Matson, Inc. (MATX) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call reveals mixed financial performance with a decrease in consolidated operating income and logistics income, yet a strong contribution from SSAT and share repurchases. The Q&A indicates stable demand and a disciplined pricing strategy. Despite some positive elements like the SSAT contribution and share buybacks, the overall sentiment is balanced by lower contributions from key areas and modest guidance. Given the market cap of $4.4 billion, the stock is likely to experience limited movement, resulting in a neutral prediction.
Key Financial Performance
Ocean Transportation operating income (Q4 2025) $143.7 million, a decrease of $3.8 million year-over-year. The decrease was primarily due to a lower contribution from China, partially offset by a higher contribution from SSAT.
Hawaii container volume (Q4 2025) Increased 0.6% year-over-year due to higher general demand.
Hawaii container volume (Full Year 2025) Increased 1.6% year-over-year, primarily due to higher general demand and a dry-docking of a competitor's vessel in the first half of 2025.
China container volume (Q4 2025) Decreased 7.2% year-over-year due to a difficult trading environment in the Transpacific trade lane.
China container volume (Full Year 2025) Decreased 9.5% year-over-year, primarily due to uncertainty and volatility arising from tariffs and global trade.
Guam container volume (Q4 2025) Increased 4.4% year-over-year due to higher general demand.
Guam container volume (Full Year 2025) Decreased 4.3% year-over-year, primarily due to lower general demand.
Alaska container volume (Q4 2025) Decreased 3.3% year-over-year, primarily due to one less northbound sailing compared to the year-ago period, partially offset by higher export seafood volume.
Alaska container volume (Full Year 2025) Increased 1.7% year-over-year, primarily due to higher export seafood volume, partially offset by one less northbound sailing.
SSAT terminal joint venture contribution (Q4 2025) $9.3 million, a year-over-year increase of $18.8 million, primarily due to an impairment charge in the prior year.
SSAT terminal joint venture contribution (Full Year 2025) $32.5 million, compared to a loss of $1 million in the prior year, due to the same impairment charge and higher lift volume.
Logistics operating income (Q4 2025) $7.7 million, a decrease of $2.4 million year-over-year, primarily due to a lower contribution from supply chain management.
Logistics operating income (Full Year 2025) $44.2 million, a decrease of $6.2 million year-over-year, primarily due to lower contributions from freight forwarding and transportation brokerage.
Consolidated operating income (Q4 2025) $143.7 million, a decrease of $3.8 million year-over-year, with lower contributions from Ocean Transportation and Logistics.
Consolidated operating income (Full Year 2025) $499.8 million, a decrease of $51.5 million year-over-year, with lower contributions from Ocean Transportation and Logistics.
Net income (Q4 2025) $143.1 million, with diluted earnings per share of $4.60.
Cash flow from operations (Trailing 12 months) $547.1 million, exceeding the aggregate spend on maintenance CapEx, dividends, and share repurchases by $49.8 million.
Share repurchases (Full Year 2025) Approximately 2.7 million shares for a total cost of $307.4 million.
Total debt (End of Q4 2025) $361.2 million, a reduction of $39.7 million for the year.
Capital expenditures (Full Year 2025) $393.4 million, including $244.3 million for vessel construction and $149.1 million for maintenance and other expenditures.
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Operating Highlights
New Aloha Class vessels: Capitalized vessel construction expenditures of $244.3 million in 2025, with plans for $425 million in 2026.
Expansion in Southeast Asia: Added a second weekly feeder service from Vietnam and commenced a weekly feeder service from Thailand in December 2025.
China Service: Higher-than-expected freight rates and volumes in Q4 2025 due to strong e-commerce demand and a stable trading environment post U.S.-China trade deal.
Hawaii and Guam: Higher year-over-year container volumes in Q4 2025 due to increased general demand.
Operational Income: Consolidated operating income for 2025 decreased by $51.5 million year-over-year to $499.8 million, primarily due to lower contributions from China and Logistics.
SSAT Terminal Joint Venture: Contributed $32.5 million in 2025, a significant improvement from a $1 million loss in 2024.
Focus on Yield Maximization: In the Transpacific trade lane, focus on maximizing yield and maintaining premium rates for China service.
