Third quarter 2026
Filed Nov 4, 2026MATSON, INC. ANNOUNCES THIRD QUARTER 2026 RESULTS AND RAISES FULL YEAR OUTLOOK
Third-quarter revenue, operating income, net income, diluted EPS and EBITDA all rose materially year-over-year, led by China service demand and freight rates. The company raised its full-year outlook and expects fourth-quarter consolidated operating income to be approximately 50 percent higher year-over-year.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total Operating Revenue — Three Months Ended September 30GAAP | $1.11B | – | – |
| Total Operating Revenue — Nine Months Ended September 30GAAP | $2.84B | – | – |
| Operating costs — Three Months Ended September 30GAAP | −$783.6M | – | – |
| General and administrative — Three Months Ended September 30GAAP | −$82.1M | – | – |
| Total Costs and Expenses — Three Months Ended September 30GAAP | −$858.3M | – | – |
| Operating Income — Three Months Ended September 30GAAP | $255.2M | – | – |
| Operating Income — Nine Months Ended September 30GAAP | $475.5M | – | – |
| Interest income — Three Months Ended September 30GAAP | $5.1M | – | – |
| Interest expense, net — Three Months Ended September 30GAAP | −$1.6M | – | – |
| Other income (expense), net — Three Months Ended September 30GAAP | $4.6M | – | – |
| Income before Taxes — Three Months Ended September 30GAAP | $263.3M | – | – |
| Income taxes — Three Months Ended September 30GAAP | −$53.9M | – | – |
| Net Income — Three Months Ended September 30GAAP | $209.4M | – | – |
| Net Income — Nine Months Ended September 30GAAP | $395.4M | – | – |
| Basic Earnings Per Share — Three Months Ended September 30GAAP | $7.03 | – | – |
| Diluted Earnings Per Share — Three Months Ended September 30GAAP | $6.96 | – | – |
| Basic Earnings Per Share — Nine Months Ended September 30GAAP | $13.14 | – | – |
| Diluted Earnings Per Share — Nine Months Ended September 30GAAP | $13.01 | – | – |
| Effective tax rate — Three Months Ended September 30GAAP | 20.5 percent | – | – |
| EBITDA — Three Months Ended September 30non-GAAP | $310.6M | – | – |
| EBITDA — Nine Months Ended September 30non-GAAP | $634.9M | – | – |
| Net cash provided by operating activities — Nine Months Ended September 30GAAP | $460.6M | – | – |
| Vessel construction expenditures — Nine Months Ended September 30GAAP | −$252.3M | – | – |
| Capital expenditures (excluding vessel construction expenditures) — Nine Months Ended September 30GAAP | −$97.5M | – | – |
| Repurchase of Matson common stock — Nine Months Ended September 30GAAP | −$180.1M | – | – |
| Dividends paid — Nine Months Ended September 30GAAP | −$33.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Ocean Transportation — Three Months Ended September 30Higher freight rates and volume in the China service and an increase in fuel-related surcharge revenue. | $891.3M | – | 24.1 % |
| Logistics — Three Months Ended September 30Higher revenue in transportation brokerage. | $222.2M | – | 37.3 % |
| Ocean Transportation — Nine Months Ended September 30Higher freight rates and volume in the China service and an increase in fuel-related surcharge revenue. | $2.27B | – | 11.5 % |
| Logistics — Nine Months Ended September 30Higher revenue in transportation brokerage. | $575.5M | – | 24.8 % |
Fourth quarter 2026 and full year 2026 outlook
- Tax rateapproximately 20.0 percent
- NoteOcean 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.
- NoteLogistics operating income in the fourth quarter 2026 to be modestly higher than the $7.7 million achieved in the fourth quarter 2025.
- NoteConsolidated operating income in the fourth quarter 2026 to be approximately 50 percent higher than the $143.7 million achieved in the fourth quarter 2025.
- NoteDepreciation and amortization expense for full year 2026 to be approximately $205 million, inclusive of dry-docking amortization of approximately $35 million.
- NoteInterest income for full year 2026 to be approximately $20 million.
- NoteInterest expense, net for full year 2026 to be approximately $6 million.
- NoteFull year 2026 other income (expense), net to be approximately $10 million in income.
- NoteCapital expenditure payments, including maintenance capital expenditures, for full year 2026 to be approximately $130 million.
- NoteVessel construction expenditures, including capitalized interest and owner’s items, for full year 2026 to be approximately $375 million.
- NoteDry-docking payments for full year 2026 to be approximately $45 million.
- NoteHawaii volume in full year 2026 to be modestly lower than the level achieved in 2025.
- NoteChina volume in full year 2026 to be higher than the level achieved in 2025.
- NoteGuam volume in full year 2026 to be modestly higher than the level achieved last year.
- NoteAlaska volume in full year 2026 to be modestly lower than the level achieved last year.
- NoteContribution from SSAT for full year 2026 to be lower than the $32.5 million achieved in full year 2025.
Capital returns
- During the third quarter 2026, Matson repurchased approximately 0.3 million shares for a total cost of $59.8 million.
- 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 declared a cash dividend of $0.38 per share payable on December 3, 2026 to shareholders of record as of the close of business on November 5, 2026.
- Dividends paid were $(33.4) million during the nine months ended September 30, 2026, compared with $(33.7) million during the nine months ended September 30, 2025.
