second quarter 2026
Filed Jul 29, 2026Second quarter 2026 earnings per share of $1.67, in line with the prior year and up 11% sequentially, as total revenues reached $922.4 million.
Revenue growth in both segments and an 11% sequential increase in earnings per share were supported by healthy marine demand, improving inland pricing, and growth in power generation and commercial and industrial markets. Marine transportation operating income and margin were below the prior year, while free cash flow was $0.7 million amid elevated working capital requirements.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $922.4 million | – | – |
| Net earnings attributable to KirbyGAAP | $89.7 million | – | – |
| Earnings per shareGAAP | $1.67 per share | up 11% sequentially | in line with the prior year |
| Marine transportation revenuesGAAP | $537.0 million | – | increased 9% year-over-year |
| Marine transportation operating incomeGAAP | $87.8 million | – | – |
| Marine transportation operating marginGAAP | 16.4% | – | – |
| Distribution and services revenuesGAAP | $385.4 million | – | grew 6% year-over-year |
| Distribution and services operating incomeGAAP | $38.2 million | – | – |
| Distribution and services operating marginGAAP | 9.9% | – | – |
| EBITDAnon-GAAP | $199.7 million | – | – |
| Net cash provided by operating activitiesGAAP | $72.2 million | – | – |
| Capital expendituresother | $71.5 million | – | – |
| Free cash flownon-GAAP | $0.7 million | – | – |
| Cash and cash equivalentsGAAP | $39.0 million | – | – |
| Liquidity availableother | $565.9 million | – | – |
| Total debtGAAP | $1,037.3 million | – | – |
| Debt-to-capitalization ratioother | 23.1% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Marine TransportationStrong customer demand, healthy utilization across the portfolio, and pricing improvements across term contract renewals and spot market activity. | $537.0 million | – | increased 9% year-over-year |
| Distribution and ServicesContinued growth in power generation and strong commercial and industrial activity. | $385.4 million | – | grew 6% year-over-year |
full-year 2026 outlook
- NoteEarnings per share growth guidance of 5% to 15%; currently expect results to trend toward the upper end of the range.
- NoteInland revenues are expected to grow in the mid-to-high-single-digit range, with operating margins expected to be in the high-teens to low-20% range for the full year.
- NoteCoastal marine revenues are expected to increase in the mid-single-digit range for the full year, with operating margins expected to be in the mid-to-high-teens range.
- NoteDistribution and services segment revenues are expected to be up mid-single digits for the full year, with operating margins in the mid-to-high-single-digits.
- NoteNet cash provided by operating activities of $575 million to $675 million in 2026.
- NoteCapital spending is expected to range from $220 million to $260 million.
- NoteApproximately $170 million to $210 million is expected to be allocated to marine maintenance capital and improvements to existing inland and coastal marine equipment, and facility improvements.
- NoteUp to approximately $65 million is expected to be allocated to growth capital spending across both of our businesses.
Capital returns
- Returned $59.7 million of capital through share repurchases in the 2026 second quarter at an average share price of $142.38.
- Repurchased $29.0 million of shares during the third quarter of 2026 to date at an average share price of $139.92.
What drove it
- Inland marine average barge utilization was in the low-90% range, while average spot market rates increased in the low-to-mid-single digit range sequentially and term contract renewals increased in the low-single-digit range compared with the prior year.
- Coastal marine barge utilization was in the high-90% range, and coastal marine revenues increased 10% year-over-year.
- Power generation revenues increased 8% and operating income increased 27% compared with the 2025 second quarter, reflecting demand for behind-the-meter and backup power solutions.
- Commercial and industrial revenues increased 12% and operating income increased 11% compared with the 2025 second quarter, primarily reflecting strong marine repair activity and healthy demand across other industrial end markets.
- Oil and gas revenues and operating income increased 20% and 67%, respectively, on a sequential basis, reflecting improved demand for parts and services.
Concerns
- Marine transportation operating income was $87.8 million compared with $99.1 million for the 2025 second quarter, and operating margin was 16.4% compared with 20.1%.
- Rising fuel costs created a near-term headwind to inland marine margins during the quarter.
- Coastal marine operating margins were in the low-to-mid-teens range, primarily due to elevated shipyard activity.
- Coastal term contract renewals decreased in the low-single-digit range compared with the prior year, reflecting increased vessel availability in the 80,000 to 100,000 barrel ATB market.
- Oil and gas revenues decreased 17% and operating income decreased 45% compared with the 2025 second quarter.
