respect to capital expenditures, we continue to expect full year capital spending to range between $220 million to $260 million Approximately, $170 million 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 third quarter of 26, we returned $112 million to shareholders through share repurchases at an average price of $137 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. Having said that, we continue to prioritize and evaluate acquisition opportunities within our core businesses. Particularly in marine, where we see the potential to further enhance our service capability 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 turn the call back to David to discuss our outlook for the remainder 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 businesses. Across our portfolio, we are seeing the continuation of many of the same tailwinds that supported our third 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 disciplined approach position us well in the fourth quarter of 26 and for a good 2027. As a result, we have narrowed our 2026 full year earnings growth guidance to 10% to 15% and currently expect results 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 solid execution on our growing power generation backlog. In inland marine, we continue to see favorable operating environment. Demand from refining and petrochemical customers remains healthy 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 in the seasonally heavy fourth quarter renewal period. Overall, inland revenues are expected to grow in the low double digit range operating margins in the high teens to low 20% range for the full year. 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 to high single digit range for the full year with operating margins in the mid teens range. The margin is reflective of elevated shipyard activity in the fourth quarter and the market specific pricing dynamics we mentioned last quarter, as well as ongoing cost pressures. In distribution and services, strengthened power generation and marine repair is expected to continue driving segment results. In power gen, 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 the behind-the-meter power application that operate continuously creates longer term aftermarket parts and service opportunities. As our growing installed base continues to expand. 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 stable subject to changes in the market environment. Overall, we expect segment revenues to increase in the high single digit range for the full year operating margins in the high single digit range. To conclude, we delivered solid third quarter results and remain well positioned for the remainder of the year. Marine transportation fundamentals remain favorable, supported by strong utilization, improving inland pricing, and limited new capacity. 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 disciplines approach, we remain confident in our outlook and our ability to deliver our narrowed EPS growth guidance range. Operator, this concludes our prepared remarks. Christian, Raj and I are now ready to take questions. Operator: As a reminder, to ask a question, please press In the interest of time, we ask that you please limit yourself to 1 question and 1 follow-up. Please stand by while we compile the Q and A roster. Our first question comes from Tomo Sato with JPMorgan. Your line is open. Tomo Sato: Good morning, everyone. David W. Grzebinski: Hey, good morning. Christian G. O'Neil: Good morning, Tomo. Raj Kumar: Hey, good morning, Tomo. Tomo. Tomo Sato: And thanks for having us, and congrats on a strong quarter. Maybe starting with Marine, how are you thinking about pricing over the next 12 months, and how sustainable is that pricing power over the medium term for this? David W. Grzebinski: Yeah. Sure, Tom. I will let. This is David. I will start and turn it over to for some more detail. Look. In the third quarter, we had a low single to mid single digit spot pricing increases. But it was, you know, it was a small portfolio that replaced in the third quarter. Term pricing was up low single digits, but importantly, momentum's building into the fourth quarter here, and, you know, we think, the pricing should be north of what we saw in the third quarter, which is really important because it sets up a good 2027. And you know, longer term, we still see supply and demand in really good balance right now. Nobody's really building new equipment. And the retirements continue So we do not see much in terms of net new adds to the industry fleet, over the next several years. But let me turn it over to Christian who is got a lot more color on particularly the fourth quarter renewal season that is that is ongoing right now. Christian G. O'Neil: Yeah. Thank you, David. I think you characterized it well as we have a lot of momentum going into the fourth quarter and going into next year. It was a very small sample set in Q3. Single digit, term contracts had actually renewed We will definitely see stronger momentum you know, improvement in everything, all things inland Supply remains tight. there is only 65 ish barges being delivered this year. Feels like most of that is replacement capacity. Our utilization remains high, low 90% range to exit the quarter. We actually touched 95 plus percent utility a couple times in the last few weeks. Refinery utilization is near record levels. And you know, the spread between spot and term pricing when you bake all this together remains about 10% to 15%, and I will tell you it is on the higher end of that on the 15% range. When spot is outpacing term at those levels, we really get the opportunity to get some good bites term pricing Chemical volumes are also improving. Supported by global rationalization. The golf Coast pad 3 chemical plants are