Matthews International Corp - Class A
Q3 2026 Earnings
Includes $7,772 Tesla litigation costs, $5 million restructuring charges in European engineering operations, $12,888 in strategic initiatives and other charges, $2,998 in acquisition/divestiture costs, and $8,006 in Propelis amortization and other unusual items, partially offset by $234 net gain on divestitures
Market Reaction
Did MATW Beat Earnings? Q3 2026 Results
Matthews International delivered a deeply disappointing fiscal third quarter, posting adjusted EPS of just $0.06 against a consensus estimate of $0.41, a miss of 85.37%, while revenue fell 7.00% short of expectations at $246.02 million, itself down 29.6% year-over-year. The dramatic revenue decline was driven primarily by the company's series of divestitures, including the SGK, warehouse automation, and European packaging businesses, which stripped out a significant portion of its top line compared to the prior-year period. The Industrial Technologies segment bore the brunt of the pain, with sales collapsing to $37.96 million from $87.90 million and segment adjusted EBITDA turning sharply negative, while Tesla litigation costs of $7.77 million and $5 million in European restructuring charges further weighed on results. Management trimmed its fiscal 2026 adjusted EBITDA guidance to a range of $158 million to $162 million, citing Propelis synergy timing delays, persistent engineering business headwinds, and Memorialization cost pressures, even as analysts had anticipated a stronger performance heading into the print.
- The Dodge Company acquisition contributing to Memorialization sales growth
- Product Identification sales grew 5% year-over-year
- Lower U.S. casketed deaths reducing casket and cemetery memorial volumes
- Escalating input costs including tariffs pressuring Memorialization margins
- Energy storage solutions business delays and Tesla litigation impacts on Industrial Technologies
- Divestitures of SGK, warehouse automation, and European packaging businesses reducing consolidated revenue
- Lower corporate and other non-operating costs yielding savings versus prior year
“The fiscal 2026 third quarter was a challenging quarter for us across all business segments. We continue to experience delays in the energy storage solutions business which are expected to extend through the balance of the fiscal year. Despite winning a significant new coating & converting order this quarter, the project has not contributed significantly to our financial results as of yet. In response to these challenges, we have taken difficult but necessary action to reduce the cost base of this business by $10 million annually.”
Matthews International CEO, on the earnings call
Forward Guidance & Outlook
The company revised its fiscal 2026 adjusted EBITDA guidance downward to a range of $158 million to $162 million (including the estimated 40% share of Propelis adjusted EBITDA). Key factors behind the revision include: ongoing delays in the engineering/energy storage solutions business expected to extend through the balance of the fiscal year, an estimated $5 million shortfall from Propelis synergy timing, and continued input cost headwinds in Memorialization beyond inflationary price increases. The initiated restructuring in European engineering operations will yield $10 million in annual cost savings. Memorialization is expected to continue delivering modest year-to-year sales growth but faces input cost headwinds. The strategic alternatives review process continues with a focus on developing strategic partnerships within Industrial Technologies businesses.
MATW YoY Financials
MATW Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.