MATSON, INC. ANNOUNCES THIRD QUARTER 2026 RESULTS AND RAISES FULL YEAR OUTLOOK

Matson expects fourth-quarter operating income approximately 50 percent above the prior year as China demand and elevated freight rates persist.

Rhea-AI Summary

Matson (NYSE: MATX) reported third-quarter 2026 diluted earnings of $6.96 per share and raised its full-year outlook following higher China-service demand. Net income rose to $209.4 million from $134.7 million a year earlier, while revenue increased to $1,113.5 million from $880.1 million. Consolidated operating income reached $255.2 million versus $161.0 million.

Ocean Transportation operating income rose 62.2% to $239.1 million, and Logistics operating income increased 18.4% to $16.1 million. China container volume grew 16.0%, while Hawaii and Alaska volumes declined. Matson expects fourth-quarter consolidated operating income approximately 50% above the $143.7 million earned a year earlier, with China demand and elevated freight rates expected to continue into early 2027. The company repurchased approximately 0.3 million shares during the quarter. Cash and cash equivalents reached $221.9 million at September 30, 2026.

27 points · 0 major

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0 major · 19 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter diluted EPS rose to $6.96 from $4.24 a year earlier.
• Moderate pointThird-quarter net income increased to $209.4 million from $134.7 million a year earlier.
• Moderate pointThird-quarter consolidated revenue increased to $1,113.5 million from $880.1 million a year earlier.
• Moderate pointThird-quarter consolidated operating income increased to $255.2 million from $161.0 million a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter consolidated operating income is expected approximately 50 percent higher than fourth-quarter 2025's $143.7 million.
• Moderate pointChina container volume increased 16.0% in the third quarter and 8.2% over nine months, year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.China demand and elevated freight rates are expected to continue through year end and into early 2027.

20 minor points

• Minor pointThird-quarter EBITDA, earnings before interest, taxes, depreciation and amortization, reached $310.6 million versus $212.3 million.
• Minor pointThird-quarter Ocean Transportation operating income rose 62.2% to $239.1 million year over year.
• Minor pointThird-quarter Ocean Transportation revenue rose 24.1% to $891.3 million year over year.
• Minor pointThird-quarter Ocean Transportation operating margin increased to 26.8% from 20.5% a year earlier.
• Minor pointNine-month Ocean Transportation operating income rose 37.0% to $437.7 million year over year.
• Minor pointNine-month Ocean Transportation revenue rose 11.5% to $2,265.2 million year over year.
• Minor pointNine-month Ocean Transportation operating margin increased to 19.3% from 15.7% a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 China container volume is expected higher than 2025.
• Minor pointGuam container volume increased 4.3% in the third quarter and 3.0% over nine months, year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 Guam container volume is expected modestly higher than last year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Ocean Transportation operating income is expected approximately 50 percent higher than fourth-quarter 2025's $136.0 million.
• Minor pointThird-quarter Logistics operating income rose 18.4% to $16.1 million year over year.
• Minor pointThird-quarter Logistics revenue rose 37.3% to $222.2 million year over year.
• Minor pointNine-month Logistics operating income rose 3.6% to $37.8 million year over year.
• Minor pointNine-month Logistics revenue rose 24.8% to $575.5 million year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter Logistics operating income is expected modestly higher than fourth-quarter 2025's $7.7 million.
• Minor pointShare repurchases totaled approximately 0.3 million shares in the third quarter.
• Minor pointCash and cash equivalents increased $80.0 million from December 31, 2025, to $221.9 million at September 30, 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 interest income is expected to be approximately $20 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 other income, net, is expected to be approximately $10 million.

Negative

• Moderate point. Forward-looking: it has not happened yet and may not happen.Vessel construction spending totaled $52.5 million in the third quarter; approximately $375 million is expected for full-year 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter effective tax rate is expected at approximately 20.0 percent, versus 5.2 percent a year earlier.
• Minor pointHawaii container volume fell 0.3% in the third quarter and 2.3% over nine months, year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 Hawaii container volume is expected modestly lower than 2025.
• Minor pointAlaska container volume fell 4.8% in the third quarter and 3.1% over nine months, year over year.

