Shares of Kirby Corporation (NYSE: KEX) are soaring 11.61% in early trading on Wednesday following the release of its better-than-expected third-quarter 2025 earnings report. The marine transportation and services company demonstrated resilience and adaptability in the face of challenging market conditions, leading to a significant boost in investor confidence.
Kirby reported earnings per share (EPS) of $1.65 for the third quarter, surpassing analysts' expectations of $1.62. The company's revenue also beat estimates, coming in at $871.2 million compared to the anticipated $846.2 million. This represents a 4.81% increase from the same period last year. The strong performance was primarily driven by robust results in the coastal marine and power generation segments.
David Grzebinski, Kirby's Chief Executive Officer, commented on the results, stating, "Kirby's third quarter performance reflects our ability to adapt and deliver results, with continued strength in coastal marine and power generation, and focused execution in the face of softer inland market conditions." This positive outlook, despite some market challenges, appears to have bolstered investor confidence and contributed to the stock's significant rise.
Key highlights from the earnings report include strong performance in the coastal marine segment, with operating margins improving to around 20%, and robust growth in the power generation sector, with revenue increasing 56% year-over-year. The company also reported improvement in distribution and services margins, reaching 11%. These factors, combined with the company's ability to navigate through varying market conditions, have likely contributed to the positive market reaction.
Looking ahead, Kirby expects market conditions to improve modestly in the inland marine segment, while coastal marine fundamentals remain favorable. The company's demonstrated resilience and strategic positioning in key markets have investors optimistic about its future prospects, driving the stock's impressive gain in today's trading session.