Kirby Corporation (KEX) Bundle
A Brief History of Kirby Corporation
Kirby Corporation (KEX), a leading provider of marine transportation and diesel engine services, has a significant presence in the U.S. inland and coastal markets. As of 2024, the company continues to evolve amidst changing market dynamics.
Financial Performance Overview
For the second quarter of 2024, Kirby reported net earnings attributable to the company of $83.9 million, compared to $57.4 million in the same quarter of 2023. This reflects a robust year-over-year increase of 46%. The earnings available to Kirby common stockholders on a diluted basis were $1.43 per share for Q2 2024, versus $0.95 per share in Q2 2023.
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Net Earnings | $83.9 million | $57.4 million | +46% |
| Earnings per Share (Diluted) | $1.43 | $0.95 | +50% |
Revenue and Operating Income
In the first six months of 2024, Kirby reported revenues of $1.1 billion, an increase from $850 million in the same period of 2023, marking a significant growth of 29%. Operating income for the same period rose to $239 million, up from $143 million, reflecting a 67% increase year-over-year.
| Metric | First Half 2024 | First Half 2023 | % Change |
|---|---|---|---|
| Revenue | $1.1 billion | $850 million | +29% |
| Operating Income | $239 million | $143 million | +67% |
Marine Transportation Segment
In 2024, Kirby's marine transportation segment continued to dominate its revenue streams, contributing 59% of total revenues. The inland tank barge fleet, which comprises 1,093 barges with a barrel capacity of 24.2 million, operates at high utilization levels averaging in the low to mid-90% range.
| Fleet Type | Number of Barges | Barrel Capacity (Million) |
|---|---|---|
| Inland Tank Barges | 1,093 | 24.2 |
| Coastal Tank Barges | 28 | 2.9 |
Debt and Equity Position
As of June 30, 2024, Kirby's total equity increased to $3.26 billion, up from $3.19 billion at the end of 2023, reflecting a 2% increase. The company's long-term debt, net of current portions, stood at $1.04 billion, with a debt-to-capitalization ratio of 24.3%.
| Metric | June 30, 2024 | December 31, 2023 | % Change |
|---|---|---|---|
| Total Equity | $3.26 billion | $3.19 billion | +2% |
| Long-term Debt | $1.04 billion | $1.01 billion | +3% |
Market Trends and Pricing
In 2024, Kirby experienced an increase in pricing for both term and spot contracts. Inland market term contracts saw increases between 9% to 12%, while coastal market term contracts increased by 19% to 21%.
| Market Segment | Term Increase | Spot Increase |
|---|---|---|
| Inland Market | 9% – 12% | 14% – 17% |
| Coastal Market | 19% – 21% | 30% – 32% |
Kirby Corporation's strategic positioning and operational efficiencies have allowed it to navigate challenges while capitalizing on growth opportunities in the marine transportation and diesel engine services sectors.
A Who Owns Kirby Corporation (KEX)
Major Shareholders
As of 2024, Kirby Corporation (KEX) has a diverse ownership structure comprised of institutional investors, mutual funds, and individual shareholders. The largest shareholders of the company include:
| Shareholder | Ownership Percentage | Shares Owned | Type of Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | 12.5% | 7,300,000 | Institutional |
| BlackRock, Inc. | 10.9% | 6,400,000 | Institutional |
| State Street Corporation | 8.3% | 4,800,000 | Institutional |
| Wellington Management Group LLP | 5.7% | 3,300,000 | Institutional |
| Dimensional Fund Advisors LP | 4.5% | 2,600,000 | Institutional |
| Insider Ownership | 3.2% | 1,800,000 | Individual |
Stock Performance
As of June 30, 2024, Kirby Corporation's stock performance has shown significant resilience. The stock price fluctuated within a range of $90 to $115 throughout the first half of the year, reflecting the overall market conditions and company performance.
Recent Financial Highlights
Kirby Corporation reported a net earnings increase of $153.9 million for the six months ended June 30, 2024, compared to $98.1 million for the same period in 2023. The company’s revenue for the first six months of 2024 was $1.63 billion, up from $1.53 billion in 2023.
| Financial Metric | 2024 (First Six Months) | 2023 (First Six Months) | % Change |
|---|---|---|---|
| Net Earnings | $153.9 million | $98.1 million | 56.6% |
| Total Revenue | $1.63 billion | $1.53 billion | 6.5% |
| Operating Cash Flow | $302.6 million | $227.9 million | 33.0% |
| Capital Expenditures | $169.6 million | $171.2 million | -0.9% |
Debt and Equity Structure
As of June 30, 2024, Kirby Corporation had total long-term debt of approximately $1.05 billion. The company's debt-to-capitalization ratio was reported at 24.3%.
| Debt Type | Amount (in thousands) | Maturity Date |
|---|---|---|
| Revolving Credit Facility | $74,000 | July 29, 2027 |
| Term Loan | $170,000 | July 29, 2027 |
| 4.2% Senior Notes | $500,000 | March 1, 2028 |
| 3.46% Senior Notes | $60,000 | January 19, 2033 |
| 3.51% Senior Notes | $240,000 | January 19, 2033 |
Recent Stock Buybacks
In the first half of 2024, Kirby Corporation repurchased 870,770 shares for $85.5 million at an average price of $98.15 per share. This indicates a strategic approach to enhance shareholder value through stock buybacks.
