Matson Inc
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.90%.
Did MATX Beat Earnings? Q1 2026 Results
Matson delivered a stronger-than-expected bottom line in Q1 2026, with diluted EPS of $1.85 beating the $1.61 consensus estimate by 15.14%, even as revenue of $757.80 million came in 2.54% below expectations and declined 3.1% year over year. The primary drag on results was the Ocean Transportation segment, where a 9.5% drop in China service container volume, tied to a more traditional Lunar New Year freight cycle, weighed on operating income, which fell 25.8% to $54.60 million. Net income declined 21.7% to $56.60 million, while consolidated operating income slipped 25.2% to $61.40 million versus the year-ago period. Despite the softness, management raised its full-year 2026 outlook, now expecting consolidated operating income to modestly exceed the $499.80 million achieved in 2025, with Q2 2026 operating income anticipated to run roughly $20.00 million above the prior year's $113.00 million, though a near-term headwind from lagging fuel cost recovery is expected to weigh on Q2 before largely reversing in Q3. Several insiders sold shares in the days following the report, adding a note of caution to an otherwise upbeat guidance narrative.
- Higher-than-expected post-Lunar New Year freight demand in China service
- Lower general demand and prior-year competitor dry-docking in Hawaii service
- Lower supply chain management contribution impacting Logistics operating income
- Lower SSAT joint venture contribution due to lower lift volume
- Higher transportation brokerage revenue in Logistics
- Iran conflict impacting fuel prices across all markets
“In the first quarter 2026, Ocean Transportation operating income exceeded our expectations primarily due to higher freight demand post-Lunar New Year in our China service. In our domestic tradelanes, we saw lower year-over-year volume in Hawaii and Alaska. In Logistics, operating income in the first quarter was lower year-over-year, primarily due to a lower contribution from supply chain management.”
Matson CEO, on the earnings call
Forward Guidance & Outlook
Matson raised its full year 2026 outlook. For full year 2026, the company expects consolidated operating income to modestly exceed the $499.8 million achieved in 2025, with Ocean Transportation operating income to modestly exceed $455.6 million and Logistics operating income to approach $44.2 million. For Q2 2026, consolidated operating income is expected to be approximately $20 million higher than the $113.0 million achieved in Q2 2025. The company expects a negative Q2 impact from lagging fuel cost recovery but full recovery by year-end with most occurring in Q3. Normal operating seasonality is expected with Q2 and Q3 being the strongest quarters. Full year D&A expected at approximately $210 million (including ~$35 million dry-docking amortization), interest income ~$16 million, interest expense ~$6 million, other income ~$7 million, and effective tax rate of approximately 21.0%. Capital expenditures expected at $550-$570 million including ~$400 million in new vessel construction.
MATX YoY Financials
MATX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.