Market Overview - The U.S. stock market experienced a significant decline, with the Dow Jones index falling by 1.02%, the S&P 500 index dropping over 1%, and the Nasdaq Composite index decreasing by more than 2% [1] - The Nasdaq China Golden Dragon Index saw a decline of over 4%, marking its largest drop since August 27 [2] Sector Performance - The Philadelphia Semiconductor Index fell by 4.7%, with notable declines in major semiconductor stocks: AMD down over 8%, ARM down over 7%, Micron Technology down over 6%, Nvidia down over 2%, ASML down over 3%, Qualcomm down over 4%, and Matson down nearly 6% [6] Commodity Market - Gold prices experienced a short-term increase, with London spot gold reported at $4020.22 per ounce and COMEX gold at $4027.7 per ounce [2]

Core Insights - The Zacks Transportation-Services industry is currently facing significant challenges due to low freight rates, high inflation, and ongoing supply-chain disruptions, compounded by tariff-related uncertainties and geopolitical issues [1][4][6]. Industry Overview - The Zacks Transportation-Services industry encompasses companies that provide transportation, logistics, leasing, and maintenance services, with a focus on global logistics management and third-party logistics solutions [3]. - The health of this industry is closely tied to the overall economy, with improvements in manufactured and retail goods, pricing, and global economic conditions benefiting industry participants [3]. Current Trends - **Freight Downturn**: The Cass Freight Shipments Index has declined by 9.3% year over year in August, indicating a persistent downturn in freight demand [4]. - **Cost Pressures**: The industry is experiencing rising cost pressures due to labor shortages and increased expenses for equipment and services, which are eroding profit margins [5]. - **Tariff Turmoil**: Protectionist tariff policies are reshaping the industry by increasing costs and disrupting supply chains, leading to uncertainties for investors [6]. - **Fed Rate Cuts**: The U.S. Federal Reserve's recent interest rate cut of 25 basis points may provide relief by lowering borrowing costs for transportation service providers [7]. Industry Performance - The Zacks Transportation-Services industry ranks 210 out of 243 Zacks industries, placing it in the bottom 14% and indicating dismal near-term prospects [8][9]. - The industry has underperformed compared to the S&P 500 and the broader Transportation sector, declining by 13.4% over the past year, while the S&P 500 has appreciated by 18.3% [11]. Valuation Metrics - The industry is currently trading at a forward price-to-sales ratio of 1.3X, significantly lower than the S&P 500's 5.42X and the sector's 1.51X [14]. Notable Companies - **Expeditors International of Washington (EXPD)**: Currently holds a Zacks Rank 3 (Hold) and has consistently beaten earnings estimates, although it faces challenges from weak volumes and declining rates [18]. - **C.H. Robinson Worldwide (CHRW)**: Also holds a Zacks Rank 3, with strong cost control measures and a positive liquidity position, having surpassed earnings estimates consistently [22]. - **Matson (MATX)**: Headquartered in Honolulu, MATX carries a Zacks Rank 3 and has implemented effective cost-management actions, achieving earnings beats in three of the last four quarters [25].

Core Insights - Three undervalued marine shipping stocks, BW LPG Ltd., Diana Shipping Inc., and Matson Inc., have surged in value rankings, indicating new investor interest and a dynamic market landscape [1][2]. Company Summaries - **BW LPG Ltd. (NYSE:BWLP)**: The stock's value score increased from 88.36 to 91.05, a gain of 2.69 points, placing it in the top decile for value. Year-to-date, the stock is up 9.40% but down 13.65% over the past year. It shows a weaker price trend in the short and medium terms but a stronger long-term trend [8]. - **Diana Shipping Inc. (NYSE:DSX)**: The value score rose from 89.39 to 90.70, gaining 1.31 points week-on-week. The stock is down 14.29% year-to-date and 30.58% over the year. It has a stronger medium-term price trend but weaker long-term performance [8]. - **Matson Inc. (NYSE:MATX)**: The value score increased from 89.41 to 90.33, marking a gain of 0.92 points. The stock is down 29.28% year-to-date and 27.41% over the past year, with weaker price trends across all time frames but a robust quality ranking [8]. Valuation Insights - The percentile-based valuation analysis indicates that BW LPG, Diana Shipping, and Matson have entered the top 10th percentile of stocks, reflecting significant improvements in their value scores week-on-week [2][6]. - The Benzinga Stock Edge Rankings' value percentile ranking evaluates stocks based on their relative price against core fundamentals, making it a useful tool for identifying undervalued opportunities in the market [6].