14 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 Alaska container volume is expected modestly lower than last year.
• Minor pointOther container volume fell 6.5% in the third quarter and 7.3% over nine months, year over year.
• Minor pointSSAT joint venture contribution fell to $7.4 million from $9.3 million in the third quarter.
• Minor pointNine-month SSAT joint venture contribution fell to $17.2 million from $23.2 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 SSAT contribution is expected lower than $32.5 million achieved in 2025.
• Minor pointThird-quarter Logistics operating margin declined to 7.2% from 8.4% a year earlier.
• Minor pointNine-month Logistics operating margin declined to 6.6% from 7.9% a year earlier.
• Minor pointWarehousing contributed less operating income year over year in both the third quarter and nine-month period.
• Minor pointOcean Transportation operating costs rose 14.2% in the third quarter and 6.8% over nine months, year over year.
• Minor pointLogistics operating costs rose 39.1% in the third quarter and 26.6% over nine months, year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.Capital expenditures excluding vessel construction totaled $41.8 million in the third quarter; approximately $130 million is expected for full-year 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Dry-docking payments totaled $15.9 million in the third quarter; approximately $45 million is expected for full-year 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 depreciation and amortization expense is expected at approximately $205 million, including approximately $35 million of dry-docking amortization.
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year 2026 interest expense, net, is expected at approximately $6 million.

News Explained

The release reports Matson's $0.38-per-share cash dividend, declared on October 20, 2026, is payable on December 3, 2026 to shareholders of record on November 5, 2026; the payment is scheduled, not yet completed.

Key Figures

Diluted EPS: $6.96 vs. $4.24 Net income: $209.4 million vs. $134.7 million Consolidated revenue: $1,113.5 million vs. $880.1 million +5 more

Diluted EPS

$6.96 vs. $4.24

3Q26 vs. 3Q25

Net income

$209.4 million vs. $134.7 million

3Q26 vs. 3Q25

Consolidated revenue

$1,113.5 million vs. $880.1 million

3Q26 vs. 3Q25

Consolidated operating income

$255.2 million vs. $161.0 million

3Q26 vs. 3Q25

EBITDA

$310.6 million vs. $212.3 million

3Q26 vs. 3Q25

Consolidated operating income outlook

Approximately 50% higher

4Q26 vs. 4Q25; 4Q25 result was $143.7 million

China container volume

16.0% increase

3Q26 year-over-year

Share repurchases

Approximately 0.3 million shares; $59.8 million total cost

3Q26

Previous Earnings Reports

1 past event · Latest: Aug 03

Same Type 1 event

1. Aug 03

   2Q26 earnings

   24h Move

   +2.9%

   Raised full-year outlook and projected Q3 consolidated operating income about 45% above the prior year.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

ebitda

1 terms

ebitda financial

"3Q26 EBITDA of $310.6 million versus $212.3 million in 3Q25"

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

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• 3Q26 EPS of $6.96 versus $4.24 in 3Q25
• 3Q26 Net Income of $209.4 million versus $134.7 million in 3Q25
• 3Q26 Consolidated Operating Income of $255.2 million versus $161.0 million in 3Q25
• 3Q26 EBITDA of $310.6 million versus $212.3 million in 3Q25
• Repurchased approximately 0.3 million shares in 3Q26
• Raises full year outlook

HONOLULU, Nov. 4, 2026 /PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in the Pacific, today reported net income of $209.4 million, or $6.96 per diluted share, for the quarter ended September 30, 2026.  Net income for the quarter ended September 30, 2025 was $134.7 million, or $4.24 per diluted share.  Consolidated revenue for the third quarter 2026 was $1,113.5 million, compared with $880.1 million for the third quarter 2025.

Matt Cox, Matson's Chairman and Chief Executive Officer, commented, "Matson had a stronger-than-expected third quarter.  Our China service performed well, with its speed and reliability serving as important differentiators amid continued pressure on global shipping networks and congestion at key Asia ports.  Strong demand and elevated freight rates in our China service drove a substantial year-over-year increase in Ocean Transportation operating income, particularly compared with last year's muted peak season.  In our domestic ocean tradelanes and logistics, we saw stable performance."

