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MATSON TO ANNOUNCE SECOND QUARTER 2025 RESULTS ON JULY 31, 2025
Prnewswire· 2025-07-17 20:10
HONOLULU, July 17, 2025 /PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in the Pacific, today announced that it will release its financial results for the second quarter on Thursday, July 31, 2025.A conference call is scheduled for 4:30 p.m. ET when Matt Cox, Chairman and Chief Executive Officer, and Joel Wine, Executive Vice President and Chief Financial Officer, will discuss Matson's second quarter results. Date of Conference Call:          Thursday, July 3 ...
3 Transport-Service Stocks Showing Promise Despite Industry Headwinds
ZACKS· 2025-07-16 16:26
The Zacks Transportation-Services industry faces challenges, ranging from dull freight rates, high inflation, and lingering supply-chain disruptions. The tariff-related uncertainty and geopolitical woes represent further challenges for this key industry.Yet, beneath the gloom lies a glimmer of long-term promise. Driven by solid fundamentals, companies like Expeditors International of Washington (EXPD) , C.H. Robinson Worldwide (CHRW) and Matson (MATX) are highly likely to weather near-term challenges and se ...
Matson: Boring, Profitable, Ignored
Seeking Alpha· 2025-07-11 13:01
Core Insights - Matson (MATX) differentiates itself from typical shipping stocks by focusing on high-value, niche routes rather than pursuing scale like competitors ZIM and Maersk [1] - The company primarily operates in the Hawaii and China-Long Beach routes, emphasizing its specialized market approach [1] Company Strategy - Matson does not engage in heavy spending like larger competitors, which allows it to maintain a unique position in the shipping industry [1] - The focus on niche markets enables Matson to potentially achieve higher margins compared to companies that chase volume [1] Market Position - The company's strategy of targeting specific, high-value routes positions it favorably against larger shipping firms that may be more exposed to market fluctuations [1] - By concentrating on less competitive, specialized routes, Matson can leverage its operational efficiencies and customer relationships [1]
MATSON PUBLISHES 2024 SUSTAINABILITY REPORT
Prnewswire· 2025-07-09 20:52
Core Insights - Matson, Inc. has released its 2024 Sustainability Report, highlighting its commitment to ethical standards, environmental impact reduction, and community support [1] Company Overview - Matson, founded in 1882, is a prominent provider of ocean transportation and logistics services, serving non-contiguous economies such as Hawaii, Alaska, and Guam, as well as other island economies in Micronesia [2] - The company operates a diverse fleet that includes containerships, combination container and roll-on/roll-off ships, and barges, and offers premium expedited services from China to Long Beach, California [2] - Matson Logistics, established in 1987, enhances the company's transportation network across North America and Asia, providing integrated logistics services such as rail intermodal, highway brokerage, and supply chain management [2]
Matson: Underappreciated Compounder With Fortress Balance Sheet
Seeking Alpha· 2025-07-09 19:25
Core Insights - Matson is a Hawaii-based shipping vessel operator with a fleet of 26 ships and three under construction, focusing on key shipping routes between China and the USA, as well as between the US non-contiguous states like Alaska [1] Company Overview - The company operates in significant shipping lanes, indicating its strategic importance in the logistics and transportation sector [1] Fleet Information - Matson's current fleet consists of 26 ships, with an additional three vessels under construction, showcasing its commitment to expanding operational capacity [1]
Matson Rewards Shareholders With 5.9% Hike in Quarterly Dividend
ZACKS· 2025-06-27 16:35
