Matson : Presentation (1Q26 Earnings Presentation FINAL FOR DISTRIBUTION)
MATX
Published on 05/04/2026 at 05:09 pm EDT
1Q 2026 Earnings Conference Call May 4, 2026
1Q26 results:
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 YoY volume in Hawaii and Alaska
Logistics operating income was lower YoY primarily due to a lower contribution from supply chain management
To date, the Iran conflict has not impacted our operating performance or service levels;
however, it has impacted fuel prices in all our markets
While we have effective mechanisms to recover the cost of fuel by the end of the year, for 2Q26 we expect a negative impact from the lag in the recovery of fuel costs
Lastly, we are raising our full year Outlook for consolidated operating income and now
expect to modestly exceed the level achieved in 2025
The primary driver behind raising Outlook is the strengthening of freight demand in our China service post-Lunar New Year that we expect to continue through peak season
Container volume decreased 5.6% YoY primarily due to:
Lower general demand
Dry-docking of a competitor's vessel
in the year ago period
40,000
38,000
36,000
34,000
32,000
Expect volume to be comparable to the
level achieved in 2025 reflecting:
Similar economic conditions as 2025
Stable market share
30,000
28,000
26,000
24,000
Q1 Q2 Q3 Q4
Unemployment Rate and Visitor Arrivals by Air
2026P
2027P
2028P
1,000
Real GDP
1.6%
1.4%
1.3%
900
Construction Jobs Growth
1.9%
0.1%
(0.8)%
800
Population Growth
0.0%
(0.1)%
0.0%
700
Unemployment Rate
2.3%
2.3%
2.3%
4.5%
4.0%
3.5%
Unemployment Rate
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0%
600
500
400
300
200
100
Jan-22 Mar-22 May-22 Jul-22 Sep-22 Nov-22 Jan-23 Mar-23 May-23 Jul-23 Sep-23 Nov-23 Jan-24 Mar-24 May-24 Jul-24 Sep-24 Nov-24 Jan-25 Mar-25 May-25 Jul-25 Sep-25 Nov-25 Jan-26
0
Hawaii Unemployment Rate (not seasonally adjusted) (1)
Hawaii Visitor Arrivals by Air (1)
Maui Visitor Arrivals by Air (2)
Visitor Arrivals ('000s)
% change
9,586.2
(0.6)%
9,741.2 10,020.1
1.6% 2.9%
Visitor Arrivals ('000s)
According to UHERO, Hawaii's economy is
expected to experience modest growth
Supported by construction activity
Tourism remains soft
Visitor arrivals expected to decline in 2026 before recovering in 2027
Source: https://files.hawaii.gov/dbedt/economic/data_reports/mei/2026-02-state.xlsx
Source: https://files.hawaii.gov/dbedt/economic/data_reports/mei/2026-02-maui.xlsx
- Inflationary pressures persist
Source: https://uhero.hawaii.edu/wp-content/uploads/2026/02/UHEROForecastForTheStateOfHawaii26Q1.pdf
1Q26 Performance Container Volume(1) (FEU Basis)
Container volume decreased 9.5% YoY
- Primarily due to lower general demand from a more traditional Lunar New Year freight cycle
38,000
33,000
28,000
23,000
18,000
13,000
Includes containers from China and other Asia origins.
