Kirby (KEX) Stock Forecast & Price Target

Kirby Corporation is poised for a positive financial outlook, as the Distribution and Services (D&S) segment is expected to see increasing revenues and improved profit margins heading into 2024. The company is strategically positioned to capitalize on the ongoing recovery within the inland tank barge business, which is critical to its marine transportation operations. Additionally, a favorable upside scenario anticipates recovery in coastal margins and a potential stabilization of D&S margins around 10%, further strengthening the company's financial prospects.

Kirby Corporation's outlook appears negative due to a projected decline in Inland revenue of approximately 2% for the second half of 2025 compared to the first half, driven by lower barge utilization rather than pricing pressures. Additionally, the company's revised earnings per share estimate for 2026 is $6.50, representing a 10% reduction from consensus, with expectations of stagnation in Inland segment earnings before interest and taxes. Factors contributing to this negative sentiment include a drop in inland barge utilization to the mid-80% range, indicating low single-digit pricing declines and potential challenges from a normalized maintenance cycle that could hinder operational efficiency.