MATTHEWS INTERNATIONAL REPORTS RESULTS FOR FOURTH QUARTER AND FISCAL YEAR ENDED SEPTEMBER 30, 2025
Matthews International (NASDAQ: MATW) reported Q4 sales of $318.8M and fiscal 2025 sales of $1.50B. The company said consolidated adjusted EBITDA for FY2025, including its 40% share of Propelis, was approximately $200M.
On May 1, 2025 Matthews contributed SGK to Propelis receiving 40% equity, $50M preferred equity, $50M receivables, and $250M cash ($228M net). Propelis estimated adjusted EBITDA of $32.2M for Jul–Sep 2025 (Matthews 40% = $12.9M).
The company expects the pending warehouse automation sale to reduce net leverage below 3.0x and targets consolidated adjusted EBITDA (including 40% of Propelis) of at least $180M for fiscal 2026.
Matthews International (NASDAQ: MATW) ha riportato vendite nel Q4 di 318,8 milioni di dollari e vendite per l’esercizio 2025 di 1,50 miliardi di dollari. L’azienda ha dichiarato che l’EBITDA rettificato consolidato per l’AF2025, includendo la sua quota del 40% di Propelis, era approssimativamente di 200 milioni di dollari.
Il 1º maggio 2025 Matthews ha contribuito SGK a Propelis ottenendo il 40% di equity, 50 milioni di dollari in equity privilegiate, 50 milioni di dollari di crediti, e 250 milioni di dollari in contanti (228 milioni netto). Propelis ha stimato un EBITDA rettificato di 32,2 milioni di dollari per lug–set 2025 (Matthews 40% = 12,9 milioni).
L’azienda si aspetta che la vendita in corso dell’automazione di magazzino riduca il leverage netto al di sotto di 3,0x e punta a un EBITDA rettificato consolidato (incluso il 40% di Propelis) di almeno 180 milioni di dollari per l’esercizio fiscale 2026.
Matthews International (NASDAQ: MATW) informó ventas del 4T de 318,8 millones de dólares y ventas para el año fiscal 2025 de 1,50 mil millones de dólares. La compañía dijo que el EBITDA ajustado consolidado para el FY2025, incluyendo su participación del 40% en Propelis, fue aproximadamente de 200 millones de dólares.
El 1 de mayo de 2025, Matthews aportó SGK a Propelis recibiendo un 40% de equity, 50 millones de dólares en equity preferente, 50 millones de dólares en cuentas por cobrar, y 250 millones de dólares en efectivo (228 millones netos). Propelis estimó un EBITDA ajustado de 32,2 millones de dólares para jul–sep 2025 (Matthews 40% = 12,9 millones).
La compañía espera que la venta pendiente de automatización de almacenes reduzca la deuda neta por debajo de 3,0x y apunta a un EBITDA ajustado consolidado (incluido el 40% de Propelis) de al menos 180 millones de dólares para el año fiscal 2026.
Matthews International (NASDAQ: MATW)은 4분기 매출 3억 1880만 달러 및 2025 회계연도 매출 15억 달러를 보고했습니다. 회사는 Propelis의 40% 지분 포함한 FY2025 조정된 EBITDA가 대략 2억 달러였다고 밝혔습니다.
2025년 5월 1일 Matthews는 SGK를 Propelis에 기여하고 지분 40%, 우선주 5천만 달러, 매출채권 5천만 달러, 그리고 현금 2억 5천만 달러(순 2.28억 달러)를 받았습니다. Propelis는 2025년 7~9월 조정된 EBITDA를 3220만 달러로 추정했으며 (Matthews의 40% = 1290만 달러).
회사는 미해결 창고 자동화 매각이 순차입금을 3.0배 이하로 줄이고 Propelis의 40%를 포함한 연합 조정 EBITDA를 2026 회계연도에 최소 1억 8천만 달러로 목표로 한다.
Matthews International (NASDAQ: MATW) a déclaré un chiffre d’affaires du 4e trimestre de 318,8 M$ et un chiffre d’affaires pour l’exercice 2025 de 1,50 Md$. L’entreprise a indiqué que l’EBITDA ajusté consolidé pour l’exercice 2025, incluant sa participation de 40 % dans Propelis, était d’environ 200 M$.