8,000
Q1 Q2 Q3 Q4
In 1Q26, we did not see a traditional bump in demand prior to Lunar New Year. Post holiday, the freight demand exceeded our expectations and was driven by:
Higher demand across several of our key market segments such as e-commerce,
e-goods, and garments
Continued air-to-ocean freight conversions
Further growth and penetration into Southeast Asia ports
In 1Q26, we saw strong volume from our feeder network in Vietnam and Thailand
Overall, the uptick in freight demand we saw post-Lunar New Year has continued to build in 2Q26 as demand strengthens and volume returns to a more traditional seasonal pattern
We remain focused on maximizing the yield on every sailing out of Shanghai
We expect 2Q26 container volume to be higher compared to the prior year period, which included a market decline in Transpacific demand due to the tariffs imposed in April 2025
For full year 2026, we expect container volume to be moderately higher than the level achieved in 2025
Expect demand strength in 2Q26 to continue through peak season
Container volume was flat YoY
Expect Guam's economy to remain stable
Expect volume to be comparable to the level achieved last year
6,000
5,500
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Q1 Q2 Q3 Q4
Container volume decreased 2.0% YoY
primarily due to:
Lower general demand
Partially offset by an additional northbound sailing and an additional AAX sailing compared to the year ago period
24,000
22,000
20,000
18,000
16,000
Expect continued economic growth in Alaska supported by a low unemployment rate, jobs growth and continued oil and gas exploration and production activity
Expect volume to be comparable to the level achieved last year
14,000
12,000
10,000
Q1 Q2 Q3 Q4
Terminal joint venture contribution was
$5.0 million; YoY decrease of $1.6 million
Primarily due to lower lift volume
$10.0
$9.0
$8.0
$7.0
$6.0
$5.0
$4.0
Expect the contribution from SSAT to be lower than the $32.5 million achieved in full year 2025
$3.0
$2.0
$1.0
$0.0
Q1 Q2 Q3 Q4
Operating income of $6.8 million; YoY decrease of $1.7 million
Primarily due to a lower contribution from supply chain management
$16.0
$14.0
$12.0
$10.0
$8.0
$6.0
Expect operating income to approach the
level achieved in full year 2025
$4.0
$2.0
$0.0
Q1 Q2 Q3 Q4
We expect fuel price volatility to impact our near-term earnings due to a timing lag between when we incur fuel costs and when we can fully recover these costs
Our mechanisms are very effective at recovering the cost of fuel over time
Historically in our maritime business, we have been successful in recouping the cost of fuel within any calendar year, although fluctuations can occur between quarters
In 1Q26, the impact was not material as we experienced escalating fuel prices only during the last few weeks of the quarter
For 2Q26, we expect to lag in the recovery of fuel costs, but we expect to fully recover our fuel costs by the end of the year with most of the recovery occurring in 3Q26
These expectations regarding the impact of fuel costs and the recoverability of these costs have been factored into our Outlook
First Quarter
Quarter Ended 3/31 Δ
($ in millions, except per share data)
2026
2025
$
%
Revenue
Ocean Transportation
$606.5
$637.4
($30.9)
(4.8)%
Logistics
151.3
144.6
6.7
4.6%
Total Revenue
$757.8
$782.0
($24.2)
(3.1)%
Operating Income
Ocean Transportation
$54.6
$73.6
($19.0)
(25.8)%
Logistics
6.8
8.5
(1.7)
(20.0)%
Total Operating Income
$61.4
$82.1
($20.7)
(25.2)%
Interest income
6.1
9.4
(3.3)
(35.1)%
Interest expense, net
(1.6)
(1.7)
0.1
(5.9)%
Other income (expense), net
2.0
2.4
(0.4)
(16.7)%
Income taxes
(11.3)
(19.9)
8.6
(43.2)%
Net Income
$56.6
$72.3
($15.7)
(21.7)%
Weighted Average Number of Shares Outstanding (diluted)
30.6
33.2
(2.6)
(7.8)%
GAAP EPS, diluted
$1.85
$2.18
($0.33)
(15.1)%
Depreciation and Amortization (incl. drydock amortization)
$49.9
$47.2
$2.7
5.7%
EBITDA
$113.3
$131.7
($18.4)
(14.0)%
See the Appendix for a reconciliation of GAAP to non-GAAP Financial Metrics.
Strong cash flow from operations more than supports maintenance capex, dividends, and share repurchases
$600.0
Maint. Capex
$156.9
$500.0
$552.1
$490.7
$400.0
$300.0
$200.0
$100.0
Dividends
Share
Repurchases
$289.2
$44.6
$0.0
Cash Flow from Operations Sum of Maintenance Capex,
Dividends, and Share Repurchases
Note: Other sources and uses of cash include the Capital Construction Fund (including cash deposits and interest income on cash deposits and fixed-income securities in the Capital Construction Fund, net of withdrawals for milestone payments), paydown of borrowings (net), new vessel construction capex (including capitalized interest and owner's items), and other cash flow statement line items.
March 31, December 31,
($ in millions)
2026
2025
ASSETS
Cash and cash equivalents
$100.1
$141.9
Other current assets
336.3
330.0
Total current assets
436.4
471.9
1Q26: approximately 0.4 million shares repurchased for total cost of $54.4 million(1)
Investment in SSAT
101.5
96.2
•
Property and equipment, net
2,510.6
2,499.4
Intangible assets, net
143.5
146.6
Capital Construction Fund (CCF)
521.5
532.7
Goodwill
327.8
327.8
Other long-term assets
541.7
561.0
On April 23rd, announced addition of 3.0 million shares to our existing share repurchase authorization
Total assets $4,583.0 $4,635.6
Current portion of debt
$39.7
$39.7
Other current liabilities
490.2
487.7
Total current liabilities
529.9
527.4
Long-term debt, net of deferred loan fees
302.2
312.1
Other long-term liabilities
1,020.8
1,037.1
Total long-term liabilities
1,323.0
1,349.2
Total shareholders' equity
2,730.1
2,759.0
Total liabilities and shareholders' equity
$4,583.0
$4,635.6
LIABILITIES AND SHAREHOLDERS' EQUITY
Total Debt of $351.1 million(2)
- Decreased by $10.1 million in 1Q26
Includes stock repurchased during the quarter but not settled and taxes on share repurchases that will be paid after the quarter end.
