Kirby Corporation Q1 FY2026 earnings call

Good morning, first quarter earnings per share $1.50, 13% y-o-y increase. Marine transportation fundamentals improving, utilization and pricing strengthening, though weather-related disruptions impacted inland. Distribution and services had mixed conditions, power generation strong but OEM engine availability an issue. Combined businesses executed well, announced increasing EPS guidance range for year up 5% to 15% from flat to up 12% previously. Inland marine fundamentals improved, coastal marine fundamentals strong. Distribution and services strong in power generation and commercial and industrial offsetting oil and gas softness.

Marine transportation segment revenues in first quarter of 2026 were 497 million with operating income 90 million and 18% operating margin. Compared to first quarter 2025, total marine transportation revenues increased 21 million or 4% and operating income increased 3 million or 4%. Inland business contributed ~79% of segment revenue, average barge utilization in low 90% range for quarter, long-term inland marine transportation contracts ~65% of revenue. Coastal revenues increased 23% year-over-year, operating margin in high teens range, represented 21% of marine transportation segment revenues. Distribution and services segment revenues first quarter 2026 were 347 million, operating income 23 million, 6.7% operating margin. Power generation revenues up 45% year-over-year, commercial and industrial revenues up 1% year-over-year and 8% sequentially, oil and gas revenue down 25% year-over-year but up 13% sequentially.

Announced increasing EPS guidance range for year up 5% to 15%. Inland marine anticipates positive market dynamics, barge utilization low 90% range, but second quarter near-term cost headwinds due to rising fuel costs. Coastal marine expects mid 90% barge utilization, mid-single-digit revenue growth y-o-y. Distribution and services segment results mixed, PowerGen impacted by engine availability, segment revenues flat to slightly up for full year with operating margins mid to high single digits.

Global macro and geopolitical developments like Iran conflict, Venezuelan oil situation create near-term variability. Inland marine operations face near-term cost headwinds in second quarter due to rising fuel costs. PowerGen segment impacted by ongoing OEM-related supply constraints.

Q: Hey, good morning and thank you for taking my questions and hey, congrats on a good quarter. Hey, question around the inland barge business...

A: Yeah, good morning, Greg. Thanks for the question. Yeah, no, throughout the quarter, we started January kind of a continuation of what we were seeing in the fourth quarter...

Q: Hi, good morning. Congrats on the great results and also the raise. Just wanted to piggyback on Greg's first question there...

A: Yeah, I mean, the revenue and margin guidance, you know, is a range, and, you know, this just moved it up to the higher end of that range, in my opinion...

Q: Hi, Adam Roszkowski on for Ken Hexter. Thanks for taking my question. I guess to start, maybe just remind us what portion of the Inland book is going to reprice in 2Q, 3Q, 4Q...

A: Yeah, sure, Adam. Christian, I'll tag team this a bit. As we've indicated in the past, term renewals are very fourth quarter heavy, about 40% of the term portfolio reprices in the fourth quarter...

Q: Hey, thanks. Good morning. So helpful color on spot. I just have a couple of follow-ups. So where's spot trending on a year over year basis and that, that 10 point spread of spot over contract...

A: We'll try and give you some color here. Good morning, Scott. You know, 10% is a healthy gap above spot. You know, I think when it really gets sporty, it's more like 10% to 15%...