Kirby Corporation (KEX) | Investment Case

1. Company Snapshot

1.a. Company Description

Kirby Corporation operates domestic tank barges in the United States.Its Marine Transportation segment provides marine transportation service and towing vessel transporting bulk liquid product, as well as operates tank barge throughout the Mississippi River System, on the Gulf Intracoastal Waterway, coastwise along three United States coasts, and in Alaska and Hawaii.It also transport petrochemical, black oil, refined petroleum product, and agricultural chemicals by tank barge; and operates offshore dry-bulk barge and tugboat unit that are engaged in the offshore transportation of dry-bulk cargo in the United States coastal trade.

As of December 31, 2021, it owned and operated 1,025 inland tank barge, approximately 255 inland towboat, 31 coastal tank barge, 29 coastal tugboat, 4 offshore dry-bulk cargo barge, 4 offshore tugboat, and 1 docking tugboat.Its Distribution and Services segment sells after-market service and genuine replacement part for engine, transmission, reduction gear, electric motor, drive, and control, electrical distribution and control system, energy storage battery system, and related oilfield service equipment; rebuild component parts or diesel engine, transmission and reduction gear, and related equipment used in oilfield service, marine, power generation, on-highway, and other industrial applications; rents generator, industrial compressor, high capacity lift truck, and refrigeration trailer; and manufactures and remanufactures oilfield service equipment, including pressure pumping unit, as well as manufacturers electric power generation equipment, specialized electrical distribution and control equipment, and high capacity energy storage/battery systems for oilfield customer.It serves to various companies and the United States government.

The company was formerly known as Kirby Exploration Company, Inc.and changed its name to Kirby Corporation in 1990.Kirby Corporation was founded in 1921 and is headquartered in Houston, Texas.

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1.b. Last Insights on KEX

Kirby Corporation's recent performance was driven by strong Q3 earnings, with the company beating expectations at $1.65 per share, surpassing the Zacks Consensus Estimate of $1.6 per share. Surging cash flow and disciplined capital spending also contributed to the positive momentum. Additionally, the company's $8 million buyback program, aimed at rewarding shareholders, highlights its financial strength. Several institutional investors, including Focus Partners Advisor Solutions LLC and Vanguard Personalized Indexing Management LLC, have taken or increased positions in the company, citing its potential. Brokerages have set a target price of $113.40, with a "Moderate Buy" rating.

1.c. Company Highlights

Last Price	111.63
Change Percentage	-1.18%
Open	112.72
Previous Close	112.96
Market Cap ( Millions)	6308
Volume	564386
Year High	122.5
Year Low	79.52
M A 50	96.83
M A 200	101.26

FCF Yield	4.62%
Dividend Yield	0.00%
ROE	9.10%
Debt / Equity	37.26%
Net Debt / EBIDTA	173.51%
Price To Book	1.85
Price Earnings Ratio	20.32
Price To FCF	21.66
Price To sales	1.9
EV / EBITDA	10.81

2. Kirby Corporation's Q3 2025 Earnings: Steady Performance Amidst Mixed Market Conditions

Kirby Corporation reported earnings per share (EPS) of $1.65 for the third quarter of 2025, a 6% increase year-over-year, beating analyst estimates of $1.6. The company's financial performance was characterized by steady results across its businesses, driven by robust customer demand in power generation and disciplined operational execution. Revenue growth was supported by the Distribution and Services segment, which achieved solid year-over-year growth in both revenue and operating income.

Publication Date: Oct -31

                                    📋 Highlights
                                    EPS Growth:
                                                Earnings per share rose 6% YoY to $1.65, reflecting disciplined operations and demand in power generation.
Power Generation Surge:
                                                Revenue jumped 56% YoY, driven by data centers and prime power, with a $0.5-$1B backlog supporting 2026 growth.
Coastal Marine Strength:
                                                Barge utilization hit mid- to high-90%, term renewals up mid-teens, and limited vessel supply sustaining pricing momentum.
Balance Sheet Resilience:
                                                Net debt-to-EBITDA at 1.3x, $227M operating cash flow, and $47M cash, enabling $200M+ Q4 free cash flow for share buybacks.
Segment Performance Contrast:
                                                Inland marine spot rates fell 1-4%, while coastal marine maintained pricing power, and Distribution & Services saw double-digit growth.