Le 1er mai 2025, Matthews a apporté SGK à Propelis en recevant 40 % des capitaux propres, 50 M$ en actions privilégiées, 50 M$ de créances, et 250 M$ en liquidités (228 M$ nets). Propelis a estimé un EBITDA ajusté de 32,2 M$ pour juil.–sept. 2025 (Matthews 40 % = 12,9 M$).
L’entreprise s’attend à ce que la vente en cours d’automatisation d’entrepôts réduise l’endettement net sous 3,0x et vise un EBITDA ajusté consolidé (incluant les 40 % de Propelis) d’au moins 180 M$ pour l’exercice 2026.
Matthews International (NASDAQ: MATW) meldete Q4-Umsatz von 318,8 Mio. USD und Umsatz von 1,50 Mrd. USD im Geschäftsjahr 2025. Das Unternehmen gab bekannt, dass der konsolidierte bereinigte EBITDA für FY2025, einschließlich seiner 40%-Beteiligung an Propelis, etwa 200 Mio. USD betrug.
Am 1. Mai 2025 trug Matthews SGK in Propelis ein und erhielt 40% Eigenkapital, 50 Mio. USD Vorzugsaktien, 50 Mio. USD Forderungen sowie 250 Mio. USD Bargeld (228 Mio. USD netto). Propelis schätzte ein bereinigtes EBITDA von 32,2 Mio. USD für Jul–Sep 2025 (Matthews 40% = 12,9 Mio. USD).
Das Unternehmen erwartet, dass der laufende Verkauf der Lagerautomatisierung die Nettoverschuldung unter 3,0x senkt und strebt ein konsolidiertes bereinigtes EBITDA (einschließlich 40% Propelis) von mindestens 180 Mio. USD für das Geschäftsjahr 2026 an.
Matthews International (NASDAQ: MATW) أبلغت عن مبيعات الربع الرابع 318.8 مليون دولار ومبيعات للسنة المالية 2025 قدرها 1.50 مليار دولار. قالت الشركة إن EBITDA المعدل المجمّع للسنة المالية 2025، بما في ذلك حصتها البالغة 40% في Propelis، كان نحو 200 مليون دولار.
في 1 مايو 2025 قدّمت Matthews SGK إلى Propelis مقابل 40% من حقوق الملكية، 50 مليون دولار حقوق امتياز موحّد، 50 مليون دولار مستحقات، و250 مليون دولار نقداً (228 مليون دولار صافٍ). وقدّرت Propelis EBITDA المعدّل في 32.2 مليون دولار لـ يوليو–سبتمبر 2025 (Matthews 40% = 12.9 مليون دولار).
تتوقع الشركة أن يؤدي بيع أتمتة المستودعات المعلق إلى خفض الدين الصافي إلى ما دون 3.0x وتركّز على EBITDA المعدل المجمّع (بما في ذلك 40% Propelis) بحد أدنى قدره 180 مليون دولار للسنة المالية 2026.
- Q4 sales of $318.8 million
- Fiscal 2025 sales of $1.50 billion
- Consolidated adjusted EBITDA ~ $200M (includes 40% of Propelis)
- Propelis preliminary Jul–Sep adjusted EBITDA $32.2M (Matthews 40% = $12.9M)
- Received $250M cash proceeds from SGK divestiture ($228M net)
- Industrial Technologies Q4 sales declined due to ongoing Tesla litigation
- Fiscal 2026 adjusted EBITDA target of at least $180M is below FY2025 ~ $200M
- Financial comparability affected by SGK divestiture and one-quarter lag in Propelis reporting
Insights
Results and portfolio moves improve leverage and cash profile while guidance shows continued recovery.
Matthews International closed fiscal 2025 with consolidated sales of
Key dependencies and near‑term risks rest on items disclosed: the performance of Propelis (preliminary adjusted EBITDA estimate of
Watchable milestones include the webcast on
Financial Highlights :
-
4th Quarter consolidated sales of
$318.8 million $1.50 billion - Memorialization segment reports higher 4th quarter sales and adjusted EBITDA
- Warehouse Automation transaction expected to reduce net leverage ratio below 3.0x
- Company sets consolidated adjusted EBITDA guidance for fiscal 2026
- Webcast: Friday, November 21, 2025, 9:00 a.m., (201) 689-8471
In discussing the Company's results, Joseph C. Bartolacci, President and Chief Executive Officer, stated:
"I am pleased to report that we had a strong finish to fiscal 2025 as our consolidated results were ahead of our initial expectations for the fiscal 2025 fourth quarter. Sales for the Memorialization segment and warehouse automation business outperformed their levels from the same quarter a year ago, and we continued to lower our corporate and other non-operating costs. Please note that the divestiture of the SGK business was a significant factor in the year-over-year comparability of the Company's financial results.