busy. Middle East infrastructure is taking a lot of damage. A lot of capital discipline out there from our competitors. New build Econs remain a challenge. We do not see supply growing in the near term, as David said. And, again, to restate it, contract pricing continues to improve. I will stop there. Tomo Sato: Thank you, David and Christian. Christian. Follow-up on D&S as power generation scales. How quickly can service and parts become a more meaningful part of the mix? And how much margin upside could that create over time, please? David W. Grzebinski: Yeah. No. Greg question. Again, Christian, I will tag team this here a bit. Look. The pace of orders has been great. And particularly for behind the meter or bring your own power, which is what everybody's talking about now, because, you know, with the NIMBY or not my backyard, the concerns that a lot of the data center pushback is talking about is about power. So they are this bring your own power move is real. As we look at our order inbound and even our backlog right now, which is probably 2 thirds, behind the meter of power or bring your own power, that is really good for us because those are natural gas systems. They are complex. They have a lot of what we call balance of plant equipment. Which we are the OEM for. You know? We do not make the engine, but we put everything around the engine whether it is a cooling system, a, you know, air intake system, sound attenuation system. As well as, you know, power distribution systems that link it all together. You know, all that is our equipment, and we are the OEM. And importantly, as the OEM, we end up getting the service and parts there. Now Christian will describe a little more on how long you know, that takes to start converting service. Christian G. O'Neil: Yeah. Thank you, David. And, Tomo, thanks for the question. We are highly focused on the aftermarket opportunities here. Our data center customers our power service customers, they demand uptime They demand turnkey solutions. The aftermarket opportunity will provide a nice stability for us after this CapEx cycle starts to fade a little bit or slow down a little bit. We think the aftermarket opportunity can exceed the original product value. And so we are aggressively going after that. We have built a new part of our team led by Chad Jones, who leads our power service team. To chase this aftermarket opportunity vigorously. As David said, we have the right to win on a lot of the behind the meter that we are producing. And we are highly focused on it, highly excited about it. Know, we think in 3 to 4 years, you will begin to see the maintenance cycle. We describe it internally as the new car effect. You know, you buy a new car. It works great. It smells great. It operates smoothly in about year 4. Mechanic down the street is licking his chops. You know, we see that big ramp up in aftermarket about, you know, 3, 4 years out. You know, it will be a 100 million plus dollar business for us You know? Again, do not hold me to that, but that is what we are scoping it out and budgeting it out to be today. As we build the team and build techs. Very excited about the aftermarket opportunity. Tomo Sato: Thank you very much. David W. Grzebinski: I would just add. You asked about margins. Obviously, aftermarket has higher margins. Think everybody realized that You know? And the behind the meter bring your own power equipment has higher margin than just backup diesel. So the margin profile should continue to approve improve. You know, just a little caution on quarterly progression. We do know, have lumpiness in our. In both manufacturing and shipments, and that swings around the margin a bit quarter to quarter. So you. Really, the focus on margin should be on an annual basis, what is the average annual. Our view is, you know, that is gonna improve and continue We will be in the double digit margin range in a in a year or 2, if not before. Thanks again. Thanks, Phil. Thanks, Phil. Operator: Thank you. Our next question comes from Bascome Majors with Stephens. Your line is open. Reed Seay: Hey, guys. This is Reed Seay on for Bascome. David W. Grzebinski: Hey, Reed. This is Reed. If we could start on the marine side, just some wording in the release around coastal and kinda on the call as well. If we look at the margins, I understand there is some heightened shipyards and there is some pricing dynamics. 1, if you could give us an update on the pricing dynamics with those specific size ships that you called out last quarter. And then you also called out some, I believe, it was ongoing cost pressures. Is that just the shipyards, or are there some other dynamics that we should be aware of? Yeah. We will we will we will handle this together again, Reed. Look. The fourth quarter, we have got some larger units coming into the shipyard. And as you have heard us describe before, these large units you know, they have high day rates and when they are out of service, we still have all the cost that goes with it and, we just do not have the revenue. But that is just part of the business. You know, you saw our margin in the second quarter was lower than what we saw in the third quarter. The fourth quarter will be more like the second quarter in terms of margin. You know, principally be because of the of the shipyard cadence. that is just a normal part of the business. I will let Christian talk about the rest of the cost structure and the contracts. Christian G. O'Neil: Thank you, David. Thank you, Bascome. Yeah. You asked about you know, the market dynamic piece of that we alluded to in spoke about last quarter. You do see a bit of that flow through of the net effect of what was European barrels that imported into the North And our smaller barges are 80s and 100s, get the opportunity to move those European