Kirby reports Q1 EPS $1.19, consensus 98c

Reports Q1 revenue $808M, consensus $784.57M. David Grzebinski, Kirby’s President and Chief Executive Officer, commented, “We are off to a solid start in 2024. Both of our segments performed well during the quarter, delivering improved revenue and operating income and our team executed well despite weather related delays in the marine transportation segment and continuing supply chain delays in distribution and services. We continue to see favorable fundamentals as 2024 progresses, and we expect steady quarterly earnings progression for the remainder of the year. “In inland marine transportation, our operations were challenged by high winds, ice delays on the Illinois River, fog along the Gulf Coast, and lock delays throughout the system. Overall, delay days increased 22% compared to the fourth quarter of 2023. From a demand standpoint, customer activity was strong in the quarter with barge utilization rates running in the low to mid-90’s throughout the quarter. Spot market prices were up in the low to mid-single digits sequentially and in the 15% range year-over-year. Term contract prices also renewed up higher with low double digit increases versus a year ago. Overall, first quarter inland revenues increased 14% year-over-year and margins were in the high teens range. “In coastal, market fundamentals remained strong with our barge utilization levels running in the mid to high-90% range. During the quarter, we saw solid customer demand and limited availability of large capacity vessels which resulted in price increases on term contract renewals in the low 20% range and low 30% increases in spot market prices. Our planned shipyard maintenance on several large vessels continues to wind down and we brought one large unit back into service in the quarter. Overall, first quarter coastal revenues increased 20% year-over-year and operating margins were in the high single to low double-digit range. “In distribution and services, overall demand was stable across our markets with continued new orders and high levels of backlog. In power generation, strong order growth drove a 42% sequential and 50% year-over-year increase in revenues with several large projects wins from data center customers. In manufacturing, revenues were up 8% sequentially driven by deliveries of previously delayed shipments and healthy demand for our e-frac and related products. In our commercial and industrial market, overall demand remained steady across our different businesses, with growth coming from the marine repair sector,” Mr. Grzebinski concluded.