"The Memorialization segment reported higher sales for the current quarter compared to a year ago, primarily reflecting the benefit of its recent acquisition of The Dodge Company. Higher sales volumes for bronze memorials and inflationary price realization also contributed to the sales increase for the quarter.
"Sales for the Industrial Technologies segment for the fiscal 2025 fourth quarter were lower than a year ago reflecting challenges in our engineering business related to the ongoing litigation with Tesla. However, interest from other customers in our dry battery electrode solutions remains very strong, which we anticipate will start to convert to orders in fiscal 2026. Market conditions for the warehouse automation business continued its recovery and, as a result, our warehouse automation sales for the current quarter increased from a year ago.
"Since closing of the SGK divestiture in May 2025, Propelis (the joint venture formed as a result of the SGK transaction) has performed very well. As you recall, the annual adjusted EBITDA level of the combined entities at the closing date approximated
"Additionally, the Company's consolidated net debt level declined modestly during the fiscal 2025 fourth quarter. As we recently announced, our debt levels and related leverage ratio will improve with the closing of the pending sale of our warehouse automation business. We intend to apply the net proceeds from this transaction primarily to debt reduction which is expected to result in a net leverage ratio below 3.0x as we work toward our long-term target of 2.5x.
"I am extremely proud of our Company's accomplishments during the fiscal year considering the challenges we encountered. During fiscal 2025, these accomplishments included: divestiture of the SGK business at an accretive valuation while maintaining a significant interest in this business through our
"I am excited about the new foundation we are establishing and the future of Matthews. As a result of our thoughtful strategic alternatives process, we are reducing the complexity of our diversified business portfolio and significantly strengthening our balance sheet – addressing important concerns expressed by our shareholders. We now enter the new fiscal year with a strong focus on sustaining our momentum in Memorialization, capitalizing on the opportunities in the high growth Industrial Technologies segment in which we have significant competitive technologies, and taking further cost reduction actions. Our strategic alternatives review to enhance shareholder value creation remains ongoing.
"For fiscal 2026, we expect continued growth in the Memorialization segment, particularly with the full year contribution from the acquisition of The Dodge Company. Additionally, while we expect conditions for the engineering business to remain challenged as a result of the ongoing litigation, we are currently planning further cost reduction actions designed to mitigate further declines while we work toward the future realization of the significant opportunities we have created. Lastly, following the closing of the pending transactions, we expect further reductions in our corporate and non-operating costs. In consideration of these factors, we are currently targeting adjusted EBITDA (including our
Divestiture of the SGK Business
As previously reported, on May 1, 2025, the Company contributed the SGK business to a newly-formed entity, Propelis, in exchange for
Based on preliminary financial projections provided by Propelis, their current estimate of adjusted EBITDA for the period July 1, 2025 through September 30, 2025 was
Webcast
