Matthews International Reports Results for Fiscal 2025 Second Quarter
Rhea-AI Summary
Matthews International (NASDAQ: MATW) reported Q2 fiscal 2025 results with consolidated sales of $427.6 million, down 9.3% from $471.2 million in Q2 2024. The company posted a net loss of $8.9 million ($0.29 per share), compared to net income of $9.0 million in the prior year.
Key highlights include:
- Significant increase in energy storage solutions customer quotes exceeding $100 million since February 2025
- Cost reduction programs on track to exceed $50 million in savings
- SGK transaction expected to close in May 2025, with $350 million upfront consideration plus 40% interest in new entity
- Updated pro forma consolidated adjusted EBITDA projection of at least $190 million for fiscal 2025
The company's performance was impacted by lower sales in Industrial Technologies and Memorialization segments, partially offset by higher SGK Brand Solutions sales. Management remains confident in unlocking shareholder value through strategic alternatives.
Positive
- Cost reduction programs on track to exceed $50M in savings
- Customer quotes for energy storage solutions exceeded $100M since Feb 2025
- SGK transaction to bring $350M upfront ($250M cash + $50M preferred equity + $50M receivables)
- Company to retain 40% interest in new SGK entity with projected synergies over $50M
- Improved price realization in several business segments
- SGK Brand Solutions segment showed increased sales in US and Asia-Pacific markets
Negative
- Q2 consolidated sales declined 9.3% YoY to $427.6M
- Net loss of $8.9M in Q2 FY2025 vs. net income of $9.0M in Q2 FY2024
- Adjusted EBITDA decreased 9.5% to $51.4M vs. $56.8M year ago
- Lower sales in Industrial Technologies and Memorialization segments
- Reduced unit volumes in caskets, cemetery memorials, and cremation equipment
- Net debt increased during Q2 FY2025
- Adjusted EBITDA projection lowered from $205M to $190M for FY2025
News Market Reaction 1 Alert
On the day this news was published, MATW declined 3.08%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Fiscal 2025 Second Quarter Financial Highlights:
- Consolidated sales of
$427.6 million for the FY 2025 2nd Quarter - Significant increase in customer quotes for energy storage solutions
- Cost reduction programs remain on track
- SGK transaction expected to close in early May 2025; Company provides updated projections
- Webcast: Thursday, May 1, 2025, 9:00 a.m., (201) 689-8471
PITTSBURGH, April 30, 2025 (GLOBE NEWSWIRE) -- Matthews International Corporation (NASDAQ GSM: MATW) today announced financial results for its second quarter of fiscal 2025.
In discussing the results for the Company’s fiscal 2025 second quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated:
“The Company’s results for the fiscal 2025 second quarter were generally in line with our expectations. Our consolidated sales continued to be impacted by recent challenges in our engineering (energy storage solutions) business. However, demand and interest in our energy storage solutions are regaining strength as customer quotes since early February 2025 have exceeded
“Despite the recent headwinds, adjusted EBITDA for the quarter was ahead of our expectations primarily reflecting the realization of benefits from recent cost reduction actions and improved price realization in several of our businesses. The cost reduction initiatives, which were announced last year, are progressing well and remain on track to generate cost savings above our initial estimate of
“Following recent regulatory clearances, the SGK transaction is now expected to close in early May 2025. As we previously reported, consideration to Matthews upon closing will be
“The Company’s comprehensive evaluation of strategic alternatives for our entire portfolio remains ongoing. The Board and I firmly believe the inherent value of the Company is well above current trading levels and, over the next several months, we intend to identify the appropriate path to unlock this shareholder value. Although current stock market conditions have been challenging, all alternatives are being considered as we seek to realize the true value of our businesses.
