HONOLULU, April 21, 2025 /PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in the Pacific, today announced that it will release its financial results for the first quarter on Monday, May 5, 2025. A conference call is scheduled for 4:30 p.m. ET when Matt Cox, Chairman and Chief Executive Officer, and Joel Wine, Executive Vice President and Chief Financial Officer, will discuss Matson's first quarter results. Date of Conference Call:        Monday, May 5, 2025 ...

A shipping company operating their fleet exclusively on the pacific is bound to feel the pinch of tariffs and their consequences on trade flows. Matson (NYSE: MATX ) is such a company, the stock is already downStriving to compound knowledge. Long-time fan of Warren and Charlie. Always invert. "To finish first, you must first finish". Investing own and family funds for +20 years. Senior finance roles at public and private corporations for most of that time.Analyst’s Disclosure: I/we have no stock, option or ...

Core Viewpoint - Matson (MATX) demonstrates a strong commitment to shareholders and is actively expanding its operations, leading to impressive share price performance. The current market conditions present a favorable opportunity for investment in MATX shares [1]. Earnings Estimates - The Zacks Consensus Estimate for earnings per share shows significant growth for the first and second quarters of 2025, as well as for the full years of 2025 and 2026, indicating broker confidence in the stock [2]. - The earnings estimate revisions over the past 60 days reflect substantial increases: Q1 by 73.68%, Q2 by 43.75%, E1 by 20.61%, and F2 by 28.12% [3]. Price Performance - MATX shares have appreciated by 18.5% over the past year, outperforming the Zacks Transportation - Services industry, which saw a decline of 1.7% [3]. Earnings Surprise History - Matson has a positive earnings surprise history, exceeding the Zacks Consensus Estimate in each of the last four quarters, with an average surprise of 12.7% [4]. Shareholder Initiatives - The company has expanded its share repurchase program by adding 3 million shares, bringing the total to 15 million shares, with the program running until December 31, 2027 [5][7]. - Since the program's inception in August 2021, Matson has repurchased 11.5 million shares for approximately $1 billion [7]. Fleet Expansion and Modernization - Matson is investing $1 billion in constructing three new "Aloha Class" vessels, which will enhance fleet capacity, operational efficiency, and environmental sustainability. These vessels are designed to reduce greenhouse gas emissions by 40% by 2030 [8].

Core Viewpoint - The stock price of Matson (MATX) has been on a bearish trend, losing 6.7% in the past two weeks, but recent technical indicators suggest a potential trend reversal due to increased buying interest and positive earnings outlook from analysts [1][2]. Technical Analysis - The formation of a hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be exhausting and that bulls could be gaining control [2][4]. - A hammer pattern typically forms during a downtrend when the stock opens lower, makes a new low, but then closes near or above the opening price, signaling a potential reversal [3][4]. - Hammer candles can appear on various timeframes and are utilized by both short-term and long-term investors [4]. Fundamental Analysis - Recent upward revisions in earnings estimates for MATX serve as a bullish indicator, correlating strongly with near-term stock price movements [6]. - Over the last 30 days, the consensus EPS estimate for MATX has increased by 15.8%, indicating that analysts expect better earnings than previously predicted [7]. - MATX holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [8].