Mr. Cox continued, "Looking ahead, we expect the strong demand and elevated freight rates we experienced in our China service in the third quarter to continue through year end and into early 2027.  As a result, we expect Ocean Transportation operating income in the fourth quarter 2026 to be approximately 50 percent higher than the result achieved in the year ago period.  We also expect Logistics operating income in the fourth quarter 2026 to be modestly higher year-over-year.  Taken together, we expect consolidated operating income in the fourth quarter 2026 to be approximately 50 percent higher than fourth quarter 2025."

Third Quarter 2026 Discussion and Outlook for 2026

Ocean Transportation:  The Company's container volume in the Hawaii service in the third quarter 2026 was 0.3 percent lower year-over-year primarily due to lower general demand.  Hawaii's economy has slowed as continued strength in construction has been offset by softer tourism and higher energy-related inflation.  The Company expects volume in full year 2026 to be modestly lower than the level achieved in 2025, based on the Company's expectation of similar economic conditions and stable market share.

In the China service, the Company's container volume in the third quarter 2026 increased 16.0 percent year-over-year.  The China service performed well, with its speed and reliability serving as important differentiators amid continued pressure on global shipping networks and congestion at key Asia ports.  Strong demand and elevated freight rates in the China service drove a substantial year-over-year increase in Ocean Transportation operating income, particularly compared with last year's muted peak season.  The Company expects similar operating conditions to continue through year end and into early 2027.  As such, the Company expects volume in full year 2026 to be higher than the level achieved in 2025.

In the Guam service, the Company's container volume in the third quarter 2026 increased 4.3 percent year-over-year.  In the near term, the Company expects Guam's economy to remain stable.  For full year 2026, the Company expects volume to be modestly higher than the level achieved last year.

In the Alaska service, the Company's container volume in the third quarter 2026 decreased 4.8 percent year-over-year primarily due to lower southbound seafood volume and an additional northbound sailing in the year ago period.  In the near term, the Company expects Alaska's economy to remain stable supported by a low unemployment rate, steady job market and continued oil and gas exploration and production activity.  For full year 2026, the Company expects volume to be modestly lower than the level achieved last year.

The contribution from the Company's SSAT joint venture investment was $7.4 million in the third quarter 2026, or $1.9 million lower than third quarter 2025.  The decrease was primarily due to lower lift volume.  For full year 2026, the Company expects the contribution from SSAT to be lower than the $32.5 million achieved in full year 2025.

Based on the outlook trends noted above, the Company expects Ocean Transportation operating income in the fourth quarter 2026 to be approximately 50 percent higher than the $136.0 million achieved in the fourth quarter 2025. 

Logistics:  Operating income for the Company's Logistics segment was $16.1 million in the third quarter 2026, or $2.5 million higher compared to the level achieved in the third quarter 2025.  The increase was primarily due to higher contributions from transportation brokerage and freight forwarding, partially offset by a lower contribution from warehousing.  For the fourth quarter 2026, the Company expects Logistics operating income to be modestly higher than the $7.7 million achieved in the fourth quarter 2025.

Consolidated Operating Income:  For the fourth quarter 2026, the Company expects consolidated operating income to be approximately 50 percent higher than the $143.7 million achieved in the fourth quarter 2025.

Depreciation and Amortization:  For full year 2026, the Company expects depreciation and amortization expense to be approximately $205 million, inclusive of dry-docking amortization of approximately $35 million.

Interest Income:  The Company expects interest income for the full year 2026 to be approximately $20 million.

Interest Expense, Net:  The Company expects interest expense, net for the full year 2026 to be approximately $6 million.

Other Income (Expense), Net:  The Company expects full year 2026 other income (expense), net to be approximately $10 million in income, which is attributable to the amortization of certain components of net periodic benefit costs or gains related to the Company's pension and post-retirement plans.

Income Taxes:  For the third quarter 2026, the Company's effective tax rate was 20.5 percent.  For the fourth quarter 2026, the Company expects its effective tax rate to be approximately 20.0 percent compared to last year's 5.2 percent, which benefited from a one-time tax adjustment of $18.5 million, or $0.59 per share, related to the Company's deferred tax assets and liabilities.

