Kirby Corporation (KEX) Cash Flow Statement

The 2026Q3 quarter shows operating cash flow of negative $401.2M against net income of $110.8M, with a $184.8M working capital build suggesting that receivables or inventory absorbed the bulk of the period's earnings. The 2024Q4 and 2025Q4 readings, where cash flow far exceeded net income, likely reflect working capital unwinds rather than durable earnings power. Investors should monitor whether the trailing four-quarter average converges toward a steadier ratio, since the extreme quarterly swings suggest timing effects dominate the cash signal.

Free cash flow has been positive in most quarters but has produced several weak or negative readings, including negative $42.1M in 2025Q1 and negative $470.8M in 2026Q3. Capital expenditures have been relatively contained at roughly 5.5% to 12.0% of revenue, so the swings are driven mainly by operating cash volatility rather than investment intensity. The trajectory warrants caution until several consecutive quarters confirm a sustainable run rate.

The fall from roughly 12.0% of revenue in 2024Q4 to 5.5% to 7.8% in 2025 and 2026 may reflect completion of fleet or equipment programs, though the data does not separate maintenance from growth spending. Depreciation of roughly $63M to $78M per quarter runs close to capital outlays in several periods, which implies the fleet is being maintained rather than materially expanded. Without a maintenance versus growth split, the reinvestment rate cannot be fully assessed.

The magnitude of working capital movements relative to net income indicates that receivable collection timing and payables management are central to the reported cash results. The large 2026Q3 outflow alongside a revenue print of $977.2M may point to elevated receivables following strong billing, which could reverse in subsequent quarters if collections normalize. Investors should watch days sales outstanding trends to distinguish timing effects from genuine deterioration in collection quality.

Repurchases were sustained even in quarters with weak or negative free cash flow, such as 2026Q3 with $111.9M of buybacks against negative free cash flow of $470.8M, which suggests reliance on balance sheet capacity rather than current cash generation. The low reported debt-to-equity ratio provides room for this approach, but repeated buybacks during cash shortfalls warrant monitoring. Acquisition outflows of up to $95.8M in 2026Q3 add to the pattern of capital deployment exceeding internally generated cash in certain periods.