Capital Allocation: Continued share repurchase program with $307.4 million spent in 2025 and plans to return excess capital to shareholders.
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Risk or Challenges
China Service Volume Decline: Container volume in the China service decreased 9.5% year-over-year in 2025 due to a challenging trading environment marked by uncertainty and volatility from tariffs and global trade issues. This trend is expected to continue into 2026 with lower volumes in the first quarter.
Hawaii and Guam Economic Challenges: The Hawaii economy remains sluggish due to softer tourism and ongoing inflationary pressures, including elevated interest rates. Guam faces a challenging tourism environment, which is expected to moderate its economy in 2026.
Alaska Economic Dependency: Alaska's economy is heavily dependent on the oil and gas sector. While there is potential for significant investment, any changes in federal policies or oil prices could adversely impact economic growth.
Logistics Operating Income Decline: Logistics operating income decreased in 2025 due to lower contributions from supply chain management, freight forwarding, and transportation brokerage. This trend is expected to persist into 2026.
Supply Chain Complexity: Customers are diversifying operations out of China to Southeast Asia, increasing supply chain complexity. This shift may require additional investment and operational adjustments.
Tourism Weakness in Key Markets: International tourism in Hawaii remains weak, with visitor arrivals expected to decline further in 2026 before recovering in 2027. Maui tourism is still significantly below pre-2023 wildfire levels.
Freight Rate and Volume Volatility: Freight rates and volumes in the China service have been volatile, influenced by geopolitical factors and tariff uncertainties. Although some stability is expected, the company does not anticipate all ships to be fully utilized in 2026.
Capital Expenditure Pressures: The company plans significant capital expenditures in 2026, including $425 million for new vessel construction and $150-$170 million for maintenance. This could strain financial resources if cash flows do not meet expectations.
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Guidance & Outlook
Consolidated Operating Income for 2026: Expected to approach the level achieved in 2025, driven by solid U.S. consumer demand and a stable trading environment in the Transpacific trade lane. A more normal seasonality pattern is anticipated, with the second and third quarters being the strongest.
Hawaii Container Volume for 2026: Expected to be comparable to 2025 levels, reflecting similar economic conditions and stable market share.
China Service Volume for 2026: Anticipated to be modestly higher than 2025 levels due to solid U.S. consumer demand and a stable trading environment. A return to normal seasonality is expected, with higher volumes in the second quarter compared to 2025.
Guam Container Volume for 2026: Expected to be comparable to 2025 levels, reflecting a challenging tourism environment.
Alaska Container Volume for 2026: Expected to be comparable to 2025 levels, supported by economic growth, low unemployment, and continued oil and gas production activity.
SSAT Terminal Joint Venture Contribution for 2026: Expected to be comparable to the $32.5 million achieved in 2025.
Logistics Operating Income for 2026: Expected to approach the $44.2 million achieved in 2025.
Capital Expenditures for 2026: Planned at $425 million for new vessel construction and $150-$170 million for maintenance and other CapEx, including $30 million for new containers and chassis.
First Quarter 2026 Operating Income: Expected to be lower than the prior year due to reduced volume in the China service.
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Shareholder Return Plan
Dividends and Share Repurchases: We returned capital in the form of dividends and share repurchases of $348.2 million.
Shareholder Return Commitment: We are committed to returning excess capital to shareholders and plan to continue to do so in the absence of any large organic or inorganic growth investment opportunities.
Share Repurchase Program: During the fourth quarter, we repurchased approximately 0.7 million shares for a total cost of $78.1 million. For the full year 2025, we repurchased approximately 2.7 million shares for a total cost of $307.4 million.
Historical Share Repurchase: Since we initiated our share repurchase program in August of 2021 through the end of 2025, we repurchased 13.9 million shares or 31.9% of our then outstanding shares for a total cost of approximately $1.3 billion.
Future Share Repurchase Plans: We expect to continue to return capital to shareholders through dividends and our share repurchase program. We expect to continue to be steady buyers of our shares.
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Key Q&A
Q:Do Red Sea sailings impact the company's guidance?
A:No, the company's guidance is independent of whether the Red Sea opens or not. The broader Transpacific trade is oversupplied, and the company's product is distanced from generic ocean services, so it doesn't affect their guidance.
