Kirby EPS Jumps 27% on Tight Barge Market and Backup Power Demand

Kirby's third-quarter earnings per share jumped 27% on Wednesday, powered by tight inland barge markets and surging demand for backup power systems from data center and industrial customers.

The Houston-based tank barge operator and equipment distributor reported net earnings attributable to Kirby of $110.8 million, or $2.09 per share, up from $92.5 million, or $1.65 per share, a year earlier, according to the earnings release it filed with an 8-K on Wednesday. Revenue rose to $977.2 million from $871.2 million.

Kirby narrowed its full-year earnings per share growth guidance to 10% to 15% and said it currently expects results toward the upper end of that range.

Barges stay busy

Marine transportation revenue climbed 17% to $568.7 million, and operating income rose to $111.9 million from $88.6 million, lifting the segment's operating margin to 20% from 18%.

In inland marine, which made up 81% of segment revenue, barge utilization ran in the low-90% range. Spot rates rose by a low- to mid-single-digit percentage from the prior quarter, and term contract renewals increased by a low-single-digit percentage.

"In marine transportation, strong barge utilization and favorable pricing trends supported performance during the quarter, though rising fuel costs continued to impact margins," CEO David Grzebinski said in the release.

Coastal marine utilization was in the high-90% range, with revenue up slightly and operating margins in the mid-teens.

Power demand lifts distribution

Distribution and services revenue grew 6% to $408.5 million, and operating income rose to $48.4 million from $42.7 million.

Power generation, about 46% of the segment, posted an 8% revenue gain and a 13% rise in operating income on continued demand for behind-the-meter and backup power solutions. Kirby said order activity kept strengthening, driven by data center and industrial customers. Commercial and industrial revenue also rose 8%, while oil and gas revenue fell 9%.

Buybacks and a South Texas deal

Kirby returned $112 million to shareholders through share repurchases in the quarter at an average price of $137.04 per share.

It also agreed to buy 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, serving the Corpus Christi area. The company expects the deal to close in the fourth quarter, subject to customary conditions.

Cash and outlook

EBITDA rose to $229.7 million from $201.4 million. Operating cash flow was $143.5 million and capital spending was $69.5 million, leaving free cash flow of $74.0 million. Kirby said working capital stayed elevated due to higher revenue, collection timing and fuel-related receivables.

Total debt stood at $1,072 million at Sept. 30, with a debt-to-capitalization ratio of 23.7%.

For the rest of the year, Kirby expects inland barge utilization to stay in the low-90% range, with spot pricing and term renewals improving further. "Despite ongoing macroeconomic and geopolitical uncertainty, customer demand remains healthy across many of our end markets," Grzebinski said.

Sources

1. Kirby Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 28, 2026 (accession 0001193125-26-436155)

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