Capital and Vessel Dry-docking Expenditures:  For the third quarter 2026, the Company made capital expenditure payments excluding vessel construction expenditures of $41.8 million, vessel construction expenditures (including capitalized interest and owner's items) of $52.5 million, and dry-docking payments of $15.9 million.  For the full year 2026, the Company expects to make capital expenditure payments, including maintenance capital expenditures, of approximately $130 million, vessel construction expenditures (including capitalized interest and owner's items) of approximately $375 million, and dry-docking payments of approximately $45 million.

Results By Segment   Ocean Transportation — Three months ended September 30, 2026 compared with 2025
		Three Months Ended September 30,
(Dollars in millions)		2026			2025			Change
Ocean Transportation revenue		$	891.3		$	718.3		$	173.0		24.1	%
Operating costs and expenses			(652.2)			(570.9)			(81.3)		14.2	%
Operating income		$	239.1		$	147.4		$	91.7		62.2	%
Operating income margin			26.8	%		20.5	%
Volume by Service (Forty-foot equivalent units (FEU)) (1)
Hawaii containers			36,200			36,300			(100)		(0.3)	%
Alaska containers			22,000			23,100			(1,100)		(4.8)	%
China containers (2)			40,500			34,900			5,600		16.0	%
Guam containers			4,800			4,600			200		4.3	%
Other containers (3)			4,300			4,600			(300)		(6.5)	%

____________________________
(1)	Approximate volume included for the period is based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period.
(2)	Includes containers from China and other Asia origins.
(3)	Includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan.

Ocean Transportation revenue increased $173.0 million, or 24.1 percent, during the three months ended September 30, 2026, compared with the three months ended September 30, 2025.  The increase was primarily due to higher freight rates and volume in the China service and an increase in fuel-related surcharge revenue.

On a year-over-year FEU basis, Hawaii service container volume decreased 0.3 percent primarily due to lower general demand; Alaska service volume decreased 4.8 percent primarily due to lower southbound seafood volume and an additional northbound sailing in the year ago period; China service volume increased 16.0 percent primarily due to strong freight demand, particularly compared with last year's muted peak season; Guam service volume increased 4.3 percent; and Other containers volume decreased 6.5 percent.

Ocean Transportation operating income increased $91.7 million, or 62.2 percent, during the three months ended September 30, 2026, compared with the three months ended September 30, 2025.  The increase was primarily due to a higher contribution from the China service and higher fuel-related surcharge revenue, partially offset by higher vessel operating expense primarily due to higher fuel-related costs.

The Company's SSAT terminal joint venture investment contributed $7.4 million during the three months ended September 30, 2026, compared to $9.3 million during the three months ended September 30, 2025.  The decrease was primarily due to lower lift volume.

Ocean Transportation — Nine months ended September 30, 2026 compared with 2025
		Nine Months Ended September 30,
(Dollars in millions)		2026			2025			Change
Ocean Transportation revenue		$	2,265.2		$	2,031.3		$	233.9		11.5	%
Operating costs and expenses			(1,827.5)			(1,711.7)			(115.8)		6.8	%
Operating income		$	437.7		$	319.6		$	118.1		37.0	%
Operating income margin			19.3	%		15.7	%
Volume by Service (Forty-foot equivalent units (FEU)) (1)
Hawaii containers			105,500			108,000			(2,500)		(2.3)	%
Alaska containers			62,500			64,500			(2,000)		(3.1)	%
China containers (2)			103,500			95,700			7,800		8.2	%
Guam containers			13,700			13,300			400		3.0	%
Other containers (3)			11,500			12,400			(900)		(7.3)	%

____________________________
(1)	Approximate volume included for the period is based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period.
(2)	Includes containers from China and other Asia origins.
(3)	Includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan.

Ocean Transportation revenue increased $233.9 million, or 11.5 percent, during the nine months ended September 30, 2026, compared with the nine months ended September 30, 2025.  The increase was primarily due to higher freight rates and volume in the China service and an increase in fuel-related surcharge revenue.

On a year-over-year FEU basis, Hawaii service container volume decreased 2.3 percent primarily due to lower general demand; Alaska service volume decreased 3.1 percent primarily due to lower seafood volume; China service volume increased 8.2 percent primarily due to significantly higher demand compared with the prior year, when the April 2025 tariffs disrupted Transpacific demand and contributed to a muted peak season; Guam service volume increased 3.0 percent; and Other containers volume decreased 7.3 percent.