barrels and redistribute them on the East Coast. With the you know, low amounts of European imported refined products, you know, we have seen that impact those margins on those contracts that service that piece. And so what you see now is just a little bit of that flow through that we talked about last quarter as those 80s and 100s. You know, felt a little bit of the pricing pressure. The good news is the bigger units the thermal oil units, the chemical units, you know, those other pieces of the business, we are very, very bullish about. There is high demand for them. The rates are very good. We do see improving rates as you saw the single contract that renewed this quarter in the I think it was in the double digit range. You also asked about know, cost pressures. Know, inflation is real. We see it across various buckets in the marine companies. In general, skilled labor, not just for us, but even in the D&S companies when it comes to engineers, and others. there is a lot of pressure on skilled labor particularly around the Mariner and the inflation there. And the other piece is the price of steel. A lot of the other inputs that go into a major yard period or shipyard period you see inflationary pressures around those. And you know, maybe those are eating to the margin a little bit here. Reed Seay: Got it. That makes a lot of sense. And then if I could just ask on power gen as well. Could you provide an update on what that backlog like in terms of on a quarter over quarter basis, what it looks like versus 1Q? And when we should start to see some backlog harvesting or if. How much that is going on right now. Just any color there would be helpful. David W. Grzebinski: Sure. I think in the first quarter, I said our backlog was 500 to a billion. In the second quarter, I said $1 billion to $1.5 billion. I would just tell you right now, we are north of $1.5 billion in terms of backlog. The important thing is book to bill. Book to bill is well above 1 right now. We are we are continuing to take orders The inquiry level is still very high. You know, you hear about all the delays and stuff and ups and downs and in the daily news, but I would just tell you the demand is still there. it is it is it is robust. Everybody needs the power. I mean, if you are gonna build a data center, particularly with the political pressure nowadays, that you are seeing across The United States. You know, they are they are calling it bring your own power. And, you know, if you are gonna build a data center, you better bring your own power, which is music to our ears, frankly. You know, that is the low cost of natural gas, that is that is perfect for our natural gas recip systems that we build. So we are we are excited about it, Reed. You know, we do not wanna really get into telling our backlog every quarter because you guys know what that game's like. But we are trying to give you direction. Makes sense. And, we appreciate that. Reed Seay: If I could sneak in a bigger picture 1 just on inland, I. You have had some demand. Headwinds in the past year or more. Can you talk about some of what you expect on the come in terms of demand, like, particularly on the chem side, which we saw struggle a little more last year? David W. Grzebinski: Yeah. Again, Christian and I can give you a lot more detail than I can, but, like, you know, that is that third quarter of last year, the feedstocks leak got really light. There was not a lot of heavy coming in. Part of that was tariff driven. Part of it was just some of the global political dynamics. But now that Venezuelan crude's coming back in, the feedstock slate's heavy, Other heavy feedstocks are getting discounted because of the competition from Venezuelan. Is really good for you know, for our refinery customers. Similarly, in the chemical side, we have seen some strength. I do not know if Christian can give you a lot more detail. Christian G. O'Neil: Yeah. No. I think when you compound record refinery utilization, with what is finally for us. We are beginning to see some strengthening you know, chemical markets, particularly in the Gulf Of Gulf Of America. That we service. Know, in part driven by global rationalization I think you are finally seeing the European less efficient you know, PE and chemical producers. They are they are closing the doors on some of those less efficient plants. You. You have seen the Middle East infrastructure, taking a lot of damage, frankly, in the in the conflict over there. And then you just have the natural competitive. Competitiveness of PADD 3 its proximity to cheap natural gas and its feedstock advantage. I think when you compound all those together, you know, we are we are beginning to see our chemical customers more optimistic. We are beginning to see the opportunity to move some pricing on the chemical side, And in general, chemical volumes are improving. We definitely see that. So when you compound that with record refinery utilization, hey. that is that is a great cake to bake over here at Kirby. Reed Seay: Greg to hear. Thanks for taking my questions, guys. David W. Grzebinski: Thanks, Reed. Operator: Thank you. Our next question comes from Scott Group with Wolfe Research. Your line is open. Ivan Yee: Hey, good morning, guys. This is Ivan Yee on for Scott. First on margins, both inland and coastal margins seem to be down this year. Can margins in both segments start growing again in 2027? Thank you. David W. Grzebinski: Yeah. The short answer is absolutely. Yeah. You know, we just talked about the weakness we saw in 2025. That had set up the fourth quarter when those term. That heavy term contract renewals came in. And that puts some headwind on margins. We are definitely crawling out of that. That hole, and making real progress now. You know, inland margins were in the 