Oct 28, 2026 earnings call — Inland pricing and power generation growth
Kirby reported record third quarter earnings per share of $2.09, up 27% year over year.
Revenue $1.0B (est $0.9B) · EPS $2.09 (est $2.00)
Key quotes
"Strong refinery operating rates healthy petrochemical activity, and limited new industry capacity supported barge utilization in the low 90% range."
"We have built a new part of our team led by Chad Jones, who leads our power service team."
"In the third quarter of 26, we returned $112 million to shareholders through share repurchases at an average price of $137"
Analyst Q&A 7
Marine pricing and power aftermarket growth
Q (Tomo Sato · JPMorgan): How should marine pricing behave over the next 12 months and is that pricing power sustainable? Follow-up: as power generation scales, how quickly can service and parts grow and how much margin upside could that bring?
A: They said Q3 saw low single- to mid-single-digit spot increases and low single-digit term pricing, with momentum building into Q4 and pricing expected to be higher than Q3. For power, most orders are behind-the-meter natural gas systems where Kirby is the OEM for balance-of-plant equipment, so service and parts should grow as those systems age; management expects maintenance to ramp in 3 to 4 years and sees higher margins in aftermarket and behind-the-meter equipment.
"We think in 3 to 4 years, you will begin to see the maintenance cycle." — Christian G. O'Neil (COO)
Coastal ship pricing, cost pressures, and PowerGen backlog
Q (Reed Seay · Stephens): Can you update pricing dynamics for the specific coastal ships called out previously and clarify whether ongoing cost pressures are just shipyards or broader? Also, what's the current power generation backlog versus prior quarters and when will backlog start being harvested? Plus, can you comment on inland chemical demand?
A: They said larger units entering shipyards in Q4 create higher yard costs and lower margins at times due to timing and cadence. European import flows pressured smaller 80s and 100s, and inflationary cost pressure is broad (skilled labor and steel). PowerGen backlog is now north of $1.5 billion with book-to-bill well above 1 and demand still robust; on inland chemicals, Venezuelan crude and other global dynamics are improving chemical volumes and customer optimism.
"I would just tell you right now, we are north of $1.5 billion in terms of backlog." — David W. Grzebinski (CEO)
Margins and fuel/cost pressures
Q (Ivan Yee · Wolfe): Can margins in inland and coastal segments start growing again in 2027? And can the price-cost spread accelerate from 2026 to 2027 if fuel moderates — what's the cost outlook?
A: They said yes, margins can grow and inland margins were around the 20% range this quarter, with a strong Q4 renewal cycle expected to help. Fuel has been a headwind (they cited fuel above $4 a gallon and lagged fuel clauses), and mariner wage and steel inflation are additional pressures, but they expect pricing to be north of inflation over time.
"We should have real price increases over inflation here." — David W. Grzebinski (CEO)
Q4 contract repricing and recent acquisition
Q (Adam Roszkowski · BofA): What percentage of the book typically reprices in Q4? And were Q3 inland term renewals above inflation? Also, after the recent inland asset purchase, are you seeing more similar opportunities?
A: They said about 35% to 40% of the portfolio typically reprices in Q4 and Q3 had only a small sample set with renewals in line with or a little better than inflation; they expect Q4 renewals to be easily over inflation. On acquisitions, they are in more active discussions now, stay disciplined on price, and that recent deal added valuable fleeting infrastructure and a modern fleet in a strategic Corpus Christi location.
"Usually, the fourth quarter is probably 35 to 40% of the portfolio." — David W. Grzebinski (CEO)
Inland demand drivers and mix versus rate
Q (Ben Mohr Mok · Citi): You outlined many long-tail drivers for inland revenue. Do you agree with that timing (Venezuela, Iran, Calcasieu, maintenance in late 2027/early 2028) and how should we think about mix versus core rate gains that drove higher revenue per utilized barge?
A: They agreed the macro tailwinds are real (Venezuela heavy imports, refinery strength, Calcasieu, geopolitical factors) and said a maintenance cycle will start in 2028; chemical customers are more optimistic and volumes are improving. On mix versus rate, they said it's hard to parse because the portfolio has hundreds of contracts and ton-mile differences matter, and they offered to have Donny and Raj follow up to clarify metrics.
"You know, you are you are looking at $4.6 million to $4.7 million for a clean 30." — Christian G. O'Neil (COO)
Chemical strength and 10k versus 30k demand
Q (Greg Wasikowski · Weber): What's driving the strength in chemicals now — is it European plant shutdowns — and can that optimism extend to the 10k market or are there notable differences between 10k and 30k demand or supply?
A: They said European chemical capacity rationalization, Middle East infrastructure damage, and the Gulf Coast's feedstock advantage have combined to strengthen chemical pricing and exports. For 10k barges specifically, utilization has reached near-record levels recently, they are nearly fully deployed, and the company has been winning new contracts and growing the book.
"You are seeing the rationalization of the chemical capacity in Europe closing and shutting down combined with The US Gulf chemical manufacturers filling that gap globally." — Christian G. O'Neil (COO)
PowerGen growth outlook and OEM capacity
Q (Ben Mohr Mok · Citi): You grew PowerGen revenue 8% this quarter and earlier gave a 10% to 20% long-term revenue growth range. Do you still maintain that outlook given OEM capacity constraints?
A: They said they will maintain the 10% to 20% outlook; OEM capacity stretching is acceptable because it gives more time to absorb and produce equipment and to ramp their own capabilities. They noted they expanded a generator assembly building, are hiring about 200 to 300 people, and see the current dynamic as a strong ramp rather than a problem.
"I would say we. We are gonna maintain that outlook. You know, 10 to 20% growth is I mean, that is a big range." — David W. Grzebinski (CEO)