Ocean Transportation operating income increased $118.1 million, or 37.0 percent, during the nine months ended September 30, 2026, compared with the nine months ended September 30, 2025.  The increase was primarily due to a higher contribution from the China service and higher fuel-related surcharge revenue, partially offset by higher vessel operating expense primarily due to higher fuel-related costs.

The Company's SSAT terminal joint venture investment contributed $17.2 million during the nine months ended September 30, 2026, compared to $23.2 million during the nine months ended September 30, 2025.  The decrease was primarily due to lower lift volume.

Logistics — Three months ended September 30, 2026 compared with 2025
		Three Months Ended September 30,
(Dollars in millions)		2026			2025			Change
Logistics revenue		$	222.2		$	161.8		$	60.4		37.3	%
Operating costs and expenses			(206.1)			(148.2)			(57.9)		39.1	%
Operating income		$	16.1		$	13.6		$	2.5		18.4	%
Operating income margin			7.2	%		8.4	%

Logistics revenue increased $60.4 million, or 37.3 percent, during the three months ended September 30, 2026, compared with the three months ended September 30, 2025.  The increase was primarily due to higher revenue in transportation brokerage.

Logistics operating income increased $2.5 million, or 18.4 percent, during the three months ended September 30, 2026, compared with the three months ended September 30, 2025.  The increase was primarily due to higher contributions from transportation brokerage and freight forwarding, partially offset by a lower contribution from warehousing.

Logistics — Nine months ended September 30, 2026 compared with 2025
		Nine Months Ended September 30,
(Dollars in millions)		2026			2025			Change
Logistics revenue		$	575.5		$	461.3		$	114.2		24.8	%
Operating costs and expenses			(537.7)			(424.8)			(112.9)		26.6	%
Operating income		$	37.8		$	36.5		$	1.3		3.6	%
Operating income margin			6.6	%		7.9	%

Logistics revenue increased $114.2 million, or 24.8 percent, during the nine months ended September 30, 2026, compared with the nine months ended September 30, 2025.  The increase was primarily due to higher revenue in transportation brokerage.

Logistics operating income increased $1.3 million, or 3.6 percent, during the nine months ended September 30, 2026, compared with the nine months ended September 30, 2025.  The increase was primarily due to higher contributions from transportation brokerage and freight forwarding, partially offset by a lower contribution from warehousing.

Liquidity, Cash Flows and Capital Allocation

Matson's Cash and cash equivalents increased by $80.0 million from $141.9 million at December 31, 2025 to $221.9 million at September 30, 2026.  As of September 30, 2026, there was $298.6 million of cash and cash equivalents and investments in fixed-rate U.S. Treasuries in the Capital Construction Fund.  Matson generated net cash from operating activities of $460.6 million during the nine months ended September 30, 2026, compared to $370.2 million during the nine months ended September 30, 2025.  Capital expenditures (including capitalized vessel construction expenditures) totaled $349.8 million for the nine months ended September 30, 2026, compared with $258.7 million for the nine months ended September 30, 2025.  Total debt decreased by $30.0 million during the nine months to $331.2 million as of September 30, 2026, of which $291.5 million was classified as long-term debt.¹  As of September 30, 2026, Matson had available borrowings under its revolving credit facility of $544.2 million.

During the third quarter 2026, Matson repurchased approximately 0.3 million shares for a total cost of $59.8 million.²  As of September 30, 2026, there were approximately 3.1 million shares remaining in the Company's share repurchase program.  On October 20, 2026, Matson's Board of Directors also declared a cash dividend of $0.38 per share payable on December 3, 2026 to all shareholders of record as of the close of business on November 5, 2026.

1	Total debt is presented before any reduction for deferred loan fees as required by GAAP.
2	Includes stock repurchased during the quarter but not settled and taxes on share repurchases that will be paid after the quarter end.

Teleconference and Webcast

A conference call is scheduled on November 4, 2026 at 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 third quarter results.

Date of Conference Call:	Wednesday, November 4, 2026
Scheduled Time:	4:30 p.m. ET / 1:30 p.m. PT / 11:30 a.m. HT

The conference call will be broadcast live along with an additional slide presentation on the Company's website at www.matson.com, under Investors. 

