stockrowWhat it does
Kirby Corporation transports bulk liquids by tank barge and sells equipment, parts and services to businesses that operate engines and power systems. It was founded in 1921 and is headquartered in Houston. David W. Grzebinski is chief executive officer.
Its marine transportation business moves petrochemicals, black oil, refined petroleum products and agricultural chemicals for customers including refiners and chemical producers. Towboats push groups of inland barges along rivers and canals; coastal tugboats move barges along the United States coast. Kirby also transports dry-bulk cargoes in coastal trade. It generally provides the transportation service without taking ownership of the products aboard.
The distribution and services business supplies and repairs equipment used in power generation, marine transportation, trucking, oilfield services and other industries. Its offerings include engines and transmissions, replacement parts, electrical controls and power systems. It also rents equipment such as generators and manufactures or remanufactures equipment including electric fracturing systems and power generation equipment.
For data centers and other customers, Kirby provides both backup power systems and behind-the-meter systems, which generate power at a customer’s site. The business also services machinery after it is installed. At the end of 2025, Kirby had approximately 5,233 employees, the large majority in the United States.
How it makes money
Kirby earns revenue in two segments: marine transportation and distribution and services. In FY2025, marine transportation revenue was $1.9 billion and distribution and services revenue was $1.4 billion; in the second quarter of 2026, segment revenues were $537 million and $385 million, respectively.
Marine customers pay Kirby to move cargo under contracts based either on a set rate for a trip or a daily rate for the use of a vessel. Term contracts last at least a year and typically run from one to five years, sometimes with renewal options. Spot contracts are shorter and their rates are negotiated when the cargo moves. In 2025, approximately 70% of inland marine revenue was under term contracts and 30% under spot contracts. Time charters can insulate revenue from weather and navigation delays, although contracts are not guaranteed to renew.
Distribution and services earns revenue from equipment sales, rentals, manufacturing, repairs and replacement parts. In 2025, service and parts generated 83% of segment revenue and manufacturing generated 17%. Mechanics repair and overhaul customers’ engines, transmissions and related equipment, while the segment also supplies parts and services to power generation operators.
Kirby expects its growing installed base of behind-the-meter power equipment to create future service and parts opportunities. These systems can operate more frequently than standby equipment, requiring maintenance as they accumulate operating time. Kirby has established an operation called Kirby Integrated Power Systems to pursue the power-service aftermarket.
Pricing and revenue can change with customer activity, fleet utilization and the mix of work. In the second quarter of 2026, Kirby’s renewed inland term contracts increased in the low-single-digit range year over year, while certain coastal term renewals declined in the low-single-digit range.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Marine Transportation | $1.9 billion | 57.5% | 1.16% |
| Distribution and Services | $1.4 billion | 42.5% | 5.61% |
Customers and how it sells
Marine customers include petrochemical and refining companies, oil companies, marketers and agricultural chemical producers. Kirby moves cargo between plants, refineries, terminals and other destinations. Petrochemicals represented 48% of marine transportation revenue in 2025; black oil represented 26%, and agricultural chemicals 3%.
Kirby’s inland network covers the Mississippi River System, the Gulf Intracoastal Waterway and the Houston Ship Channel. Its coastal operations serve markets along the Atlantic, Gulf and Pacific coasts, as well as Alaska and Hawaii. Customers can track cargo movements and barge locations through Kirby’s electronic customer service portal. The company also provides barge storage and shifting services at ports along its network.
Distribution and services customers include marine operators, trucking fleets, utilities, municipalities, data centers, oilfield service providers and oil and gas producers. Kirby serves customers through a network of 62 branch locations across 16 states and Colombia, South America. It also manufactures equipment for North American and international oilfield customers.
No single customer of either segment accounted for 10% or more of Kirby’s revenues in 2025. Marine contracts have traditionally involved long-standing customer relationships, although Kirby cannot be sure that an individual contract will be renewed.
| Segment | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Marine Transportation | $1.9 billion | 57.5% | 1.16% |
| Distribution and Services | $1.4 billion | 42.5% | 5.61% |
Suppliers and costs
Kirby distributes and services equipment from manufacturers including EMD, MTU, Allison and Daimler. It has exclusive distribution rights for MTU and Allison products in multiple states. Sales and service of MTU, Allison and Daimler products accounted for approximately 12% of company revenues during 2025; EMD products accounted for approximately 3%. Losing distribution rights or experiencing parts shortages could impair Kirby’s ability to serve customers.
Kirby manufactures and remanufactures power generation and oilfield equipment, and contracts with shipyards to build vessels. It also operates a shipyard for inland towboat construction and routine vessel maintenance. Steel, labor and the availability of shipyards can affect new-vessel costs and delivery schedules.