The Company will host a conference call and webcast on Friday, November 21, 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. Matthews International Corporation operates through two core global businesses – Industrial Technologies and Memorialization. Both are focused on driving operational efficiency and long-term growth through continuous innovation and strategic expansion. The Industrial Technologies segment evolved from our original marking business, which today is a leading global innovator committed to empowering visionaries to transform industries through the application of precision technologies and intelligent processes. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. The Company also has a significant investment in Propelis, a brand solutions business formed through the merger of SGK and SGS & Co. Propelis offers integrated solutions including brand creative, packaging, print solutions, branded environments, and content production. The Company has over 5,500 employees in 18 countries on four 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 Matthews International Corporation and its consolidated subsidiaries (collectively "Matthews" or the "Company") regarding the future, including statements regarding the anticipated benefits and risks associated with the joint venture transaction with Peninsula Parent LLC, d.b.a. Propelis Group ("Propelis") and the timing thereof, 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 risks to our ability to achieve the anticipated benefits of the joint venture transaction with Propelis that closed in fiscal year 2025, 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, 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
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In thousands, except per share data) |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended September 30, |
|
|
|
Year Ended September 30, |
|
|
||||
|
|
2025 |
|
2024 |
|
% Change |
|
2025 |
|
2024 |
|
% Change |
|
Sales |
$ 318,841 |
|
$ 446,695 |
|
(28.6) % |
|
$ 1,497,689 |
|
$ 1,795,737 |
|
(16.6) % |
|
Cost of sales |
(203,008) |
|
(329,360) |
|
(38.4) % |
|
(990,096) |
|
(1,266,030) |
|
(21.8) % |
|
Gross profit |
115,833 |
|
117,335 |
|
(1.3) % |
|
507,593 |
|
529,707 |
|
(4.2) % |
|
Gross margin |
36.3 % |
|
26.3 % |
|
|
|
33.9 % |
|
29.5 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses |
(121,522) |
|
(141,156) |
|
(13.9) % |
|
(467,210) |
|
(488,280) |
|
(4.3) % |
|
Intangible amortization |
(3,707) |
|
(9,232) |
|
(59.8) % |
|
(20,069) |
|
(37,023) |
|
(45.8) % |
|
Goodwill write-downs |
— |
|
(16,727) |
|
(100.0) % |
|
— |
|
(16,727) |
|
(100.0) % |
|
Gain on sale of SGK business |
(1,964) |
|
— |
|
100.0 % |
|
55,139 |
|
— |
|
100.0 % |
|
Operating (loss) profit |
(11,360) |
|
(49,780) |
|
(77.2) % |
|
75,453 |
|
(12,323) |
|
NM |
|
Operating margin |
(3.6) % |
|
(11.1) % |
|
|
|
5.0 % |
|
(0.7) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other, net |
(13,821) |
|
(17,701) |
|
(21.9) % |
|
(59,244) |
|
(57,334) |
|
3.3 % |
|
(Loss) income before income taxes |
(25,181) |
|
(67,481) |
|
(62.7) % |
|
16,209 |
|
(69,657) |
|
(123.3) % |
|
Income taxes |
(2,289) |
|
(680) |
|
NM |
|
(40,680) |
|
9,997 |
|
NM |
|
Net loss |
(27,470) |
|
(68,161) |
|
(59.7) % |
|
(24,471) |
|
(59,660) |
|
(59.0) % |
|
Non-controlling interests |
— |
|
— |
|
— % |
|
— |
|
— |
|
— % |
|
Net loss attributable to Matthews |
$ (27,470) |
|
$ (68,161) |
|
(59.7) % |
|
$ (24,471) |
|
$ (59,660) |
|
(59.0) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share -- diluted |
$ (0.88) |
|
$ (2.21) |
|
(60.2) % |
|
$ (0.79) |
|
$ (1.93) |
|
(59.1) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -- non-GAAP(1) |
$ 0.50 |
|
$ 0.55 |
|
(9.1) % |
|
$ 1.26 |
|
$ 2.17 |
|
(41.9) % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per share |
$ 0.25 |
|
$ 0.24 |
|
4.2 % |
|
$ 1.00 |
|
$ 0.96 |
|
4.2 % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted shares |
31,104 |
|
30,910 |
|
|
|
31,098 |
|
30,913 |
|
|
|
(1) See reconciliation of non-GAAP financial information provided in tables at the end of this release |
|||||||||||