Revenue and Income - Total operating revenue for 2024 was $3,421.8 million, an increase of 10.6% compared to $3,094.6 million in 2023[199]. - Operating income for 2024 increased by $208.5 million, or 60.8%, to $551.3 million compared to 2023[215]. - Ocean Transportation revenue increased by $332.7 million, or 13.4%, during 2024, primarily due to higher freight rates in China and domestic tradelanes[225]. - Logistics segment operating income for Q4 2024 was $10.1 million, an increase of $1.2 million compared to Q4 2023[208]. - Net income for 2024 reached $476.4 million, up from $297.1 million in 2023, representing a 60.4% growth[285]. Container Volume and Demand - The company's container volume in Hawaii decreased by 1.7% year-over-year in Q4 2024, attributed to lower general demand[202]. - In China, container volume increased by 7.2% year-over-year in Q4 2024, supported by stronger freight demand and elevated freight rates[203]. - Guam's container volume decreased by 10.0% year-over-year in Q4 2024, primarily due to lower demand from retail and food and beverage segments[204]. - Alaska's container volume increased by 1.1% year-over-year in Q4 2024, driven by higher northbound volume[205]. Financial Position and Cash Flow - Cash and cash equivalents as of December 31, 2024, were $266.8 million, an increase of $132.8 million from $134.0 million in 2023[232]. - Net cash provided by operating activities increased to $767.8 million in 2024 from $510.5 million in 2023, a change of $257.3 million[233]. - The Company reported a net increase in cash, cash equivalents, and restricted cash of $130.5 million for 2024, compared to a decrease of $117.4 million in 2023[233]. - Total assets as of December 31, 2024, were $4,595.4 million, up from $4,294.6 million in 2023, indicating a 7.0% increase[290]. - The company’s total liabilities increased to $1,943.4 million in 2024 from $1,893.9 million in 2023, reflecting a 2.6% rise[290]. Capital Expenditures and Investments - The Company expects to make capital expenditures of approximately $120 to $140 million for maintenance and $305 million for new vessel construction in 2025[213]. - Capital expenditures for 2024 were $214.5 million, compared to $195.5 million in 2023, reflecting investments in LNG installations and terminal equipment[234]. - The Company expects to incur total estimated capital expenditures of $425 - $445 million in 2025, including $305 million for new vessel construction milestone payments[240]. - The Company anticipates the delivery of three new Jones Act vessels, with the first expected in Q1 2027 and subsequent deliveries in Q3 2027 and Q2 2028[360]. Debt and Liabilities - Total debt decreased by $39.7 million to $400.9 million as of December 31, 2024, primarily due to scheduled debt repayments[237]. - The Company has a long-term debt net of deferred loan fees of $350.8 million as of December 31, 2024, down from $389.3 million in 2023[374]. - Debt maturities for the next five years total $175.5 million, with $225.4 million due thereafter[384]. - Other liabilities increased from $108.0 million in 2023 to $123.2 million in 2024, driven by higher employee incentives and insurance reserves[321]. Shareholder Returns and Stock Activity - During 2024, the Company repurchased approximately 1.6 million shares for a total cost of $201.0 million, with 830,527 shares remaining under the repurchase program[243]. - Dividends paid in 2024 amounted to $44.8 million, slightly down from $45.0 million in 2023[291]. - The Company recognized dividends as a liability when approved by the Board of Directors, reflecting a commitment to returning value to shareholders[332]. Tax and Interest - The effective tax rate for the full year 2025 is expected to be approximately 22.0%, up from 19.1% in Q4 2024[212]. - Interest income for the full year 2025 is expected to be around $31 million, while interest expense is projected to be approximately $7 million[211]. Impairment and Asset Evaluation - The Company evaluated its long-lived assets and determined no impairment for the years ended December 31, 2024, 2023, and 2022[251]. - The Company evaluated its goodwill for impairment and determined that the fair value of the Span Alaska reporting unit exceeded its carrying amount as of the impairment review date[280]. - The company did not record any impairment charges for long-lived assets or goodwill for the years ended December 31, 2024, 2023, and 2022[318]. Operational Challenges and Outlook - The Company anticipates challenging business conditions for transportation brokerage in 2025, leading to modestly lower operating income compared to 2024[209]. - For 2025, Ocean Transportation operating income is expected to be moderately lower than the $500.9 million achieved in 2024, depending on trade conditions in the Red Sea[207]. - For Q1 2025, the Company expects consolidated operating income to be significantly higher than $36.9 million achieved in Q1 2024, but for the full year 2025, it anticipates operating income to be moderately lower than $551.3 million achieved in 2024 if trade conditions normalize[210].

Core Viewpoint - Matson, Inc. has approved an increase of three million shares to its existing share repurchase program, extending it until December 31, 2027, with 0.5 million shares remaining as of February 26, 2025 [1][2]. Company Overview - Matson, Inc., founded in 1882, is a prominent provider of ocean transportation and logistics services, primarily serving the non-contiguous economies of Hawaii, Alaska, and Guam, as well as other island economies in Micronesia [3]. - The company operates a fleet that includes containerships, combination container and roll-on/roll-off ships, and custom-designed barges, and offers logistics services that extend throughout North America and Asia [3]. Share Repurchase Program - Since the initiation of the share repurchase program in August 2021, Matson has repurchased 11.5 million shares for approximately $1.0 billion [2]. - The company plans to continue its disciplined and opportunistic approach to capital allocation, focusing on returning excess cash to shareholders to enhance long-term shareholder value [2]. - Shares will be repurchased in the open market at the company's discretion, influenced by capital needs, market price, and general market conditions [2].

