Kirby Corporation — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net earnings attributable to Kirby were $110.8 million ($2.09 per share), up 27% year-over-year from $92.5 million ($1.65 per share) in the third quarter of 2025.
• Total revenues reached $977.2 million, an increase from $871.2 million in the prior year period.
• EBITDA (non-GAAP) was $229.7 million, compared to $201.4 million in the third quarter of 2025.
• Net cash provided by operating activities was $143.5 million, with capital expenditures of $69.5 million, resulting in free cash flow (non-GAAP) of $74.0 million.
• Total debt stood at $1,072 million, with a debt-to-capitalization ratio of 23.7%.
• Cash and cash equivalents were $38.3 million as of September 30, 2026, with $530 million of liquidity available.

Guidance and Future Outlook:

• Full-year earnings per share growth guidance was narrowed to a range of 10% to 15%, with expectations toward the upper end of the range.
• Inland marine revenues are expected to grow in the low-double-digit range for the full year, with operating margins in the high-teens to low-20% range.
• Coastal marine 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.
• Distribution and services segment revenues are expected to grow in the high-single-digit range for the full year, with operating margins in the high-single-digit range.
• Net cash provided by operating activities for 2026 is expected to range from $575 million to $675 million.
• Capital spending for 2026 is expected to range from $220 million to $260 million, with $170 million to $210 million allocated to marine maintenance and improvements, and up to $65 million to growth capital spending.

Business Segments and Product Lines:

• Marine Transportation: Revenues increased 17% year-over-year to $568.7 million. Operating income rose to $111.9 million with an operating margin of 20% (up from 18% in 2025).
  • Inland Marine: Represented 81% of segment revenues. Average barge utilization was in the low-90% range. Operating margins were in the 20% range despite rising fuel costs.
  • Coastal Marine: Represented 19% of segment revenues. Barge utilization was in the high-90% range. Operating margins were in the mid-teens range.
• Distribution and Services: Revenues grew 6% year-over-year to $408.5 million. Operating income increased to $48.4 million with an operating margin of 12% (up from 11% in 2025).
  • Power Generation: Revenues increased 8% and operating income increased 13%, representing 46% of segment revenues with margins in the low-double-digit range.
  • Commercial and Industrial: Revenues increased 8% and operating income increased 23%, representing 44% of segment revenues with margins in the low-double-digit range.
  • Oil and Gas: Revenues decreased 9% and operating income decreased 15% year-over-year, representing 10% of segment revenues with margins in the low-double-digit range.

Market and Competitive Landscape:

• Inland marine market fundamentals remained constructive, supported by strong refinery operating rates, healthy petrochemical activity, and limited new industry capacity.
• Spot market rates in inland marine improved sequentially in the low- to mid-single-digit range.
• Coastal marine customer demand remained stable with barge utilization in the high-90% range.
• Distribution and services benefited from robust demand for behind-the-meter and backup power solutions, driven by data center and industrial customers.
• Rising fuel costs remained a near-term headwind for marine transportation, impacting margins despite cost escalators and rate recovery mechanisms.

Risks and Challenges:

• Rising fuel costs continue to impact margins in the marine transportation segment.
• OEM supply conditions remain dynamic in the power generation market.
• Elevated planned shipyard activity and higher fuel costs are expected to pressure coastal marine margins in the fourth quarter.
• Forward-looking statements note risks including adverse economic conditions, industry competition, adverse weather conditions (storms, hurricanes, ice), marine accidents, lock delays, interest rates, and government/environmental regulations.

Management Commentary and Tone:

• CEO David Grzebinski stated that results reflected strong momentum across both businesses and solid execution, with strong barge utilization and favorable pricing trends supporting performance.
• Management noted that while rising fuel costs impacted margins, the company executed well and delivered solid financial and operating results.
• The tone was confident regarding the company's positioning to capitalize on opportunities despite ongoing macroeconomic and geopolitical uncertainty.

Other Key Points:

• The company 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 in Rockport, Texas. The transaction is expected to close in the fourth quarter of 2026.
• Kirby returned $112 million of capital to shareholders through share repurchases during the third quarter of 2026 at an average share price of $137.04.
• A conference call was scheduled for October 28, 2026, to discuss the results and outlook.