20% range this quarter. As you heard Christian describe the fourth quarter renewal cycle, it is gonna be really strong So it you know, margins should definitely improve from here. Christian G. O'Neil: Exactly. Ivan Yee: Great. Thank you. And then you seem bullish on pricing next year, but what about the cadence of cost? Can the price cost spread accelerate from 2026 to 2027, especially if fuel prices start moderating? Next year. Just wanna get an update on the cost side as well. Thank you. David W. Grzebinski: Yeah. We should have real price increases over inflation here. Know, fuel has been a headwind as I am sure everybody's aware of it. Anybody that is using diesel nowadays is probably talking about that headwind. We work really hard, Christian and his team. Make sure we have fuel adjustment clauses in all our contracts. But there is a lag. Some of some of them have a hundred and 20 day lag. Others are very short. We saw a pretty big headwind in the second quarter on fuel. We thought we have recovered all and third, but, you know, fuel did another tick up. You know, I think we got north of $4 a gallon. So you know, there is a little bit of a headwind in our margins on fuel this quarter as well. You know, assuming fuel does not take another leg up, you know, that should start to roll through here as we as all our contract clauses adjust here in the fourth quarter. Some of some of that will roll into the first, but, you know, that fuel headwind should mitigate You know? But fuel moves around. You know, our goal, again, with our customers is to not take any risk on fuel or make any money on fuel. You know, they are they are best able to bear that. In terms of other inflation, you heard Christian talk about the Mariners and Mariner inflation. Wage inflation for any skilled, worker these days is real. And then steel is definitely a headwind. You know, we use a lot of steel. All our boats and barges use steel. And even on the D&S side, you know, there is a heavy steel component. That said, again, we think pricing will definitely be north of inflation. You know, the good news is some of the other inflationary items that we had seen over the years has mitigated some. But it. it is still it is still real But the upshot is. Will be overinflation. In terms of rate adjustments. Thank you, guys. Ivan Yee: Thanks. David W. Grzebinski: Thanks. Operator: Thank you. Our next question comes from Ken Hecht with Bank of America. Your line is now open. David W. Grzebinski: Hey, Ken. Raj Kumar: Hey, David, Raj and team, morning. Adam Roszkowski: This is Adam Roszkowski on for Ken Hoexter. Maybe just into the Q4 repricing, season, could you just remind us what percentage of the book reprices in Q4? And maybe clarifying, you had noted inland term renewals were up low single digits in 3Q. Is that above the inflationary pressures you are seeing? Was that behind It sounds like you expect the price cost to get better into next year. So just thoughts there. David W. Grzebinski: Yeah. No. Usually, the fourth quarter is probably 35 to 40% of the portfolio. Third quarter was, as you heard Christian mention, you know, a handful of contracts, so it was low. But you know, it was in line with inflation, maybe a little better than inflation. But I would tell you, you know, with what we are seeing in terms of term spot spread and the way fourth quarter is lining up. It will it 'll easily be over inflationary levels, and it needs to be. Look. Know, the big picture here, terms of supply and demand is pricing still 40% below new build economics. So you know, the there is some building for replacement, but nobody's really building equipment to expand. So you know, as demand continues to grow, and you know, demand generally grows with GDP, Right now, obviously, with what is going on in the refinery world, in terms of refined products globally. You know, we are very busy But if new equipment's gonna get built, prices have to go up in a meaningful way. So it is it is a good backdrop for the next 3 to 5 years, for sure. And know, we are we are pretty excited about it. And you know, I know Ken has asked in the past about peak margins. You know? We are gonna in my view, with this cycle, we will we will be setting new peak margin records. It may take a little bit, but it. This is set up for a good long run. Adam Roszkowski: For the color there. And then just last 1. You know, following the recent or upcoming inland asset acquisition, are you seeing more opportunities like this you know, from smaller operators or private fleets? David W. Grzebinski: Yeah. And it is not just the smaller operators as well. I mean, we are in more active discussions than we have been in the long time. But, look, we are very disciplined. We do not overpay. We stay disciplined. We always look at everything on a DCF point and, acquisitions are hard to predict. You know, there is a bid offer spread process. But we stay disciplined. The good news is there is there is enough conversations happening that we are excited about, and you know, this is just another little tuck in that Christian was able to get done. You know, we do not we do not talk about it, but, this had a big fleeting operation, which is really important for our customer service. You know, these fleets, we do not talk about them much, but they add tremendous customer service value. And, that was the key with this 1 acquisition We got some great equipment but it is also that fleet that really can make a big difference. Christian G. O'Neil: I do not know if you wanna add anything, Christian. No. It was well said. Yeah. Tight. Yeah. The acquisition is great. Modern fleet. Good mariners. Well run company. As David mentioned, the infrastructure in Corpus Christi area is very strategic, 65 acres of fleeting. Ability to fuel our vessels, ability