Core Insights - The ongoing strategic review has led to significant divestitures, simplifying Matthews' business mix and strengthening its balance sheet [1][2][3] - The company has received another notice of director nominations from Barington Capital, following an unsuccessful proxy contest in 2025 [1][10] - Shareholder proposals for the upcoming 2026 Annual Meeting will include board declassification and majority voting [10][11] Strategic Initiatives - The Board engaged J.P. Morgan in November 2024 to assist with a review of strategic alternatives, leading to decisive actions to enhance shareholder value [2] - Recent divestitures are aimed at reducing debt towards a long-term net leverage ratio goal of 2.5x [3] - The company is focusing on growth in the Memorialization and energy storage solutions markets, leveraging competitive technologies [3] Financial Performance - Recent fourth quarter earnings showed higher EBITDA and adjusted EPS compared to the previous year, excluding the impact of the SGK divestiture [5] - The Memorialization segment reported increased revenues and adjusted EBITDA year-over-year [5] - The company reduced total debt by $65.6 million during the fiscal year and returned over $12 million in share repurchases and $32 million in dividends [8] Recent Transactions - The sale of SGK Brand Solutions to Propelis generated $350 million in upfront consideration and a 40% stake in Propelis [6] - The Warehouse Automations business was sold to Duravant for $230 million, with cash consideration of $223.3 million [6] - Other transactions include the acquisition of The Dodge Company and pending sales of European packaging and tooling businesses [6] Board and Governance - The Board has been refreshed with four new directors since 2023, enhancing its expertise and experience [9] - The company has engaged constructively with Barington, despite the latter's attempts to run a proxy contest [9][13] - Shareholders are not required to take action at this time regarding the upcoming Annual Meeting [11]

Financial Performance - In fiscal 2025, consolidated sales reached $1,795,737,000, a decrease of 4.5% from $1,880,896,000 in 2023[15] - The Memorialization segment generated sales of $809,514,000 in 2025, down from $842,997,000 in 2023, reflecting a decline of 3.9%[15] - Industrial Technologies sales were $342,229,000 in 2025, a significant drop of 32.3% from $505,751,000 in 2023[15] - Brand Solutions segment sales decreased to $345,946,000 in 2025 from $532,148,000 in 2023, marking a decline of 34.9%[15] - The Company generated approximately 30% of its sales from international markets in fiscal 2025, indicating a strong reliance on non-U.S. revenue sources[67] - Adjusted EBITDA for fiscal 2025 was $187.5 million, compared to $205.2 million in fiscal 2024, reflecting declines across segments[174] - The net loss for fiscal 2025 was $24.5 million, an improvement from a net loss of $59.7 million in fiscal 2024[184] - Gross profit for fiscal 2025 was $507.6 million, down from $529.7 million in fiscal 2024, influenced by lower sales and higher material costs[171] - Selling and administrative expenses for fiscal 2025 were $467.2 million, a decrease from $488.3 million in fiscal 2024, but as a percentage of sales, they increased to 31.2% from 27.2%[173] Segment Performance - The Memorialization segment is a leading manufacturer of caskets and related funeral home products, with a comprehensive product line to meet diverse customer needs[21][32] - The Industrial Technologies segment includes high-tech custom energy storage solutions and warehouse automation technologies, catering to major vehicle producers and tier 1 battery manufacturers[35][36] - Memorialization segment adjusted EBITDA increased to $169.5 million in fiscal 2025 from $162.6 million in fiscal 2024, driven by improved price realization[174] - Industrial Technologies segment adjusted EBITDA decreased to $27.9 million in fiscal 2025 from $39.7 million in fiscal 2024, primarily due to lower sales[174] - Brand Solutions segment adjusted EBITDA dropped to $40.3 million in fiscal 2025 from $61.6 million in fiscal 2024, impacted by the divestiture of the SGK Business[174] Market and Economic Conditions - The U.S. government announced a 10% tariff on product imports from almost all countries effective April 2, 2025, which could adversely affect the Company's operating results[76] - Changes in mortality and cremation rates may impact the Company's cash flows and revenues, with an expected increase in cremation rates benefiting the Memorialization segment[80] - The Company faces competitive pressures, including increased offshore manufacturing, primarily from China, which may affect future results[81] - The Company is subject to various risks related to economic conditions, which could negatively impact sales volume and revenues due to factors like consumer confidence and global pandemics[109] Legal and Regulatory Risks - The Company is facing significant legal challenges from Tesla, including allegations of trade secret misappropriation and breach of contract, which could adversely affect its financial condition and operating results[93] - The Company does not expect ongoing legal matters to have a material adverse effect on its financial condition or results of operations[142] - The Company is subject to extensive environmental laws and regulations, which may lead to unforeseen expenses and liabilities that could materially affect its business[96] - Compliance with data privacy laws such as GDPR and CCPA may incur