Kirby Corporation's Q2 2025: Unpacking Contradictions in Inland Market Dynamics and Power Generation Growth

Inland spot market dynamics, capacity constraints and spot pricing, inland margins and pricing expectations, Inland revenue growth expectations, and power generation segment growth and demand are the key contradictions discussed in Kirby Corporation's latest 2025Q2 earnings call.



Strong Earnings and Market Performance:
- Kirby Corporation reported second quarter earnings per share of $1.67, a 17% increase year-over-year from $1.43 in the second quarter of 2024.
- The performance was driven by solid execution across both business segments, healthy customer demand, disciplined pricing, and strong operational performance.

Inland Marine Transportation Trends:
- Average barge utilization in Inland Marine Transportation was in the low to mid-90% range, with spot market rates increasing in the low single digits sequentially and mid-single digits year-over-year.
- Market conditions remained favorable, but navigational and lock delays posed challenges to operational efficiency.

Coastal Marine Transportation Growth:
- Coastal Marine Transportation reported barge utilization consistently in the mid- to high 90% range, with term contract renewals increasing in the mid-20% range year-over-year.
- The strong demand and limited supply dynamics contributed to significant pricing gains, leading to operating margins reaching the high teens.

Distribution and Services Segment Performance:
- The Distribution and Services segment experienced year-over-year revenue growth, with Power Generation revenues up 31% and Commercial and Industrial revenues up 5%.
- The growth was driven by robust demand from data centers and industrial customers, despite softness in the oil and gas market.