Participants may register for the conference call at:

https://register-conf.media-server.com/register/BI628be761a5694531a6c3250e1626f1e7

Registered participants will receive the conference call dial-in number and a unique PIN code to access the live event.  While not required, it is recommended you join 10 minutes prior to the event starting time.  A replay of the conference call will be available approximately two hours after the event by accessing the webcast link at www.matson.com, under Investors.

About the Company

Founded in 1882, Matson (NYSE: MATX) is a leading provider of ocean transportation and logistics services.  Matson provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in Micronesia.  Matson also operates premium, expedited services from China to Long Beach, California, which includes cargo from other Asia origins, provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Alaska to Asia.  The Company's fleet of owned and chartered vessels includes containerships, combination container and roll-on/roll-off ships and barges.  Matson Logistics, established in 1987, extends the geographic reach of Matson's transportation network throughout North America and Asia.  Its integrated logistics services include rail intermodal, highway brokerage, warehousing, freight consolidation, supply chain management, and freight forwarding to Alaska.  Additional information about the Company is available at www.matson.com.

GAAP to Non-GAAP Reconciliation

This press release, the Form 8-K and the information to be discussed in the conference call include non-GAAP measures.  While Matson reports financial results in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company also considers other non-GAAP measures to evaluate performance, make day-to-day operating decisions, help investors understand our ability to incur and service debt and to make capital expenditures, and to understand period-over-period operating results separate and apart from items that may, or could, have a disproportional positive or negative impact on results in any particular period.  These non-GAAP measures include, but are not limited to, Earnings Before Interest, Income Taxes, Depreciation and Amortization ("EBITDA").

Forward-Looking Statements

Statements in this news release that are not historical facts are "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, including without limitation those statements regarding outlook; operating income; depreciation and amortization, including dry-docking amortization; interest income; interest expense, net; other income (expense), net; tax rate; maintenance and other capital expenditures; capital and vessel dry-docking expenditures; volume; length of peak season; freight demand and freight rates; Transpacific capacity; air cargo market; the duration of current supply and demand conditions; the U.S. economy and consumer spending; fundamentals across the U.S. transportation and logistics sector; e-commerce growth; economic growth and drivers in Hawaii, Alaska and Guam; tourism levels; unemployment rates; construction activity; steady job market; energy-related inflation; oil and gas exploration and production activity; market share; contribution from SSAT; timing and amount of milestone payments and related costs; delivery and service dates of new vessels; incremental capacity from new vessels; and the timing, manner and volume of repurchases of common stock pursuant to the repurchase program.  These statements involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement, including but not limited to risks and uncertainties relating to repeal, invalidation, substantial amendment or waiver of the Jones Act or changes in its application, or the Company were determined not to be a United States citizen under the Jones Act; changes in macroeconomic conditions, geopolitical developments, or governmental policies; our ability to offer a differentiated service in China for which customers are willing to pay a significant premium; new or increased competition; loss of or damage to key customer relationships; agreements with key vendors and third parties; fuel prices, our ability to collect fuel-related surcharges and/or the cost or limited availability of required fuels; evolving regulations and stakeholder expectations related to sustainability matters; timely or successful completion of fleet upgrade initiatives; performance under the Company's vessel construction agreements with Hanwha Philly Shipyard; the occurrence of weather, natural disasters, maritime accidents, spill events and other physical and operating risks; transitional and other risks arising from climate change; actual or threatened health epidemics, outbreaks of disease, pandemics or other major health crises; significant operating agreements and leases that may not be renewed/replaced on favorable or acceptable terms; any unexpected dry-docking or repair costs; joint venture relationships; conducting business in foreign markets, including the imposition of tariffs or a change in international trade policies; modernization of terminals in Hawaii and Alaska; heightened security measures, war, actual or threatened terrorist attacks, efforts to combat terrorism and other acts of violence; consummating and integrating acquisitions; work stoppages or other labor disruptions caused by our unionized workers and other workers or their unions in related industries; loss of key personnel or failure to adequately manage human capital; the use of our information technology and communication systems; cybersecurity attacks; changes in our credit profile, disruptions of the credit markets or higher interest rates; our ability to access the debt capital markets; periodic revisions to the Company's effective income tax rate; changes in the value of pension assets; exposure under multi-employer pension and post-retirement plans; continuation of the Title XI and CCF programs; costs to comply with and liability related to numerous safety, environmental, and other laws and regulations; and disputes, legal and other proceedings and government inquiries or investigations.  These forward-looking statements are not guarantees of future performance.  This release should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2025 and our other filings with the SEC through the date of this release, which identify important factors that could affect the forward-looking statements in this release.  We do not undertake any obligation to update our forward-looking statements.

