Reed's questions to Kirby Corp (KEX) leadership • Q4 2024
Question
Reed, on behalf of Daniel, inquired about the drivers behind improved inland marine pricing in Q1, the company's confidence in sustaining this pricing, and expectations for cost inflation in 2025.
Answer
CEO David W. Grzebinski and COO Christian G. O'Neil explained that a temporary Q4 slowdown has abated, with barge utilization recovering to the mid-90% range, driving spot price recovery. They expressed confidence in full-year margin improvement of 200-300 basis points, citing tight supply/demand, strong term contract renewals, and persistent inflation in labor and equipment, which necessitates higher pricing.