to get potable water. We got craneage to do topside repairs. It checks a lot of boxes. And, additionally, this was unique in that it. Know, it is a fleet that operated with valve thrusters, which adds to the efficiency of unit tows operating on the West End, particularly in the high the high winds. It see down there. So all in all, a great acquisition that we are very excited about. And if any of that new team is listening, well, welcome to Kirby. Adam Roszkowski: Thanks for the time. David W. Grzebinski: Thanks, Ed. Operator: Thank you. Our next question comes from Benjamin Moore with Citi. Your line is open. Ben Mohr Mok: Hi, good morning. Thanks, David, Christian, Raj and Donny for Congrats on the beat and raise. Wanted to ask a question maybe to get your thoughts on timing. I see that, you raised your inland revenue growth to low double digits from the Mid To High Single Digits On Some Of The Ken Drivers. Greg To See It Looks Like there is A Pretty Good Long Tail If You Combine Each Of These Drivers That I Think We have Talked About In The Past. The Venezuela imports, Chevron, this past quarter, in a public forum estimates around, you know, lasting around 10 to 15 years, for the for the Venezuela heavy coming in. You have got Iran where even if the war ends, we could be another court. Several quarters or a couple of years of benefit for you in crack spread widening beyond the eventual end of the war. You have got Calcasieu that benefited Q3 and Q4. Maintenance bump, late 27, early 28. And then kind of beyond all this, the risk of returning to the chems recession. Just wanted to get your thoughts on sort of I have laid out there in timing. Would you agree? Would you adjust some of these numbers? It does seem like the long tail is very supportive. David W. Grzebinski: You know, I think you summarized it really well. We. We have got some really good tailwinds here. We are we are very excited about where we are in this cycle. it is almost feel like a super cycle here. The. Everything you mentioned is true. Calcasieu, Did Help A Little Bit, But, I Will Tell You On Calcasieu, in particular, the corps of engineers manage that very well. We did not see the industry back up that we normally see. So with our utilization as 40 as it is, it could have been even tighter with Calcasieu, but they managed it well. That. Those short term lock disruptions and weather disruptions are gonna happen. But systemically, the stuff you outlined is pretty bullish for us. We know a maintenance cycle is coming in 28, It will start you know, we will we will see it with our fleet and then the whole industry fleet, and it will it will be significant again. We see our refinery customers Look. The US refinery complex is the best in the world. It is the most efficient They can they are running flat out too, and given what is on. In our brand and we did not I do not know if you mentioned Russia, but Russia, Ukraine situation is not good either. So know, that does not look like it is gonna change in the near term for sure. Right? You know, there is some talk of peace with Russia and Ukraine, but you know, it is that could be midterm election driven. So we will we will see. We are very excited about the outlook here for the marine companies. Not even to mention the distribution services power gen stuff as well, but it is it is a good time for Kirby. We are very excited about the outlook for the next several years. Christian G. O'Neil: Yeah. I think you described all those macro items very, very well, Benjamin. Think when you compound that with the industry capital discipline that we see now post COVID, you know, really what could what could derail all those great things you mentioned. You know, it would be the undisciplined overbuilding of the market and we do not see that type of behavior at all. And the pricing of inland tank barges prevent that. You know, you are you are looking at $4.6 million to $4.7 million for a clean 30. $5.8 million to $6.0 million for black oil, $2.5 million for a 10 thousand. So you just do not see that undisciplined overbuilding risk in the short run, longer run. So combined with your macro description, things look really good. David W. Grzebinski: Thanks, Benjamin. Ben Mohr Mok: Great. Really, really appreciate that, David and Christian. My next question, I wanted to get a sense of sort of maybe discerning between benefiting from mix versus core rate. You have mentioned the low single digits, low mid single digits contract and spot, gains in inland this quarter from some of the small contracts renewed in the quarter. And, and so, you know, when we look back at 22, when Russia invaded Ukraine, we saw some very, very strong contract and spot rate for you guys during that time. As we calculate our model, look at your implied inland revenue per utilized barge per day, we estimate. It looks like it was up 7.5% in 2Q. And it is accelerated to up 8% here in 3Q even though your contract. Your contracted spot rate kinda mixes low single digits or so, Would you say you are seeing good strength in mix as well as some rate gain, maybe more in mix? Versus rate gain kind of versus what you experienced in 2022? David W. Grzebinski: it is a comp. Greg question. The interesting thing is these are portfolio of contracts we have you know, literally hundreds of contracts, and a lot depend on when they were last renewed. So it is difficult to answer your question. I think in terms of revenue per ton mile maybe is what you are looking at and I would just be careful because ton miles move around a lot. Depending on what moves we are doing. So just to give you an example, if it is if it is crude oil from West Virginia goes all the way down the Ohio to the Mississippi down to the Gulf Coast refineries. Those are a lot of ton miles. May not be as