Kirby (KEX) Stock Forecast & Price Target

Kirby Corp is poised for growth, with expectations of increasing revenues and margins in its Distribution and Services segment as it approaches 2024. The company is well-positioned to capitalize on the ongoing recovery in the inland tank barge business, which will support its core marine transportation operations. Additionally, projections indicate a positive turnaround in Coastal margins and an anticipated margin rate of around 10% in the Distribution and Services segment, further strengthening the company’s financial outlook.

Kirby Corporation's outlook is negatively impacted by a projected decline in inland revenue, estimated at approximately 2% for the second half of 2025 compared to the first half, primarily due to lower utilization rather than pricing pressures. The company's earnings per share (EPS) estimates for 2026 have been lowered to $6.50, reflecting a conservative view, which is 10% below consensus and suggests stagnant earnings before interest and taxes (EBIT) performance in inland operations amidst a more favorable growth outlook in coastal sectors. Additionally, despite projected free cash flow of around $400 million, concerns remain about the potential for continued pricing declines and reduced utilization rates, primarily attributed to lower petrochemical volumes and a return to a normalized maintenance cycle.