Kirby (KEX) Q2 2024 earnings summary

Executive summary

• Q2 2024 EPS was $1.43, up from $0.95 in Q2 2023, with net earnings rising 46% to $83.9 million, reflecting strong execution and robust marine transportation performance despite weather and supply chain challenges.

• Consolidated revenues grew 6% year-over-year to $824.4 million, driven by strong marine transportation and stable distribution & services demand.

• Both inland and coastal marine segments benefited from tight supply, high utilization, and improved pricing.

• Distribution & services saw stable demand, with power generation and commercial/industrial growth offsetting oil & gas softness.

• Share repurchases totaled $43.7M–$44M in Q2, and a $65.2M acquisition of 13 barges and two towboats was completed.

Financial highlights

• Q2 2024 revenues: $824.4M (+6% YoY); operating income: $120.5M (+38% YoY); net earnings: $83.9M (+46% YoY); EPS: $1.43 (+50% YoY).

• Marine transportation Q2 revenues: $484.8M (+14% YoY), operating income: $94.9M (+48% YoY), margin: 19.6%.

• Distribution & services Q2 revenues: $339.6M (–3% YoY), operating income: $29.4M, margin: 8.7%.

• Cash flow from operations near $179M in Q2; free cash flow $90.7M–$91M; cash $53.5M–$54M; total debt $1.05B; debt-to-cap ratio 24.3%.

• EBITDA for Q2 2024 was $182.9M, up from $140.3M in Q2 2023.

Outlook and guidance

• Full-year 2024 growth expected at the high end of 30%-40% original guidance, with strong free cash flow and robust balance sheet.

• Inland marine revenues projected to grow high single to low double digits; coastal revenues to rise low double to mid-teens percent YoY.

• Distribution & services revenues expected flat to slightly down YoY, with operating margins in mid to high-single digits.

• 2024 capital expenditures projected at $300M–$330M, with $200M–$240M for marine maintenance and $90M for growth.

• 2024 net cash from operations forecasted at $600M–$700M; free cash flow expected at $300M–$350M.