Core Insights - Matson (MATX) is facing significant challenges due to ongoing tariff-related uncertainty and increased volatility, which are adversely affecting its performance and making it less appealing for investors [1] Financial Performance - The Zacks Consensus Estimate for current-quarter earnings has been revised downward by 31.8% over the past 60 days, now projected at $2.38 per share [2] - The 2025 earnings estimate has also decreased by 8.3%, now standing at $9.04 per share, indicating a lack of confidence from brokers [2] - Matson's shares have declined by 22.2% over the past year, underperforming the Transportation - Services industry's decline of 9.9% [3][8] Industry Position - Matson currently holds a Zacks Rank of 4 (Sell), and the industry rank is 206 out of 245, placing it in the bottom 16% of Zacks Industries [5] - The performance of the industry group is crucial, as studies indicate that 50% of a stock's price movement is related to its industry performance [6] Operational Challenges - The company is experiencing headwinds from ongoing tariff uncertainty and shifting trade dynamics, particularly affecting its China Service segment, which is facing lower freight demand and volumes [7] - After a significant decline in April 2025, volumes have settled below last year's levels due to customers pulling shipments forward and carriers cutting capacity [7] - Continued weakness in the Shanghai Containerized Freight Index is further hampering Matson's overall performance [9] - The macroeconomic environment, characterized by economic uncertainty, shifting tariff policies, and geopolitical tensions, is negatively impacting Matson's operational efficiency [9]

Group 1 - Matson has promoted Vic Angoco to Executive Vice President, Operations, overseeing network operations from the new corporate office in Walnut Creek, California [1][6] - Angoco has a 35-year maritime career, joining Matson in 1996 and rising through various leadership roles, including Senior Vice President of the Pacific Division since 2010 [2][6] - Jennifer Tungul has been promoted to Senior Vice President, Alaska, succeeding Angoco, and has been with Matson since 2002, holding various finance and operations roles [3][6] Group 2 - Rob Olson has been promoted to Vice President, Alaska Operations, succeeding Tungul, and will manage terminal operations in Anchorage, Kodiak, and Dutch Harbor [4][6] - Olson joined Matson in 2022 as General Manager, Anchorage Terminal, and has experience in transportation and maintenance management [5][6] - The leadership changes are aimed at strengthening Matson's operations and ensuring effective management of Alaska operations [6]

Company Overview - Hanwha Philly Shipyard, Inc. (HPSI) is a wholly-owned U.S. subsidiary of Hanwha Systems and Hanwha Ocean, recognized as a leader in U.S. commercial shipbuilding, particularly in the Jones Act trade lanes [8] - Matson, Inc. is a leading U.S. carrier in the Pacific, providing essential services to Hawaii, Alaska, Guam, and other regions, with a fleet of 22 owned vessels [10] Key Developments - HPSI and Matson marked the construction milestone of the first of three new "Aloha Class" containerships, with deliveries scheduled for 2027 and 2028 [1][2] - The first engine room section of the vessel, weighing 420 metric tons, was lowered into the dry dock, officially starting the hull assembly [2][3] Vessel Specifications - The new Aloha Class ships will each measure 854 feet and have a carrying capacity of 3,600 TEU, designed to operate at speeds exceeding 23 knots [5] - These vessels will feature a more fuel-efficient hull design and dual-fuel engines, allowing operation on liquefied natural gas (LNG) [5] Economic Impact - The construction of these vessels supports 1,500 jobs for skilled American workers and provides additional opportunities for American mariners [4] - The new ships will enhance Matson's service capabilities in the Asia-U.S. trade lane, benefiting customers in Hawaii and Guam [5] Historical Context - Matson has a long tradition of naming its vessels with Hawaiian names, with the new containerships to be named Makua, Malama, and Makena, names reused from the WWI era [7] - HPSI has delivered around 50% of all large ocean-going U.S. Jones Act commercial ships since 2000, showcasing its significant role in the industry [11]

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements, including statements of income, balance sheets, cash flows, and shareholders' equity, along with detailed notes explaining the company's business, accounting policies, segment performance, investments, and other financial disclosures for the periods ended June 30, 2025 and 2024 [Condensed Consolidated Statements of Income and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) This statement details the company's revenues, operating income, net income, and earnings per share for the three and six months ended June 30, 2025 and 2024 Consolidated Income and Comprehensive Income (Unaudited) | Metric (in millions, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Operating Revenue | $830.5 | $847.4 | $1,612.5 | $1,569.5 | | Operating Income | $113.0 | $124.6 | $195.1 | $161.5 | | Net Income | $94.7 | $113.2 | $167.0 | $149.3 | | Basic Earnings Per Share | $2.95 | $3.34 | $5.14 | $4.38 | | Diluted Earnings Per Share | $2.92 | $3.31 | $5.09 | $4.33 | - For the three months ended June 30, 2025, total operating revenue decreased by **2.0%** year-over-year, and net income decreased by **16.3%**[9](index=9&type=chunk)[95](index=95&type=chunk) - For the six months ended June 30, 2025, total operating revenue increased by **2.7%** year-over-year, and net income increased by **11.9%**[9](index=9&type=chunk)[99](index=99&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement provides a snapshot of the company's assets, liabilities, and shareholders' equity as of June 30, 2025, and December 31, 2024 Consolidated Balance Sheet (Unaudited) | Metric (in millions) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Total Current Assets | $424.5 | $609.6 | | Total Long-term Assets | $4,057.6 | $3,985.8 | | Total Assets | $4,482.1 | $4,595.4 | | Total Current Liabilities | $546.9 | $560.4 | | Total Long-term Liabilities | $1,317.2 | $1,383.0 | | Total Liabilities | $1,864.1 | $1,943.4 | | Total Shareholders' Equity | $2,618.0 | $2,652.0 | - Cash and cash equivalents significantly decreased from **$266.8 million** at December 31, 2024, to **$59.1 million** at June 30, 2025[11](index=11&type=chunk) - Property