much revenue as, say, a chemical cross channel move here in the Houston Ship Channel, which would be very low revenue, or excuse me, high revenue, but low ton miles. So, I am not sure what you are looking at. You know, I think maybe Donny and Raj can follow-up with you and make sure we understand fully what you are looking at. Raj Kumar: Think, Benjamin, I will just add and just say that, you know, as we look into Q4, everything is set up really nicely for the marine companies. You know, inland marine, you know, as you know, and we have talked about this, you know, 35% to 40% of our term book gets renewed in Q4. And given the dynamics that we are seeing with the supply situation being in such a favorable position, We are set up to have a really good renewal cycle. I will I will let I will let Christian add some color to that because I think it is important for that message to come across. Christian G. O'Neil: No. We are we are very bullish in going. Finishing our Q4 renewals. John Hallmark and the commercial team are doing a great job. We have already had some nice wins as we sit here today at the end of October. And we look forward to continuing that momentum I mean, momentum is the word I would use it is a mix of high utility and you know, you combine that with the winter weather that always, you know, helps tighten things up. That will add to the to the ability to you know, push rates here in the fourth quarter. But we feel very positive about it, very encouraged. We are in a great spot, and momentum is the work. Raj Kumar: You know, I will just add on Q3. As we entered Q3, I mean, we saw fuel was actually quite favorable. And as we were as Q3 progressed, fuel started to be a headwind for us. Right? So and even in that situation, given the, you know, the few contracts that we renewed you know, and these are not a large number of contracts that we renewed in from a term perspective in Q3. We still got that price increase. And it helped mitigate a lot of that fuel impact as you can see in the results. Ben Mohr Mok: Really appreciate the insights as always. Analyst: Thank you. David W. Grzebinski: Thanks, Benjamin. Operator: Thank you. Again, that is star 1 to ask a question. Our next question comes from Gregory Wasikowski with Weber Research. Your line is open. Greg Wasikowski: Good Hey, morning. How are you doing? David W. Grzebinski: Hey, Gregory. Christian G. O'Neil: Yeah. Thanks. Greg Wasikowski: I am just gonna combine mine into 1, so a 2 parter here going back to chemicals. Firstly, what is what is driving some of that strength that you are seeing? You know, last year, I think you talked about some European plants starting to shut down. Are we starting to see some of the effects of that now? And then secondly, can we extend some of that optimism to the 10 k market? Or any other notable differences that you are seeing between the 10 ks and 30 ks market either on demand or supply side? Christian G. O'Neil: Yeah. Thank you, Gregory. Yes. You are seeing the rationalization of the chemical capacity in Europe closing and shutting down combined with The US Gulf chemical manufacturers filling that gap globally. And so when we talk to our chemical customers, they are. The. Their pricing has improved. Their exports have improved, and they are they are exporting to markets, you know, historically that might have been supported. By Middle East chemical manufacturing capacity. So the combination of the damage from the war in The Middle East, Gulf Coast being super competitive, cheap natural gas, and being, you know, the highest new. The highest tech best assets in the manufacturing space and the global rationalization of capacity have all compounded to strengthen our chemical book. Probably some room to go still to get back to sort of peak you know, chemical demand, but we feel really good about it. it is definitely stronger than it was a year ago. I am very glad you asked about the 10 k market In recent weeks, we have seen our 10 thousand barrel barge utility reach I am gonna say, you know, near record near record levels, We are very busy. The 10 k's are nearly fully deployed. And, the team is doing a great job of, marketing those barges. You know, we have we have won some new contracts and grown our book, and you know, all in all, we are just. We just got a lot of momentum there, and it is nice to see the chemical volumes back. And, again, when you combine that with record refinery utilization, you begin to have the perfect storm for curbing. David W. Grzebinski: Yeah. that is great to hear. Greg Wasikowski: Alright. Appreciate the color, guys. I will turn it over. David W. Grzebinski: Thanks, Gregory. Operator: Thank you. Our next question comes from Benjamin Moore with Citi. Your line is open. Ben Mohr Mok: Hey, guys. Thanks for bringing me back in. Just 1 last question on PowerGen. Revenue is up 8% this quarter, and you mentioned OEM availability being constrained still, but your backlog growth is still very strong. You mentioned in the past, up 10% to 20% is sort of your longer term outlook. For power gen revenue growth. How do you see that trending into that? Do maintain that outlook? Or are we maybe kind of looking at a lower end of that outlook given, sort of OEM capacity build constraints. So I wanna just get your thoughts on that, please. David W. Grzebinski: No. I would say we. We are gonna maintain that outlook. You know, 10 to 20% growth is I mean, that is a big range. So, yeah, we will maintain that. I would say, you know, the OEM stretching out is okay. That just kinda means that the there is more time to absorb and produce this equipment And for us to ramp up our capabilities. You know, good news is you know, Christian started an expansion at 1 of our plants a year and a half ago. And we have got a new, what we