Kirby narrows full-year profit forecast as third-quarter results top estimates

Kirby Corporation (KEX) said on Oct. 28 that it earned $2.09 per diluted share in the third quarter ended Sept. 30, 2026, topping the $2.00 consensus estimate compiled by Finnhub. Revenue of $977.2 million also topped the $947 million estimate.

The company said in a regulatory filing that it released the results the same day. It also narrowed its full-year earnings-per-share growth forecast to 10% to 15%, from the 5% to 15% range it gave on July 29.

Here's how the company did:

• Diluted EPS: $2.09 vs. $1.65 a year earlier, and $2.00 expected, according to Finnhub
• Revenue: $977.2 million vs. $871.2 million a year earlier, and $947 million expected, according to Finnhub
• Operating income: $150.9 million vs. $129.2 million a year earlier
• EBITDA (non-GAAP): $229.7 million vs. $201.4 million a year earlier

EBITDA, or earnings before interest, taxes, depreciation and amortization, is a non-GAAP measure the company uses to evaluate operating performance.

"Our third quarter results reflected strong continued momentum across both businesses and solid execution throughout the organization," Chief Executive Officer David Grzebinski said in the release.

Segment results

Marine transportation revenue was $568.7 million, compared with $484.9 million a year earlier. Operating income was $111.9 million, up from $88.6 million. Inland barge utilization was in the low-90% range, and spot market rates rose in the low- to mid-single-digit range from the second quarter.

Distribution and services revenue was $408.5 million, compared with $386.2 million a year earlier. Power generation revenue rose 8%, and commercial and industrial revenue also rose 8%. Oil and gas revenue fell 9%.

Guidance and cash

The company now expects net cash provided by operating activities of $575 million to $675 million in 2026, and capital spending of $220 million to $260 million. In the quarter, operating cash flow was $143.5 million and free cash flow was $74.0 million.

Kirby returned $112 million through share repurchases at an average price of $137.04 a share. It had $38.3 million of cash and cash equivalents at Sept. 30 and total debt of $1,072 million.

Grzebinski said: "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."

For the fourth quarter, the company said higher fuel costs and elevated planned shipyard activity are expected to pressure coastal marine margins. Inland revenues are expected to grow in the low-double-digit range for the full year.

Inland marine acquisition

Kirby entered into an agreement during the quarter to buy certain inland marine assets from undisclosed sellers for $115 million. The assets include nine inland towboats, 14 inland tank barges, nine bow thrusters, and a fleeting operation in Rockport, Texas, serving the Corpus Christi area.

The company expects the deal to close in the fourth quarter of 2026, subject to customary closing conditions.