• Earnings Per Share (EPS): $1.43, up from $0.95 in Q2 2023.

• Inland Marine Revenue: Increased 11% year over year.

• Inland Marine Operating Margin: Low 20% range.

• Coastal Marine Revenue: Increased 24% year over year.

• Coastal Marine Operating Margin: Low 10% range.

• Distribution and Services Revenue: $340 million, down 3% year over year.

• Distribution and Services Operating Margin: 8.7%.

• Power Generation Revenue Growth: Up 9% year over year.

• Oil and Gas Revenue: Down 33% year over year, up 22% sequentially.

• Cash Flow from Operations: Approximately $180 million for the quarter.

• Capital Expenditures (CapEx): $89 million for the quarter.

• Stock Repurchase: $43.7 million at an average price of $117 per share.

• Total Debt: Approximately $1.05 billion.

• Available Liquidity: Approximately $488 million.

• Warning! GuruFocus has detected 3 Warning Signs with WW.

Release Date: August 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Kirby Corp (NYSE:KEX) reported a significant increase in earnings per share, rising to $1.43 from $0.95 in the same quarter last year.

• The company experienced strong demand in both marine transportation and distribution and services, contributing to robust financial performance.

• Inland marine transportation saw an 11% year-over-year revenue increase, with barge utilization rates in the low-to-mid 90% range.

• Coastal revenues increased by 24% year-over-year, driven by high customer demand and limited availability of large-capacity vessels.

• The distribution and services segment saw sequential growth in revenue and operating income, particularly in power generation, which grew 9% year-over-year.

Negative Points

• Kirby Corp (NYSE:KEX) faced weather and navigation challenges, including heavy rains and lock delays, which increased delay days by 44% year-over-year.

• The company continues to experience supply chain constraints, impacting the management of working capital.

• Oil and gas revenues were down 33% year-over-year, reflecting softness in conventional frac-related equipment demand.

• The marine transportation segment was impacted by Hurricane Beryl, which temporarily shut down operations and affected revenue.

• There is an acute shortage of mariners, leading to increased labor costs and challenges in maintaining operations.

Q & A Highlights

Q: Can you discuss the strength in the coastal market and the factors driving it? A: David Grzebinski, President and CEO, explained that the coastal market is experiencing strong demand, partly due to increased movement of refined products post-COVID and fleet rationalization. The supply side is tight due to high costs of new builds and regulatory requirements like ballast water treatment. This has led to significant rate increases, with no new builds expected soon due to high costs and tight shipyard capacity.