Kirby Corporation (NYSE: KEX) shares surged 5.25% in pre-market trading on Thursday, after the tank barge operator reported better-than-expected fourth-quarter earnings and issued an upbeat outlook for 2025.

For the quarter ended December 31, 2024, Kirby reported adjusted earnings of $1.29 per share, in line with analyst estimates. Revenues came in at $802.3 million, slightly below the consensus of $803.66 million.

The strong results were driven by robust performance in Kirby's marine transportation segment. The inland marine business saw high-single-digit percentage increases in term contract renewals, reflecting tight market conditions and limited barge capacity. The coastal marine business also benefited from favorable supply-demand dynamics, with mid-to-high 20% increases in term contract renewals.

In the distribution and services segment, results were mixed. The power generation business continued to grow, driven by strong demand for backup power solutions, while the oil and gas sector remained challenging amid the ongoing shift towards electric fracturing.

Looking ahead, Kirby expects its earnings to grow by 15% to 25% in fiscal 2025, underpinned by positive market dynamics in marine transportation. "While we managed through challenging operating conditions in the fourth quarter, we ended in a very strong position in our businesses," said CEO David Grzebinski.