Financial Data and Key Metrics Changes - For Q4 2024, consolidated operating income increased by $72.2 million year-over-year to $147.5 million, driven by higher contributions from Ocean Transportation and Logistics [36][39] - Full year 2024 consolidated operating income rose by $208.5 million year-over-year to $551.3 million, primarily due to significantly higher freight rates in China and increased volume [39][50] - Net income for Q4 2024 was $128 million, with diluted earnings per share at $3.8, impacted by an $18.4 million impairment charge [39][52] Business Line Data and Key Metrics Changes - Ocean Transportation operating income for Q4 2024 was significantly higher due to elevated freight rates in China, with a year-over-year increase in operating income [36][39] - Logistics operating income for Q4 2024 was $10.1 million, reflecting a year-over-year increase of $1.2 million, primarily from supply chain management [33][34] - SSAT terminal joint venture incurred a loss of $9.5 million in Q4 2024, impacted by an $18.4 million impairment charge [29][32] Market Data and Key Metrics Changes - Hawaii container volume decreased by 1.7% year-over-year in Q4 2024, attributed to lower general demand [11] - Guam's container volume decreased by 10% year-over-year in Q4 2024, primarily due to lower demand from retail and food and beverage segments [24] - Alaska's container volume increased by 1.1% year-over-year in Q4 2024, driven by higher northbound volume [26] Company Strategy and Development Direction - The company remains focused on maintaining vessel schedule integrity and reliability in logistics and ocean transportation operations [56] - There is a commitment to organic growth and potential acquisitions, with a focus on niche defensible businesses [57][70] - The company plans to continue returning capital to shareholders through dividends and share repurchase programs [41][57] Management's Comments on Operating Environment and Future Outlook - Management expects elevated freight rates in the China service to continue into Q1 2025, with a potential moderation in rates depending on geopolitical factors and supply chain activity [22][50] - The company anticipates that the normalization of trade conditions in the Red Sea could impact freight rates positively [22][50] - There is uncertainty regarding the impact of tariffs and macroeconomic conditions on consumer demand and freight rates [20][21] Other Important Information - The company generated approximately $767.8 million in cash flow from operations for the full year 2024, with significant capital expenditures planned for 2025 [41][45] - The company repurchased approximately 1.6 million shares for a total cost of $199.1 million in 2024 [41][42] - The delivery of new Aloha class vessels has been delayed by approximately four months, with expected delivery in 2027 and 2028 [46][110] Q&A Session Summary Question: Outlook for Q1 EBIT - Management indicated that the outlook for Q1 EBIT is driven by elevated rates, particularly in China, and steady performance in domestic trade lanes [60][62] Question: Rate Trends - Management confirmed that freight rates remained steady from Q2 to Q4 2024, with a reduction in peak season surcharges impacting rates [66][67] Question: Capital Allocation Opportunities - The company is focused on organic growth opportunities in Ocean Transportation and a mix of organic and M&A opportunities in Logistics [70][71] Question: USTR Proposed Rule on China Shipbuilding - Management views the USTR proposal as part of ongoing discussions between the U.S. and China, with potential impacts on their fleet but no immediate changes expected [81][85] Question: Impact of Red Sea Situation - Management explained that if the Red Sea situation normalizes, it could lead to lower international freight rates, but the overall pricing structure may remain elevated due to other factors [100][102] Question: New Vessel Construction Delays - Management provided details on the reasons for the delay in new vessel construction and expressed confidence in the overall project timeline despite potential risks [106][110] Question: Jones Act Support - Management confirmed no changes in their stance on Jones Act support, expecting continued bipartisan backing [116][117]

Core Viewpoint - Matson (MATX) reported quarterly earnings of $3.80 per share, exceeding the Zacks Consensus Estimate of $3.20 per share, and showing significant growth from $1.78 per share a year ago, indicating strong performance in the ocean transportation and logistics services sector [1][2]. Financial Performance - The company achieved revenues of $890.3 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.48% and up from $788.9 million year-over-year [2]. - Over the last four quarters, Matson has consistently surpassed consensus EPS estimates, achieving this four times [2]. Stock Performance - Matson shares have increased approximately 6.3% since the beginning of the year, outperforming the S&P 500's gain of 1.7% [3]. - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for continued outperformance in the near future [6]. Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.52 on revenues of $774.28 million, while for the current fiscal year, the estimate is $10.21 on revenues of $3.31 billion [7]. - The trend of estimate revisions for Matson is favorable, which is a positive indicator for future stock performance [6]. Industry Context - The Transportation - Services industry, to which Matson belongs, is currently ranked in the bottom 28% of over 250 Zacks industries, suggesting potential challenges ahead [8].

