Matthews International : Call Presentation Q2 2026

Published: 2026-04-30 20:08:13 ET MATW

Published on 04/30/2026 at 08:08 pm EDT

www.matw.com | Nasdaq: MATW

Second Quarter Fiscal 2026 Earnings Review

May 1, 2026

Joseph C. Bartolacci

President and Chief Executive Officer

Daniel E. Stopar

Chief Financial Officer and Treasurer

BUSINESS OVERVIEW

MEMORIALIZATION

Benefits from ongoing cost reduction initiatives and inflationary price realization

Benefits from acquisition of The Dodge Company

Sales volumes of caskets and cemetery memorials declined due to lower estimated U.S. casketed death rate

INDUSTRIAL TECHNOLOGIES

Divestiture of Warehouse business on December 31, 2025

First commercial sales of MPERIA® Axian Inkjet (XIJ) in Product Identification

Engineering business remains challenged by the impact of the Tesla litigation

BRAND SOLUTIONS

Divestiture of SGK Business completed on May 1, 2025

Divestiture of the European roto-gravure packaging business completed on December 1, 2025

Propelis continues to report solid operating results since the date of the acquisition

Maintaining adjusted EBITDA guidance of $180 million (including our estimated 40% share of Propelis and income from preferred equity investment in Propelis)

Memorialization expected to continue delivering modest year to year sales growth

Conditions for engineering business remain challenging and dependent on winning substantial new orders

Propelis expected to execute and realize significant cost synergies during the remainder of the year

Strategic alternative review process remains ongoing

FINANCIAL OVERVIEW

($ in millions except per-share amounts)

Q2 2025

Q2 2026

Sales

$ 427.6

$ 258.6

Diluted (L)PS

$ (0.29)

$ (0.69)

Non-GAAP Adjusted EPS*

$ 0.34

$ 0.37

Net Loss Attributable to Matthews

$ (8.9)

$ (21.8)

Adjusted EBITDA*

$ 51.4

$ 44.7

YTD 2025

YTD 2026

Sales

$ 829.5

$ 543.4

Diluted (L)EPS

$ (0.40)

$ 0.69

Non-GAAP Adjusted EPS*

$ 0.48

$ 0.18

Net (Loss) Income Attributable to Matthews

$ (12.4)

$ 21.8

Adjusted EBITDA*

$ 91.4

$ 80.0

YTD

2nd Quarter ("Q2") Highlights Sales

Acquisition of The Dodge Company

Lower energy storage sales

Divestitures of SGK (May 2025), Warehouse Automation (December 2025), and European rotogravure packaging and tooling (December 2025)

GAAP EPS

Loss on debt extinguishment

Lower interest expense and higher other income

Lower acquisition and divestiture costs

Adjusted EBITDA

Divestitures of SGK (May 2025), Warehouse Automation (December 2025), and European rotogravure packaging and tooling (December 2025)

Decrease in the Industrial Technologies and Brand Solutions segments

Increase in the Memorialization segment

Lower corporate and other non-operating cost

Adjusted EPS

Lower interest expense

Lower corporate costs

Lower operating results

* See supplemental slides for Adjusted EPS and Adjusted EBITDA reconciliations and other important disclaimers regarding Matthews' use of Non-GAAP measures

($ in millions) Q2 Sales

$205.6 $215.3

Q2 FY2025 Q2 FY2026

YTD Sales

Sales

•

Acquisition of The Dodge Company

Lower unit sales of caskets and cemetery memorials

Lower sales of cremation equipment and mausoleums

Price realization to mitigate cost increases

Adjusted EBITDA

•

Acquisition of The Dodge Company

Cost-savings

initiatives

and

price

realization to mitigate cost increases

Lower volume and higher material, labor, and other production costs

$396.1 $419.4

FY2025 FY2026

Q2 Adjusted EBITDA & Margin*

YTD Adjusted EBITDA & Margin*

20.6%

20.9%

$87.8

21.9%

22.7%

$45.0

$48.8

$81.7

Q2 FY2025 Q2 FY2026 FY2025 FY2026

* See supplemental slide for Adjusted EBITDA reconciliation and other important disclaimers regarding Matthews' use of Non-GAAP measures