Fuel is a marine operating cost: in 2025, it was approximately 8% of marine transportation revenue. Term contracts typically have fuel escalation clauses or require the customer to pay for fuel, but adjustments generally lag cost changes by 30 to 120 days. Kirby said rising fuel costs temporarily pressured margins in the second quarter of 2026. It also said the timing of engine deliveries from manufacturers limits how quickly it can fulfill power generation orders.
- Revenue$3.4B
- Cost of revenue−$2.2B
- Selling, general and administrative−$391.9M
- Other operating costs−$259.3M
- Operating income$496.3M
Competitive position
Kirby competes in inland and coastal tank barge transportation with other barge operators. Some refining and petrochemical companies also own fleets that principally carry their own cargo but occasionally compete for outside business. Pipelines, railroads and trucks offer alternative ways to move liquid products. No individual competitors are named in the available company disclosures.
Kirby’s 1,105 inland tank barges represented approximately 28% of the industry’s approximately 4,004 inland tank barges at the end of 2025. In the coastal category in which it operates, Kirby had 28 of approximately 260 tank barges, or approximately 11%. Customers assess providers on price and reliability as well as safety, environmental performance, distribution coverage and flexibility.
Our reading: Kirby’s inland fleet and network provide a meaningful competitive advantage because they let it match barges, towboats, cargoes and destinations across a broad waterway system; competing operators and alternative transport modes nevertheless constrain pricing.
The Jones Act restricts domestic marine transportation to vessels built and registered in the United States and manned, owned and operated by United States citizens. Kirby’s vessels qualify for domestic trade under the law. Our reading: The Jones Act provides a regulatory barrier to foreign-flagged vessels, but its protection depends on the law remaining in effect and can be weakened by waivers.
In distribution and services, Kirby competes with independent service and manufacturing companies, other authorized distributors and customers that service their own equipment. Its manufacturer relationships and branch network support its service offering.
Growth opportunities
Kirby’s growth opportunities include moving more cargo as customers produce and distribute petrochemicals and petroleum products, renewing transportation contracts at different rates, and expanding equipment and service sales. Demand for tank barge transportation depends on the volumes of bulk liquids produced by its customers. Kirby can, in certain cases, reallocate equipment among petrochemical, refined petroleum and black oil markets.
In the second quarter of 2026, inland barge utilization was in the low 90% range. Inland term contracts renewed during the quarter increased in the low-single-digit range year over year. Kirby expects continued inland pricing improvement as contracts renew, although it also faces higher operating costs.
Power generation is another area of expansion. Kirby serves data centers and other industrial customers with backup and behind-the-meter systems. Power generation revenue increased 8% year over year in the second quarter of 2026. Kirby reported a power generation backlog of $1 billion to $1.5 billion and said most incoming orders were for behind-the-meter power. The company expects the installed equipment to generate future service and parts work, while engine availability affects the timing of deliveries.
Kirby also evaluates acquisitions in its existing businesses, particularly marine assets, and invests in its fleet and facilities. For 2026, it expects capital spending of $220 million to $260 million, including marine maintenance and growth spending across both businesses.
- $2.2BFY2021
- $2.8BFY2022
- $3.1BFY2023
- $3.3BFY2024
- $3.4BFY2025
Structural risks
- Waterways and weather: Aging locks and dams can require maintenance outages, delaying shipments and increasing operating expenses. High or low water, fog, ice and storms can also impair fleet efficiency or postpone deliveries.
- Accidents and environmental liability: A marine accident or spill could close waterways and expose Kirby to cleanup costs and other claims. Insurance has deductibles and coverage limitations, and some losses may not be insured.
- Energy markets and fleet supply: Marine demand depends on production of petrochemicals and petroleum products. Energy-price volatility, lower production or additional barge construction can affect utilization and contract rates. Oil and gas equipment demand can also fall when drilling and customer spending decline.
- Labor, fuel and construction costs: Kirby depends on licensed crews and faces competitive labor pressure. Fuel cost recovery can lag price changes, while steel, labor and shipyard constraints can increase vessel construction costs or delay deliveries.
- Regulation and distribution rights: Changes or waivers to the Jones Act could increase competition from foreign vessels. Loss of a distributorship or disruption of parts supply could limit Kirby’s ability to service customers. Engine delivery timing also constrains power generation order fulfillment.
Bottom line
Our reading
Our reading: Kirby combines a contract-based domestic barge network with an equipment and service business that serves several industrial markets. (item1, item7) Its inland fleet and qualified domestic vessels support its competitive position, while pricing remains exposed to customer production, competing capacity and regulatory changes. (item1, item1a) Power generation offers equipment and aftermarket opportunities, but engine supply limits delivery timing and the marine business remains exposed to fuel costs, weather and waterway disruptions. (call_prepared, item1a)