and equipment, net, increased from **$2,260.9 million** to **$2,359.7 million**, driven by new vessel construction in progress[11](index=11&type=chunk)[48](index=48&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement outlines the cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 Consolidated Cash Flows (Unaudited) - Six Months Ended June 30 | Activity (in millions) | 2025 | 2024 |\n| :------------------------------------- | :------- | :------- | | Net cash provided by operating activities | $194.6 | $344.5 | | Net cash used in investing activities | $(183.4) | $(131.1) | | Net cash used in financing activities | $(218.9) | $(179.1) | | Net (Decrease) Increase in Cash | $(207.7) | $34.3 | | Cash and Cash Equivalents, End of Period | $59.1 | $170.6 | - Net cash provided by operating activities decreased by **$149.9 million** year-over-year, primarily due to a federal income tax refund received in 2024 and changes in SSAT distributions[13](index=13&type=chunk)[123](index=123&type=chunk) - Net cash used in investing activities increased by **$52.3 million**, mainly due to higher vessel construction expenditures (**$104.1 million** in 2025 vs. **$38.2 million** in 2024) and increased deposits into the Capital Construction Fund[13](index=13&type=chunk)[124](index=124&type=chunk) - Net cash used in financing activities increased by **$39.8 million**, driven by higher share repurchases (**$160.4 million** in 2025 vs. **$120.1 million** in 2024)[13](index=13&type=chunk)[125](index=125&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) This statement details changes in shareholders' equity, including net income, share repurchases, and dividends, for the six months ended June 30, 2025 and 2024 Shareholders' Equity Changes (Unaudited) - Six Months Ended June 30 | Metric (in millions, except shares) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Shares Outstanding | 31.8 | 33.0 | | Total Shareholders' Equity | $2,618.0 | $2,652.0 | Key Changes (Six Months Ended June 30, 2025) | Item | Amount (in millions) | | :------------------------ | :------------------- | | Net income | $167.0 | | Shares repurchased | $(160.4) | | Dividends paid | $(22.3) | - The company repurchased approximately **1.4 million shares** for **$162.9 million** during the six months ended June 30, 2025, compared to **1.0 million shares** for **$121.1 million** in the prior year period[29](index=29&type=chunk)[134](index=134&type=chunk) - Dividends paid increased slightly to **$22.3 million** for the six months ended June 30, 2025, from **$22.1 million** in the prior year, due to an increase in dividends declared per share, offset by a reduction in common stock outstanding[14](index=14&type=chunk)[125](index=125&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations of the company's business, accounting policies, segment performance, investments, debt, and other financial disclosures [1. Description of the Business](index=9&type=section&id=1.%20Description%20of%20the%20Business) Matson, Inc. operates as a leading provider of ocean transportation and logistics services through two primary segments: Ocean Transportation and Logistics. The Ocean Transportation segment offers ocean freight services to domestic non-contiguous economies and international routes, including a 35% ownership interest in SSA Terminals, LLC (SSAT). The Logistics segment provides asset-light logistics services across North America and Asia, encompassing transportation brokerage, freight forwarding, warehousing, and supply chain management - Matson operates two segments: Ocean Transportation (ocean freight, stevedoring, terminal services) and Logistics (multimodal transportation brokerage, freight forwarding, warehousing, supply chain management)[15](index=15&type=chunk)[16](index=16&type=chunk)[18](index=18&type=chunk) - The company holds a **35% ownership interest** in SSA Terminals, LLC (SSAT), which provides terminal and stevedoring services on the U.S. West Coast[17](index=17&type=chunk) [2. General and Significant Accounting Policies](index=9&type=section&id=2.%20GENERAL%20AND%20SIGNIFICANT%20ACCOUNTING%20POLICIES) This note outlines the basis of presentation for the unaudited condensed consolidated financial statements, emphasizing the use of estimates and the company's revenue recognition policies for its Ocean Transportation and Logistics segments. It also details policies on capitalized interest, dividends, share repurchases, and discusses the impact of new tax legislation (One Big Beautiful Bill Act) and upcoming accounting pronouncements (ASU 2024-03 and ASU 2023-09) - Revenue for Ocean Transportation services is recognized ratably over the voyage duration, while Logistics services revenue is recognized over delivery duration or as services are performed[24](index=24&type=chunk)[30](index=30&type=chunk) Capitalized Interest for New Vessel Construction | Period | 2025 (in millions) | 2024 (in millions) | | :----------------------------------- | :----------------- | :----------------- | | Three Months Ended June 30 | $1.0 | $1.0 | | Six Months Ended June 30 | $2.1 | $1.8 | - The company repurchased **0.9 million shares** for **$93.7 million** in Q2 2025 and **1.4 million shares** for **$162.9 million** in H1 2025[29](index=29&type=chunk) - New legislation, the One Big Beautiful Bill Act, signed July 4, 2025, includes **100% bonus depreciation** for qualified capital expenditures and amendments to FDII, but is not expected to materially impact consolidated financial statements[31](index=31&type=chunk)[32](index=32&type=chunk) [3. Reportable Segments](index=15&type=section&id=3.