Total Debt is presented before any reduction for deferred loan fees as required by GAAP.
Ocean Transportation To be approximately $20 million
Operating Income higher than the $98.6 million
achieved in 2Q25
Logistics To approach the $14.4 million
Operating Income achieved in 2Q25
Consolidated To be approximately $20 million
Operating Income higher than the $113.0 million
achieved in 2Q25
Ocean Transportation To modestly exceed the $455.6
Operating Income million achieved in 2025
Logistics To approach the $44.2 million
Operating Income achieved in 2025
Consolidated To modestly exceed the $499.8
Operating Income million achieved in 2025
For full year 2026, we expect:
The strengthening of freight demand in our China service post-Lunar New Year continues through peak season
Recovery of fuel costs by the end of the year with
most of the recovery occurring in 3Q26
A more normal operating seasonality pattern with consolidated operating income in 2Q26 and 3Q26 being the strongest relative to 1Q26 and 4Q26
For 2Q26, we expect:
- A negative impact from the lag in the recovery of fuel costs
Depreciation and Amortization
Approx. $210 million, including approx. $35 million in dry-docking amortization
Interest Income
Approximately $16 million
Interest Expense, Net(1)
Approximately $6 million
Other Income
(Expense)
Approximately $7 million
GAAP Effective Tax Rate
Approximately 21.0%
Dry-Docking Payments
Approximately $45 million
Interest expense excludes capitalized interest.
($ in millions)
FY 2026
Comments
Expected New vessel construction milestone payments and related costs
$400
Expected Maintenance and other capital expenditures
$150 - $170
Total
$550 - $570
Includes owner's items and capitalized interest expense
2026 capex includes approximately:
Approx. $20 million in equipment lease buyouts
Approx. $30 million more than normal in new equipment purchases due to current low prices
New Vessel Construction Milestone Payments ($ in millions)
2Q26
Approximately $213
3Q26
Approximately $34
4Q26
Approximately $110
Total
Approximately $357
CCF(2)
Approximately $522
Cash and Cash Equivalents(2)
Approximately $100
Paid approximately $16 million in milestone payments in 1Q26 from Capital Construction Fund (CCF)
Cash and cash equivalents and CCF combined exceed our remaining milestone payments
- CCF covers approximately 93% of our remaining milestone payment obligations(1)
We continue to expect our three vessels to be delivered in 1Q27, 3Q27, and 2Q28
Excludes future interest income and accretion earned on cash deposits and Treasury securities.
As of March 31, 2026.
We continue to navigate a period of geopolitical tension and uncertainty
While we've seen higher fuel prices, we are confident in our ability to recover our
increased fuel costs
Our focus is on what we can control, which is to put our customers first, maintain
operational excellence, and uphold our high standard of service
We remain confident in the demand consistency of our businesses
In our domestic tradelanes, we provide a vital lifeline to the communities we serve
In our China service, our value proposition is differentiated based on speed, reliability and
schedule integrity
Building on these strengths, we have successfully moved with our customers into Southeast Asia markets to extend our geographic reach and diversify our origination ports
Our China service has also become an important means for our e-commerce customers to meet the increasing consumer demand in the U.S., and we continue to expect ecommerce to be a long-term driver of growth for our CLX and MAX services
We remain disciplined in our return of capital to shareholders
Appendix
Matson reports financial results in accordance with U.S. generally accepted accounting principles ("GAAP"). The Company also considers other non-GAAP measures to evaluate performance, make day-to-day operating decisions, help investors understand our ability to incur and service debt and to make capital expenditures, and to understand period-over-period operating results separate and apart from items that may, or could, have a disproportional positive or negative impact on results in any particular period. These non-GAAP measures include, but are not limited to, Earnings Before Interest, Income Taxes, Depreciation and Amortization ("EBITDA").
20 1Q 2026 Earnings Conference Call
Disclaimer
Matson Inc. published this content on May 04, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 04, 2026 at 21:01 UTC.