substantial operational costs and could result in significant penalties if not adhered to[101] - The Company operates in a regulated environment, and non-compliance with laws could result in sanctions that materially affect its business[103] Supply Chain and Operational Challenges - The Company relies on limited suppliers for critical components, which may lead to supply chain disruptions and increased costs[83] - Customer delays in the energy storage business have impacted project timing and invoicing delays[211] - Labor shortages and increased labor costs could adversely affect the Company's operations and financial results[111] - The Company relies on third-party providers for critical IT services, and any failure in these services could disrupt operations and harm its business[99] Intellectual Property and Technology - The Company holds over 100 domestic and foreign patents, continuously assessing and expanding its intellectual property portfolio[48] - The Company is actively pursuing additional patent filings and developing processes to safeguard its trade secrets and intellectual property assets[48] - The Company must keep pace with technological changes to maintain its competitive position, and failure to do so may hinder its ability to develop and market new products[100] - The Company has established an Artificial Intelligence Council to ensure ethical and effective use of AI across its business[128] Financial Position and Capital Management - The Company has $300.0 million in 8.625% senior secured second lien notes due October 1, 2027, which may face refinancing challenges due to higher interest rates[74] - Cash used in financing activities for the year ended September 30, 2025, was $144.3 million, significantly higher than $35.0 million in 2024 and $50.2 million in 2023, primarily due to long-term debt repayments of $67.0 million[190] - The Company has a stock repurchase program with an authorization for an additional 5,000,000 shares during fiscal year 2025, with 5,043,567 shares remaining available for repurchase as of September 30, 2025[153] - The Company has 1,250,000 shares remaining for sale under its At-The-Market equity offering program, with no near-term intention to utilize this program[210] Cybersecurity and Risk Management - The Company has implemented a comprehensive cybersecurity program to protect its information systems and manage risks from cybersecurity threats[117] - Matthews maintains a cybersecurity Incident Response Plan to handle incidents effectively, involving multiple departments[127] - The Chief Information Officer and Chief Information Security Officer are responsible for managing cybersecurity risks and report directly to the Chief Financial Officer[132] - The Company maintains cybersecurity insurance coverage to protect against losses from cyber incidents, reviewing it annually for adequacy[129] - The Company has experienced cyber-attacks in the past, but none have resulted in material disruption to its business[130]

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Group 1 - Matthews International (MATW) has sold its warehouse automation business at an attractive price, indicating a significant shift in the board's strategy regarding portfolio exits, which aligns with the intentions of activist investors [2] - The Valkyrie Trading Society is a team of analysts focused on high conviction and obscure developed market ideas, aiming for downside-limited investments that are likely to yield non-correlated and outsized returns in the current economic environment [2] - The Value Lab, led by the Valkyrie Trading Society, offers members a portfolio with real-time updates, 24/7 chat support, regular global market news reports, feedback on stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions [2]

Group 1 - Matthews International (MATW) has sold its warehouse automation business at an attractive price, indicating a significant shift in the board's strategy regarding portfolio exits, which aligns with the intentions of activist investors [2] - The Valkyrie Trading Society is a team of analysts focused on high conviction and obscure developed market ideas, aiming for downside-limited investments that are likely to yield non-correlated and outsized returns in the current economic environment [2] - The Value Lab, led by the Valkyrie Trading Society, offers members a portfolio with real-time updates, 24/7 chat support, regular global market news reports, feedback on stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions [2] Group 2 - The company has demonstrated a proactive approach to portfolio management by divesting from non-core businesses, which may enhance overall shareholder value [2] - The focus on long-only value ideas and international mispriced equities suggests a strategic emphasis on value investing, targeting a portfolio yield of approximately 4% [1] - The past five years have seen successful performance for the Value Lab, attributed to active engagement in international markets [1]

