Matson, Inc. (MATX): Results of Operations and Financial Condition
Matson, Inc. (MATX) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Investor Relations inquiries: News Media inquiries: Justin Schoenberg Keoni Wagner Matson, Inc. Matson, Inc. 510.628.4234 510.628.4534 jschoenberg@matson.com kwagner@matson.com FOR IMMEDIATE RELEASE MATSON, INC. ANNOUNCES SECOND QUARTER 2026 RESULTS AND R
How this was made
The 30-second read
Why it matters
The 8-K discloses Q2 2026 financial results and forward-looking segment operating income expectations, including a Q3 Ocean Transportation operating income target about 45% higher than the prior year and a full-year improvement versus 2025.
Market read
Traders can update MATX valuation and positioning based on the new earnings print and explicit 2026 operating income outlook by segment.
What to watch
The outlook depends on stable Transpacific trading conditions and continued solid U.S. consumer demand; any tariff, demand, or rate normalization could pressure subsequent quarters.
MATSON, INC. ANNOUNCES SECOND QUARTER 2026 RESULTS AND RAISES FULL YEAR OUTLOOK
Consolidated revenue, net income, diluted EPS, consolidated operating income and EBITDA were all higher than the second quarter 2025, led by China service volume and freight rates. The Company raised its full-year outlook and expects consolidated operating income to be higher than the level achieved in full year 2025.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated revenueGAAP | $969.4 million | – | – |
| Net incomeGAAP | $129.4 million | – | – |
| Diluted EPSGAAP | $4.27 per diluted share | – | – |
| Consolidated operating incomeGAAP | $158.9 million | – | – |
| EBITDAother | $211.0 million | – | – |
| Effective tax rateGAAP | 21.0 percent | – | – |
| Ocean Transportation revenueGAAP | $767.4 million | – | 13.6 % |
| Ocean Transportation operating costs and expensesGAAP | $(623.4) million | – | 8.0 % |
| Ocean Transportation operating incomeGAAP | $144.0 million | – | 46.0 % |
| Ocean Transportation operating income marginGAAP | 18.8 % | – | – |
| Hawaii containersother | 35,600 | – | (1.1) % |
| Alaska containersother | 21,200 | – | (2.3) % |
| China containersother | 37,200 | – | 15.2 % |
| Guam containersother | 4,700 | – | 4.4 % |
| Other containersother | 3,900 | – | (11.4) % |
| SSAT joint venture investment contributionother | $4.8 million | – | – |
| Logistics operating incomeGAAP | $14.9 million | – | – |
| Capital expenditure payments excluding vessel construction expendituresother | $25.4 million | – | – |
| Vessel construction expenditures (including capitalized interest and owner’s items)other | $181.8 million | – | – |
| Dry-docking paymentsother | $12.7 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Ocean TransportationThe increase was primarily due to higher volume and freight rates in the China service. | $767.4 million | – | 13.6 % |
full year 2026 outlook
- Tax rateapproximately 21.0 percent
- NoteOcean Transportation operating income higher than the $455.6 million achieved in full year 2025.
- NoteLogistics operating income higher than the $44.2 million achieved in full year 2025.
- NoteConsolidated operating income higher than the level achieved in full year 2025.
- NoteDepreciation and amortization expense of approximately $205 million, inclusive of dry-docking amortization of approximately $35 million.
- NoteInterest income of approximately $18 million.
- NoteInterest expense, net of approximately $6 million.
- NoteOther income (expense), net of approximately $7 million in income.
- NoteCapital expenditure payments, including maintenance capital expenditures, of approximately $150 to $170 million.
- NoteVessel construction expenditures (including capitalized interest and owner’s items) of approximately $400 million.
- NoteDry-docking payments of approximately $45 million.
- NoteHawaii service volume to approach the level achieved in 2025.
- NoteChina service volume higher than the level achieved in 2025.
- NoteGuam service volume comparable to the level achieved last year.