“Net debt (outstanding debt less cash) increased modestly during the fiscal 2025 second quarter. Outstanding debt as reported increased
“In November 2024, we projected adjusted EBITDA of at least
Second Quarter Fiscal 2025 Consolidated Results (Unaudited)
| ($ in millions, except per share data) | Q2 FY2025 | Q2 FY2024 | Change | % Change | |||||||||||
| Sales | $ | 427.6 | $ | 471.2 | $ | (43.6 | ) | (9.3 | )% | ||||||
| Net (loss) income attributable to Matthews | $ | (8.9 | ) | $ | 9.0 | $ | (17.9 | ) | (198.8 | )% | |||||
| Diluted (loss) earnings per share | $ | (0.29 | ) | $ | 0.29 | $ | (0.58 | ) | NM | ||||||
| Non-GAAP adjusted net income | $ | 10.5 | $ | 21.8 | $ | (11.4 | ) | (52.1 | )% | ||||||
| Non-GAAP adjusted EPS | $ | 0.34 | $ | 0.69 | $ | (0.35 | ) | (50.7 | )% | ||||||
| Adjusted EBITDA | $ | 51.4 | $ | 56.8 | $ | (5.4 | ) | (9.5 | )% | ||||||
| Note: See the attached tables for additional important disclosures regarding Matthews’ use of non-GAAP measures as well as reconciliations of non-GAAP measures to corresponding GAAP measures. | |||||||||||||||
Consolidated sales for the quarter ended March 31, 2025 were
Net loss attributable to the Company for the quarter ended March 31, 2025 was
Fiscal 2025 Year-to-Date Consolidated Results (Unaudited)
| ($ in millions, except per share data) | YTD FY2025 | YTD FY2024 | Change | % Change | |||||||||||
| Sales | $ | 829.5 | $ | 921.2 | $ | (91.7 | ) | (10.0 | )% | ||||||
| Net (loss) income attributable to Matthews | $ | (12.4 | ) | $ | 6.7 | $ | (19.1 | ) | NM | ||||||
| Diluted (loss) earnings per share | $ | (0.40 | ) | $ | 0.22 | $ | (0.62 | ) | NM | ||||||
| Non-GAAP adjusted net income | $ | 14.8 | $ | 33.2 | $ | (18.4 | ) | (55.4 | )% | ||||||
| Non-GAAP adjusted EPS | $ | 0.48 | $ | 1.06 | $ | (0.58 | ) | (54.7 | )% | ||||||
| Adjusted EBITDA | $ | 91.4 | $ | 102.3 | $ | (10.9 | ) | (10.7 | )% | ||||||
| Note: See the attached tables for additional important disclosures regarding Matthews’ use of non-GAAP measures as well as reconciliations of non-GAAP measures to corresponding GAAP measures. | |||||||||||||||
Consolidated sales for the six months ended March 31, 2025 were
Net loss attributable to the Company for the six months ended March 31, 2025 was
Webcast
The Company will host a conference call and webcast on Thursday, May 1, 2025 at 9:00 a.m. Eastern Time to review its financial and operating results and discuss its corporate strategies and outlook. A question-and-answer session will follow. The conference call can be accessed by dialing (201) 689-8471. The audio webcast can be monitored at www.matw.com. As soon as available after the call, a transcript of the call will be posted on the Investor Relations section of the Company’s website at www.matw.com.
About Matthews International Corporation
Matthews International Corporation is a global provider of memorialization products, industrial technologies, and brand solutions. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets, cremation-related products, and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. The Industrial Technologies segment includes the design, manufacturing, service and sales of high-tech custom energy storage solutions; product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products; and coating and converting lines for the packaging, pharma, foil, décor and tissue industries. The SGK Brand Solutions segment is a leading provider of packaging solutions and brand experiences, helping companies simplify their marketing, amplify their brands and provide value. The Company has over 11,000 employees in more than 30 countries on six continents that are committed to delivering the highest quality products and services.
Forward-looking Information
Any forward-looking statements contained in this release are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intentions or strategies of the Company regarding the future, including statements regarding the anticipated timing and benefits of the proposed joint venture transaction, and may be identified by the use of words such as “expects,” “believes,” “intends,” “projects,” “anticipates,” “estimates,” “plans,” “seeks,” “forecasts,” “predicts,” “objective,” “targets,” “potential,” “outlook,” “may,” “will,” “could” or the negative of these terms, other comparable terminology and variations thereof. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to be materially different from management’s expectations, and no assurance can be given that such expectations will prove correct. Factors that could cause the Company's results to differ materially from the results discussed in such forward-looking statements principally include our ability to satisfy the conditions precedent to the consummation of the proposed joint venture transaction on the expected timeline or at all, our ability to achieve the anticipated benefits of the proposed joint venture transaction, changes in domestic or international economic conditions, changes in foreign currency exchange rates, changes in interest rates, changes in the cost of materials used in the manufacture of the Company's products, including changes in costs due to adjustments to tariffs or trade wars, any impairment of goodwill or intangible assets, environmental liability and limitations on the Company’s operations due to environmental laws and regulations, disruptions to certain services, such as telecommunications, network server maintenance, cloud computing or transaction processing services, provided to the Company by third-parties, changes in mortality and cremation rates, changes in product demand or pricing as a result of consolidation in the industries in which the Company operates, or other factors such as supply chain disruptions, labor shortages or labor cost increases, changes in product demand or pricing as a result of domestic or international competitive pressures, ability to achieve cost-reduction objectives, unknown risks in connection with the Company's acquisitions, divestitures, and business combinations, cybersecurity concerns and costs arising with management of cybersecurity threats, effectiveness of the Company's internal controls, compliance with domestic and foreign laws and regulations, technological factors beyond the Company's control, impact of pandemics or similar outbreaks, or other disruptions to our industries, customers, or supply chains, the impact of global conflicts, such as the current war between Russia and Ukraine, the Company's plans and expectations with respect to its exploration, and contemplated execution, of various strategies with respect to its portfolio of businesses, the Company's plans and expectations with respect to its Board, and other factors described in the Company’s Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission.