MATSON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Income (Unaudited)
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
(In millions, except per share amounts)		2026			2025			2026			2025
Operating Revenue:
Ocean Transportation		$	891.3		$	718.3		$	2,265.2		$	2,031.3
Logistics			222.2			161.8			575.5			461.3
Total Operating Revenue			1,113.5			880.1			2,840.7			2,492.6
Costs and Expenses:
Operating costs			(783.6)			(661.1)			(2,144.8)			(1,942.6)
Income from SSAT			7.4			9.3			17.2			23.2
General and administrative			(82.1)			(67.3)			(237.6)			(217.1)
Total Costs and Expenses			(858.3)			(719.1)			(2,365.2)			(2,136.5)
Operating Income			255.2			161.0			475.5			356.1
Interest income			5.1			7.6			16.2			25.0
Interest expense, net			(1.6)			(1.8)			(4.8)			(5.2)
Other income (expense), net			4.6			2.1			8.2			6.9
Income before Taxes			263.3			168.9			495.1			382.8
Income taxes			(53.9)			(34.2)			(99.7)			(81.1)
Net Income		$	209.4		$	134.7		$	395.4		$	301.7
Basic Earnings Per Share		$	7.03		$	4.28		$	13.14		$	9.40
Diluted Earnings Per Share		$	6.96		$	4.24		$	13.01		$	9.28
Weighted Average Number of Shares Outstanding:
Basic			29.8			31.5			30.1			32.1
Diluted			30.1			31.8			30.4			32.5

 

MATSON, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited)
		September 30,			December 31,
(In millions)		2026			2025
ASSETS
Current Assets:
Cash and cash equivalents		$	221.9		$	141.9
Other current assets			464.8			330.0
Total current assets			686.7			471.9
Long-term Assets:
Investment in SSAT			113.7			96.2
Property and equipment, net			2,733.6			2,499.4
Goodwill			327.8			327.8
Intangible assets, net			137.2			146.6
Capital Construction Fund			298.6			532.7
Other long-term assets			574.4			561.0
Total long-term assets			4,185.3			4,163.7
Total assets		$	4,872.0		$	4,635.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Current portion of debt		$	39.7		$	39.7
Other current liabilities			584.2			487.7
Total current liabilities			623.9			527.4
Long-term Liabilities:
Long-term debt, net of deferred loan fees			282.9			312.1
Deferred income taxes, net			702.3			701.9
Other long-term liabilities			334.6			335.2
Total long-term liabilities			1,319.8			1,349.2
Total shareholders' equity			2,928.3			2,759.0
Total liabilities and shareholders' equity		$	4,872.0		$	4,635.6

 