call, generator assembly building, which has increased our capacity and you know, right now, we are we are hiring probably 200 to 300 people. So you know, you can imagine the OEMs are doing that at even a greater scale, to get their stuff ramped up. So it an interesting dynamic. The OEMs are struggling. The is unprecedented demand. But, you know, they are all very quality conscious too. So as you ramp up these new plants, they are they are making sure it works. You know, the last thing they want is a bad reputation. So it is an interesting dynamic. We like where it is right now. You know, it. it is it is a strong ramp. So having it slow down a little bit is not really bothering us. it is actually allowing us to execute a little better. Christian G. O'Neil: But it is still within that range. Still within that range you gave them. Yeah. Ben Mohr Mok: Wonderful. Thanks so much. Operator: Thank you. I am showing no further questions at this time. I would now like to turn it back to Donny Chia for closing remarks. Donny Chia: Thank you, operator, and thanks to everyone for participating on our third quarter 26 earnings call. If you have any additional questions or comments, please feel free to contact me directly. Thank you. Have a good day. Operator: This concludes today's conference call. Thank you for participating. 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 $337,166!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,339,143!* Now, it's worth noting Stock Advisor's total average return is 904% — a market-crushing outperformance compared to 213% 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 October 28, 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) Q3 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. - Record third quarter earnings were driven by strong asset utilization across both segments and a favorable pricing environment in marine transportation. - Inland marine performance benefited from increased Venezuelan crude imports, which resulted in heavier refinery feed slates and a higher volume of byproduct moves. - Distribution and Services results were bolstered by the 'bring your own power' trend, where data centers and industrial customers increasingly utilize behind-the-meter natural gas power solutions. - Operating margins in the power generation business improved due to a higher mix of complex behind-the-meter applications compared to traditional backup diesel systems. - Rising fuel costs acted as a temporary headwind during the quarter, as contractual rate recovery mechanisms and cost escalators experienced a typical timing lag. - Limited industry-wide barge capacity additions, coupled with steady refinery and petrochemical demand, maintained inland utilization in the low 90% range. - Management attributed the 200 basis point sequential margin improvement in Distribution and Services to operational efficiencies and a growing share of high-value power solutions. - Full-year 2026 earnings growth guidance was narrowed to 10% to 15%, with management expecting results toward the upper end of that range based on Q4 pricing momentum. - The company anticipates a significant long-term margin tailwind in power generation as the current wave of new installations enters a higher-margin aftermarket parts and service cycle in 3 to 4 years. - Inland marine pricing is expected to strengthen in the fourth quarter, supported by a seasonally heavy renewal period where approximately 35% to 40% of the term book reprices. - Coastal marine margins are projected to remain in the mid-teens range for the full year, reflecting elevated shipyard activity and ongoing inflationary pressures on skilled labor and steel. - Management expects working capital requirements to normalize in the fourth quarter, which is anticipated to support a meaningful improvement in free cash flow. - Kirby entered an agreement to acquire inland marine assets for approximately $115 million, adding 14 barges and a strategic fleeting operation in Rockport, Texas, to enhance network efficiency. - OEM engine availability remains a critical constraint, limiting the rate at which the company can convert its record $1.5 billion power generation backlog into recognized revenue. - The inland marine pricing environment remains approximately 40% below the levels required to justify new build economics, effectively discouraging competitors from adding new capacity. - Management identified skilled labor and mariner wages as persistent inflationary pressures across both the marine and distribution segments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management noted that spot pricing currently leads term pricing by approximately 10% to 15%, providing significant leverage for upcoming contract renewals. - Industry supply remains tight with only about 65 barges expected for delivery this year, most of which are intended for replacement rather than fleet expansion. - The company expects the aftermarket opportunity for behind-the-meter power systems to eventually exceed the original product value as the installed base matures. - Management is aggressively building a dedicated power service team to capture this recurring revenue, which they estimate could become a $100 million plus business. - US Gulf Coast chemical volumes are strengthening as less efficient European plants close and Middle East infrastructure faces disruptions, positioning US producers as the global low-cost suppliers. - This shift has led to near-record utilization for Kirby's 10,000 barrel barge fleet, which is heavily utilized for chemical transport. - Margins for smaller 80,000 and 100,000 barrel barges were impacted by a reduction in European refined product imports that typically require redistribution along the East Coast. - In contrast, larger thermal oil and chemical units continue to see high demand and double-digit rate increases upon renewal.