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data) | |||||||||||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||
| 2025 | 2024 | % Change | 2025 | 2024 | % Change | ||||||||||||||||||
| Sales | $ | 427,629 | $ | 471,223 | (9.3 | )% | $ | 829,471 | $ | 921,209 | (10.0 | )% | |||||||||||
| Cost of sales | (283,517 | ) | (323,041 | ) | (12.2 | )% | (559,667 | ) | (640,674 | ) | (12.6 | )% | |||||||||||
| Gross profit | 144,112 | 148,182 | (2.7 | )% | 269,804 | 280,535 | (3.8 | )% | |||||||||||||||
| Gross margin | 33.7 | % | 31.4 | % | 32.5 | % | 30.5 | % | |||||||||||||||
| Selling and administrative expenses | (133,884 | ) | (117,895 | ) | 13.6 | % | (245,294 | ) | (231,026 | ) | 6.2 | % | |||||||||||
| Amortization of intangible assets | (4,280 | ) | (8,959 | ) | (52.2 | )% | (12,888 | ) | (18,754 | ) | (31.3 | )% | |||||||||||
| Operating profit | 5,948 | 21,328 | (72.1 | )% | 11,622 | 30,755 | (62.2 | )% | |||||||||||||||
| Operating margin | 1.4 | % | 4.5 | % | 1.4 | % | 3.3 | % | |||||||||||||||
| Interest and other deductions, net | (17,592 | ) | (13,423 | ) | 31.1 | % | (29,096 | ) | (25,879 | ) | 12.4 | % | |||||||||||
| (Loss) income before income taxes | (11,644 | ) | 7,905 | NM | (17,474 | ) | 4,876 | NM | |||||||||||||||
| Income taxes | 2,728 | 1,122 | 143.1 | % | 5,086 | 1,848 | 175.2 | % | |||||||||||||||
| Net (loss) income | (8,916 | ) | 9,027 | (198.8 | )% | (12,388 | ) | 6,724 | NM | ||||||||||||||
| Non-controlling interests | — | — | — | % | — | — | — | % | |||||||||||||||
| Net (loss) income attributable to Matthews | $ | (8,916 | ) | $ | 9,027 | (198.8 | )% | $ | (12,388 | ) | $ | 6,724 | NM | ||||||||||
| (Loss) earnings per share -- diluted | $ | (0.29 | ) | $ | 0.29 | NM | $ | (0.40 | ) | $ | 0.22 | NM | |||||||||||
| Earnings per share -- non-GAAP (1) | $ | 0.34 | $ | 0.69 | (50.7 | )% | $ | 0.48 | $ | 1.06 | (54.7 | )% | |||||||||||
| Dividends declared per share | $ | 0.25 | $ | 0.24 | 4.2 | % | $ | 0.50 | $ | 0.48 | 4.2 | % | |||||||||||
| Diluted Shares | 31,192 | 31,219 | 31,113 | 31,213 | |||||||||||||||||||
| (1) See reconciliation of non-GAAP financial information provided in tables at the end of this release | |||||||||||||||||||||||
| NM: Not meaningful | |||||||||||||||||||||||
| SEGMENT INFORMATION (Unaudited) (In thousands) | |||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Sales: | |||||||||||||||
| Memorialization | $ | 205,620 | $ | 222,156 | $ | 396,106 | $ | 430,227 | |||||||
| Industrial Technologies | 80,835 | 116,136 | 161,368 | 227,510 | |||||||||||
| SGK Brand Solutions | 141,174 | 132,931 | 271,997 | 263,472 | |||||||||||
| $ | 427,629 | $ | 471,223 | $ | 829,471 | $ | 921,209 | ||||||||
| Adjusted EBITDA: | |||||||||||||||
| Memorialization | $ | 45,038 | $ | 46,614 | $ | 81,650 | $ | 83,314 | |||||||
| Industrial Technologies | 6,042 | 10,028 | 7,874 | 19,650 | |||||||||||
| SGK Brand Solutions | 15,596 | 15,370 | 27,888 | 28,263 | |||||||||||
| Corporate and Non-Operating | (15,262 | ) | (15,212 | ) | (25,975 | ) | (28,945 | ) | |||||||
| Total Adjusted EBITDA (1) | $ | 51,414 | $ | 56,800 | $ | 91,437 | $ | 102,282 | |||||||
| (1) See reconciliation of non-GAAP financial information provided in tables at the end of this release | |||||||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited) (In thousands) | ||||||||
| March 31, 2025 | September 30, 2024 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 40,246 | $ | 40,816 | ||||
| Accounts receivable, net | 146,135 | 205,984 | ||||||
| Inventories, net | 205,241 | 237,888 | ||||||
| Other current assets | 262,791 | 147,855 | ||||||
| Total current assets | 654,413 | 632,543 | ||||||
| Property, plant and equipment, net | 222,365 | 279,499 | ||||||
| Goodwill | 473,119 | 697,123 | ||||||
| Other intangible assets, net | 86,775 | 126,026 | ||||||
| Other long-term assets | 390,571 | 99,699 | ||||||
| Total assets | $ | 1,827,243 | $ | 1,834,890 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Long-term debt, current maturities | $ | 6,357 | $ | 6,853 | ||||
