[Management View]
Kirby Corporation's management emphasized a record earnings year for 2025, driven by growth in marine and power generation sectors. Key strategic priorities include maintaining a robust balance sheet, optimizing capital allocation, and pursuing long-term growth opportunities.

[Outlook]
The company projects cash flow from operations between $620 million and $720 million for 2025. Future plans include strategic investments in marine maintenance and power generation, with a focus on capitalizing on growth opportunities and enhancing shareholder value through share repurchases.

[Financial Performance]
Year-over-year, Kirby reported a record backlog in power generation, with inland barge utilization improving from 80% to 87.6%. Spot pricing for inland barges showed signs of recovery entering Q4 2025, despite a Q3 decline.

[Q&A Highlights]
Question 1: Is PowerGen expected to be a lumpy business going forward, or will the backlog transition to revenue smoothly?
Answer: There will be some lumpiness due to delivery schedules from OEMs, but the backlog is at a record level, up mid-teens year over year. The pace of orders is robust, with broad customer demand.

Question 2: What has improved in the inland market in Q4, and how could utilization reach the 90% range?
Answer: The third quarter saw a confluence of factors like great weather and light feedstock. Currently, heavy crude is on the way, and chemical strength is returning. Inland fleet utilization is at 87.6%, with positive momentum expected.

Question 3: How are spot rates trending in October, and what is the gap between spot and contract rates?
Answer: Spot pricing was down 4%-5% in Q3 but is firming up in Q4. The spread between spot and contract rates remains around 10%, with positive momentum expected in the industry.

Question 4: Can you clarify the current utilization and spot pricing trends?
Answer: Utilization troughed at 80% in Q3 and is now at 87.6%. Spot pricing has moved higher since Q3, with positive momentum in the market.

Question 5: What is the size of the power gen backlog, and how has it changed?
Answer: The power gen backlog is between $500 million and $1 billion, up mid-teens year over year. The growth is driven by behind-the-meter and power module orders.

Question 6: How does the power gen outlook affect the overall business, and what is the customer base like?
Answer: Inland remains a powerhouse for earnings, with years left in the cycle. The power gen customer portfolio is growing, including colocator data centers and hyperscales, supported by robust service capabilities.

[Sentiment Analysis]
Analysts showed interest in the growth and stability of the power generation segment, with management expressing confidence in the long-term prospects and strategic positioning of the company.

[Quarterly Comparison]
| Metric | Q3 2025 | Q2 2025 | YoY Change |
|-------------------------|---------|---------|------------|
| Inland Barge Utilization| 87.6% | 80% | +7.6% |
| Power Gen Backlog | Record | - | Mid-teens |

[Risks and Concerns]
Potential risks include supply constraints, macroeconomic factors affecting demand, and fluctuations in spot pricing. Management remains vigilant in mitigating these risks through strategic planning and cost discipline.

[Final Takeaway]
Kirby Corporation is poised for a record earnings year in 2025, driven by strategic growth in marine and power generation sectors. The company is well-positioned to navigate near-term challenges and capitalize on long-term opportunities, supported by a strong balance sheet and robust free cash flow. Management's focus on capital allocation and strategic investments underscores their commitment to sustainable shareholder value.