%20REPORTABLE%20SEGMENTS) Matson reports financial information for its two segments, Ocean Transportation and Logistics, with performance assessed by operating income. The Ocean Transportation segment saw a decrease in revenue and operating income in Q2 2025 but an increase over six months, while the Logistics segment experienced slight declines in both revenue and operating income for both periods Segment Operating Revenue and Income (Unaudited) - Three Months Ended June 30 | Metric (in millions) | Ocean Transportation 2025 | Ocean Transportation 2024 | Logistics 2025 | Logistics 2024 | | :------------------- | :------------------------ | :------------------------ | :------------- | :------------- | | Operating Revenue | $675.6 | $689.9 | $154.9 | $157.5 | | Operating Income | $98.6 | $109.0 | $14.4 | $15.6 | Segment Operating Revenue and Income (Unaudited) - Six Months Ended June 30 | Metric (in millions) | Ocean Transportation 2025 | Ocean Transportation 2024 | Logistics 2025 | Logistics 2024 | | :------------------- | :------------------------ | :------------------------ | :------------- | :------------- | | Operating Revenue | $1,313.0 | $1,268.9 | $299.5 | $300.6 | | Operating Income | $172.2 | $136.6 | $22.9 | $24.9 | - Ocean Transportation operating income decreased by **9.5%** in Q2 2025 but increased by **26.1%** for the six months ended June 30, 2025, primarily due to higher freight rates in China and domestic tradelanes, and increased SSAT contribution[38](index=38&type=chunk)[41](index=41&type=chunk)[115](index=115&type=chunk) - Logistics operating income decreased by **7.7%** in Q2 2025 and **8.0%** for the six months ended June 30, 2025, mainly due to lower contributions from transportation brokerage and freight forwarding[38](index=38&type=chunk)[41](index=41&type=chunk)[119](index=119&type=chunk)[121](index=121&type=chunk) [4. Investment in SSAT](index=18&type=section&id=4.%20Investment%20in%20SSAT) Matson's 35% equity investment in SSAT significantly increased its contribution to income for both the three and six months ended June 30, 2025, primarily due to higher lift volume. The investment value also increased from December 31, 2024 SSAT Net Income (Loss) (Unaudited) | Metric (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | SSAT's Net Income (Loss) | $18.7 | $2.1 | $36.4 | $(1.7) | - Matson's share of income from SSAT was **$7.3 million** in Q2 2025 (up from **$1.2 million** in Q2 2024) and **$13.9 million** in H1 2025 (up from **$1.6 million** in H1 2024), driven by higher lift volume[9](index=9&type=chunk)[109](index=109&type=chunk)[116](index=116&type=chunk) - The company's investment in SSAT increased to **$98.3 million** at June 30, 2025, from **$84.1 million** at December 31, 2024[46](index=46&type=chunk) [5. Property and Equipment](index=20&type=section&id=5.%20Property%20and%20Equipment) Property and equipment, net, increased to $2,359.7 million at June 30, 2025, from $2,260.9 million at December 31, 2024, primarily due to ongoing new vessel construction Property and Equipment (in millions) | Category | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Vessels | $2,487.0 | $2,475.2 | | New vessel construction in progress | $302.9 | $198.8 | | Total Property and Equipment, net | $2,359.7 | $2,260.9 | - New vessel construction in progress increased by **$104.1 million**, reflecting milestone payments and capitalized interest for three new Jones Act vessels[48](index=48&type=chunk) [6. Goodwill and Intangibles](index=20&type=section&id=6.%20Goodwill%20and%20Intangibles) Goodwill remained stable at $327.8 million across the Ocean Transportation and Logistics segments. Intangible assets, primarily customer relationships and a Logistics trade name, decreased slightly due to amortization. The company concluded no impairment triggering event occurred during the period Goodwill by Segment (in millions) | Segment | Goodwill | | :------------------- | :------- | | Ocean Transportation | $222.6 | | Logistics | $105.2 | | Total | $327.8 | Intangible Assets, net (in millions) | Category | June 30, 2025 | December 31, 2024 | | :--------------------------- | :------------ | :---------------- | | Total Customer Relationships, net | $125.6 | $132.1 | | Trade name – Logistics | $27.3 | $27.3 | | Total Intangible Assets, net | $152.9 | $159.4 | - No impairment triggering event for goodwill or intangible assets was identified during the three and six months ended June 30, 2025[51](index=51&type=chunk) [7. Capital Construction Fund](index=22&type=section&id=7.%20Capital%20Construction%20Fund) The Capital Construction Fund (CCF) balance increased to $656.7 million at June 30, 2025, from $642.6 million at December 31, 2024. The fund, comprising cash, cash equivalents, and U.S. Treasury investments, is designated to finance new Jones Act vessel construction Capital Construction Fund Balances (in millions) | Category | June 30, 2025 | December 31, 2024 | | :---------------------------------------- | :------------ | :---------------- | | CCF Cash and Cash Equivalents | $330.1 | $230.7 | | CCF Investments | $326.6 | $411.9 | | Total CCF cash and cash equivalents, and investments | $656.7 | $642.6 | - The company deposited **$109.1 million** into the CCF and made **$100.7 million** in qualifying withdrawals for vessel construction during the six months ended June 30, 2025[124](index=124&type=chunk) CCF Investments Maturities (as of June 30, 2025, in millions) | Year | Cost | Fair Value | | :-------------- | :----- | :--------- | | Remainder of 2025 | $103.7 | $103.7 | | 2026 | $170.5 | $171.0 | | 2027 | $52.4 | $52.7 | | Total | $326.6 | $327.4 | [8. Debt](index=23&type=section&id=8.%20Debt) Total debt decreased by $19.9 million to $381.0 million at June 30, 2025, due to scheduled repayments. Post-quarter, the company amended its revolving credit facility, reducing commitments to $550 million and eliminating the minimum consolidated interest coverage ratio covenant, reflecting a nearly fully-funded vessel build program and lower future capital needs Debt Composition (in millions) | Category | June 30, 2025 | December 31, 2024 | | :------------------------------------- | :------------ | :---------------- | | Private Placement Term Loans | $121.8 | $134.7 | | Title XI Debt | $259.2 | $266.2 | | Total Debt (excluding deferred loan fees) | $381.0 | $400.9 | - On July 23, 2025, the company entered into a Third Amended and Restated Credit Agreement, reducing its revolving credit facility to **$550 million** (from **$650 million**) and eliminating the minimum consolidated interest coverage ratio financial covenant[59](index=59&type=chunk)[130](index=130&type=chunk) Debt Maturities (as of June 30, 2025, in millions) | Year | Amount | | :-------------- | :----- | | Remainder of 2025 | $19.8 | | 2026 | $39.7 | | 2027 | $39.7 | | 2028 | $28.2 | | 2029 | $28.2 | | Thereafter | $225.4 | | Total Debt | $381.0 | [9. Leases](index=25&type=section&id=9.%20Leases) Total lease costs, net of sublease income, decreased to $36.1 million for the three months ended June 30, 2025, and $72.4 million for the six months ended June 30, 2025, compared to the prior year periods. The present value of operating lease liabilities was $294.1 million at June 30, 2025 Components of Lease Cost, net (in millions) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total lease cost, net | $36.1 | $41.7 | $72.4 | $79.7 | Future Minimum Lease Payments (as of June 30, 2025, in millions) | Year | Amount | | :-------------- | :----- | | Remainder of 2025 | $59.5 | | 2026 | $99.2 | | 2027 | $72.3 | | 2028 | $22.0 | | 2029 | $10.3 | | Thereafter | $79.8 | | Total lease payments | $343.1 | | Present value of operating lease liabilities | $294.1 | [10. Accumulated Other Comprehensive Income (Loss)](index=27&type=section&id=10.