Kirby (KEX) Stock Forecast & Price Target

Kirby Corp is poised for significant growth driven by anticipated improvements in revenues and margins across its Distribution and Services segment as it enters 2024. The company is strategically positioned to capitalize on the ongoing recovery in the inland tank barge business, enhancing its overall performance in marine transportation. Additionally, projections indicate a potential recovery in Coastal margins and an expected stabilization of Distribution and Services margins around the 10% range, reinforcing a favorable financial outlook.

Kirby Corporation is facing challenges that contribute to a negative outlook for its stock, particularly in its Marine Transportation segment, which is heavily impacted by a projected decline in inland revenue. The company has lowered its 2026 EPS estimate to $6.50, representing a 10% decrease compared to consensus estimates and indicating stagnant earnings before interest and taxes (EBIT) in the Inland segment due to reduced barge utilization hovering in the mid-80% range. The anticipated softness in inland barge utilization stemming from lower petrochemical volumes and a return to a normalized maintenance cycle suggests a cautious environment, even amidst expectations of $400 million in free cash flow for the year.