                                

Segment Performance

The inland marine transportation business experienced near-term softness due to favorable seasonal weather and improved navigational conditions, resulting in barge utilization averaging in the mid-80% range. In contrast, the coastal marine transportation segment remained strong, with barge utilization consistently in the mid- to high 90% range, driven by steady customer demand and limited supply of large capacity vessels. The Distribution and Services segment delivered another outstanding quarter, with power generation revenues increasing 56% year-over-year, driven by robust demand for data centers and prime power customers.

Balance Sheet and Cash Flow

The company's balance sheet remained strong, with $47 million of cash, total debt of around $1.05 billion, and a debt-to-cap ratio of 23.8%. Net debt-to-EBITDA was 1.3x, and the company generated $227 million of net cash flow from operating activities in the third quarter. The company's outlook reflects strength in expanding markets, supported by disciplined execution and a focus on growth opportunities.

Outlook and Valuation

Looking ahead to the fourth quarter, the company expects market conditions to remain stable in inland marine, with barge utilization improving to the high 80% range. The Distribution and Services segment is expected to continue its strong performance, with power generation remaining a key driver of growth. With a P/E Ratio of 18.99 and an EV/EBITDA of 8.38, the market appears to be pricing in a certain level of growth. Analysts estimate next year's revenue growth at 4.9%, which may be achievable given the company's strong backlog and expanding customer portfolio.

Growth Opportunities

The company's power generation business is expected to continue its strong performance, fueled by sales and order activity from data centers and industrial customers. David Grzebinski mentioned that the backlog in power gen is between $0.5 billion and $1 billion and continues to grow, with a record mid-teens year-over-year increase. The company's focus on growth opportunities and disciplined execution positions it well for continued growth into 2026.

3. NewsRoom

STUB DEADLINE ALERT: StubHub Holdings, Inc. Investors Urged to Contact Kirby McInerney LLP About Class Action Lawsuit

01:00

Source: globenewswire.com

ARE ALERT: Kirby McInerney LLP Reminds Alexandria Real Estate Equities, Inc. Investors of Important Deadline in Class Action Lawsuit

01:00

Source: businesswire.com

Klarna Group plc INVESTIGATION: Kirby McInerney LLP Announces Investigation Into Potential Securities Fraud on behalf of Investors (KLAR)

Dec -04

Source: globenewswire.com

DEFT: Kirby McInerney LLP Advises DeFi Technologies Investors of Class Action Lawsuit

Dec -04

Source: globenewswire.com

FLY DEADLINE ALERT: Firefly Aerospace Inc. Investors Urged to Contact Kirby McInerney LLP About Class Action Lawsuit

Dec -03

Source: globenewswire.com

DEFT ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of DeFi Technologies Investors

Dec -02

Source: businesswire.com

Creative Planning Buys 630 Shares of Kirby Corporation $KEX

Dec -02

Source: defenseworld.net

Advantage Alpha Capital Partners LP Has $4.69 Million Holdings in Kirby Corporation $KEX

Nov -28

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.94%)

6. Segments

Marine Transportation

Expected Growth: 6.5%

Kirby Corporation's Marine Transportation segment growth of 6.5% is driven by increasing demand for petrochemical transportation, expansion of inland waterway networks, and rising crude oil production. Additionally, strategic acquisitions, improved operational efficiencies, and a strong balance sheet contribute to the segment's growth.

Distribution and Services

Expected Growth: 7.5%

Kirby Corporation's Distribution and Services segment growth of 7.5% is driven by increasing demand for commercial marine transportation, expansion of inland tank barge fleet, and strategic acquisitions. Additionally, growth in oil and gas production, coupled with rising demand for refined products, contributes to the segment's growth.