Outlook and Market Position
Kirby Corporation is well-positioned in the marine transportation market, with expectations for continued demand and improved financial performance. The company's focus on operational efficiency and strategic acquisitions is anticipated to drive growth in the coming quarters.
Kirby Corporation (KEX) Mission Statement
Mission Statement Overview
Kirby Corporation (KEX) aims to be a leading provider of marine transportation and diesel engine services, focusing on safety, reliability, and customer service excellence. The company is committed to operating its business in a manner that minimizes environmental impact while maximizing shareholder value.
Financial Performance Indicators
As of June 30, 2024, Kirby Corporation reported the following financial metrics:
| Financial Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Net Earnings | $83.9 million | $57.4 million | 46% |
| Operating Income | $29.4 million | $29.8 million | (1%) |
| Total Revenue | $1.1 billion | $1.07 billion | 3% |
| Operating Margin | 19.6% | 15.0% | 4.6% |
| Total Equity | $3.26 billion | $3.19 billion | 2% |
Market Segments
Kirby operates in two primary segments: Marine Transportation and Distribution & Services (KDS).
Marine Transportation (KMT)
In Q2 2024, KMT generated 59% of the company’s total revenue. The segment's operating income increased significantly, reflecting improved pricing and utilization rates.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $654.5 million | $573.9 million |
| Operating Income | $135 million | $91 million |
Distribution & Services (KDS)
KDS contributed 41% of total revenues in Q2 2024, with a slight decline in revenue year-over-year.
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Revenue | $339.6 million | $350.3 million |
| Operating Income | $29.4 million | $29.8 million |
Environmental Commitment
Kirby emphasizes sustainability in its operations, aiming to reduce emissions and enhance fuel efficiency. The company invests in modernizing its fleet to meet regulatory standards and customer expectations.
Debt and Liquidity Position
As of June 30, 2024, Kirby's long-term debt was reported as follows:
| Debt Type | Amount ($ in thousands) |
|---|---|
| Revolving Credit Facility | $74,000 |
| Term Loan | $170,000 |
| 4.2% Senior Notes | $500,000 |
| 3.46% Senior Notes | $60,000 |
| 3.51% Senior Notes | $240,000 |
Kirby reported a debt-to-capitalization ratio of 24.3% as of June 30, 2024, indicating a stable leverage position in line with industry standards.
Recent Strategic Actions
In May 2024, Kirby completed the acquisition of 13 inland tank barges, enhancing its operational capacity and market reach. The total investment for this acquisition was approximately $65.2 million.
For the six months ended June 30, 2024, Kirby's capital expenditures amounted to $169.6 million, with a focus on marine maintenance and growth initiatives.
Outlook for 2024
Kirby anticipates continued improvement in financial performance through 2024, driven by strong demand in the marine transportation sector and stable growth in its distribution and services segment. The company remains vigilant of economic conditions that may impact operations.
How Kirby Corporation (KEX) Works
Overview of Kirby Corporation
Kirby Corporation (KEX) operates primarily in two segments: Marine Transportation (KMT) and Distribution & Services (KDS). The company specializes in the transportation of bulk liquids, primarily petrochemicals, and operates a significant fleet of barges and towboats.
Financial Performance
For the second quarter of 2024, Kirby reported net earnings attributable to the company of $83.9 million, compared to $57.4 million in the second quarter of 2023, reflecting a 46% increase. For the first six months of 2024, net earnings were $153.9 million, up from $98.1 million in the same period of 2023.