Q:Have there been any signs of a normal seasonal recovery post-Lunar New Year?
A:Yes, the company has observed a traditional Lunar New Year recovery. Demand has neither spiked nor lagged, and it feels normal at this point.
Q:Is data center-related volume moving through air freight spilling over into the company's expedited ocean service?
A:Yes, within the electronic goods category, the company is moving racking and servers from air freight to their expedited ocean service. This is a component of their e-goods segment.
Q:What is the company's pricing strategy for 2026?
A:The company will continue its disciplined approach to pricing, focusing on yield management rather than filling ships. They expect 2026 to look similar to 2025 in terms of pricing strategy.
Q:What is the current and future volume potential of the Thailand route introduced in December?
A:The Thailand route is starting with 50 loads per sailing and is expected to grow steadily. The company aims for modestly higher volumes for the full year from all origins, including Thailand and Vietnam.
Q:Does the Maritime Action Plan impact the company?
A:No, the Maritime Action Plan is seen as an aspirational blueprint with no specific timeframes or immediate impact on the company. It focuses on reviving U.S. shipbuilding and requires congressional approval for certain mechanisms.
Q:Were there any port fees paid in the fourth quarter results?
A:Yes, the company paid $6.4 million in port fees during the fourth quarter.
Q:Review of Unclear Management Responses
A:None of the questions were avoided or lacked clarity. All responses were direct and provided sufficient detail.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Alaska economy
Joel
Logistics income
Lunar New
Transpacific trade
charge write
construction expenditure
contribution China
contribution supply
cost share
customer segment
deal uncertainty
demand Lunar
demand customer
demand trading
environment Transpacific
equipment
export seafood
feeder service
freight demand
good demand
increase impairment
investment
lease asset
lease buyout
pattern quarter
period tax
quarter relative
relative quarter
seafood volume
seasonality pattern
segment trading
share income
state
trading environment
volume AAX
volume demand
write lease
MATX Transcript
Matson, Inc. (MATX) Q4 2025 Earnings Call Transcript
Unknown2-24
The earnings call reveals mixed financial performance with a decrease in consolidated operating income and logistics income, yet a strong contribution from SSAT and share repurchases. The Q&A indicates stable demand and a disciplined pricing strategy. Despite some positive elements like the SSAT contribution and share buybacks, the overall sentiment is balanced by lower contributions from key areas and modest guidance. Given the market cap of $4.4 billion, the stock is likely to experience limited movement, resulting in a neutral prediction.
Matson, Inc. (MATX) Q3 2025 Earnings Call Transcript
Unknown11-4
The earnings call summary indicates a decline in financial performance, with significant drops in operating income, net income, and EPS. Despite increased container volumes in Alaska and Hawaii, the overall outlook is weak due to decreased volumes in China and Guam. The Q&A session revealed management's uncertainty and lack of clarity regarding potential refunds of port fees. While share repurchases and reduced debt are positives, the overall sentiment is negative, especially with the market cap suggesting moderate sensitivity to these factors.
Matson, Inc. (MATX) Q2 2025 Earnings Call Transcript
Unknown7-31
The earnings call reveals several negative indicators: a decrease in consolidated operating income, net income, and diluted EPS. The company lowered its 2025 revenue outlook and expects reduced container volumes and freight rates. Although there are positive aspects like share repurchases and debt reduction, the overall sentiment is negative due to weak financial performance and muted guidance. The Q&A section further highlights concerns about lower volumes, competition, and muted peak seasons, which negatively impact the stock price outlook, especially given the company's mid-sized market cap.
Matson, Inc. (NYSE:MATX) Q1 2025 Earnings Call Transcript
Unknown5-7
The earnings call summary highlights several challenges: a 30% decline in container volume due to tariffs, lower demand, and economic uncertainties. Despite some positive financial metrics, such as increased net income and reduced debt, the overall guidance is weak with expected lower operating income. The Q&A section reveals concerns about volume declines and uncertain management responses, further dampening sentiment. Given the market cap, the stock is likely to react negatively, falling in the -2% to -8% range over the next two weeks.
MATX Slides
MATX Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Why do some answers appear as “Unclear” or “Inaudible”?
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They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