| Other current liabilities | 404,922 | 427,922 | ||||||
| Total current liabilities | 411,279 | 434,775 | ||||||
| Long-term debt | 815,823 | 769,614 | ||||||
| Other long-term liabilities | 191,901 | 193,295 | ||||||
| Total liabilities | 1,419,003 | 1,397,684 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Total shareholders' equity | 408,240 | 437,206 | ||||||
| Total liabilities and shareholders' equity | $ | 1,827,243 | $ | 1,834,890 | ||||
| CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited) (In thousands) | |||||||
| Six Months Ended March 31, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net (loss) income | $ | (12,388 | ) | $ | 6,724 | ||
| Adjustments to reconcile net (loss) income to net cash flows from operating activities: | |||||||
| Depreciation and amortization | 40,735 | 46,784 | |||||
| Changes in working capital items | (43,362 | ) | (35,609 | ) | |||
| Other operating activities | (3,666 | ) | 11,942 | ||||
| Net cash (used in) provided by operating activities | (18,681 | ) | 29,841 | ||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (18,271 | ) | (24,033 | ) | |||
| Acquisitions, net of cash acquired | (2,218 | ) | (5,825 | ) | |||
| Other investing activities | 16,594 | 95 | |||||
| Net cash used in investing activities | (3,895 | ) | (29,763 | ) | |||
| Cash flows from financing activities: | |||||||
| Net proceeds from long-term debt | 50,218 | 41,633 | |||||
| Purchases of treasury stock | (4,426 | ) | (17,220 | ) | |||
| Dividends | (17,047 | ) | (16,691 | ) | |||
| Other financing activities | 4,806 | (4,704 | ) | ||||
| Net cash provided by financing activities | 33,551 | 3,018 | |||||
| Effect of exchange rate changes on cash | (1,545 | ) | 300 | ||||
| Less: Net change in cash and cash equivalents classified as assets held-for-sale | (10,000 | ) | — | ||||
| Net change in cash and cash equivalents | $ | (570 | ) | $ | 3,396 | ||
Reconciliations of Non-GAAP Financial Measures
Included in this report are measures of financial performance that are not defined by GAAP, including, without limitation, adjusted EBITDA, adjusted net income and EPS, constant currency sales, constant currency adjusted EBITDA, net debt and net debt leverage ratio. The Company defines net debt leverage ratio as outstanding debt (net of cash) relative to adjusted EBITDA. The Company uses non-GAAP financial measures to assist in comparing its performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect the Company’s core operations including acquisition and divestiture costs, ERP system integration costs, strategic initiative and other charges (which includes non-recurring charges related to certain commercial and operational initiatives and exit activities), stock-based compensation and the non-service portion of pension and postretirement expense. Constant currency sales and constant currency adjusted EBITDA remove the impact of changes due to foreign exchange translation rates. To calculate sales and adjusted EBITDA on a constant currency basis, amounts for periods in the current fiscal year are translated into U.S. dollars using exchange rates applicable to the comparable periods of the prior fiscal year. Management believes that presenting non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items that management believes do not directly reflect the Company's core operations, (ii) permits investors to view performance using the same tools that management uses to budget, forecast, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company’s results. The Company's calculations of its non-GAAP financial measures, however, may not be comparable to similarly titled measures reported by other companies. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provided herein, provide investors with an additional understanding of the factors and trends affecting the Company’s business that could not be obtained absent these disclosures.
| ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands) | |||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net (loss) income | $ | (8,916 | ) | $ | 9,027 | $ | (12,388 | ) | $ | 6,724 | |||||
| Income tax benefit | (2,728 | ) | (1,122 | ) | (5,086 | ) | (1,848 | ) | |||||||
| (Loss) income before income taxes | $ | (11,644 | ) | $ | 7,905 | $ | (17,474 | ) | $ | 4,876 | |||||
| Interest expense, including RPA and factoring financing fees (1) | 17,010 | 13,783 | 33,864 | 26,534 | |||||||||||
| Depreciation and amortization * | 18,231 | 23,261 | 40,735 | 46,784 | |||||||||||
| Acquisition and divestiture related items (2)** | 15,773 | 2,062 | 16,350 | 3,299 | |||||||||||
| Strategic initiatives and other items (3)**† | 5,373 | 4,962 | 5,988 | 10,882 | |||||||||||
| Highly inflationary accounting losses (primarily non-cash) (4) | 520 | 390 | 711 | 710 | |||||||||||
| Stock-based compensation | 6,018 | 4,327 | 10,997 | 8,978 | |||||||||||
| Non-service pension and postretirement expense (5) | 133 | 110 | 266 | 219 | |||||||||||
| Total Adjusted EBITDA | $ | 51,414 | $ | 56,800 | $ | 91,437 | $ | 102,282 | |||||||
| Adjusted EBITDA margin | 12.0 | % | 12.1 | % | 11.0 | % | 11.1 | % | |||||||
| (1) Includes fees for receivables sold under the RPA and factoring arrangements totaling | |||||||||||||||
| (2) Includes certain non-recurring items associated with recent acquisition and divestiture activities and also includes a loss of | |||||||||||||||
| (3) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled | |||||||||||||||
| (4) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries. | |||||||||||||||
| (5) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans. | |||||||||||||||
* Depreciation and amortization was
** Acquisition and divestiture costs, ERP system integration costs, and strategic initiatives and other charges were
† Strategic initiatives and other items includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling
| ADJUSTED NET INCOME AND EPS RECONCILIATION (Unaudited) (In thousands, except per share data) | |||||||||||||||||||||||||||
| Three Months Ended March 31, | Six Months Ended March 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||
| per share | per share | per share | per share | ||||||||||||||||||||||||
| Net (loss) income attributable to Matthews | $ | (8,916 | ) | $ | (0.29 | ) | $ | 9,027 | $ | 0.29 | $ | (12,388 | ) | $ | (0.40 | ) | $ | 6,724 | $ | 0.22 | |||||||
| Acquisition and divestiture costs (1) | 12,353 | 0.40 | 1,511 | 0.05 | 12,708 | 0.41 | 2,410 | 0.08 | |||||||||||||||||||
| Strategic initiatives and other charges (2) | 3,197 | 0.11 | 4,093 | 0.12 | 3,901 | 0.13 | 9,097 | 0.28 | |||||||||||||||||||
| Highly inflationary accounting losses (primarily non-cash) (3) | 520 | 0.01 | 390 | 0.01 | 711 | 0.02 | 710 | 0.02 | |||||||||||||||||||
| Non-service pension and postretirement expense (4) | 99 | 0.01 | 83 | 0.01 | 199 | 0.01 | 164 | 0.01 | |||||||||||||||||||
| Amortization | 3,210 | 0.10 | 6,720 | 0.21 | 9,666 | 0.31 | 14,066 | 0.45 | |||||||||||||||||||
| Adjusted net income | $ | 10,463 | $ | 0.34 | $ | 21,824 | $ | 0.69 | $ | 14,797 | $ | 0.48 | $ | 33,171 | $ | 1.06 | |||||||||||
| Note: Adjustments to net income for non-GAAP reconciling items were calculated using an income tax rate of | |||||||||||||||||||||||||||