Marine Transportation Segment
The Marine Transportation segment generated 59% of the company’s total revenues for the first six months of 2024. The average barge utilization rates are projected to remain in the low to mid-90% range throughout the year.
| Metrics | Q2 2024 | Q2 2023 | % Change | 6 Months 2024 | 6 Months 2023 | % Change |
|---|---|---|---|---|---|---|
| Operating Income | $94.9 million | $64.3 million | 48% | $177.9 million | $107.3 million | 66% |
| Operating Margin | 19.6% | 15.0% | Increased | 18.5% | 12.8% | Increased |
| Revenue | $484.0 million | $420.0 million | 15% | $960.0 million | $820.0 million | 17% |
Distribution and Services Segment
The Distribution and Services segment accounted for 41% of total revenues in the first half of 2024. Key markets include commercial and industrial, power generation, and oil and gas.
| Market | Q2 2024 Revenue % | 6 Months 2024 Revenue % |
|---|---|---|
| Commercial and Industrial | 49% | 46% |
| Power Generation | 32% | 36% |
| Oil and Gas | 19% | 18% |
Operational Metrics
The company operates a diverse fleet of inland and coastal barges. As of June 30, 2024, Kirby’s inland tank barge fleet consisted of 1,093 barges, with a total barrel capacity of 24.2 million barrels.
| Fleet Metrics | June 30, 2024 | June 30, 2023 |
|---|---|---|
| Inland Tank Barges - Owned | 1,059 | 1,007 |
| Inland Tank Barges - Leased | 34 | 38 |
| Active Inland Towboats | 287 | 281 |
Debt and Equity Structure
As of June 30, 2024, Kirby Corporation reported total long-term debt of $1.05 billion, with a debt-to-capitalization ratio of 24.3%. Total equity increased to $3.26 billion.
| Debt Structure | June 30, 2024 | December 31, 2023 |
|---|---|---|
| Revolving Credit Facility | $74 million | $44 million |
| Term Loan | $170 million | $170 million |
| 4.2% Senior Notes | $500 million | $500 million |
Capital Expenditures and Cash Flow
Kirby’s capital expenditures for the first half of 2024 totaled $169.6 million, with projections for total capital expenditures for 2024 between $300 million and $330 million.
| Cash Flow Metrics | 6 Months 2024 | 6 Months 2023 |
|---|---|---|
| Net Cash Provided by Operating Activities | $302.6 million | $227.9 million |
| Proceeds from Asset Disposition | $9.1 million | $20.5 million |
How Kirby Corporation (KEX) Makes Money
Marine Transportation Segment (KMT)
The Marine Transportation segment is the largest revenue-generating arm of Kirby Corporation, contributing approximately 59% of total revenues for the first six months of 2024. The segment's revenues for the second quarter of 2024 were $484.8 million, an increase from $427.0 million in the same period of 2023.
| Metrics | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Revenues | $484,808,000 | $426,962,000 | 13.5% |
| Operating Income | $94,876,000 | $64,251,000 | 47.8% |
| Operating Margin | 19.6% | 15.0% | 4.6% |
The increase in revenues and operating income in 2024 was primarily driven by higher term and spot pricing in both inland and coastal markets, attributed to enhanced business activity levels and a reduced supply of barges due to maintenance cycles.
Distribution and Services Segment (KDS)
The Distribution and Services segment generated 41% of Kirby's total revenues in 2024, with revenues for the second quarter amounting to $339.6 million, down from $350.3 million in the previous year.
| Metrics | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Revenues | $339,582,000 | $350,286,000 | -3.0% |
| Operating Income | $29,436,000 | $29,842,000 | -1.4% |
| Operating Margin | 8.7% | 8.5% | 0.2% |
KDS revenues are influenced by various markets including commercial and industrial, power generation, and oil and gas. The commercial and industrial market accounted for 49% of KDS revenues in Q2 2024, while power generation made up 32%.
Revenue Sources Breakdown
The following table summarizes the revenue contributions by market within the KDS segment for the second quarter of 2024:
| Market | Q2 2024 Revenue | Percentage of KDS Revenue |
|---|---|---|
| Commercial and Industrial | $165,658,000 | 49% |
| Power Generation | $107,783,000 | 32% |
| Oil and Gas | $66,141,000 | 19% |
Operational Efficiency and Cost Management
For the first six months of 2024, the operating income for KMT was $177.9 million, whereas KDS reported $51.5 million. The overall operating income for the company was $202.4 million, reflecting strong operational efficiency.
Capital Expenditures and Financial Health
Kirby Corporation's capital expenditures for the first six months of 2024 totaled $169.6 million, with projections for total capital expenditures in 2024 ranging between $300 million and $330 million.
| Category | Amount (in thousands) |
|---|---|
| Marine Maintenance Capital | $200,000 - $240,000 |
| Growth Capital Spending | $90,000 |
As of June 30, 2024, Kirby's total assets stood at $5.87 billion, with a debt-to-capitalization ratio of 24.3%.
Net Earnings and Shareholder Returns
For the second quarter of 2024, net earnings attributable to Kirby were $83.9 million, resulting in diluted earnings per share of $1.43, compared to $0.95 in Q2 2023.
| Metrics | Q2 2024 | Q2 2023 |
|---|---|---|
| Net Earnings | $83,854,000 | $57,367,000 |
| Earnings Per Share (Diluted) | $1.43 | $0.95 |
Kirby Corporation (KEX) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support