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NM: Not meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
SEGMENT INFORMATION (Unaudited) (In thousands) |
|||||||
|
|
|||||||
|
|
Three Months Ended September 30, |
|
Year Ended September 30, |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Sales: |
|
|
|
|
|
|
|
|
Memorialization |
$ 209,680 |
|
$ 196,840 |
|
$ 809,514 |
|
$ 829,731 |
|
Industrial Technologies |
92,960 |
|
113,915 |
|
342,229 |
|
433,156 |
|
Brand Solutions |
16,201 |
|
135,940 |
|
345,946 |
|
532,850 |
|
|
$ 318,841 |
|
$ 446,695 |
|
$ 1,497,689 |
|
$ 1,795,737 |
|
|
|||||||
|
Adjusted EBITDA: |
|
|
|
|
|
|
|
|
Memorialization |
$ 45,075 |
|
$ 40,535 |
|
$ 169,526 |
|
$ 162,586 |
|
Industrial Technologies |
11,015 |
|
15,870 |
|
27,936 |
|
39,716 |
|
Brand Solutions |
7,419 |
|
17,303 |
|
40,311 |
|
61,620 |
|
Corporate and Non-Operating |
(11,988) |
|
(15,579) |
|
(50,265) |
|
(58,765) |
|
Total Adjusted EBITDA(1) |
$ 51,521 |
|
$ 58,129 |
|
$ 187,508 |
|
$ 205,157 |
|
|
|
|
|
|
|
|
|
|
(1) See reconciliation of non-GAAP financial information provided in tables at the end of this release |
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CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited) (In thousands) |
|||||
|
|
|||||
|
|
September 30, 2025 |
|
September 30, 2024 |
||
|
ASSETS |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ 32,433 |
|
|
$ 40,816 |
|
Accounts receivable, net |
|
132,940 |
|
|
205,984 |
|
Inventories, net |
|
202,827 |
|
|
237,888 |
|
Other current assets |
|
151,968 |
|
|
147,855 |
|
Total current assets |
|
520,168 |
|
|
632,543 |
|
Property, plant and equipment, net |
|
224,575 |
|
|
279,499 |
|
Goodwill |
|
487,561 |
|
|
697,123 |
|
Other intangible assets, net |
|
105,958 |
|
|
126,026 |
|
Other long-term assets |
|
356,180 |
|
|
99,699 |
|
Total assets |
|
$ 1,694,442 |
|
|
$ 1,834,890 |
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Long-term debt, current maturities |
|
$ 7,230 |
|
|
$ 6,853 |
|
Other current liabilities |
|
343,250 |
|
|
427,922 |
|
Total current liabilities |
|
350,480 |
|
|
434,775 |
|
Long-term debt |
|
703,602 |
|
|
769,614 |
|
Other long-term liabilities |
|
159,418 |
|
|
193,295 |
|
Total liabilities |
|
1,213,500 |
|
|
1,397,684 |
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Total shareholders' equity |
|
480,942 |
|
|
437,206 |
|
Total liabilities and shareholders' equity |
|
$ 1,694,442 |
|
|
$ 1,834,890 |
|
CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited) (In thousands) |
|||
|
|
|||
|
|
Year Ended September 30, |
||
|
|
2025 |
|
2024 |
|
|
|
|
|
|
Cash flows from operating activities: |
|
|
|
|
Net loss |
$ (24,471) |
|
$ (59,660) |
|
Adjustments to reconcile net loss to net cash flows from operating activities: |
|
|
|
|
Depreciation and amortization |
71,746 |
|
94,770 |
|
Changes in working capital items |
(45,394) |
|
14,696 |
|
Goodwill write-downs |
— |
|
16,727 |
|
Gain on sale of SGK Business |
(55,139) |
|
— |
|
Other operating activities |
29,708 |
|
12,749 |
|
Net cash (used in) provided by operating activities |
(23,550) |
|
79,282 |
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
Capital expenditures |
(35,818) |
|
(45,218) |
|
Acquisitions, net of cash acquired |
(55,832) |
|
(5,825) |
|
Proceeds from sale of SGK Business |
228,004 |
|
— |
|
Other investing activities |
23,236 |
|
4,075 |
|
Net cash provided by (used in) investing activities |
159,590 |
|
(46,968) |
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
Net payments from long-term debt |
(66,997) |
|
(31,338) |
|
Purchases of treasury stock |
(12,228) |
|
(20,574) |
|
Dividends |
(32,759) |
|
(31,409) |
|
Other financing activities |
(32,286) |
|
48,278 |
|
Net cash used in financing activities |
(144,270) |
|
(35,043) |
|
|
|
|
|
|
Effect of exchange rate changes on cash |
(152) |
|
1,444 |
|
|
|
|
|
|
