Jan. 30 at 12:05 PM
$KEX Kirby reports Q4 adjusted EPS
$1.29, consensus
$1.29
Reports Q4 revenue
$802.3M, consensus
$803.66M. David Grzebinski, CEO, commented, "Our fourth quarter results included some seasonal softness in both marine transportation and distribution and services, as we experienced weather and navigational challenges for marine and typical seasonal weakness in distribution and services. These headwinds were offset by good execution from our teams in both segments during the quarter that drove strong year-over-year financial performance, with adjusted earnings per share up 24% year-over-year. We ended the year on a good note, and we anticipate strong growth in 2025.
In inland marine, we experienced normal headwinds with poor operating conditions and a slight slowdown in some trade lanes during the quarter. From a demand standpoint, refinery activity dipped in the early part of the quarter, however, activity began to pick up and tighten utility as we exited the quarter. Overall, our barge utilization rates averaged in the 90% range for the quarter. Spot prices were flat to slightly down sequentially but were up in the high- single digit range year-over-year. More importantly, our term contract renewals were in-line with our expectations with high-single digit increases versus a year ago. Fourth quarter inland operating margins were approximately 20%. In our coastal marine business, market fundamentals remained steady with our barge utilization levels running in the mid to high-90% range.
During the quarter, stable customer demand combined with a continued limited availability of large capacity vessels resulted in mid to high-20% year-over-year increases on term contract renewals and average spot market rates that increased in the low teens range year-over-year. Planned shipyards impacted the quarter with fourth quarter coastal revenues increasing only 6% year-over-year with operating margin in the low teens. In distribution and services, demand was mixed across our end markets with growth in some areas offset by slowness or delays in other areas.
In power generation, revenues grew 16% sequentially and 36% year-over-year. The pace of orders was strong, adding to our backlog, with several large project wins from backup power and other industrial customers as the need for power remains critical. In our commercial and industrial market, even though revenues were down 7% year-over-year, driven by softness in on-highway truck service and repair, operating income was up 28% year-over-year due to favorable product mix and ongoing cost control initiatives."
