Kirby (KEX) Q2 EPS Jumps 17%
GAAP earnings per share reached $1.67 in Q2 2025, edging past GAAP estimates and up 17% year-over-year (GAAP).
GAAP revenue climbed to $855.5 million in Q2 2025, slightly topping GAAP expectations and increasing 3.8% from the prior year.
Management highlighted caution for the rest of 2025, guiding toward the lower end of prior full-year 2025 earnings growth target.
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Kirby (NYSE:KEX), a leading U.S. tank barge operator and diversified industrial services provider, posted its latest earnings on July 31, 2025, covering the quarter. The company reported GAAP earnings per share of $1.67, just above analyst expectations of $1.66 (GAAP). Total GAAP revenue reached $855.5 million, surpassing GAAP consensus by $2.99 million. Both GAAP net earnings per share and revenue were higher than in Q2 2024. The quarter showed margin and topline improvement, but management took a more cautious tone for the remainder of 2025, noting trade and demand uncertainties. Overall, the period reflected disciplined execution despite signals of emerging softness in some markets.
Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change
EPS (GAAP) $1.67 $1.66 $1.43 17%
Revenue (GAAP) $855.5 million $852.5 million $824.4 million 3.8%
Operating Margin (GAAP) 15.4% 14.6% 0.8 pp
EBITDA $202.2 million $182.9 million 10.6%
Free Cash Flow $22.5 million $90.7 million (75.2%)
Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report.
Company Profile and Business Drivers
Kirby is the dominant operator in the U.S. tank barge sector, holding about 27% of the inland market as of December 31, 2024 and 11% of the coastal market as of December 31, 2024 through a fleet of over 1,100 inland and 28 coastal tank barges. Its operations span marine transportation of bulk liquids and a distribution and services unit that delivers industrial equipment repair and parts.
The company's main success factors include scale in marine services, alignment with strict regulatory standards, and diversification into industrial equipment sales and servicing. Demand for products like petrochemicals and petroleum, tight shipyard capacity, and compliance with rules from the U.S. Coast Guard are key for ongoing performance. In recent years, initiatives have focused on upgrading vessel compliance, investing in ballast water systems, and balancing segment earnings through industrial and power generation projects.
Quarter Highlights: Financial and Operating Performance
The second quarter marked another period of performance slightly above consensus for both GAAP revenue and earnings per share. Revenue increased 3.8% compared to the prior year, while GAAP earnings per share advanced 17% year over year. EBITDA (non-GAAP) also climbed, supported by efficiency and steady customer volumes.
In the Marine Transportation segment, Marine transportation revenue rose 1.6% to $492.6 million compared to Q2 2024. Marine transportation operating income increased 4.4% compared to Q2 2024, with margins reaching 20.1% (GAAP), up from 19.6% (GAAP) in Q2 2024. The inland tank barge business (81% of the segment) maintained high barge utilization in the low to mid-90% range. Spot and term contract pricing both edged higher year-over-year. In the coastal segment (19% of segment revenue), utilization was in the mid to high-90% range, and term renewals climbed mid-20% from the prior year. However, Fuel costs per gallon dropped to $2.35 from $2.83 in Q2 2024.
Distribution and Services revenue saw broader improvement. Distribution and Services revenue was $362.9 million, up 6.9% compared to Q2 2024. This segment includes product lines such as power generation equipment, commercial and industrial engines, and oil and gas field service. Power generation revenue jumped 31% year-over-year on continued demand from data centers and manufacturing. The commercial and industrial group posted 5% revenue growth and a 24% increase in operating income. Oil and gas revenue fell 27% year-over-year due to weaker demand, but operating income rose sharply as the company focused on high-margin electric hydraulic fracturing (e-frac) equipment sales and cost management initiatives. Segment operating margin landed at 9.8%, up from 8.7% in Q2 2024. Management highlighted a mixed near-term picture for sales in this unit, with full-year 2025 revenues projected to be 'flat to slightly up.'