Financial Performance - For Q4 2024, Matson reported net income of $128.0 million, or $3.80 per diluted share, compared to $62.4 million, or $1.78 per diluted share in Q4 2023[1]. - Consolidated revenue for Q4 2024 was $890.3 million, an increase of 12.9% from $788.9 million in Q4 2023[1]. - Ocean Transportation revenue increased by $332.7 million, or 13.4%, to $2,809.7 million for the year ended December 31, 2024, compared to $2,477.0 million in 2023[21]. - Net income for the year ended December 31, 2024, was $476.4 million, up 60.3% from $297.1 million in 2023[47]. - Operating income for the year ended December 31, 2024, was $551.3 million, a significant increase of 60.7% from $342.8 million in 2023[43]. - EBITDA for the year ended December 31, 2024, was $738.9 million, up 42.9% from $516.7 million in 2023[49]. - Basic earnings per share for Q4 2024 were $3.87, compared to $1.80 in Q4 2023, reflecting a 115.6% increase[43]. Revenue Breakdown - Ocean Transportation revenue increased by $102.4 million, or 16.0%, in Q4 2024, primarily due to significantly higher freight rates in China and increased volume[16]. - The company's container volume in China rose by 7.2% year-over-year in Q4 2024, driven by seasonally stronger freight demand[4]. - Logistics revenue decreased by $5.5 million, or 0.9%, to $612.1 million for the year ended December 31, 2024, compared to $617.6 million in 2023[29]. - Operating income for Logistics increased by $2.4 million, or 5.0%, to $50.4 million in 2024, compared to $48.0 million in 2023[30]. Operating Income and Expectations - Operating income for Ocean Transportation rose by $206.1 million, or 69.9%, to $500.9 million in 2024, up from $294.8 million in 2023[23]. - For 2025, Matson expects consolidated operating income to be moderately lower than the $551.3 million achieved in 2024, depending on trade flow normalization in the Red Sea and other factors[10]. - The company expects Ocean Transportation operating income for Q1 2025 to be meaningfully higher than the $27.6 million achieved in Q1 2024[8]. Cash Flow and Capital Management - Cash and Cash Equivalents increased by $132.8 million to $266.8 million as of December 31, 2024, from $134.0 million at the end of 2023[31]. - Net cash from operating activities was $767.8 million for the year ended December 31, 2024, compared to $510.5 million in 2023[31]. - Total debt decreased by $39.7 million to $400.9 million as of December 31, 2024[31]. - The Company repurchased approximately 1.6 million shares for a total cost of $201.0 million during the full year 2024[32]. - The Company declared a cash dividend of $0.34 per share payable on March 6, 2025[32]. Tax and Liabilities - The company's effective tax rate for Q4 2024 was 19.1%, with an expected rate of approximately 22.0% for the full year 2025[12]. - Total long-term liabilities increased to $1,383.0 million in 2024, up from $1,331.6 million in 2023, a rise of 3.9%[45]. - The company’s total current liabilities remained stable at $560.4 million in 2024, slightly down from $562.3 million in 2023[45]. Joint Ventures and Impairments - The loss from the SSAT joint venture in Q4 2024 was $9.5 million, significantly lower than the income of $4.1 million in Q4 2023, due to an $18.4 million impairment charge[7]. - The SSAT terminal joint venture incurred a loss of $1.0 million in 2024, down from income of $2.2 million in 2023, due to an impairment charge of $18.4 million[24]. Capital Expenditures - Matson anticipates capital expenditures of approximately $120 to $140 million for maintenance and $305 million for new vessel construction in 2025[13].

Core Viewpoint - Matson, Inc. will release its fourth quarter financial results on February 25, 2025, with a conference call scheduled to discuss these results [1][2]. Company Overview - Matson, founded in 1882, is a leading provider of ocean transportation and logistics services, primarily serving the non-contiguous economies of Hawaii, Alaska, and Guam, as well as other island economies in Micronesia [3]. - The company operates a fleet that includes containerships, combination container and roll-on/roll-off ships, and custom-designed barges [3]. - Matson Logistics, established in 1987, enhances the company's transportation network across North America and Asia, offering integrated logistics services such as rail intermodal, highway brokerage, warehousing, freight consolidation, supply chain management, and freight forwarding to Alaska [3].