Net change in cash and cash equivalents |
$ (8,383) |
|
$ (1,285) |
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 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
|
ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands) |
|||||||
|
|
|||||||
|
|
Three Months Ended September 30, |
|
Year Ended September 30, |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Net loss |
$ (27,470) |
|
$ (68,161) |
|
$ (24,471) |
|
$ (59,660) |
|
Income tax provision (benefit) |
2,289 |
|
680 |
|
40,680 |
|
(9,997) |
|
(Loss) income before income taxes |
$ (25,181) |
|
$ (67,481) |
|
$ 16,209 |
|
$ (69,657) |
|
Propelis depreciation, amortization, interest and other unusual items (1) |
6,359 |
|
— |
|
6,359 |
|
— |
|
Interest expense, including RPA and factory financing fees (2) |
16,147 |
|
14,825 |
|
66,815 |
|
55,364 |
|
Depreciation and amortization * |
15,175 |
|
24,329 |
|
71,746 |
|
94,770 |
|
Acquisition and divestiture related items (3) ** |
2,394 |
|
11 |
|
9,271 |
|
5,576 |
|
Strategic initiatives and other charges (4) ** † |
23,283 |
|
48,458 |
|
39,586 |
|
65,586 |
|
Gain on sale of SGK Business |
1,964 |
|
— |
|
(55,139) |
|
— |
|
Highly inflationary accounting impacts (primarily non-cash) (5) |
99 |
|
132 |
|
1,135 |
|
1,027 |
|
Goodwill and asset write-downs (6) |
7,911 |
|
33,574 |
|
7,911 |
|
33,574 |
|
Stock-based compensation |
3,227 |
|
4,169 |
|
23,065 |
|
18,478 |
|
Non-service pension and postretirement expense (7) |
143 |
|
112 |
|
550 |
|
439 |
|
Total Adjusted EBITDA |
$ 51,521 |
|
$ 58,129 |
|
$ 187,508 |
|
$ 205,157 |
|
|
|
|
|
|
|
|
|
|
(1) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis. |
|||||||
|
(2)
Includes fees for receivables sold under the RPA and factoring arrangements totaling |
|||||||
|
(3)
Includes certain non-recurring costs associated with recent acquisition and divestiture activities, and also includes a loss of |
|||||||
|
(4)
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 |
|||||||
|
(5) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries. |
|||||||
|
(6)
Fiscal 2025 includes asset write-downs within the Brand Solutions segment of |
|||||||
|
(7) 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 costs, ERP integration costs, and strategic initiatives and other charges were
† Strategic initiatives and other charges includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling expenses of
|
ADJUSTED NET INCOME AND EPS RECONCILIATION (Unaudited) (In thousands, except per share data) |
|||||||||||
|
|
|||||||||||
|
|
Three Months Ended September 30, |
|
Year Ended September 30, |
||||||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
||||
|
|
|
per share |
|
|
per share |
|
|
per share |
|
|
per share |
|
Net loss attributable to Matthews |
$ (27,470) |
|
|
$ (68,161) |
|
|
$ (24,471) |
|
|
$ (59,660) |
|
|
Acquisition and divestiture items (1) |
1,758 |
0.06 |
|
837 |
0.03 |
|
7,565 |
0.25 |
|
4,873 |
0.16 |
|
Strategic initiatives and other charges (2) |
19,384 |
0.63 |
|
41,261 |
1.35 |
|
33,900 |
1.09 |
|
57,073 |
1.85 |
|
Gain on sale of SGK Business |
7,997 |
0.25 |
|
— |
— |
|
(6,158) |
(0.20) |
|
— |
— |
|
Highly inflationary accounting impacts (primarily non-cash) (3) |
99 |
0.01 |
|
132 |
— |
|
1,135 |
0.04 |
|
1,027 |
0.03 |
|
Goodwill and asset write-downs (4) |
7,911 |
0.26 |
|
32,784 |
1.06 |
|
7,911 |
0.26 |
|
32,784 |
1.06 |
|
Non-service pension and postretirement expense (5) |
107 |
— |
|
83 |
— |
|
412 |
0.01 |
|
329 |
0.01 |
|
Intangible amortization expense |
2,781 |
0.09 |
|
6,924 |
0.23 |
|
15,052 |
0.48 |
|
27,767 |
0.90 |
|
Propelis amortization and other unusual items (6) |
2,479 |
0.08 |
|
— |
— |
|
2,479 |
0.08 |
|
— |
— |
|
Tax-related (7) |
— |
— |
|
2,703 |
0.09 |
|
1,207 |
0.04 |
|
2,839 |
0.09 |
|
Adjusted net income |
$ 15,046 |
$ 0.50 |
|
$ 16,563 |
$ 0.55 |
|
|
$ 1.26 |
|
|