- Repurchase of Matson common stock was $(180.1) million during the nine months ended September 30, 2026, compared with $(225.8) million during the nine months ended September 30, 2025.
What drove it
- China service container volume increased 16.0 percent year-over-year in the third quarter, with strong demand and elevated freight rates.
- Ocean Transportation operating income increased $91.7 million, or 62.2 percent, driven by higher China service contribution and fuel-related surcharge revenue.
- Logistics operating income increased $2.5 million, primarily due to higher contributions from transportation brokerage and freight forwarding.
- China service speed and reliability were cited as differentiators amid continued pressure on global shipping networks and congestion at key Asia ports.
- Guam container volume increased 4.3 percent year-over-year in the third quarter.
Concerns
- Hawaii container volume was 0.3 percent lower year-over-year, primarily due to lower general demand.
- Alaska container volume decreased 4.8 percent year-over-year, primarily due to lower southbound seafood volume and an additional northbound sailing in the year ago period.
- Other containers volume decreased 6.5 percent year-over-year.
- Logistics operating income margin was 7.2 %, compared with 8.4 % in the prior-year quarter.
- SSAT contribution was $7.4 million in the third quarter 2026, compared with $9.3 million in the third quarter 2025, primarily due to lower lift volume.
- Higher vessel operating expense, primarily from higher fuel-related costs, partially offset Ocean Transportation profit growth.
What to watch
- Whether strong China service demand and elevated freight rates continue through year end and into early 2027.
- Fourth-quarter Ocean Transportation operating income relative to the $136.0 million achieved in the fourth quarter 2025.
- Fourth-quarter Logistics operating income relative to the $7.7 million achieved in the fourth quarter 2025.
- Fourth-quarter consolidated operating income relative to the $143.7 million achieved in the fourth quarter 2025.
- Progress against full-year vessel construction expenditures of approximately $375 million and dry-docking payments of approximately $45 million.
- Full-year SSAT contribution relative to the $32.5 million achieved in full year 2025.
Balance sheet and cash flow
- Cash and cash equivalents were $221.9 million as of September 30, 2026, compared with $141.9 million at December 31, 2025.
- Cash and cash equivalents and investments in fixed-rate U.S. Treasuries in the Capital Construction Fund were $298.6 million as of September 30, 2026.
- Total debt was $331.2 million as of September 30, 2026, after decreasing by $30.0 million during the nine months; $291.5 million was classified as long-term debt.
- Available borrowings under the revolving credit facility were $544.2 million as of September 30, 2026.
- Net cash provided by operating activities was $460.6 million during the nine months ended September 30, 2026, compared with $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.
- For the third quarter 2026, capital expenditure payments excluding vessel construction expenditures were $41.8 million, vessel construction expenditures including capitalized interest and owner’s items were $52.5 million, and dry-docking payments were $15.9 million.
Analysis
Matson reported a materially stronger third quarter. Total Operating Revenue was $1,113.5 million, compared with $880.1 million in the prior-year quarter, while Operating Income rose to $255.2 million from $161.0 million. Net Income was $209.4 million versus $134.7 million, and Diluted Earnings Per Share was $6.96 versus $4.24. EBITDA, a non-GAAP measure, increased to $310.6 million from $212.3 million.
Ocean Transportation was the primary source of growth. Segment revenue was $891.3 million, up 24.1 %, and operating income was $239.1 million, up 62.2 %. The company attributed the gain to higher China freight rates and volume, plus higher fuel-related surcharge revenue. China container volume increased 16.0 percent, whereas Hawaii, Alaska and Other container volumes declined 0.3 percent, 4.8 percent and 6.5 percent, respectively. Ocean Transportation operating income margin was 26.8 %, compared with 20.5 %.
Logistics revenue rose to $222.2 million from $161.8 million, and operating income increased to $16.1 million from $13.6 million. Transportation brokerage and freight forwarding contributed to operating-income growth, while warehousing was a partial offset. The segment's operating income margin was 7.2 %, compared with 8.4 %, showing that revenue growth exceeded operating-income growth in the segment.
Cash generation supported both investment and shareholder returns. Net cash provided by operating activities was $460.6 million during the nine months ended September 30, 2026, compared with $370.2 million a year earlier. Capital expenditures including capitalized vessel construction expenditures totaled $349.8 million. Cash and cash equivalents were $221.9 million, total debt was $331.2 million, and the company repurchased approximately 0.3 million shares for $59.8 million during the quarter.
Management raised its outlook and expects fourth-quarter 2026 Ocean Transportation operating income and consolidated operating income each to be approximately 50 percent higher than their respective fourth-quarter 2025 results. It expects Logistics operating income to be modestly higher year-over-year. The outlook rests on the expectation that China service demand and elevated freight rates continue through year end and into early 2027, while domestic tradelanes and logistics remain stable.
Management, verbatim
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.
Matt Cox, Chairman and Chief Executive Officer
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.
Matt Cox, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Free cash flow was not reported.
- A prior earnings release outlook was not provided, so no comparison with prior guidance is available.
- Fourth-quarter or full-year revenue guidance was not reported.
- Fourth-quarter or full-year EPS guidance was not reported.
- Fourth-quarter or full-year net income guidance was not reported.
- Prior-quarter comparisons were not reported for the presented operating metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.