Other notable financial developments included a sharp decline in free cash flow, down to $22.5 million from $90.7 million (non-GAAP) versus Q2 2024. Operating cash flow (GAAP) dropped by almost half to $94.0 million compared to Q2 2024, while GAAP capital expenditures decreased compared to Q2 2024. During the quarter, the company repurchased 331,900 shares for $31.2 million, citing continued capital discipline. Debt increased to $1,117.8 million as of June 30, 2025, raising the total debt-to-capitalization ratio to 24.8% as of June 30, 2025, from 20.7% at December 31, 2024. Liquidity stood at $68.4 million in cash and $331.5 million available overall as of June 30, 2025.
No significant one-time events were itemized for this report. However, navigation and lock delays, as well as elevated planned shipyard activity, constrained efficiency, particularly in the marine units. There was no update to dividend policy as the company continued its practice of not paying a dividend this quarter. KEX does not currently pay a dividend.
Business Model and Industry Dynamics
Kirby's performance is tied closely to its marine transportation fleet and the regulatory landscape. The Jones Act, which restricts waterborne cargo shipments between U.S. ports to U.S.-built and -crewed vessels, protects the tank barge industry from foreign competition. Meeting requirements from the U.S. Coast Guard (USCG) and the American Bureau of Shipping (ABS) ensures fleet eligibility but comes with high compliance and upgrade costs. The company maintains its edge through ongoing investments.
Kirby's fleet flexibility enables it to respond to swings in petrochemical and petroleum product demand. Many barges can be switched between carrying chemicals and refined products, providing resilience when individual markets shift. The industry is marked by high steel prices, making it costly to build new barges—currently about $4.7 million for a 30,000-barrel model, as stated by management in Q1 2025. This cost, alongside ongoing labor shortages for mariners, limits rapid fleet expansion. Orders observed in the sector remain largely for replacement rather than growth, suggesting fleet numbers will remain flat or decline in 2025.
Looking Forward: Guidance and Watch Points
For fiscal 2025, management reiterated guidance for 15% to 25% earnings per share growth in FY2025. However, its commentary shifted to a more cautious stance, warning that continued softness in short-term demand or extended trade challenges could result in outcomes 'closer to the lower end' of the prior full-year EPS growth guidance range of 15% to 25% for 2025. Marine transportation, especially inland barge utilization, is expected to dip into the low 90% range in Q3 2025. Segment margins are projected to stabilize around 20% inland and in the mid-to-high teens for coastal operations in Q2 2025.
In Distribution and Services, leadership expects FY2025 revenue to be flat or up slightly, with operating margin in the 'high single digits.' Longer OEM lead times, trade policy developments, and labor inflation are all highlighted as ongoing challenges. Liquidity remains solid, but the sharp contraction in free cash flow (non-GAAP) and the increased debt-to-capitalization ratio in Q2 2025 are watch points for capital allocation, future acquisitions, and elevated capital expenditures.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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Our Energy Infrastructure and After-Market Services business lines continue to perform well, reinforcing Enerflex's capacity to generate stable returns. We maintain solid visibility in our Engineered Systems business, supported by a healthy $1.2 billion backlog at the end of Q2/25, while continuing to closely monitor evolving market dynamics. The long-term fundamentals driving our growth, including global energy security, and the continued increases in demand for natural gas, remain firmly in place and we believe Enerflex is well positioned to take advantage of opportunities across our global platform.' Joe Ladouceur, Enerflex's Chief Financial Officer (Interim), added: 'Enerflex maintained a solid financial position in Q2/25, holding our leverage ratio steady at 1.3 times. Our focus remains on generating sustainable free cash flow, maintaining balance sheet strength, and driving long-term value creation. We continue to prioritize profitability and operational resilience to ensure Enerflex delivers strong and reliable returns for our shareholders.' 1 EBITDA is defined as earnings before finance costs, income taxes, depreciation and amortization. EBIT is defined as earnings before finance costs and income taxes. 2 Net debt is defined as total long-term debt less cash and cash equivalent as presented in the Financial Statements. 3 Refer to the 'ES Bookings and Backlog' section of the MD&A for further details. 4 Refer to the 'EI Contract Backlog' section of the MD&A for further details. 5 Refer to the 'GM before D&A by Product Line and Recurring GM before D&A' section of the MD&A for further details. 6 Refer to the 'Adjusted EBITDA' section of the MD&A for further details. 