- NoteAlaska service volume to approach the level achieved last year.
- NoteContribution from SSAT lower than the $32.5 million achieved in full year 2025.
Capital returns
- Repurchased approximately 0.3 million shares in 2 Q26.
What drove it
- China service volume increased 15.2 percent year-over-year primarily due to significantly higher demand compared to the prior year period.
- CLX and MAX services saw higher-than-expected freight rates and demand across e-commerce, garments and e-goods against tighter supply conditions in the Transpacific tradelane.
- Ocean Transportation revenue increased primarily due to higher volume and freight rates in the China service.
- Logistics operating income increased primarily due to higher contributions from freight forwarding and transportation brokerage, partially offset by a lower contribution from warehousing.
- Hawaii service volume declined primarily due to lower general demand.
- Alaska service volume declined primarily due to lower export seafood volume on AAX, partially offset by one additional northbound sailing.
Concerns
- The Iran conflict has impacted fuel prices in all of the Company’s markets.
- The Company expects fourth quarter 2026 Transpacific demand to reflect a more traditional seasonality pattern compared with the elevated fourth quarter 2025.
- The SSAT joint venture investment contribution was lower primarily due to lower lift volume and higher operating expenses.
- Hawaii’s economy continues to face headwinds from higher energy-related inflation.
- Other containers volume decreased 11.4 percent year-over-year.
What to watch
- Whether the China service remains at or near capacity through peak season.
- Ocean Transportation operating income in the third quarter 2026, which is expected to be approximately 45 percent higher than the $147.4 million achieved in the third quarter 2025.
- Ocean Transportation operating income in the fourth quarter 2026, which is expected to be modestly lower than the $136.0 million achieved in the fourth quarter 2025.
- Logistics operating income in the third and fourth quarters 2026, which is expected to be modestly higher than the $13.6 million and $7.7 million achieved in the third and fourth quarters 2025, respectively.
- The Company’s ability to fully recover fuel costs by the end of the year.
Balance sheet and cash flow
- For the second quarter 2026, the Company made capital expenditure payments excluding vessel construction expenditures of $25.4 million, vessel construction expenditures (including capitalized interest and owner’s items) of $181.8 million, and dry-docking payments of $12.7 million.
Analysis
Matson reported a strong second quarter 2026. Consolidated revenue was $969.4 million compared with $830.5 million in the second quarter 2025, while net income was $129.4 million compared with $94.7 million. Diluted EPS was $4.27 per diluted share versus $2.92 per diluted share, consolidated operating income was $158.9 million versus $113.0 million, and EBITDA was $211.0 million versus $163.6 million.
Ocean Transportation was the central source of improvement. Segment revenue was $767.4 million, up 13.6 %, and operating income was $144.0 million, up 46.0 %. Operating income margin was 18.8 % compared with 14.6 %. Management attributed the revenue increase primarily to higher China-service volume and freight rates. China containers increased 15.2 %, while Hawaii containers declined 1.1 %, Alaska containers declined 2.3 %, Guam containers increased 4.4 %, and Other containers declined 11.4 %.
China service demand and pricing strengthened following the post-Lunar New Year period, with CLX and MAX benefiting from e-commerce, garments and e-goods demand and tighter Transpacific supply. Domestic volumes were less uniform: Hawaii reflected lower general demand, and Alaska was affected by lower export seafood volume on AAX, partly offset by one additional northbound sailing. The SSAT joint venture investment contribution was $4.8 million and was $2.5 million lower than the second quarter 2025 due to lower lift volume and higher operating expenses.
Logistics operating income was $14.9 million, or $0.5 million higher than the second quarter 2025. Higher freight forwarding and transportation brokerage contributions were partly offset by a lower warehousing contribution. Capital spending was substantial during the quarter, including $181.8 million of vessel construction expenditures, $25.4 million of capital expenditure payments excluding vessel construction expenditures, and $12.7 million of dry-docking payments. The Company also repurchased approximately 0.3 million shares in 2 Q26.