| (1) Includes certain non-recurring items associated with recent acquisition and divestiture activities and also includes a loss of | |||||||||||||||||||||||||||
| (2) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled | |||||||||||||||||||||||||||
| (3) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries. | |||||||||||||||||||||||||||
| (4) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans. | |||||||||||||||||||||||||||
| CONSTANT CURRENCY SALES AND ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands) | |||||||||||||||||||
| Memorialization | Industrial Technologies | SGK Brand Solutions | Corporate and Non-Operating | Consolidated | |||||||||||||||
| Reported sales for the quarter ended March 31, 2025 | $ | 205,620 | $ | 80,835 | $ | 141,174 | $ | — | $ | 427,629 | |||||||||
| Changes in foreign exchange translation rates | 422 | 1,519 | 2,544 | — | 4,485 | ||||||||||||||
| Constant currency sales for the quarter ended March 31, 2025 | $ | 206,042 | $ | 82,354 | $ | 143,718 | $ | — | $ | 432,114 | |||||||||
| Reported sales for the six months ended March 31, 2025 | $ | 396,106 | $ | 161,368 | $ | 271,997 | $ | — | $ | 829,471 | |||||||||
| Changes in foreign exchange translation rates | 507 | 1,915 | 3,244 | — | 5,666 | ||||||||||||||
| Constant currency sales for the six months ended March 31, 2025 | $ | 396,613 | $ | 163,283 | $ | 275,241 | $ | — | $ | 835,137 | |||||||||
| Reported adjusted EBITDA for the quarter ended March 31, 2025 | $ | 45,038 | $ | 6,042 | $ | 15,596 | $ | (15,262 | ) | $ | 51,414 | ||||||||
| Changes in foreign exchange translation rates | 62 | 44 | 287 | (10 | ) | 383 | |||||||||||||
| Constant currency adjusted EBITDA for the quarter ended March 31, 2025 | $ | 45,100 | $ | 6,086 | $ | 15,883 | $ | (15,272 | ) | $ | 51,797 | ||||||||
| Reported adjusted EBITDA for the six months ended March 31, 2025 | $ | 81,650 | $ | 7,874 | $ | 27,888 | $ | (25,975 | ) | $ | 91,437 | ||||||||
| Changes in foreign exchange translation rates | 77 | 70 | 384 | (54 | ) | 477 | |||||||||||||
| Constant currency adjusted EBITDA for the six months ended March 31, 2025 | $ | 81,727 | $ | 7,944 | $ | 28,272 | $ | (26,029 | ) | $ | 91,914 | ||||||||
| NET DEBT AND NET DEBT LEVERAGE RATIO RECONCILIATION (Unaudited) (Dollars in thousands) | |||||||||||
| March 31, 2025 | December 31, 2024 | September 30, 2024 | |||||||||
| Long-term debt, current maturities | $ | 6,357 | $ | 7,260 | $ | 6,853 | |||||
| Long-term debt | 815,823 | 801,951 | 769,614 | ||||||||
| Total debt | 822,180 | 809,211 | 776,467 | ||||||||
| Less: Cash and cash equivalents | (40,246 | ) | (33,513 | ) | (40,816 | ) | |||||
| Net Debt | $ | 781,934 | $ | 775,698 | $ | 735,651 | |||||
| Adjusted EBITDA (trailing 12 months) | $ | 194,312 | $ | 199,698 | $ | 205,157 | |||||
| Net Debt Leverage Ratio | 4.0 | 3.9 | 3.6 | ||||||||
Matthews International Corporation
Corporate Office
Two NorthShore Center
Pittsburgh, PA 15212-5851
Phone: (412) 442-8200
| Contact: | Steven F. Nicola |
| Chief Financial Officer | |
FAQ
What is Matthews International's (MATW) Q2 2025 revenue and how does it compare to last year?
How much are MATW's energy storage solutions quotes worth since February 2025?
When will Matthews International close the SGK transaction and what is the financial impact?
What is Matthews International's cost reduction program achieving?
How will Matthews International use the proceeds from the SGK sale?