Key Points - Matson, Inc. (MATX) announced a 5.9% increase in its quarterly cash dividend, raising it to 36 cents per share from 34 cents, effective September 4, 2025 [1][9] - This marks the thirteenth consecutive annual increase in Matson's quarterly dividend, reflecting the company's strong business performance and confidence in long-term free cash flow growth [2][4] - In Q1 2025, Matson returned $78.2 million to shareholders through dividends and share repurchases, with $11.3 million in dividends and $66.9 million in share buybacks [2][9] - The company has consistently rewarded shareholders, with dividends totaling $44.8 million in 2024, $45 million in 2023, and $48 million in 2022, alongside significant share repurchase activities [2] - Dividend-paying stocks like MATX are considered safer investments, providing a steady income stream and acting as a hedge against economic uncertainty [3] - Other companies in the transportation sector, such as Delta Air Lines and FedEx, have also announced dividend hikes in 2025, indicating a broader trend of returning capital to shareholders [5][6][7]
MATSON INCREASES QUARTERLY DIVIDEND TO $0.36 PER SHARE
Prnewswire· 2025-06-26 20:10
Company Overview - Matson, Inc. is a leading provider of ocean transportation and logistics services, founded in 1882 [3] - The company offers vital ocean freight transportation services to Hawaii, Alaska, Guam, and other Micronesian islands, as well as expedited services from China to Long Beach, California [3] - Matson's fleet includes containerships, combination container and roll-on/roll-off ships, and barges, with logistics services extending throughout North America and Asia [3] Dividend Announcement - The Board of Directors has declared a third quarter dividend of $0.36 per common share, marking a 5.9% increase from the previous quarter [1] - This increase represents the thirteenth consecutive annual increase to Matson's quarterly dividend, reflecting the strength of the business and confidence in long-term free cash flow growth [2] Capital Allocation Strategy - The company emphasizes a disciplined approach to capital allocation, committing to return excess capital to shareholders through share repurchases after funding dividends and supporting operations [2] - Matson aims to maintain an investment-grade balance sheet while investing in growth opportunities [2]
Matson(MATX) - 2025 Q1 - Quarterly Report
2025-05-06 10:10
Part I: Financial Information [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The company's Q1 2025 results show significant growth in net income and operating income, alongside robust cash flow and continued capital investment [Income Statement Highlights](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q1 2025 saw substantial increases in revenue, operating income, and net income compared to the prior year **Q1 2025 vs Q1 2024 Income Statement (in millions, except per share)** | Metric | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | **Total Operating Revenue** | $782.0 | $722.1 | +8.3% | | Ocean Transportation Revenue | $637.4 | $579.0 | +10.1% | | Logistics Revenue | $144.6 | $143.1 | +1.0% | | **Operating Income** | $82.1 | $36.9 | +122.5% | | **Net Income** | $72.3 | $36.1 | +100.3% | | **Diluted EPS** | $2.18 | $1.04 | +109.6% | [Balance Sheet Highlights](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects stable total assets and a significant decrease in cash due to vessel investments and share repurchases **Balance Sheet Position (in millions)** | Metric | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $122.0 | $266.8 | | Total Assets | $4,527.0 | $4,595.4 | | Total Liabilities | $1,893.8 | $1,943.4 | | Total Shareholders' Equity | $2,633.2 | $2,652.0 | - The company's cash and cash equivalents decreased significantly from **$266.8 million** at year-end 2024 to **$122.0 million** at the end of Q1 2025, primarily due to investments in new vessels and share repurchases[11](index=11&type=chunk)[13](index=13&type=chunk) [Cash Flow Highlights](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased significantly, while investing and financing activities led to a net decrease in cash **Q1 2025 vs Q1 2024 Cash Flows (in millions)** | Cash Flow Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $89.0 | $36.6 | | Net cash used in investing activities | $(129.4) | $(59.0) | | Net cash used in financing activities | $(104.4) | $(85.7) | | **Net Decrease in Cash** | **$(144.8)** | **$(108.1)** | - Investing activities included **$66.7 million** for vessel construction and a net deposit of **$40.4 million** into the Capital Construction Fund (CCF)[13](index=13&type=chunk) - Financing activities included **$66.9 