7 Refer to the 'Non-IFRS Measures' section of the MD&A for further details. 8 Determined by using the trailing 12-month period. Enerflex's interim consolidated financial statements and notes (the 'financial statements') and Management's Discussion and Analysis ('MD&A') as at June 30, 2025, can be accessed on the Company's website at and under the Company's SEDAR+ and EDGAR profiles at and respectively. OUTLOOK Enerflex's near-term priorities remain unchanged and include: (1) enhancing the profitability of core operations; (2) leveraging the Company's leading position in core operating countries to capitalize on expected increases in natural gas and produced water volumes; and (3) maximizing free cash flow to further strengthen Enerflex's financial position, provide direct shareholder returns, and invest in selective customer supported growth opportunities. Enerflex continues to expect operating results to be underpinned by the highly contracted EI product line and the recurring nature of AMS, which together are expected to account for approximately 65% of gross margin before depreciation and amortization during 2025. The EI product line is supported by customer contracts expected to generate approximately $1.5 billion of revenue over their remaining terms. Demand in the ES product line remains constructive, although the Company is actively monitoring near-term risks and uncertainties, including the impact of tariffs and commodity price volatility. Enerflex expects ES revenue to remain steady in the near term, supported by a backlog of approximately $1.2 billion as at June 30, 2025, and gross margin for the ES product line to align more closely with historical averages, reflective of a shift in project mix. The medium-term outlook for each of Enerflex's product lines remains attractive, supported by anticipated growth in the supply of natural gas and associated liquids, especially within Enerflex's North American footprint. Capital Allocation Enerflex is refining its capital expenditure guidance for 2025. The Company now expects capital expenditures of approximately $120 million this year (prior guidance of $110 million to $130 million), including approximately $60 million allocated to growth opportunities (prior guidance of $40 million to $60 million) and $60 million for maintenance and PP&E expenditures (prior guidance $70 million). Growth investments will focus on customer-supported opportunities, primarily in the U.S. contract compression business line, where market fundamentals remain strong. This strength is underpinned by expected increases in natural gas production in the Permian Basin and continued capital discipline from industry participants. Providing meaningful direct shareholder returns is a priority for Enerflex. During Q2/25, Enerflex returned $18 million to shareholders through dividend ($4 million) and share repurchases ($14 million). The current NCIB commenced on April 1, 2025, and will terminate no later than March 31, 2026, with the Company authorized to acquire up to a maximum of 6,159,695 Common Shares or approximately 5% of its public float as at the application date, for cancellation. During Q2/25, Enerflex repurchased 1,899,200 Common Shares at an average price of C$10.08 per share Going forward, capital allocation decisions will be based on delivering value to Enerflex shareholders and measured against Enerflex's ability to maintain balance sheet strength. In addition to disciplined growth capital spending, share repurchases and dividends, Enerflex will also consider further debt reduction to strengthen its balance sheet and lower net finance costs. Unlocking greater financial flexibility positions the Company to respond to evolving market conditions and capitalize on opportunities to optimize its debt stack. DIVIDEND DECLARATION Enerflex is committed to paying a sustainable quarterly cash dividend to shareholders. The Board of Directors has declared a quarterly dividend of C$0.0375 per share, payable on September 2, 2025, to shareholders of record on August 18, 2025. CONFERENCE CALL AND WEBCAST DETAILS Investors, analysts, members of the media, and other interested parties, are invited to participate in a conference call and audio webcast on Thursday, August 7, 2025 at 8:00 a.m. (MDT), where members of senior management will discuss the Company's results. A question-and-answer period will follow. To participate, register at Once registered, participants will receive the dial-in numbers and a unique PIN to enter the call. The audio webcast of the conference call will be available on the Enerflex website at under the Investors section or can be accessed directly at NON-IFRS MEASURES Throughout this news release and other materials disclosed by the Company, Enerflex employs certain measures to analyze its financial performance, financial position, and cash flows, including net debt-to-EBITDA ratio and bank-adjusted net debt-to-EBITDA ratio. These non-IFRS measures are not standardized financial measures under IFRS and may not be comparable to similar financial measures disclosed by other issuers. Accordingly, non-IFRS measures should not be considered more meaningful than generally accepted accounting principles measures as indicators of Enerflex's performance. Refer to 'Non-IFRS Measures' of Enerflex's MD&A for the three months ended June 30, 2025, for information which is incorporated by reference into this news release and can be accessed on Enerflex's website at and under the Company's SEDAR+ and EDGAR profiles at and respectively. 