Grzebinski Expects Steady Revenue Growth in 2026

CEO Grzebinski said, "2026 is off to a good start. While macro factors-including Venezuelan oil flows and ongoing tariff developments-may create some near-term noise, they also could present upside for demand. We exited the year with solid momentum; refinery activity is steady, inland barge utilization is improving, and spot rates appear to have reached a floor with early signs of firming. Coastal market conditions remain constructive, with pricing continuing to move in the right direction. In Distribution and Services, even though demand will vary across product lines, our power generation business remains a standout. A growing backlog, persistent customer demand, and the rising need for dependable 24/7 power are driving sustained strength in this segment and helping balance softness elsewhere. Overall, we expect to deliver consistent, year-over-year earnings growth in 2026, supported by stable operations, improving market fundamentals, and strong execution across the Company." The company said, "In inland marine, limited new barge construction continues to support stable market fundamentals. Refinery utilization is expected to remain solid and petrochemicals customer demand is expected to improve. With these trends, we expect our barge utilization rates to be in the low 90% range for the year, with pricing improving as the year progresses. In addition, 2026 is expected to be a lower maintenance year for the fleet, providing more barges available for service. Overall, inland revenues for the full year are anticipated to increase low to mid-single digits year-over-year. As is typical, seasonal winter weather has set in and will weigh on revenues and margins in the first quarter. Factoring in the 2025 fourth quarter term renewals, we expect operating margins will gradually improve over the course of the year with the first quarter expected to be the lowest, averaging in the high-teens to low 20% range for the full year. In coastal marine, market conditions remain favorable, and supply and demand remain balanced across the industry fleet. Steady customer demand is expected to keep our barge utilization in the mid-90% range. Even with a high number of shipyards throughout the year, revenues for the full year are expected to increase in the mid-single digits compared to 2025. Coastal operating margins are expected to be in the high-teens range on a full year basis with some pressure early in the year due to planned shipyards. In distribution and services, we expect stable growth, supported by rising customer demand in several areas offsetting weakness in others. Deliveries, however, are likely to remain uneven due to ongoing availability constraints and long OEM lead times. Power generation will continue to be a strong contributor to the segment, driven by solid demand trends, a growing backlog, and heightened customer focus on dependable prime power and backup solutions. Marine repair activity is expected to remain steady, and on-highway service and repair are expected to continue to recover. Revenues in oil and gas are expected to decline in the double-digit range as demand continues to soften. Overall, we expect total distribution and services revenues to be flat to slightly higher year over year with strength in power generation helping to offset lower oil and gas activity. Operating margins are projected to be in mid-to-high single-digit range on average for the full year."