%20Accumulated%20Other%20Comprehensive%20Income%20(Loss)) Accumulated other comprehensive loss improved to $(6.3) million at June 30, 2025, from $(6.5) million at December 31, 2024. This change was primarily influenced by foreign currency exchange adjustments and amortization of prior service credit and net actuarial loss related to pension and post-retirement benefits Changes in Accumulated Other Comprehensive Income (Loss) (in millions) - Six Months Ended June 30, 2025 | Component | Balance at Dec 31, 2024 | Net Change | Balance at June 30, 2025 | | :-------------------------------------- | :---------------------- | :--------- | :----------------------- | | Pension Benefits | $(14.0) | $0.0 | $(14.0) | | Post-retirement Benefits | $8.1 | $(1.7) | $6.4 | | Non-Qualified Plans | $(0.4) | $0.0 | $(0.4) | | Other (primarily foreign currency exchange) | $(0.2) | $1.9 | $1.7 | | Total Accumulated Other Comprehensive Income (Loss) | $(6.5) | $0.2 | $(6.3) | [11. Fair Value of Financial Instruments](index=27&type=section&id=11.%20Fair%20Value%20of%20Financial%20Instruments) The company values its financial instruments using a fair value hierarchy. Cash and cash equivalents, and CCF cash and cash equivalents and investments, are valued using Level 1 inputs (quoted prices in active markets). Fixed rate debt is valued using Level 2 inputs (observable interest rates for similar debt) Fair Value of Financial Instruments (in millions) - June 30, 2025 | Instrument | Carrying Value | Fair Value | Level 1 | Level 2 | | :------------------------ | :------------- | :--------- | :------ | :------ | | Cash and cash equivalents | $59.1 | $59.1 | $59.1 | $— | | CCF - Cash and cash equivalent | $330.1 | $330.1 | $330.1 | $— | | CCF - Investments | $326.6 | $327.4 | $327.4 | $— | | Fixed rate debt | $381.0 | $308.4 | $— | $308.4 | Fair Value of Financial Instruments (in millions) - December 31, 2024 | Instrument | Carrying Value | Fair Value | Level 1 | Level 2 | | :------------------------ | :------------- | :--------- | :------ | :------ | | Cash and cash equivalents | $266.8 | $266.8 | $266.8 | $— | | CCF - Cash and cash equivalent | $230.7 | $230.7 | $230.7 | $— | | CCF - Investments | $411.9 | $412.5 | $412.5 | $— | | Fixed rate debt | $400.9 | $317.7 | $— | $317.7 | [12. Earnings Per Share](index=28&type=section&id=12.%20Earnings%20Per%20Share) Basic and diluted earnings per share calculations are provided, showing a decrease in EPS for the three months ended June 30, 2025, but an increase for the six months ended June 30, 2025, compared to the prior year periods Basic and Diluted Earnings Per Share (Unaudited) | Metric (in millions, except per share) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Basic Earnings Per Share | $2.95 | $3.34 | $5.14 | $4.38 | | Diluted Earnings Per Share | $2.92 | $3.31 | $5.09 | $4.33 | | Weighted Average Basic Shares | 32.1 | 33.9 | 32.5 | 34.1 | | Weighted Average Diluted Shares | 32.4 | 34.2 | 32.8 | 34.5 | [13. Share-Based Compensation](index=28&type=section&id=13.%20Share-Based%20Compensation) The company recognized $5.9 million in share-based compensation cost for the three months ended June 30, 2025, and $11.7 million for the six months ended June 30, 2025. Unrecognized compensation cost totaled $32.7 million at June 30, 2025, expected to be recognized over approximately 1.8 years Share-Based Compensation Cost (in millions) | Period | 2025 | 2024 | | :------------------------------- | :---- | :---- | | Three Months Ended June 30 | $5.9 | $6.3 | | Six Months Ended June 30 | $11.7 | $12.0 | - Approximately **98,000 shares** (Q2 2025) and **231,200 shares** (H1 2025) were granted as time-based restricted stock units and performance-based shares[72](index=72&type=chunk) - Total unrecognized compensation cost was **$32.7 million** at June 30, 2025, with a weighted average recognition period of **1.8 years**[73](index=73&type=chunk)[74](index=74&type=chunk) [14. Pension and Post-Retirement Plans](index=30&type=section&id=14.%20Pension%20and%20Post-Retirement%20Plans) The company reported net periodic benefit credits for both pension and post-retirement plans for the three and six months ended June 30, 2025 and 2024, reflecting the impact of service cost, interest cost, expected return on plan assets, and amortization of actuarial gains/losses and prior service credits Net Periodic Benefit Cost (Credit) (in millions) - Three Months Ended June 30 | Component | Pension Benefits 2025 | Pension Benefits 2024 | Post-retirement Benefits 2025 | Post-retirement Benefits 2024 | | :------------------------- | :-------------------- | :-------------------- | :---------------------------- | :---------------------------- | | Net periodic benefit credit | $(0.7) | $(0.4) | $(0.8) | $(0.8) | Net Periodic Benefit Cost (Credit) (in millions) - Six Months Ended June 30 | Component | Pension Benefits 2025 | Pension Benefits 2024 | Post-retirement Benefits 2025 | Post-retirement Benefits 2024 | | :------------------------- | :-------------------- | :-------------------- | :---------------------------- | :---------------------------- | | Net periodic benefit credit | $(1.4) | $(0.8) | $(1.6) | $(1.5) | [15. Commitments and Contingencies](index=30&type=section&id=15.