7. Detailed Products

Inland Tank Barges

Kirby Corporation designs, builds, and operates inland tank barges that transport petrochemicals, refined petroleum products, and black oil

Offshore Dry-Bulk Barges

Kirby Corporation operates offshore dry-bulk barges that transport dry bulk cargoes such as coal, iron ore, and grains

Towing Vessels

Kirby Corporation operates towing vessels that provide towing services to the energy, construction, and other industries

Ship Docking Services

Kirby Corporation provides ship docking services, including ship repair, maintenance, and conversion

Marine Transportation Services

Kirby Corporation provides marine transportation services, including the transportation of cargo and passengers

Diesel Engine Services

Kirby Corporation provides diesel engine services, including repair, maintenance, and overhaul

8. Kirby Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Kirby Corporation operates in the marine transportation industry, which has a moderate threat of substitutes. While there are alternative modes of transportation, such as trucks and trains, they are not always a viable option for transporting large quantities of goods over long distances.

Bargaining Power Of Customers

Kirby Corporation's customers, primarily oil and gas companies, have limited bargaining power due to the specialized nature of the company's services and the lack of alternative providers.

Bargaining Power Of Suppliers

Kirby Corporation's suppliers, primarily shipbuilders and equipment providers, have a moderate level of bargaining power due to the availability of alternative suppliers and the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants in the marine transportation industry is low due to the high barriers to entry, including the need for significant capital investment and regulatory compliance.

Intensity Of Rivalry

The marine transportation industry is highly competitive, with several established players competing for market share. Kirby Corporation faces intense rivalry from companies such as Genesis Energy and American Commercial Lines.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	24.79%
Debt Cost	5.77%
Equity Weight	75.21%
Equity Cost	9.66%
WACC	8.70%
Leverage	32.96%

11. Quality Control: Kirby Corporation passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Ryder System

A-Score: 6.3/10

Value: 7.5

Growth: 6.8

Quality: 3.1

Yield: 5.0

Momentum: 8.0

Volatility: 7.3

1-Year Total Return ->

MSC Industrial Direct Co

A-Score: 6.1/10

Value: 4.2

Growth: 3.7

Quality: 6.0

Yield: 8.0

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

Matson

A-Score: 5.1/10

Value: 8.0

Growth: 7.1

Quality: 6.6

Yield: 2.0

Momentum: 1.5

Volatility: 5.7

1-Year Total Return ->

Fortress Transportation

A-Score: 5.1/10

Value: 3.0

Growth: 4.7

Quality: 8.5

Yield: 6.0

Momentum: 5.0

Volatility: 3.3

1-Year Total Return ->

FTAI Aviation

A-Score: 4.9/10

Value: 3.0

Growth: 4.7

Quality: 8.5

Yield: 5.0

Momentum: 6.5

Volatility: 2.0

1-Year Total Return ->

Kirby

A-Score: 4.3/10

Value: 6.3

Growth: 6.1

Quality: 6.7

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

5.20%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.70%

Kirby Corporation - US4972661064

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on KEX

1.c. Company Highlights

Medium Volatility

Fairly Valued

Stable Momentum

Earnings Beats

Revenues Beats

Strong Momentum

Average Yield

Lower Growth

Revenues Miss

Average Quality

Average Growth

Less Volatile

Weak Momentum

2. Kirby Corporation's Q3 2025 Earnings: Steady Performance Amidst Mixed Market Conditions

Segment Performance

Balance Sheet and Cash Flow

Outlook and Valuation

Growth Opportunities

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.94%)

6. Segments

Marine Transportation

Expected Growth: 6.5%

Distribution and Services

Expected Growth: 7.5%

7. Detailed Products

Inland Tank Barges

Offshore Dry-Bulk Barges

Towing Vessels

Ship Docking Services

Marine Transportation Services

Diesel Engine Services

8. Kirby Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Kirby Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

111.63$

Current Price

111.63$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA