Matson(US:MATX)2025-02-25 21:05Financial 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].