%20Commitments%20and%20Contingencies) The company believes it is in material compliance with environmental laws and regulations and does not expect other legal actions arising in the normal course of business to have a material effect on its financial condition, results of operations, or cash flows - The company is in material compliance with applicable environmental laws and regulations[76](index=76&type=chunk) - Other legal actions are not expected to have a material effect on the company's financial condition, results of operations, or cash flows[77](index=77&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=31&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition, results of operations, and liquidity, offering a detailed discussion of performance for the second quarter and first half of 2025, along with an outlook for the full year. It covers segment-specific trends, consolidated financial results, and capital management strategies [Forward-Looking Statements](index=31&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section highlights the inherent uncertainties and risks associated with forward-looking statements within the report - The report contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from projections[79](index=79&type=chunk) - The company undertakes no obligation to revise or update forward-looking statements, except as required by law[79](index=79&type=chunk) [Overview](index=31&type=section&id=OVERVIEW) This section provides management's insights into the company's financial condition, operational results, and liquidity - Management's Discussion and Analysis (MD&A) provides insights into the company's financial condition, results of operations, liquidity, and factors affecting future results[80](index=80&type=chunk) [Second Quarter 2025 Discussion and Outlook for 2025](index=31&type=section&id=SECOND%20QUARTER%202025%20DISCUSSION%20AND%20OUTLOOK%20FOR%202025) The company's second quarter 2025 performance saw mixed results across its Ocean Transportation services, with Hawaii and Alaska volumes up, but China and Guam volumes down. The SSAT joint venture contributed significantly more. Logistics operating income decreased. For the full year 2025, the company anticipates moderately lower consolidated operating income compared to 2024, with specific guidance on depreciation, interest, and capital expenditures Ocean Transportation Volume Changes (Q2 2025 YoY) | Service | Volume Change | | :-------- | :------------ | | Hawaii | +2.6% | | Alaska | +0.9% | | China | -14.6% | | Guam | -2.2% | - SSAT joint venture contribution increased to **$7.3 million** in Q2 2025, up from **$1.2 million** in Q2 2024, primarily due to higher lift volume[86](index=86&type=chunk) - Logistics operating income decreased by **$1.2 million** in Q2 2025 compared to Q2 2024, mainly due to lower transportation brokerage contribution[88](index=88&type=chunk) - Full year 2025 consolidated operating income is expected to be moderately lower than 2024, with depreciation and amortization around **$200 million**, interest income around **$31 million**, and interest expense around **$7 million**[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Expected full year 2025 capital expenditures include **$100-$120 million** for other capital, **$305 million** for new vessel construction, and **$40 million** for dry-docking payments[94](index=94&type=chunk) [Consolidated Results of Operations](index=35&type=section&id=CONSOLIDATED%20RESULTS%20OF%20OPERATIONS) Consolidated results for Q2 2025 showed a decrease in operating revenue and net income year-over-year, primarily due to lower China volume and reduced interest income from a prior-year tax refund. For the first half of 2025, operating revenue and net income increased, driven by higher freight rates and SSAT contribution, despite lower interest income Consolidated Financial Performance (Unaudited) - Three Months Ended June 30 | Metric (in millions, except per share) | 2025 | 2024 | Change ($) | Change (%) | | :--------------------------------- | :------ | :------ | :--------- | :--------- | | Operating revenue | $830.5 | $847.4 | $(16.9) | (2.0)% | | Operating income | $113.0 | $124.6 | $(11.6) | (9.3)% | | Net income | $94.7 | $113.2 | $(18.5) | (16.3)% | | Basic earnings per share | $2.95 | $3.34 | $(0.39) | (11.7)% | Consolidated Financial Performance (Unaudited) - Six Months Ended June 30 | Metric (in millions, except per share) | 2025 | 2024 | Change ($) | Change (%) | | :--------------------------------- | :-------- | :-------- | :--------- | :--------- | | Operating revenue | $1,612.5 | $1,569.5 | $43.0 | 2.7% | | Operating income | $195.1 | $161.5 | $33.6 | 20.8% | | Net income | $167.0 | $149.3 | $17.7 | 11.9% | | Basic earnings per share | $5.14 | $4.38 | $0.76 | 17.4% | - Interest income decreased by **$10.8 million** in Q2 2025 and **$10.2 million** in H1 2025, primarily due to a **$10.2 million** federal income tax refund interest received in Q2 2024 and lower invested cash balances[96](index=96&type=chunk)[101](index=101&type=chunk) - The effective tax rate for Q2 2025 was **22.2%**, compared to **20.9%** in Q2 2024, which benefited from discrete tax adjustments[98](index=98&type=chunk)[103](index=103&type=chunk) [Analysis of Operating Revenue and Income by Segment](index=37&type=section&id=ANALYSIS%20OF%20OPERATING%20REVENUE%20AND%20INCOME%20BY%20SEGMENT) Ocean Transportation revenue decreased in Q2 2025 due to lower China volume but increased over six months due to higher freight rates. Operating income for this segment decreased in Q2 but significantly increased in H1, boosted by SSAT contributions. Logistics revenue and operating income saw slight declines in both periods, mainly from reduced transportation brokerage activity Ocean Transportation Operating Results (Unaudited) - Three Months Ended June 30 | Metric (in millions) | 2025 | 2024 | Change ($) | Change (%) | | :------------------- | :------ | :------ | :--------- | :--------- | | Revenue | $675.6 | $689.9 | $(14.3) | (2.1)% | | Operating income | $98.6 | $109.0 | $(10.4) | (9.5)% | | Hawaii containers (FEU) | 36,000 | 35,100 | 900 | 2.6% | | China containers (FEU) | 32,300 | 37,800 | (5,500) | (14.6)% | Ocean Transportation Operating Results (Unaudited) - Six Months Ended June 30 | Metric (in millions) | 2025 | 2024 | Change ($) | Change (%) | | :------------------- | :-------- | :-------- | :--------- | :--------- | | Revenue | $1,313.0 | $1,268.9 | $44.1 | 3.5% | | Operating income | $172.2 | $136.6 | $35.6 | 26.1% | | Hawaii containers (FEU) | 71,700 | 69,700 | 2,000 | 2.9% | | China containers (FEU) | 60,800 | 66,700 | (5,900) | (8.8)% | Logistics Operating Results (Unaudited) - Three Months Ended June 30 | Metric (in millions) | 2025 | 2024 | Change ($) | Change (%) | | :------------------- | :----- | :----- | :--------- | :--------- | | Revenue | $154.9 | $157.5 | $(2.6) | (1.7)% | | Operating income | $14.4 | $15.6 | $(1.2) | (7.7)% | Logistics Operating Results (Unaudited) - Six Months Ended June 30 | Metric (in millions) | 2025 | 2024 | Change ($) | Change (%) | | :------------------- | :----- | :----- | :--------- | :--------- | | Revenue | $299.5 | $300.6 | $(1.1) | (0.4)% | | Operating income | $22.9 | $24.9 | $(2.0) | (8.0)% | [Liquidity and Capital Resources](index=41&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) The