Kirby sees FY25 net cash from operating activities $620M-$720M

Commenting on the outlook for the fourth quarter of 2025, CEO Grzebinski said, “As we enter the fourth quarter, we remain focused on execution and disciplined capital allocation, while navigating evolving market conditions across our businesses. Despite near-term challenges in the inland market, we remain confident the inland barge cycle still has years to go given supply constraints. Our structural advantages in marine and growing backlog in power generation provide meaningful upside potential. With our strong balance sheet and robust free cash flow, we are well positioned to pursue strategic investments whether through targeted capital projects, selective acquisitions, or returning capital to shareholders. This financial strength provides us with the flexibility to manage near-term uncertainty while remaining focused on creating long-term value. In inland marine, market conditions are expected to remain stable, with some early signs of improvement evident. Seasonal weather factors could work to further reduce barge availability across the industry, which should support higher barge utilization for the full quarter. While term contract rates are expected to continue improving over the long term, driven by the slow pace of newbuild activity and tight vessel availability, spot market pricing could continue to face modest pressure in the near term if demand softness re-emerges. However, thus far in the fourth quarter we have seen a meaningful improvement in demand. Overall, inland revenues and margins are expected to improve modestly from the third quarter levels, assuming tighter barge availability holds in the fourth quarter. In coastal marine, market fundamentals remain very favorable, with steady customer demand and barge utilization expected to hold in the mid to high-90% range. Pricing continues to benefit from limited availability of large capacity vessels and limited newbuilds, helping to offset inflationary and regulatory headwinds. Kirby (KEX) expects to conclude the year with coastal revenues and operating margins comparable to the third quarter of 2025. In distribution and services, the outlook reflects strength in growing markets with continued discipline in challenged areas. Power generation continues to be a strong contributor, with sustained demand from data centers and industrial customers driving order growth. OEM lead times and delivery schedules, now a consistent feature of the operating environment, remain a factor in project timing. In commercial and industrial, marine repair activity is strong, and the on-highway market continues to improve. Oil and gas growth remains limited by current market dynamics and customer capital discipline; however, we continue to demonstrate solid performance in e-frac and maintain strong cost control. For the segment, we now expect full-year revenues to be up in the mid-single digits, with operating margins in the high-single digits.” Kirby expects to generate net cash provided from operating activities of $620M to $720M in 2025 and capital spending is expected to range between $260M to $290M. Approximately $180M to $210M is associated with marine maintenance capital and improvements to existing inland and coastal marine equipment, and facility improvements. Up to approximately $80M is associated with growth capital spending in both our businesses.