Financial Data and Key Metrics Changes - For the fiscal 2025 Fourth Quarter, the company reported a net loss of $27.5 million, or $0.88 per share, compared to a net loss of $68.2 million, or $2.21 per share, a year ago, primarily due to significant restructuring charges last year [22] - Consolidated sales for the fiscal 2025 Fourth Quarter were $319 million, down from $447 million a year ago, mainly due to the divestiture of the SGK business [22] - Consolidated adjusted EBITDA for the fiscal 2025 Fourth Quarter was $51.5 million, compared to $58.1 million a year ago, reflecting the impact of the SGK divestiture [22][23] Business Line Data and Key Metrics Changes - Memorialization segment sales for the fiscal 2025 Fourth Quarter were $209.7 million, up from $196.8 million a year ago, with acquisitions contributing approximately $11 million [24] - Industrial technology segment sales for the fiscal 2025 Fourth Quarter were $93 million, down from $113.9 million a year ago, primarily due to lower sales in the engineering business [26] - Brand solution segment sales were $16.2 million for the quarter, down from $135.9 million a year ago, due to the divestiture of the SGK business [27] Market Data and Key Metrics Changes - The warehouse automation business experienced strong order rates, contributing to improved revenues and adjusted EBITDA in Q4 [11] - The market response to Propelus, the new company formed from the SGK divestiture, has been favorable, with an EBITDA run rate significantly higher than the $100 million initially assumed [5] Company Strategy and Development Direction - The company aims to simplify its corporate structure, expand in higher growth and higher margin businesses, and reduce costs [4] - Recent divestitures, including the sale of SGK and warehouse automation, are part of a strategy to reduce debt and enhance shareholder value [6][9] - The company is actively evaluating other strategic portfolio opportunities with the assistance of JP Morgan [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value creation for shareholders, emphasizing the importance of reducing debt and pursuing strategic initiatives [37][17] - The company expects adjusted EBITDA guidance of at least $180 million for fiscal 2026, factoring in the 40% interest in Propelus [17] Other Important Information - The company announced an increase in the quarterly dividend to $0.2505 per share, marking the 32nd consecutive annual dividend increase since becoming publicly traded [30] - The company is undergoing a leadership transition, with Steve Nicola retiring as CFO effective December 1, 2025 [65] Q&A Session Summary Question: Can you talk about the opportunity set regarding solid state and ultra capacitors? - Management noted increased interest in dry battery electrode technology for energy storage applications beyond automotive, including data centers [33] Question: How should we think about M&A and augmenting the technology portfolio? - The focus is currently on reducing debt, with no immediate M&A plans as the company manages ongoing divestitures and restructuring [36] Question: How is the memorialization business performing? - The business is operating well, with improvements noted after the sale of the underperforming European business [43] Question: Can you provide an update on beta testing for the new printhead solution? - The new printhead solution is set to begin deliveries in December, with significant market interest noted at trade shows [45] Question: What is the significance of the GS1 certification for the new chip product ID solution? - GS1 certification standardizes the reading of 2D codes, allowing for faster and more efficient scanning, which is critical for retailers [58]

Financial Data and Key Metrics Changes - For the fiscal 2025 Fourth Quarter, the company reported a net loss of $27.5 million, or $0.88 per share, compared to a net loss of $68.2 million, or $2.21 per share, a year ago, primarily due to significant restructuring charges in the previous year [22] - Consolidated sales for the fiscal 2025 Fourth Quarter were $319 million, down from $447 million a year ago, mainly due to the divestiture of the SGK business [22] - Consolidated adjusted EBITDA for the fiscal 2025 Fourth Quarter was $51.5 million, compared to $58.1 million a year ago, reflecting the impact of the SGK divestiture [22][23] Business Line Data and Key Metrics Changes - Memorialization segment sales for the fiscal 2025 Fourth Quarter were $209.7 million, up from $196.8 million a year ago, with acquisitions contributing approximately $11 million [24] - Industrial technology segment sales for the fiscal 2025 Fourth Quarter were $93 million, down from $113.9 million a year ago, primarily due to lower sales in the engineering business [26] - Brand solution segment sales were $16.2 million for the quarter, down from $135.9 million a year ago, due to the divestiture of the SGK business [27] Market Data and Key Metrics Changes - The warehouse automation business experienced strong order rates, contributing to improved revenues and adjusted EBITDA in Q4 [11] - The market response to Propelus, the new company formed from the SGK divestiture, has been favorable, with an EBITDA run rate significantly higher than the $100 million initially assumed [5] Company Strategy and Development Direction - The company aims to simplify its corporate structure, expand in higher growth and margin businesses, and reduce costs, with significant actions taken throughout the year [4] - The divestiture of the warehouse automation unit is expected to significantly reduce total debt and strengthen the balance sheet [6] - The company is actively evaluating other strategic portfolio opportunities with the assistance of JPMorgan [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value creation for shareholders, particularly with the expected benefits from the Propelus divestiture and warehouse automation sale [6][17] - The company anticipates adjusted EBITDA guidance of at least $180 million for fiscal 2026, factoring in the 40% interest in