1 The Company included net earnings (loss), income taxes, and net finance costs on a consolidated basis to reconcile to EBIT. 2 Net finance costs are considered corporate expenditures and therefore have not been allocated to reporting segments. 3 EBIT includes $15 million gain on redemption options associated with the Notes. Debt is managed within Corporate and is not allocated to reporting segments. 1 The Company included net earnings (loss), income taxes, and net finance costs on a consolidated basis to reconcile to EBIT. 2 Net finance costs are considered corporate expenditures and therefore have not been allocated to reporting segments. FREE CASH FLOW The Company defines free cash flow as cash provided by (used in) operating activities, less total capital expenditures (growth and maintenance) for EI assets - operating leases and PP&E, mandatory debt repayments, and lease payments, while proceeds on disposals of PP&E and EI assets - operating leases are added back. Free cash flow may not be comparable to similar measures presented by other companies as it does not have a standardized meaning under IFRS. Management uses this non-IFRS measure to assess the level of free cash generated to fund other non-operating activities. These activities could include dividend payments, share repurchases, and non-mandatory debt repayments. Free cash flow is also used in calculating the dividend payout ratio. 1 Enerflex also refers to cash provided by operating activities before changes in working capital and other as 'Funds from Operations' or 'FFO'. 2 Enerflex also refers to cash provided by operating activities as 'Cashflow from Operations' or 'CFO'. BANK-ADJUSTED NET DEBT-TO-EBITDA RATIO The Company defines net debt as short- and long-term debt less cash and cash equivalents at period end, which is then divided by EBITDA for the trailing 12-months. In assessing whether the Company is compliant with the financial covenants related to its debt instruments, certain adjustments are made to net debt and EBITDA to determine Enerflex's bank-adjusted net debt-to-EBITDA ratio. These adjustments and Enerflex's bank-adjusted net-debt-to EBITDA ratio are calculated in accordance with, and derived from, the Company's financing agreements. GROSS MARGIN BEFORE DEPRECIATION AND AMORTIZATION Gross margin before depreciation and amortization is a non-IFRS measure defined as gross margin excluding the impact of depreciation and amortization. The historical costs of assets may differ if they were acquired through acquisition or constructed, resulting in differing depreciation. Gross margin before depreciation and amortization is useful to present operating performance of the business before the impact of depreciation and amortization that may not be comparable across assets. ADVISORY REGARDING FORWARD-LOOKING INFORMATION This news release contains 'forward-looking information' within the meaning of applicable Canadian securities laws and 'forward-looking statements' (and together with 'forward-looking information', 'FLI') within the meaning of the safe harbor provisions of the US Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are FLI. The use of any of the words 'anticipate', 'believe', 'could', 'expect', 'future', 'may', 'potential', 'should', 'will' and similar expressions, (including negatives thereof) are intended to identify FLI. In particular, this news release includes (without limitation) FLI pertaining to: expectations that the North American contract compression fleet will grow to over 475,000 horsepower by the end of 2025; Enerflex's ability to leverage long-term fundamentals, including global energy security, and the continued increases in demand for natural gas to take advantage of opportunities across Enerflex's global platform, and the time required in connection therewith, if at all; Enerflex's ability to generate sustainable free cash flow, maintain its balance sheet strength, and drive long-term value creation, and the time required in connection therewith, if at all; disclosures under the heading 'Outlook' including: Enerflex's ability to deliver on its near-term priorities, including (1) enhancing the profitability of its core operations; (2) leveraging the Company's leading position in core operating countries to capitalize on expected increases in natural gas and produced water volumes; and (3) maximizing free cash flow to further strengthen Enerflex's financial position, provide direct shareholder returns, and invest in selective customer supported growth opportunities, and the time required in connection therewith, if at all; the highly contracted EI product line and the recurring nature of AMS will, together, account for approximately 65% of Enerflex's gross margin before depreciation and amortization during 2025; customer contracts within Enerflex's EI product