company's liquidity decreased significantly, with cash and cash equivalents falling to $59.1 million at June 30, 2025. This was driven by lower operating cash flows, increased investing activities (vessel construction, CCF deposits), and higher share repurchases. Working capital shifted to a deficit. Debt decreased due to scheduled repayments, and the revolving credit facility was reduced to align with future capital needs Key Liquidity Metrics (in millions) | Metric | June 30, 2025 | December 31, 2024 | Change ($) | | :-------------------------------------- | :------------ | :---------------- | :--------- | | Cash and cash equivalents | $59.1 | $266.8 | $(207.7) | | Accounts receivable, net | $289.1 | $268.9 | $20.2 | | CCF - cash and cash equivalents, and investments | $656.7 | $642.6 | $14.1 | - Working capital shifted from a surplus of **$49.2 million** at December 31, 2024, to a deficit of **$122.4 million** at June 30, 2025, primarily due to cash withdrawals from the CCF[126](index=126&type=chunk) - Total debt decreased by **$19.9 million** to **$381.0 million** due to scheduled fixed interest debt repayments[129](index=129&type=chunk) Future Milestone Payments for Vessel Construction (as of June 30, 2025, in millions) | Year | Amount | | :-------------- | :----- | | Remainder of 2025 | $189.7 | | 2026 | $313.6 | | 2027 | $185.0 | | 2028 | $22.2 | | 2029 | $2.9 | | Total | $713.4 | | (Paid as of June 30, 2025) | $290.2 | - The company repurchased **$162.9 million** of common stock during the six months ended June 30, 2025, with approximately **2.5 million shares** remaining under the repurchase program[134](index=134&type=chunk)[135](index=135&type=chunk) [Critical Accounting Policies and Estimates](index=47&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) This section confirms no material changes to the company's critical accounting policies and estimates during the quarter - There were no material changes to the company's critical accounting policies and estimates during the quarter ended June 30, 2025[136](index=136&type=chunk) [Other Matters](index=47&type=section&id=OTHER%20MATTERS) This section covers recent dividend declarations and references new accounting pronouncements - The company paid a Q2 2025 cash dividend of **$0.34 per share** and declared a Q3 2025 cash dividend of **$0.36 per share**[137](index=137&type=chunk) - Information on new accounting pronouncements is provided in Note 2[137](index=137&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) There have been no material changes to the company's market risk position as previously disclosed in its Annual Report on Form 10-K - No material changes to the company's market risk position were reported[138](index=138&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025. No material changes in internal control over financial reporting occurred during the quarter - Disclosure controls and procedures were deemed effective as of June 30, 2025[139](index=139&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended June 30, 2025[140](index=140&type=chunk) PART II. OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company's Ocean Transportation business faces environmental risks, but management believes it is in material compliance with regulations. Other legal actions are not expected to materially affect the company's financial condition or results - The company is in material compliance with applicable environmental laws and regulations[142](index=142&type=chunk) - Other legal actions are not expected to have a material effect on the company's financial condition, results of operations, or cash flows[146](index=146&type=chunk) [ITEM 1A. RISK FACTORS](index=49&type=section&id=Item%201A.%20Risk%20Factors) There were no material changes to the company's risk factors previously disclosed in its Form 10-Q for the quarter ended March 31, 2025 - No material changes to the company's risk factors were reported[147](index=147&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=49&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 860,000 shares of common stock for a total of $93.7 million during the three months ended June 30, 2025, under its ongoing share repurchase program. Approximately 2.47 million shares remained available for repurchase as of June 30, 2025 Summary of Share Repurchases (Three Months Ended June 30, 2025) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | | :--------------- | :------------------------------- | :--------------------------- | | April 1 – 30, 2025 | 410,000 | $105.85 | | May 1 – 31, 2025 | 260,000 | $107.88 | | June 1 – 30, 2025 | 190,000 | $112.06 | | Total | 860,000 | $107.83 | - As of June 30, 2025, the maximum number of remaining shares that may be repurchased under the program was approximately **2,470,956 shares**[148](index=148&type=chunk) - The share repurchase program, with an aggregate total of **15.0 million shares**, expires on December 31, 2027[148](index=148&type=chunk) [ITEM 3. DEFAULTS UPON SENIOR SECURITIES](index=49&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section confirms no defaults occurred on senior securities during the reporting period - No defaults upon senior securities were reported[150](index=150&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=49&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section confirms no mine safety disclosures were required for the reporting period - No mine safety disclosures were reported[151](index=151&type=chunk) [ITEM 5. OTHER INFORMATION](index=49&type=section&id=Item%205.%20Other%20Information) This section details an amended Rule 10b5-1 trading plan by the Chairman and CEO - Matthew J. Cox, Chairman and CEO, amended a Rule 10b5-1 trading plan on May 8, 2025, to sell up to **29,856 shares** of Matson common stock through December 8, 2025[153](index=153&type=chunk) [ITEM 6. EXHIBITS](index=51&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including various agreements, certifications, and XBRL-related documents - Key exhibits include the Third Amended and Restated Credit Agreement, amendments to Private Shelf Agreements, and various forms of 2025 Incentive Compensation Plan award agreements[154](index=154&type=chunk) - Certifications from the Chief Executive Officer and Chief Financial Officer are included, along with Inline XBRL documents[154](index=154&type=chunk)[155](index=155&type=chunk)[157](index=157&type=chunk) [SIGNATURES](index=54&type=section&id=Signatures) This section provides the official signatures of the company's key financial officers, certifying the report's accuracy - The report was signed by Joel M. Wine (EVP & CFO) and Kevin L. Stuck (VP & Controller) on August 1, 2025[160](index=160&type=chunk)

