Kirby: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings call, held on Oct. 28, 2026, Kirby (NYSE:KEX) announced third-quarter earnings per share of $2.09, up 27% year over year. Tight vessel supply across inland waterways gives the barge operator rare pricing leverage during contract renewals. Meanwhile, booming demand for data center power equipment expands its higher-margin equipment and servicing backlog.

Three things management said stand out.

1. Inland Barge Renewal Momentum Positions the Business for Price Increases

Barge utilization, the percentage of active vessels carrying cargo, stayed in the low-90% range while spot market rates outpaced contract rates. Higher spot prices create negotiating leverage as a major portion of long-term charters, or multiyear shipping contracts, comes up for annual pricing reset in the fourth quarter.

When spot is outpacing term at those levels, we really get the opportunity to get some good bites at the term pricing.
-- Christian O'Neil, president and chief operating officer

2. Power Generation Backlog Surpasses $1.5 Billion on Data Center Expansion

Customers building data centers increasingly rely on behind-the-meter systems, which are off-grid natural gas power generators built directly at facility sites. This surge in equipment orders pushes the book-to-bill ratio, the measure of new incoming orders compared to completed orders billed, well above 1.

I would just tell you right now, we are north of $1.5 billion in terms of backlog. The important thing is book to bill. Book to bill is well above 1 right now. We are continuing to take orders.
-- David Grzebinski, Chief Executive Officer

3. Asset Acquisition Adds Key Waterway Infrastructure in South Texas

Management signed an agreement to acquire inland marine assets for approximately $115 million. The deal adds vessel capacity and secures a Rockport, Texas, fleeting operation, which serves as a waterfront hub to anchor, fuel, and repair barges.

The acquisition includes 9 inland towboats, 14 inland tank barges, 9 valve thrusters, and the Rockport, Texas, fleeting operation. The acquired assets are expected to enhance Kirby's inland marine network in South Texas and further highlight our focus and disciplined acquisition strategy.
-- Raj Kumar, executive vice president and chief financial officer

Looking Ahead

Refinery operating rates remain high, and petrochemical shipment volumes are recovering across Gulf Coast waterways. Disciplined industry capital spending keeps replacement barge production low, protecting the market from oversupply while contract prices rise.

Demand from refining and petrochemical customers remains healthy while barge availability across the industry remains relatively tight and pricing momentum continues to build.
-- David Grzebinski, Chief Executive Officer

Long-term value builds on two distinct engines: pricing discipline across the marine transport fleet and multiyear servicing revenue from an expanding installed base of power generation systems. Narrowed full-year profit guidance reflects this operational momentum.

Supported by our market leading positions, enhanced service capabilities, fleet efficiency, and disciplined approach, we remain confident in our outlook and our ability to deliver our narrowed EPS growth guidance range.
-- David Grzebinski, Chief Executive Officer

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