line will generate approximately $1.5 billion of revenue over their remaining terms; ES gross margins are expected to align more closely with historical averages while ES revenue will remain steady in the near term; supply of natural gas and associated liquids and produced water volumes are anticipated to grow, especially within Enerflex's North American footprint, supporting an attractive medium-term outlook for each of Enerflex's product lines; total capital expenditures in 2025 will be approximately $120 million, including approximately $60 million allocated to growth opportunities and $60 million for maintenance and PP&E expenditures; continued strength in the market fundamentals for U.S. contract compression, underpinned by expected increases in natural gas production in the Permian Basin and continued capital discipline from industry participants; considerations to further reduce debt which will strengthen Enerflex's balance sheet and lower net financing costs and that doing so will position the Company to respond to evolving market conditions and capitalize on opportunities to optimize its debt stack; expectations that the North American contract compression fleet will grow to over 475,000 horsepower by the end of 2025; Enerflex's ability to leverage long-term fundamentals, including global energy security, and the continued increases in demand for natural gas to take advantage of opportunities across Enerflex's global platform, and the time required in connection therewith, if at all; Enerflex's ability to generate sustainable free cash flow, maintain its balance sheet strength, and drive long-term value creation, and the time required in connection therewith, if at all; disclosures under the heading 'Outlook' including: Enerflex's ability to deliver on its near-term priorities, including (1) enhancing the profitability of its core operations; (2) leveraging the Company's leading position in core operating countries to capitalize on expected increases in natural gas and produced water volumes; and (3) maximizing free cash flow to further strengthen Enerflex's financial position, provide direct shareholder returns, and invest in selective customer supported growth opportunities, and the time required in connection therewith, if at all; the highly contracted EI product line and the recurring nature of AMS will, together, account for approximately 65% of Enerflex's gross margin before depreciation and amortization during 2025; customer contracts within Enerflex's EI product line will generate approximately $1.5 billion of revenue over their remaining terms; ES gross margins are expected to align more closely with historical averages while ES revenue will remain steady in the near term; supply of natural gas and associated liquids and produced water volumes are anticipated to grow, especially within Enerflex's North American footprint, supporting an attractive medium-term outlook for each of Enerflex's product lines; total capital expenditures in 2025 will be approximately $120 million, including approximately $60 million allocated to growth opportunities and $60 million for maintenance and PP&E expenditures; continued strength in the market fundamentals for U.S. contract compression, underpinned by expected increases in natural gas production in the Permian Basin and continued capital discipline from industry participants; considerations to further reduce debt which will strengthen Enerflex's balance sheet and lower net financing costs and that doing so will position the Company to respond to evolving market conditions and capitalize on opportunities to optimize its debt stack; the ability of Enerflex to continue to pay a sustainable quarterly cash dividend; and using free cash generated to fund other non-operating activities including dividend payments, share repurchases, and non-mandatory debt repayments, if at all. FLI reflect Management's current beliefs and assumptions with respect to such things as the impact of general economic conditions; commodity prices; the markets in which Enerflex's products and services are used; general industry conditions, forecasts, and trends; changes to, and introduction of new, governmental regulations, laws, and income taxes; increased competition; availability of qualified personnel; political unrest and geopolitical conditions; and other factors, many of which are beyond the control of Enerflex. More specifically, Enerflex's expectations in respect of its FLI are based on a number of assumptions, estimates and projections developed based on past experience and anticipated trends, including but not limited to: the ability of the Company to navigate evolving market conditions and to adjust its business as needed to support long-term resilience and performance in response to increased near-term risks and uncertainties, including the impact of tariffs and commodity price volatility; natural gas and associated liquids and produced water volumes across Enerflex's global footprint will increase in line with expectations; market conditions, customer activity, and industry fundamentals will support stable demand across Enerflex's product lines and geographic