$ 2.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Adjustments to net income for non-GAAP reconciling items were calculated using an income tax rate of |
|||||||||||
|
(1) Includes certain non-recurring costs associated with recent acquisition and divestiture activities, and also includes a gain in fiscal year 2023 related to the divestiture of a business in the Industrial Technologies segment. |
|||||||||||
|
(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 gains and losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries |
|||||||||||
|
(4)
Fiscal 2025 includes asset write-downs within the the Brand Solutions segment of |
|||||||||||
|
(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. |
|||||||||||
|
(6) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis. |
|||||||||||
|
(7)
Fiscal 2025 represents tax-related items incurred in connection with assets the Company previously wrote off in Russia, The three months and fiscal year ended September 30, 2024 includes |
|||||||||||
|
CONSTANT CURRENCY SALES AND ADJUSTED EBITDA RECONCILIATION (Unaudited) (In thousands) |
|||||||||
|
|
|||||||||
|
|
Memorialization |
|
Industrial Technologies |
|
Brand Solutions |
|
Corporate and Non-Operating |
|
Consolidated |
|
Reported sales for the quarter ended September 30, 2025 |
$ 209,680 |
|
$ 92,960 |
|
$ 16,201 |
|
$ — |
|
$ 318,841 |
|
Changes in foreign exchange translation rates |
(259) |
|
(3,367) |
|
206 |
|
— |
|
(3,420) |
|
Constant currency sales for the quarter ended September 30, 2025 |
$ 209,421 |
|
$ 89,593 |
|
$ 16,407 |
|
$ — |
|
$ 315,421 |
|
|
|||||||||
|
Reported sales for the year ended September 30, 2025 |
$ 809,514 |
|
$ 342,229 |
|
$ 345,946 |
|
$ — |
|
$ 1,497,689 |
|
Changes in foreign exchange translation rates |
26 |
|
(4,396) |
|
2,045 |
|
— |
|
(2,325) |
|
Constant currency sales for the year ended September 30, 2025 |
$ 809,540 |
|
$ 337,833 |
|
$ 347,991 |
|
$ — |
|
$ 1,495,364 |
|
|
|||||||||
|
Reported adjusted EBITDA for the quarter ended September 30, 2025 |
$ 45,075 |
|
$ 11,015 |
|
$ 7,419 |
|
$ (11,988) |
|
$ 51,521 |
|
Changes in foreign exchange translation rates |
(4) |
|
(263) |
|
44 |
|
45 |
|
(178) |
|
Constant currency adjusted EBITDA for the quarter ended September 30, 2025 |
$ 45,071 |
|
$ 10,752 |
|
$ 7,463 |
|
$ (11,943) |
|
$ 51,343 |
|
|
|||||||||
|
Reported adjusted EBITDA for the year ended September 30, 2025 |
$ 169,526 |
|
$ 27,936 |
|
$ 40,311 |
|
$ (50,265) |
|
$ 187,508 |
|
Changes in foreign exchange translation rates |
77 |
|
(343) |
|
45 |
|
70 |
|
(151) |
|
Constant currency adjusted EBITDA for the year ended September 30, 2025 |
$ 169,603 |
|
$ 27,593 |
|
$ 40,356 |
|
$ (50,195) |
|
$ 187,357 |
|
NET DEBT RECONCILIATION (Unaudited) (In thousands) |
|||
|
|
|||
|
|
September 30, 2025 |
|
September 30, 2024 |
|
|
|
|
|
|
Long-term debt, current maturities |
$ 7,230 |
|
$ 6,853 |
|
Long-term debt |
703,602 |
|
769,614 |
|
Total long-term debt |
710,832 |
|
776,467 |
|
|
|
|
|
|
Less: Cash and cash equivalents |
(32,433) |
|
(40,816) |
|
|
|
|
|
|
Net Debt |
$ 678,399 |
|
$ 735,651 |
|
|
|
|
|
|
Adjusted EBITDA |
$ 187,508 |
|
$ 205,157 |
|
|
|
|
|
|
Net Debt Leverage Ratio |
3.6 |
|
3.6 |
|
Contact: |
Steven F. Nicola |
|
|
Chief Financial Officer |
|
|
and Treasurer |
|
|
Phone: (412) 442-8200 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/matthews-international-reports-results-for-fourth-quarter-and-fiscal-year-ended-september-30-2025-302622237.html
SOURCE Matthews International Corporation
FAQ
What were Matthews International (MATW) Q4 and fiscal 2025 sales?
How much adjusted EBITDA did Matthews report for fiscal 2025 including Propelis?
What did the SGK divestiture yield for Matthews (MATW)?
How will the warehouse automation sale affect MATW's leverage?
What adjusted EBITDA guidance did Matthews set for fiscal 2026 (MATW)?
Did Propelis report earnings for Jul–Sep 2025 and how does that affect MATW?