Marine transportation service company Kirby (NYSE:KEX) will be announcing earnings results this Wednesday before the bell. Here's what to look for. Kirby beat analysts' revenue expectations last quarter, reporting revenues of $922.4 million, up 7.8% year on year. It was a very strong quarter for the company, with a decent beat of analysts' EBITDA estimates and a beat of analysts' EPS estimates. Is Kirby a buy or sell going into earnings? Read our full analysis here, it's free for active Edge members. This quarter, the market is expecting Kirby's revenue to grow 7.6% year on year, improving from the 4.8% increase it recorded in the same quarter last year. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Kirby has missed Wall Street's revenue estimates multiple times over the last two years. Looking at Kirby's peers in the transportation and logistics segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CSX delivered year-on-year revenue growth of 12%, beating analysts' expectations by 1.8%, and Ryder reported revenues up 8.3%, topping estimates by 1.2%. CSX traded up 6.8% following the results while Ryder was also up 12.7%. Read our full analysis of CSX's results here and Ryder's results here. Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the transportation and logistics stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Kirby is up 2.4% during the same time and is heading into earnings with an average analyst price target of $169 (compared to the current share price of $134.74). WHILE YOU'RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You've probably never heard of it. This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

Expeditors International of Washington, Inc. EXPD is scheduled to release third-quarter 2026 results on Nov. 3, before the market opens. The company exits the September-end quarter amid persistent geopolitical disruptions, volatile freight rates and uncertainty surrounding global trade policies. Elevated airfreight capacity costs and additional restructuring expenses may also have pressured profitability despite healthy demand across several logistics services. The Zacks Consensus Estimate for EXPD's third-quarter 2026 earnings has been revised upward by 5.7% over the past 60 days to $2.24 per share. The consensus mark for earnings implies a 36.6% increase from third-quarter 2025 actuals. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $3.61 billion, indicating an increase of 24.7% from third-quarter 2025 actuals. Expeditors has an encouraging earnings surprise history. The company's earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%. Expeditors International of Washington, Inc. price-eps-surprise | Expeditors International of Washington, Inc. Quote Elevated Airfreight Costs: Tight airfreight capacity and geopolitical disruptions are likely to have kept transportation costs elevated. Expeditors noted that reduced passenger flights, constrained belly capacity and rising fuel costs were putting significant pressure on air carriers, with buy and sell rates remaining elevated. Trade and Tariff Uncertainty: Changes in tariffs and global trade policies may also have created volatility. New U.S. tariffs imposed across multiple countries in July added uncertainty around trade flows, while Expeditors cautioned that changes in trade restrictions and carrier pricing could affect profitability unpredictably. Pricing Volatility: Sudden changes in carrier pricing remain another risk. The company noted that during periods of disruption or seasonal peaks, carriers often raise prices abruptly, which can make it more difficult for Expeditors to maintain historical unitary profitability. Restructuring Costs: Expenses related to the Global Technology restructuring may have weighed on the third quarter. Expeditors expects total restructuring charges of approximately $27 million, of which $25 million was recognized in the second quarter, with the remaining costs expected to be recorded during the second half of 2026. Our proven model does not conclusively predict an earnings beat for Expeditors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. EXPD has an Earnings ESP of -1.46% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Expeditors reported second-quarter 2026 earnings of $2.03 per share, up 51.5% year over year and 20.8% above the Zacks Consensus Estimate of $1.68. Revenues increased 32.1% to $3.50 billion, surpassing the consensus mark of $2.90 billion by 20.7%. Results benefited from broad-based growth across most products, led by airfreight and customs-related services. Airfreight tonnage advanced 14% year over year, while ocean container volume was flat. Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle. United Parcel Service UPS has an Earnings ESP of +0.95% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here. UPS is scheduled to report third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for third-quarter 2026 earnings has remained flat at $1.63 per share over the past 60 days. UPS' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average beat being 12.4%. Kirby Corporation KEX has an Earnings ESP of +1.87% and a Zacks Rank #3 at present. KEX is scheduled to report third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised upward by 0.51% to $1.96 per share over the past 60 days. KEX's earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed the mark on the other occasion. The average beat is 2.86%. 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 Expeditors International of Washington, Inc. (EXPD) : Free Stock Analysis Report United Parcel Service, Inc. (UPS) : Free Stock Analysis Report Kirby Corporation (KEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research