Sales

•

Lower energy storage sales

Divestitures of Warehouse Automation and European tooling businesses (December 2025)

Engineering sales impacted by customer delays

Higher Product Identification sales Favorable currency impacts of $3.1 million for Q2 and $6.0 million YTD

Adjusted EBITDA

•

Divestitures of Warehouse Automation and

European tooling businesses (December 2025)

Lower Engineering sales and margins Lower Product Identification margins Cost-reduction initiatives and lower performance-based compensation

($ in millions)

$80.8

Q2 Sales

$161.4

YTD Sales

$43.4

$112.4

Q2 FY2025 Q2 FY2026

Q2 Adjusted EBITDA & Margin*

7.5%

(7.6)%

$6.0

$(3.3)

Q2 FY2025 Q2 FY2026

FY2025 FY2026

YTD Adjusted EBITDA & Margin*

$7.9

4.9%

(6.9)%

$(7.8)

FY2025 FY2026

* See supplemental slide for Adjusted EBITDA reconciliation and other important disclaimers regarding Matthews' use of Non-GAAP measures

($ in millions)

$141.2

Q2 Sales

$272.0

YTD Sales

$11.6

Q2 FY2025 Q2 FY2026

Q2 Adjusted EBITDA*

$15.6

FY2025 FY2026

YTD Adjusted EBITDA*

$22.3

$27.9

$9.6

Q2 FY2025 Q2 FY2026 FY2025 FY2026

Sales

•

Divestitures of SGK (May 2025) and

European rotogravure packaging (December 2025)

Adjusted EBITDA

•

Divestitures of SGK (May 2025) and

European rotogravure packaging (December 2025)

Company's portion (40% ownership interest) of Propelis' adjusted EBITDA

recognized on 3 month lag

* See supplemental slide for Adjusted EBITDA reconciliation and other important disclaimers regarding Matthews' use of Non-GAAP measures

($ in millions)

$710.8

Total Debt and Net Debt*

$579.2

$543.2

$678.4

Operating Cash Flow

09/30/25 03/31/26

Note: Dark gray shades on the left represent Total Debt.

Cash

$(67.4)

$(18.7)

YTD FY2025 YTD FY2026

$32.4

$36.1

•

YTD cash flows reflected costs related to divestitures, legal costs,

Tesla disputes, and restructuring actions

Outstanding debt reduced $132 million FY26 YTD, utilizing proceeds from divestitures

First half reflects recurring annual payments and seasonally lower earnings

Quarterly dividend of $0.255/share, payable 5/25/2026

9/30/25 03/31/26

* See supplemental slide for Net Debt reconciliation and other important disclaimers regarding Matthews' use of Non-GAAP measures

SUPPLEMENTAL INFORMATION

Included in this report are measures of financial performance that are not defined by GAAP, including, without limitation, adjusted EBITDA, adjusted net income and EPS, constant currency sales, and constant currency adjusted EBITDA, and net debt. The Company uses non-GAAP financial measures to assist in comparing its performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect the Company's core operations including acquisition and divestiture costs, ERP system integration costs, strategic initiative and other charges (which includes non-recurring charges related to certain commercial and operational initiatives and exit activities), stock-based compensation and the non-service portion of pension and postretirement expense. Constant currency sales and constant currency adjusted EBITDA removes the impact of changes due to foreign exchange translation rates. To calculate sales and adjusted EBITDA on a constant currency basis, amounts for periods in the current fiscal year are translated into U.S. dollars using exchange rates applicable to the comparable periods of the prior fiscal year. Management believes that presenting non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items that management believes do not directly reflect the Company's core operations, (ii) permits investors to view performance using the same tools that management uses to budget, forecast, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company's results. The Company's calculations of its non-GAAP financial measures, however, may not be comparable to similarly titled measures reported by other companies. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provided herein, provide investors with an additional understanding of the factors and trends affecting the Company's business that could not be obtained absent these disclosures.

