Matson Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.52%.
Did MATX Beat Earnings? Q4 2025 Results
Matson delivered a blowout Q4 2025, posting diluted EPS of $4.60 against a consensus estimate of $2.78, a beat of 65.47%, even as full-year revenue slipped 4.3% year over year to $851.90 million for the quarter, modestly above the $847.30 million analysts had expected. The outsized earnings result was driven by two converging forces: a favorable $18.50 million tax adjustment that reduced the quarter's effective rate to just 5.2%, and stronger-than-anticipated freight rates in the China tradelane, where robust e-commerce demand helped Ocean Transportation operating income of $136.00 million nearly hold even with the prior year despite a 7.2% volume decline. The October 2025 U.S.-China trade deal, which eased tariff uncertainty, gave management confidence heading into 2026, though Q1 guidance for Ocean Transportation operating income of roughly $50.00 million, well below Q1 2025's $82.10 million, signals a softer start before the company expects a more normal seasonal peak in the middle quarters. Several insiders sold shares in early March, adding a note of caution to an otherwise strong report.
- Higher than expected freight rates and volume in China service driven by strong e-commerce and e-goods demand
- U.S.-China trade and economic deal announced October 30, 2025 reduced tariff and trade uncertainty
- SSAT joint venture contribution of $9.3 million in Q4 vs. loss of $9.5 million in prior year due to absence of impairment charge
- Higher year-over-year volumes in Hawaii (+0.6%) and Guam (+4.4%)
- One-time tax adjustment of $18.5 million ($0.59 per share) related to deferred tax assets and liabilities
“Matson had a solid finish to the year with consolidated fourth quarter results that exceeded our expectations. For the quarter, Ocean Transportation operating income approached the level achieved in the prior year period primarily due to higher than expected freight rates and volume in our China service driven by strong e-commerce and e-goods demand. Our China service benefited from strong freight demand in our key customer segments as well as a more stable trading environment in the Transpacific tradelane as a result of the U.S.-China trade and economic deal announced on October 30, 2025, which reduced uncertainty regarding tariffs, port entry fees, global trade and other geopolitical factors.”
Matson CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Matson expects Ocean Transportation operating income of approximately $50 million (below Q1 2025's $82.1 million) due to lower China service volume, and Logistics operating income to be modestly lower than the $8.5 million achieved in Q1 2025. For full year 2026, the company expects consolidated operating income to approach the $499.8 million achieved in 2025, with Ocean Transportation operating income approaching $455.6 million and Logistics operating income approaching $44.2 million. The company expects a more normal seasonality pattern in 2026 with Q2 and Q3 being the strongest quarters. Full-year 2026 guidance includes: depreciation and amortization of approximately $210 million (including $35 million dry-docking), interest income of approximately $15 million, interest expense of approximately $6 million, other income of approximately $7 million, and an effective tax rate of approximately 21.0%. Capital expenditures are expected to be $575-$595 million in 2026, including approximately $425 million for new vessel construction. China service full-year volume is expected to be modestly higher than 2025, while Hawaii, Alaska, and Guam volumes are expected to be comparable to 2025 levels.
MATX YoY Financials
MATX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.