regions throughout 2025; the high level of contractual commitments within the EI product line and the predictable, recurring revenue from AMS will continue; existing customer contracts within the EI product line will remain in effect and with no material cancellations or renegotiations over their remaining terms; the execution of projects within the ES product line will proceed as scheduled and the conversion to revenue will proceed without significant delays or cancellations; no significant unforeseen cost overruns or project delays; market conditions continuing to support the NCIB within the anticipated timeframe; and Enerflex will maintain sufficient cash flow, profitability, and financial flexibility to support the ongoing payment of a sustainable quarterly cash dividend, subject to market conditions, operational performance, and board approval. As a result of the foregoing, actual results, performance, or achievements of Enerflex could differ and such differences could be material from those expressed in, or implied by, the FLI. The principal risks, uncertainties and other factors affecting Enerflex and its business are identified under the heading 'Risk Factors' in: (i) Enerflex's Annual Information Form for the year ended December 31, 2024, dated February 27, 2025; and (ii) Enerflex's Annual Report dated February 26, 2025, as well as in the Company's MD&A as at June 30, 2025 and in other filings with Canadian securities regulators and the SEC, copies of which are available under the electronic profile of the Company on SEDAR+ and EDGAR at and respectively. Other unpredictable or unknown factors not discussed in this news release could have material adverse effects on the actual results, performance, or achievements of Enerflex expressed in, or implied by, the FLI. The FLI included in this news release are made as of the date of this news release and are based on the information available to the Company at such time and, other than as required by law, Enerflex disclaims any intention or obligation to update or revise any FLI, whether as a result of new information, future events, or otherwise. This news release and its contents should not be construed, under any circumstances, as investment, tax, or legal advice. The outlook provided in this news release is based on assumptions about future events, including economic conditions and proposed courses of action, based on Management's assessment of the relevant information currently available. The outlook is based on the same assumptions and risk factors set forth above and is based on the Company's historical results of operations. The outlook set forth in this news release was approved by Management and the Board of Directors. Management believes that the prospective financial information set forth in this news release has been prepared on a reasonable basis, reflecting Management's best estimates and judgments, and represents the Company's expected course of action in developing and executing its business strategy relating to its business operations. The prospective financial information set forth in this news release should not be relied on as necessarily indicative of future results. Actual results may vary, and such variance may be material. ABOUT ENERFLEX Enerflex is a premier integrated global provider of energy infrastructure and energy transition solutions, deploying natural gas, low-carbon, and treated water solutions – from individual, modularized products and services to integrated custom solutions. With over 4,400 engineers, manufacturers, technicians, and innovators, Enerflex is bound together by a shared vision: Transforming Energy for a Sustainable Future. The Company remains committed to the future of natural gas and the critical role it plays, while focused on sustainability offerings to support the energy transition and growing decarbonization efforts. Enerflex's common shares trade on the Toronto Stock Exchange under the symbol 'EFX' and on the New York Stock Exchange under the symbol 'EFXT'. For more information about Enerflex, visit For investor and media enquiries, contact: Preet S. Dhindsa President and Chief Executive Officer (Interim) E-mail: PDhindsa@ Joe Ladouceur Chief Financial Officer (Interim) E-mail: JLadouceur@ Jeff Fetterly Vice President, Corporate Development and Capital Markets E-mail: JFetterly@
Toronto Star
28 minutes ago
- Toronto Star
McEwen Reports Q2 2025 Results: Continuing Momentum to Double Gold and Silver Production by 2030
TORONTO, Aug. 07, 2025 (GLOBE NEWSWIRE) — McEwen Inc. (NYSE: MUX) (TSX: MUX) ('McEwen', 'MUX' or the 'Company') today announced its second quarter (Q2) and half year (H1) results for the period ended June 30, 2025, along with a discussion of our upcoming near-term catalysts. 'During H1 2025 we invested in development projects, including the proposed acquisition of Canadian Gold Corp., to position our company for operational growth. In addition, net income will be further improved with the publishing of the Los Azules Feasibility Study, as McEwen Copper will be able to capitalize the majority of the development costs going forward. Year-to-date, this expense was $15.6 million.'