The Company raised its full-year outlook and expects consolidated operating income, Ocean Transportation operating income and Logistics operating income to be higher than their full-year 2025 levels. Third-quarter Ocean Transportation operating income is expected to be approximately 45 percent higher than the $147.4 million achieved in the third quarter 2025, while fourth-quarter Ocean Transportation operating income is expected to be modestly lower than the $136.0 million achieved in the fourth quarter 2025. Fuel prices have been affected by the Iran conflict, although the Company continues to expect to fully recover fuel costs by the end of the year.
Management, verbatim
Matson had a strong second quarter with momentum in our China service carrying over from the post-Lunar New Year period. Our CLX and MAX services saw higher-than-expected freight rates and demand across e-commerce, garments and e-goods against a backdrop of tighter supply conditions in the Transpacific tradelane.
Matt Cox, Chairman and Chief Executive Officer
In our domestic ocean tradelanes, we saw lower year-over-year volumes in Hawaii and Alaska and higher year-over-year volume in Guam. In Logistics, operating income increased year-over-year primarily due to higher contributions from freight forwarding and transportation brokerage, partially offset by a lower contribution from warehousing.
Matt Cox, Chairman and Chief Executive Officer
Looking ahead, we expect our China service to be at or near capacity through peak season.
Matt Cox, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so prior-guidance comparisons are unavailable.
- Consolidated gross profit and gross margin were not reported in the provided filing text.
- Consolidated operating expenses were not reported in the provided filing text.
- Logistics revenue was not reported in the provided filing text.
- Logistics operating income for the second quarter 2025 was not printed as a standalone line item in the provided filing text.
- Operating cash flow was not reported in the provided filing text.
- Free cash flow was not reported in the provided filing text.
- Cash balance was not reported in the provided filing text.
- Debt balance was not reported in the provided filing text.
- Dividend amount and dividend declaration were not reported in the provided filing text.
- Repurchase expenditure and remaining share-repurchase authorization were not reported in the provided filing text.
- First-quarter 2026 metrics and sequential comparisons were not reported in the provided filing text.
- A numerical full-year 2026 consolidated revenue outlook was not reported in the provided filing text.
- A numerical third-quarter or fourth-quarter 2026 consolidated revenue outlook was not reported in the provided filing text.
- The filing text provided is truncated after the beginning of additional Ocean Transportation discussion.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Matson is a U.S. carrier serving Pacific routes (notably Hawaii, Guam, Alaska, and China-linked services) plus a Logistics segment.
Ticker impact
Matson reported Q2 2026 EPS $4.27 and raised full-year outlook, citing higher-than-expected China freight rates and demand plus fuel-cost recovery expectations.
Bullish bias for MATX as traders reprice 2026 operating income upward, with upside sensitivity to sustained China demand and fuel-cost recovery.
The filing is a primary earnings and outlook update with explicit segment operating income expectations (Q3 up ~45% YoY) and a full-year improvement versus 2025.
Market effects
Supports the view that Pacific shipping demand and spot rates in China-linked lanes remain resilient, potentially benefiting shipping-rate-sensitive peers.
Reinforces strength in U.S.-Pacific trade lanes (China service) while Hawaii and Alaska volumes show mixed trends.
Highlights ongoing Transpacific supply tightness and Iran-related fuel price pressure, with management expecting full fuel-cost recovery by year-end.
Counterpoint
If fuel-cost recovery assumptions prove optimistic or China service capacity constraints translate into weaker pricing later, the guidance could be less durable than implied.
Key entities
- public_companyMatson, Inc.
Subject of the SEC 8-K, reporting Q2 2026 results and raising full-year outlook.
- segmentOcean Transportation segment
Management expects Q3 2026 operating income to be approximately 45% higher YoY, with Q4 modestly lower than last year.
- segmentLogistics segment
Management expects Logistics operating income modestly higher in Q3 and Q4 2026 versus the prior year levels.