MATSON, INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited)
		Nine Months Ended September 30,
(In millions)		2026			2025
Cash Flows From Operating Activities:
Net income		$	395.4		$	301.7
Reconciling adjustments:
Depreciation and amortization			126.2			123.9
Amortization of operating lease right-of-use assets			105.0			98.9
Deferred income taxes, net			0.4			10.0
Share-based compensation expense			18.2			17.0
Income from SSAT			(17.2)			(23.2)
Other			1.5			(5.1)
Changes in assets and liabilities:
Accounts receivable, net			(110.8)			(9.0)
Deferred dry-docking payments			(40.5)			(38.0)
Deferred dry-docking amortization			25.0			20.7
Prepaid expenses and other assets			(27.9)			(15.3)
Accounts payable, accruals and other liabilities			89.6			(8.1)
Operating lease assets and liabilities, net			(98.9)			(97.7)
Other long-term liabilities			(5.4)			(5.6)
Net cash provided by operating activities			460.6			370.2
Cash Flows From Investing Activities:
Vessel construction expenditures			(252.3)			(141.7)
Capital expenditures (excluding vessel construction expenditures)			(97.5)			(117.0)
Proceeds from disposal of property and equipment, net			2.5			0.4
Cash and interest deposited into the Capital Construction Fund			(13.4)			(114.6)
Withdrawals from Capital Construction Fund			248.7			136.5
Net cash used in investing activities			(112.0)			(236.4)
Cash Flows From Financing Activities:
Repayments of debt			(30.0)			(30.0)
Payments of deferred loan fees			—			(2.1)
Dividends paid			(33.4)			(33.7)
Repurchase of Matson common stock			(180.1)			(225.8)
Tax withholding related to net share settlements of restricted stock units			(25.1)			(16.3)
Net cash used in financing activities			(268.6)			(307.9)
Net Increase (Decrease) in Cash and Cash Equivalents			80.0			(174.1)
Cash and Cash Equivalents, Beginning of the Period			141.9			266.8
Cash and Cash Equivalents, End of the Period		$	221.9		$	92.7
Supplemental Cash Flow Information:
Interest paid, net of capitalized interest		$	4.1		$	4.4
Income taxes paid, net of income tax refunds		$	83.8		$	62.5
Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities		$	3.9		$	7.1

 

MATSON, INC. AND SUBSIDIARIES Net Income to EBITDA Reconciliations (Unaudited)
			Three Months Ended
			September 30,									Last Twelve
(In millions)			2026			2025			Change			Months
Net Income			$	209.4		$	134.7		$	74.7		$	538.5
Subtract:	Interest income			(5.1)			(7.6)			2.5			(22.9)
Add:	Interest expense, net			1.6			1.8			(0.2)			6.4
Add:	Income taxes			53.9			34.2			19.7			107.6
Add:	Depreciation and amortization			41.9			42.1			(0.2)			169.2
Add:	Deferred dry-docking amortization			8.9			7.1			1.8			33.2
EBITDA (1)			$	310.6		$	212.3		$	98.3		$	832.0

			Nine Months Ended
			September 30,
(In millions)			2026			2025			Change
Net Income			$	395.4		$	301.7		$	93.7
Subtract:	Interest income			(16.2)			(25.0)			8.8
Add:	Interest expense, net			4.8			5.2			(0.4)
Add:	Income taxes			99.7			81.1			18.6
Add:	Depreciation and amortization			126.2			123.9			2.3
Add:	Deferred dry-docking amortization			25.0			20.7			4.3
EBITDA (1)			$	634.9		$	507.6		$	127.3

____________________________

(1)

EBITDA is defined as earnings before interest, income taxes, depreciation and amortization (including deferred dry-docking amortization).  EBITDA should not be considered as an alternative to net income (as determined in accordance with GAAP), as an indicator of our operating performance, or to cash flows from operating activities (as determined in accordance with GAAP) as a measure of liquidity.  Our calculation of EBITDA may not be comparable to EBITDA as calculated by other companies, nor is this calculation identical to the EBITDA used by our lenders to determine financial covenant compliance.

 

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SOURCE Matson, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Matson's third-quarter 2026 earnings?

Matson earned $209.4 million, or $6.96 per diluted share, in the quarter ended September 30, 2026. That compares with $134.7 million, or $4.24 per diluted share, in the same quarter of 2025.

What is Matson's fourth-quarter 2026 operating income outlook?

Matson expects consolidated operating income to be approximately 50 percent higher than the $143.7 million achieved in fourth-quarter 2025. Ocean Transportation operating income is expected to rise approximately 50 percent from $136.0 million, while Logistics operating income is expected to be modestly higher than $7.7 million.

Why does Matson expect a higher fourth-quarter 2026 tax rate?

The prior-year fourth-quarter tax rate benefited from a one-time $18.5 million tax adjustment, or $0.59 per share, related to deferred tax assets and liabilities. Matson expects an effective tax rate of approximately 20.0 percent in fourth-quarter 2026, compared with 5.2 percent a year earlier.

Why did Matson's Alaska container volume decline in third-quarter 2026?

Alaska container volume declined 4.8 percent year over year, primarily because of lower southbound seafood volume and an additional northbound sailing in the year-earlier period. Matson expects full-year 2026 Alaska volume to be modestly lower than last year.