Propelus [17] Other Important Information - The company reduced its debt by $66 million and achieved a reduction in corporate costs of $8.5 million year-over-year [8] - The board declared an increase in the quarterly dividend to $0.2505 per share, marking the 32nd consecutive annual dividend increase [30] Q&A Session Summary Question: Can you talk about the opportunity set regarding solid state and ultra capacitors? - Management noted increased interest in dry battery electrode technology for energy storage applications beyond automotive, including data centers [33] Question: How should we think about M&A and augmenting the technology portfolio? - The focus is currently on reducing debt, with no immediate M&A plans as the company manages ongoing divestitures and restructuring [36] Question: Can you provide an update on beta testing for the new printhead solution? - The new printhead is set to begin deliveries in December, with significant market interest and a total addressable market exceeding $2 billion [46]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported a net loss of $27.5 million, or $0.88 per share, compared to a net loss of $68.2 million, or $2.21 per share, a year ago, primarily due to significant restructuring charges in the previous year [20] - Consolidated sales for Q4 2025 were $319 million, down from $447 million a year ago, mainly due to the divestiture of the SGK business [20] - Consolidated adjusted EBITDA for Q4 2025 was $51.5 million, compared to $58.1 million a year ago, reflecting the impact of the SGK divestiture [21][22] Business Line Data and Key Metrics Changes - The memorialization segment reported revenues of $209.7 million for Q4 2025, up from $196.8 million a year ago, with acquisitions contributing approximately $11 million [23] - The industrial technology segment's revenues decreased to $93 million from $113.9 million a year ago, primarily due to lower sales in the engineering business [25] - The brand solution segment's sales were $16.2 million for Q4 2025, down from $135.9 million a year ago, due to the divestiture of the SGK business [26] Market Data and Key Metrics Changes - The company noted that tariffs have impacted all businesses, but they have successfully mitigated these costs by passing along higher prices [12] - The market response to Propelus, the new company formed from the SGK divestiture, has been favorable, with an EBITDA run rate significantly higher than the $100 million initially assumed [5] Company Strategy and Development Direction - The company aims to simplify its corporate structure, expand in higher growth and margin businesses, and reduce costs, with significant actions taken throughout the year [4] - The divestiture of the warehouse automation unit is expected to provide $230 million, significantly reducing total debt and enhancing the company's ability to pursue strategic initiatives [6][28] - The company is actively evaluating other strategic portfolio opportunities and plans to complete smaller transactions to further simplify its operating structure [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value creation for shareholders, emphasizing the importance of reducing debt and enhancing the balance sheet [6][17] - The company expects adjusted EBITDA guidance of at least $180 million for fiscal 2026, factoring in the 40% interest in Propelus [17] - Management highlighted the ongoing interest in their proprietary dry battery electrode technology, particularly in the context of solid-state batteries and energy storage solutions [15][40] Other Important Information - The company announced an increase in the quarterly dividend to $0.2505 per share, marking the 32nd consecutive annual dividend increase since becoming publicly traded [29] - The company has appointed Michael Naumann as the new Chairman of the Board, succeeding Alvaro Garcia Tunon [9] Q&A Session Summary Question: Can you talk about the opportunity set regarding solid state and ultra capacitors? - Management confirmed that their dry battery electrode technology applies to various energy storage applications, including ultra capacitors and data center power needs [30] Question: How should we think about M&A and augmenting the technology portfolio? - Management stated that the focus is currently on reducing debt and that strategic initiatives will be evaluated once the debt is in line [31] Question: Are customers less reticent to work with you despite the Tesla lawsuit? - Management indicated that customers are more dependent on market environments rather than being less reticent, with significant opportunities in the European market [33] Question: Can you provide an update on beta testing for the new printhead solution? - Management confirmed that the new printhead solution is in the market, with deliveries starting in December, and highlighted the significant market potential [36] Question: What is the significance of the GS1 certification for the new chip product? - Management explained that GS1 certification standardizes the reading of 2D codes, allowing their technology to operate at speeds that meet retailer demands [41]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Fourth Quarter Fiscal 2025 Earnings Teleconference November 21, 2025 Joseph C. Bartolacci President and Chief Executive Officer Steven F. Nicola Chief Financial Officer and Treasurer www.matw.com | Nasdaq: MATW DISCLAIMER Any forward-looking statements contained in this presentation are included pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, belie ...