Kirby (KEX) Q4 2023 earnings summary

Executive summary

• Q4 2023 revenue was $799.2M, up 9% YoY; adjusted EPS was $1.04, up 55% YoY, supported by marine demand and pricing and growth in commercial and industrial markets.

• FY 2023 revenue was $3,091.6M; adjusted operating income was $338.1M and adjusted EPS was $3.72.

• FY 2024 earnings growth of 30%–40% is expected.

Financial highlights

• Q4 net earnings were $61.9M, or diluted EPS of $1.04, versus $37.3M and $0.62 in Q4 2022; revenue rose from $730.2M to $799.2M.

• Q4 EBITDA was $149.4M versus $113.5M YoY; operating cash flow was $216.0M and capital expenditures were $126.7M.

• FY 2023 revenue was $3,091.6M, up 11%; net earnings were $222.9M and EPS was $3.72.

• FY adjusted net earnings were $223.1M, or $3.72 per share, versus $126.6M and $2.10 in 2022.

Outlook and guidance

• FY 2024 earnings growth of 30%–40% is expected; recession or persistent inflation could weigh on results, while stronger chemical or oil and gas markets could support the high end.

• Inland marine revenue growth is forecast in the mid-to-high single digits, with operating margin averaging ~20%; Q1 is expected to be the lowest quarter.

• Coastal marine revenue is expected to rise high-single to low-double digits YoY, with operating margins in the mid-to-high single digits.

• Distribution and services revenue is expected flat to slightly down, with mid-to-high single-digit margins; commercial and industrial revenue is forecast up high-single to low-double digits, while oil and gas revenue is expected flat to slightly down.

• FY 2024 operating cash flow guidance is $600M–$700M; capital expenditures are $290M–$330M, with expected free cash flow of ~$300M.