NON-GAAP RECONCILIATION (Unaudited) (In thousands)

Three Months Ended March 31, Six Months Ended March 31, 2026 2025 2026 2025

Net (loss) income

$ (21,834)

$ (8,916)

$ 21,795

$ (12,388)

Income tax (benefit) provision

(6,217)

(2,728)

34,572

(5,086)

(Loss) income before income taxes

$ (28,051)

$ (11,644)

$ 56,367

$ (17,474)

Propelis depreciation, amortization, interest and other items (1)

18,776

33,979

Interest expense, including RPA and factoring financing fees (2)

10,424

17,010

25,725

33,864

Loss on debt extinguishment

16,343

Depreciation and amortization *

11,508

18,231

24,204

40,735

Acquisition and divestiture related items (3)**

194

13,701

1,312

14,278

Strategic initiatives and other items (4)**†

6,394

5,373

21,644

5,988

Gains (losses) on divestitures, net

3,945

2,072

(109,264)

2,072

Highly inflationary accounting losses (primarily non-cash) (5)

520

711

Stock-based compensation

5,136

6,018

9,543

10,997

Non-service pension and postretirement expense (6)

133

113

266

Total Adjusted EBITDA

$ 44,744

$ 51,414

$ 79,982

$ 91,437

Adjusted EBITDA margin

17.3 %

12.0 %

14.7 %

11.0 %

(1) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis.

(2) Includes fees for receivables sold under the RPA and factoring arrangements totaling $382 and $1,145 for the three months ended March 31, 2026 and 2025, respectively and $1,050 and $2,317 for the six months ended March 31, 2026 and 2025, respectively.

(3) Includes certain non-recurring items associated with recent acquisition and divestiture activities.

(4) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled $2,175 and

$1,757 for the three months ended March 31, 2026 and 2025, respectively and $11,172 and $8,624 for the six months ended March 31, 2026 and 2025, respectively. Fiscal 2025 includes costs related to the Company's 2025 contested proxy which totaled $4,538 for the three months ended March 31, 2025 and $4,902 for the six months ended March 31, 2025. Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $8,655 for the six months ended March 31, 2025. Fiscal 2025 also includes loss recoveries totaling

$1,170 for the six months ended March 31, 2025 which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015.

5) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries.

(6) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.

* Depreciation and amortization was $8,041 and $7,170 for the Memorialization segment, $2,966 and $5,644 for the Industrial Technologies segment, and $501 and $699 for Corporate and Non-Operating, for the three months ended March 31, 2026 and 2025, respectively. Depreciation and amortization was $16,188 and $14,372 for the Memorialization segment, $6,444 and $11,318 for the Industrial Technologies segment, $609 and $13,578 for the Brand Solutions segment, and $963 and $1,467 for Corporate and Non-Operating, for the six months ended March 31, 2026 and 2025, respectively. Depreciation and amortization was $4,718 for the Brand Solutions segment for the three months ended March 31, 2026.

** Acquisition costs, ERP system integration costs, and strategic initiatives and other charges were $380 and $2,410 for the Memorialization segment, $2,739 and $192 for the Industrial Technologies segment, income of $91 and charges of $416 for the Brand Solutions segment, and $3,560 and $16,056 for Corporate and Non-Operating, for the three months ended March 31, 2026 and 2025, respectively. Acquisition costs, ERP system integration costs, and strategic initiatives and other charges were $449 and $3,713 for the Memorialization segment, $13,092 and $4,311 for the Industrial Technologies segment, $3,402 and $1,130 for the Brand Solutions segment, and $6,013 and $11,112 for Corporate and Non-Operating, for the six months ended March 31, 2026 and 2025, respectively.

† Strategic initiatives and other items includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling expenses of $782 and income of $2,471 for the three months ended March 31, 2026 and 2025, respectively, and

*exSpeeensDesisocfla$i2m,3e0r5(apnadgienc2o)mfoe roMf $a1n,a30g5emforetnhte'ssiaxsmseonstshms eenndt eodf Msuaprcphle3m1,e2n0t2a6l iannfdor2m02a5ti,ornesrpeelacttievedlyt.o adjusted EBITDA.