million** for share repurchases and **$11.3 million** in dividends[13](index=13&type=chunk) [Key Notes to Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Notes detail segment performance, joint venture income, vessel construction progress, and share repurchase activities - The company consists of two reportable segments: **Ocean Transportation**, which provides ocean freight services, and **Logistics**, which offers multimodal transportation brokerage, freight forwarding, and warehousing[16](index=16&type=chunk)[17](index=17&type=chunk)[19](index=19&type=chunk) **Segment Revenue Breakdown Q1 2025 (in millions)** | Segment | Revenue | YoY Change | | :--- | :--- | :--- | | Ocean Transportation | $637.4 | +10.1% | | Logistics | $144.6 | +1.0% | - The company's investment in the SSAT joint venture contributed income of **$6.6 million** in Q1 2025, a significant increase from $0.4 million in Q1 2024[41](index=41&type=chunk)[43](index=43&type=chunk) - During Q1 2025, the company repurchased approximately **0.5 million shares for $69.2 million** and paid a quarterly dividend of $0.34 per share[29](index=29&type=chunk)[30](index=30&type=chunk) [Management's Discussion and Analysis (MD&A)](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q1 2025 results driven by China freight rates but presents a cautious outlook for the full year [Outlook for 2025](index=29&type=section&id=First%20Quarter%202025%20Discussion%20and%20Outlook%20for%202025) The company projects lower full-year operating income for its core segments and plans significant capital expenditures for new vessels - **Ocean Transportation:** Full-year 2025 operating income is expected to be **lower than 2024**, with China service volume and freight rates projected to decline year-over-year[76](index=76&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk)[82](index=82&type=chunk) - **Logistics:** Full-year 2025 operating income is expected to be **lower than the prior year** due to a challenging environment for all business lines[83](index=83&type=chunk) - **SSAT Joint Venture:** The contribution from SSAT is expected to be **lower in 2025** compared to 2024 (excluding a 2024 impairment charge)[81](index=81&type=chunk) **Full Year 2025 Financial Projections** | Metric | Projected 2025 Value | | :--- | :--- | | Depreciation & Amortization | ~$200 million | | Interest Income | ~$31 million | | Interest Expense | ~$7 million | | Effective Tax Rate | ~23.0% | | New Vessel Construction Capex | ~$305 million | | Maintenance & Other Capex | $100 - $120 million | [Segment Performance Analysis (Q1 2025 vs Q1 2024)](index=34&type=section&id=ANALYSIS%20OF%20OPERATING%20REVENUE%20AND%20INCOME%20BY%20SEGMENT) Ocean Transportation income surged due to higher freight rates, while Logistics income saw a slight decline - **Ocean Transportation** operating income increased **166.7% to $73.6 million**, primarily due to significantly higher freight rates in China and a higher contribution from SSAT[94](index=94&type=chunk)[97](index=97&type=chunk) **Ocean Transportation Volume (FEU) - Q1 2025 vs Q1 2024** | Trade Lane | Q1 2025 FEU | Q1 2024 FEU | Change (%) | | :--- | :--- | :--- | :--- | | Hawaii | 35,700 | 34,600 | +3.2% | | Alaska | 19,700 | 18,800 | +4.8% | | China | 28,500 | 28,900 | -1.4% | | Guam | 4,200 | 4,900 | -14.3% | - **Logistics** operating income decreased **8.6% to $8.5 million**, due to lower contributions from freight forwarding and transportation brokerage[99](index=99&type=chunk)[100](index=100&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company maintains strong liquidity with significant borrowing capacity despite a working capital deficit and large future capital commitments - Net cash from operations increased to **$89.0 million** in Q1 2025 from $36.6 million in Q1 2024, driven by higher net income and favorable changes in working capital[102](index=102&type=chunk)[103](index=103&type=chunk) - The company had a working capital deficit of **$78.4 million** at quarter-end, a decrease from a surplus of $49.2 million at year-end 2024, primarily due to cash deposited into the Capital Construction Fund (CCF)[111](index=111&type=chunk) - As of March 31, 2025, total debt was **$390.8 million**, and the company had **$643.9 million** of available borrowing capacity under its