- OEM engine delivery timing continues to create some variability in quarterly distribution and services results, and ongoing OEM-related supply constraints affected power generation.
What to watch
- Whether inland fuel cost escalators and rate recovery mechanisms reverse the margin headwind in the third quarter.
- Further spot-pricing and term-contract-renewal improvement in inland marine during the second half of 2026.
- Coastal pricing trends, vessel availability in the 80,000 to 100,000 barrel ATB market, and planned shipyard activity.
- Order momentum from data center and industrial customers for power generation solutions.
- Working capital requirements and progress toward 2026 net cash provided by operating activities guidance of $575 million to $675 million.
Balance sheet and cash flow
- Net cash provided by operating activities was $72.2 million during the quarter.
- Capital expenditures were $71.5 million, resulting in free cash flow (non-GAAP) of $0.7 million.
- As of June 30, 2026, the Company had $39.0 million of cash and cash equivalents and $565.9 million of liquidity available.
- Total debt was $1,037.3 million and the debt-to-capitalization ratio was 23.1%.
- Working capital requirements were elevated during the quarter, primarily reflecting stronger business activity across both segments, continued growth in power generation, timing of collections and shipments, and higher fuel-related receivables in marine transportation.
Analysis
Kirby reported second-quarter 2026 total revenues of $922.4 million compared with $855.5 million for the 2025 second quarter. Net earnings attributable to Kirby were $89.7 million, compared with $94.3 million, while earnings per share were $1.67 per share, in line with the prior year and up 11% sequentially. EBITDA (non-GAAP) was $199.7 million compared with $202.2 million in the 2025 second quarter.
Marine Transportation generated $537.0 million of revenue, compared with $492.6 million, with reported revenue growth of 9% year-over-year. Inland demand was supported by strong refinery utilization, favorable customer activity, low-90% barge utilization, sequential spot-rate gains, and low-single-digit term-renewal increases. Segment operating income was $87.8 million compared with $99.1 million, and operating margin was 16.4% compared with 20.1%. Previously disclosed fuel cost headwinds in inland marine and elevated shipyard activity in coastal marine weighed on margins.
Distribution and Services generated $385.4 million of revenue compared with $362.9 million, with reported revenue growth of 6% year-over-year. Power generation benefited from demand for behind-the-meter and backup power solutions, and commercial and industrial results reflected strong marine repair activity. Power generation revenues increased 8% and operating income increased 27%, while commercial and industrial revenues increased 12% and operating income increased 11%, each compared with the 2025 second quarter. Segment operating income was $38.2 million compared with $35.4 million, and operating margin was 9.9% compared with 9.8%.
Cash generation was constrained by elevated working capital requirements. Net cash provided by operating activities was $72.2 million and capital expenditures were $71.5 million, resulting in free cash flow (non-GAAP) of $0.7 million. The Company repurchased $59.7 million of shares during the second quarter at an average share price of $142.38, and reported $39.0 million of cash and cash equivalents, $565.9 million of liquidity available, and $1,037.3 million of total debt as of June 30, 2026.
For 2026, management remains comfortable with earnings per share growth guidance of 5% to 15% and expects results to trend toward the upper end of that range. The outlook calls for inland revenue growth in the mid-to-high-single-digit range, coastal revenue growth in the mid-single-digit range, and Distribution and Services revenue growth in the mid-single digits. Management expects net cash provided by operating activities of $575 million to $675 million and capital spending of $220 million to $260 million.
Management, verbatim
Our second quarter results reflected strong execution across both businesses, driving an 11% sequential increase in earnings per share.
David Grzebinski, Chief Executive Officer
Based on current market conditions, we remain comfortable with our full-year earnings per share growth guidance of 5% to 15% and currently expect results to trend toward the upper end of the range.
David Grzebinski, Chief Executive Officer
Not in the filing
stated, not guessed- Non-GAAP earnings per share
- Gross profit and gross margin
- Consolidated operating income
- Consolidated operating margin
- Income tax expense and tax rate
- Prior-quarter total revenue
- Prior-quarter net earnings attributable to Kirby
- Prior-quarter earnings per share amount
- Prior-quarter segment revenues, operating income, and operating margins
- Prior-year net cash provided by operating activities, capital expenditures, and free cash flow
- Dividend declaration or dividend payment
- Share-repurchase authorization remaining
- Total company full-year 2026 revenue guidance
- Previous-release outlook for comparison to reported results
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.