NON-GAAP RECONCILIATION (Unaudited) (In thousands, except per share data)

Three Months Ended March 31,

Six Months Ended March 31,

2026 2025 2026 2025

per share per share per share per share

Net (loss) income attributable to Matthews

$ (21,834) $

(0.69)

$ (8,916) $

(0.29)

$ 21,795

$ 0.69

$ (12,388) $

(0.40)

Acquisition and divestiture costs (1)

179

0.01

12,353

0.40

956

0.04

12,708

0.41

Strategic initiatives and other charges (2)

4,945

0.15

3,197

0.11

17,514

0.55

3,901

0.13

(Gain) loss on divestitures, net

3,844

0.13

(68,451)

(2.16)

Highly inflationary accounting losses (primarily non-cash) (3)

520

0.01

711

0.02

Non-service pension and postretirement expense (4)

0.01

199

0.01

Amortization

2,006

0.06

3,210

0.10

4,230

0.13

9,666

0.31

Loss on debt extinguishment

12,242

0.39

12,242

0.39

Propelis amortization and other unusual items (5)

10,209

0.32

17,250

0.54

Adjusted net income

$ 11,648 $ 0.37

$ 10,463 $ 0.34

$ 5,637 $ 0.18

$ 14,797 $ 0.48

Note: Adjustments to net income for non-GAAP reconciling items were calculated using an income tax rate of 21.1% and 50.6% for the three and six months ended March 31, 2026, respectively, and 25.7% and 24.9% for the three and six months ended March 31, 2025, respectively.

(1) Includes certain non-recurring items associated with recent acquisition and divestiture activities.

(2) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled $2,175 and $1,757 for the three months ended March 31, 2026 and 2025, respectively and $11,172 and $8,624 for the six months ended March 31, 2026 and 2025, respectively. Fiscal 2025 includes costs related to the Company's 2025 contested proxy which totaled $4,538 for the three months ended March 31, 2025 and $4,902 for the six months ended March 31, 2025. Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $8,655 for the six months ended March 31, 2025. Fiscal 2025 also includes loss recoveries totaling $1,170 for the six months ended

March 31, 2025 which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015.

(3) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries.

(4) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.

(5) Represents the Company's portion of amortization and other items incurred by Propelis.

* See Disclaimer (page 2) for Management's assessment of supplemental information related to adjusted net income and adjusted EPS.

NON-GAAP RECONCILIATION (Unaudited) (In thousands)

Memorialization Industrial Technologies Brand Solutions

Corporate and Non-

Operating Consolidated

Reported sales for the quarter ended March 31, 2026 $ 215,257 $ 43,362 $ - $ - $ 258,619

Changes in foreign exchange translation rates (1,031) (3,104) (804) - (4,939)

Constant currency sales for the quarter ended March 31, 2026 $ 214,226 $ 40,258 $ (804) $ - $ 253,680

Reported sales for the six months ended March 31, 2026 $ 419,432 $ 112,377 $ 11,573 $ - $ 543,382

Changes in foreign exchange translation rates (1,515) (5,978) - - (7,493)

Constant currency sales for the six months ended March 31, 2026

417,917 $

106,399 $

11,573 $

- $

535,889

Reported adjusted EBITDA for the quarter ended March 31, 2026 $ 48,831 $ (3,313) $ 9,615 $ (10,389) $ 44,744

Changes in foreign exchange translation rates (132) 145 118 (5) 126

Constant currency adjusted EBITDA for the quarter ended

March 31, 2026

48,699 $

(3,168) $

9,733 $

(10,394) $

44,870

Reported adjusted EBITDA for the six months ended March 31,

2026

87,780 $

(7,771) $

22,309 $

(22,336) $

79,982

Changes in foreign exchange translation rates (167) 429 63 (70) 255

Constant currency adjusted EBITDA for the six months ended

March 31, 2026

87,613 $

(7,342) $

22,372 $

(22,406) $

80,237

* See Disclaimer (page 2) for Management's assessment of supplemental information related to constant currency sales and constant currency adjusted EBITDA.

NON-GAAP RECONCILIATION (Unaudited) (Dollars in thousands)

March 31, 2026 December 31, 2025 September 30, 2025

Long-term debt, current maturities

7,298

7,271

7,230

Long-term debt

571,950

529,756

703,602

Total debt

579,248

537,027

710,832

Less: Cash and cash equivalents

(36,088)

(31,357)

(32,433)

Net Debt

543,160

505,670

678,399

* See Disclaimer (page 2) for Management's assessment of supplemental information related to net debt.

Disclaimer

Matthews International Corporation published this content on April 30, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2026 at 23:48 UTC.