revolving credit facility[109](index=109&type=chunk)[110](index=110&type=chunk) - The company has committed to future milestone payments of **$749.1 million** for the construction of three new Aloha Class containerships, with payments extending through 2028[113](index=113&type=chunk) Part II: Other Information [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) The company faces material risks from potential Jones Act changes, operational challenges, and evolving climate regulations - **Jones Act:** The business would be adversely affected by the repeal, invalidation, or substantial amendment of the Jones Act, which regulates U.S. domestic maritime commerce[130](index=130&type=chunk) - **Operational Risks:** The company is exposed to risks from macroeconomic conditions (inflation, interest rates), geopolitical developments (tariffs, trade tensions), intense competition, and reliance on key third-party vendors for essential services[133](index=133&type=chunk)[135](index=135&type=chunk)[138](index=138&type=chunk) - **Fleet & Fuel Risks:** The company faces risks from fuel price volatility, the uncertain availability and cost of alternative fuels like LNG, and potential delays or cost overruns in its new vessel construction program[139](index=139&type=chunk)[144](index=144&type=chunk)[146](index=146&type=chunk) - **Climate & Sustainability Risks:** Evolving regulations and stakeholder expectations regarding sustainability and climate change (e.g., GHG emissions targets) expose the company to increased costs, operational challenges, and reputational risk[141](index=141&type=chunk)[155](index=155&type=chunk) - **Labor and IT Risks:** A significant portion of the workforce is unionized, making the company susceptible to work stoppages, and it faces significant cybersecurity risks[172](index=172&type=chunk)[180](index=180&type=chunk) [Share Repurchases](index=66&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company actively repurchased shares in Q1 2025 and has significant capacity remaining under its authorized program **Q1 2025 Share Repurchases** | Period | Shares Purchased | Average Price Paid | | :--- | :--- | :--- | | Jan 2025 | 180,000 | $139.12 | | Feb 2025 | 162,505 | $141.22 | | Mar 2025 | 157,066 | $132.21 | | **Total** | **499,571** | **$137.63** | - The Board of Directors approved the addition of **3.0 million shares** to the repurchase program on February 27, 2025, which expires on December 31, 2027[197](index=197&type=chunk)
Matson (MATX) Q1 Earnings and Revenues Lag Estimates
ZACKS· 2025-05-05 22:25
Core Viewpoint - Matson's quarterly earnings of $2.18 per share fell short of the Zacks Consensus Estimate of $2.34 per share, representing a year-over-year increase from $1.04 per share, with an earnings surprise of -6.84% [1][2] Financial Performance - The company reported revenues of $782 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 1.24%, compared to $722.1 million in the same quarter last year [2] - Over the last four quarters, Matson has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Stock Performance - Matson shares have declined approximately 16.1% since the beginning of the year, while the S&P 500 has decreased by -3.3% [3] - The current Zacks Rank for Matson is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $3.18 on revenues of $878.25 million, and for the current fiscal year, it is $11.41 on revenues of $3.4 billion [7] - The trend of estimate revisions for Matson is mixed, which could change following the recent earnings report [6] Industry Context - The Transportation - Services industry, to which Matson belongs, is currently ranked in the bottom 22% of over 250 Zacks industries, indicating potential challenges ahead [8]
Matson(MATX) - 2025 Q1 - Earnings Call Transcript
2025-05-05 21:32
Matson (MATX) Q1 2025 Earnings Call May 05, 2025 04:30 PM ET Company Participants Justin Schoenberg - Director, Investor Relations & Corporate DevelopmentMatthew Cox - Chairman, Director & CEOJoel M. Wine - Executive VP & CFODaniel Imbro - Managing DirectorOmar Nokta - Managing DirectorBenjamin Nolan - Managing Director Conference Call Participants Jacob Lacks - Analyst Operator you for standing by and welcome to Matson's First Quarter twenty twenty five Financial Results Conference Call. At this time, all ...