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KEX NYSE· Kirby Corporation
Earnings report Q4 2023

Kirby Corporation Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

Kirby Corporation (KEX) reported total revenues of $3.09 billion for the year ended December 31, 2023, representing a significant increase of 10% compared to the previous year. The company's revenue growth was primarily driven by the strong performance of its Distribution and Services (KDS) segment, which accounted for a significant portion of the overall revenue. KDS revenues increased by 17% in 2023 compared to 2022, reaching $1.82 billion. Within the KDS segment, the commercial and industrial market contributed 59% of the revenues, while the oil and gas market accounted for 41%.

Strengths

Kirby Corporation's strong revenue growth in the latest quarter can be attributed to several factors. Firstly, the company benefited from robust economic activity across the United States, leading to higher business levels in its marine and on-highway businesses within the commercial and industrial market. Additionally, increased oilfield activity resulted in higher demand for new transmissions and parts in the distribution business, driving revenue growth in the oil and gas market. Despite supply chain delays impacting the manufacturing business, Kirby continued to experience increased orders and deliveries of new environmentally friendly pressure pumping equipment and power generation equipment for electric fracturing.

Challenges

While Kirby Corporation demonstrated strong revenue growth in the latest quarter, there are some challenges that the company faces. The manufacturing business within the KDS segment was heavily impacted by supply chain delays, which may have hindered its ability to fully capitalize on the increased orders and deliveries. Additionally, the company should remain vigilant about potential fluctuations in oilfield activity, as it heavily relies on the oil and gas market for a significant portion of its revenues.

Noteworthy

It is worth noting that Kirby Corporation's net cash provided by operating activities increased by 84% in 2023 compared to 2022, reaching $540.2 million. This increase was primarily driven by higher revenues and operating income in the KMT and KDS segments. Furthermore, the company received an IRS refund of $70.4 million plus accrued interest in April 2023, which further contributed to the growth in net cash provided by operating activities.

Summary

Kirby Corporation delivered a strong performance in the latest quarter, with total revenues reaching $3.09 billion, representing a 10% increase compared to the previous year. The company's Distribution and Services segment, particularly the commercial and industrial market and the oil and gas market, drove the revenue growth. Kirby's ability to capitalize on strong economic activity and increased oilfield demand contributed to its revenue growth. However, challenges related to supply chain delays in the manufacturing business and potential fluctuations in oilfield activity should be monitored. Overall, Kirby Corporation's strong revenue growth and increased net cash provided by operating activities reflect a positive financial performance.

Source documents

Form 10-K  filed on Feb 20, 2024
119 pages scanned

Reference data

Company financials Q4 revenue 799M
Analyst estimates Q4 EPS beat by 1.76%
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