Core Insights - Matson (MATX) reported quarterly earnings of $2.92 per share, exceeding the Zacks Consensus Estimate of $2.18 per share, but down from $3.31 per share a year ago, indicating an earnings surprise of +33.94% [1] - The company generated revenues of $830.5 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.64%, although this is a decrease from $847.4 million in the same quarter last year [2] - Matson's stock has underperformed, losing about 21% since the beginning of the year, compared to an 8.2% gain in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.38, with expected revenues of $836.37 million, and for the current fiscal year, the EPS estimate is $9.04 on revenues of $3.22 billion [7] - The trend of estimate revisions for Matson was unfavorable prior to the earnings release, resulting in a Zacks Rank 5 (Strong Sell), indicating expected underperformance in the near future [6] Industry Context - The Transportation - Services industry, to which Matson belongs, is currently ranked in the bottom 9% of over 250 Zacks industries, suggesting a challenging environment for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Matson's stock performance [5]

Financial Data and Key Metrics Changes - The second quarter consolidated operating income decreased by $11.6 million year over year to $113 million, primarily due to lower contributions from ocean transportation and logistics [18] - Net income decreased by 16.3% year over year to $94.7 million, and diluted earnings per share decreased by 11.8% year over year to $2.92 per share [19] - Interest income for the quarter was $8 million compared to $18.8 million in the same period last year, reflecting a significant decline [19] Business Line Data and Key Metrics Changes - In Ocean Transportation, operating income was lower year over year primarily due to lower volume in the China service, despite higher freight rates [5] - Logistics operating income in the second quarter was $14.4 million, which is $1.2 million lower than the previous year, mainly due to a lower contribution from transportation brokerage [16] - Container volume in Hawaii increased by 2.6% year over year, while in Guam, it decreased by 2.2%, and in Alaska, it increased by 0.9% year over year [7][14][15] Market Data and Key Metrics Changes - Container volume in the China service decreased by 14.6% year over year due to market uncertainty and tariff impacts [8] - Transshipment volume from outside China represented approximately 21% of the China service, up from 13% in the first quarter, indicating a shift in sourcing [12] - The Hawaii economy remains stable, supported by strong construction activity, but faces potential headwinds from slowing tourism and high inflation [8] Company Strategy and Development Direction - The company is focused on maintaining its position in the Transpacific trade lanes and supporting customers as they diversify their manufacturing bases [26] - There is an emphasis on expanding transshipment capabilities and ensuring fast and reliable services from various origins, particularly in Southeast Asia [46] - The company plans to continue returning excess capital to shareholders in the absence of large growth investment opportunities [21] Management's Comments on Operating Environment and Future Outlook - Management expects continued uncertainty regarding tariffs, global trade, and the U.S. economy, but is raising its outlook for the full year 2025 based on second-quarter performance [6] - The company anticipates lower year-over-year freight rates and volume in the third quarter, reflecting a muted peak season [13] - Management believes that while there will be a long-term shift away from China, it will remain a significant manufacturing hub [65] Other Important Information - The company repurchased approximately 900,000 shares for a total cost of $93.7 million during the second quarter [21] - Total debt at the end of the second quarter was $381 million, a reduction of $9.8 million from the previous quarter [21] - The company entered into a new five-year revolving credit facility with commitments aggregating $550 million [21] Q&A Session Summary Question: Expectations for lower volumes in Q3 - Management noted that lower volumes are influenced by extra sailings last year and customers holding back shipments due to inventory levels [31][32] Question: Impact of new expedited services - Management acknowledged the presence of new expedited services but emphasized their focus on maintaining their competitive edge in speed and reliability [34][35] Question: Outlook for the back half of the year - Management expects a more muted peak season compared to previous years, with a strong Q3 followed by a typical fall-off in October [37] Question: Developments in Southeast Asia - Management is focused on understanding customer needs and ensuring fast, reliable services from new origins as production shifts away from China [45][46] Question: Financial outlook for the back half of the year - Management confirmed that cost reduction actions taken earlier in the year would continue, contributing to improved operating margins [50]

Financial Performance - Ocean Transportation revenue for the second quarter of 2025 decreased by 2.1% year-over-year to $675.6 million[49] - Logistics revenue for the second quarter of 2025 decreased by 1.7% year-over-year to $154.9 million[49] - Net income for the second quarter of 2025 decreased by 16.3% year-over-year to $94.7 million[49] - The terminal joint venture contribution was $7.3 million, a year-over-year increase of $6.1 million[42] - Approximately 0.9 million shares were repurchased in 2Q25 for a total cost of $93.7 million[57] Volume Trends - Hawaii container volume increased by 2.6% year-over-year due to higher general demand[8] - China container volume decreased by 14.6% year-over-year primarily due to market uncertainty and tariffs[22] - Guam container volume decreased by 2.2% year-over-year[25] - Alaska container volume increased by 0.9% year-over-year[35] Outlook - The company expects full year 2025 Ocean Transportation operating income to be moderately lower than the $500.9 million achieved in 2024[62] - The company expects full year 2025 Logistics operating income to be comparable to the $50.4 million achieved in 2024[62]