Matson(US:MATX)2025-11-04 21:10Financial Performance - Q3 2025 net income was $134.7 million, or $4.24 per diluted share, compared to $199.1 million, or $5.89 per diluted share in Q3 2024[1][3] - Consolidated revenue for Q3 2025 was $880.1 million, down from $962.0 million in Q3 2024, representing a decrease of 8.5%[1][3] - Ocean Transportation operating income decreased by $79.5 million, or 35.0%, to $147.4 million in Q3 2025 compared to $226.9 million in Q3 2024[2][18] - Logistics segment operating income was $13.6 million in Q3 2025, down $1.8 million, or 11.7%, from $15.4 million in Q3 2024[10][27] - Net income for the nine months ended September 30, 2025, was $301.7 million, a decrease of 13.4% compared to $348.4 million in 2024[48] - EBITDA for the nine months ended September 30, 2025, was $507.6 million, down 6.6% from $543.7 million in 2024[50] Revenue and Volume Trends - Container volume in China decreased by 12.8% year-over-year in Q3 2025, primarily due to uncertainties related to tariffs and global trade[5][17] - Total operating revenue for the nine months ended September 30, 2025, was $2,492.6 million, a decrease of $38.9 million, or 1.5%, from $2,531.5 million in 2024[44] - Logistics revenue for the nine months ended September 30, 2025, was $461.3 million, a decrease of $2.6 million, or 0.6%, from $463.9 million in 2024[30] Cash Flow and Capital Expenditures - Cash and cash equivalents decreased by $174.1 million from $266.8 million at December 31, 2024, to $92.7 million at September 30, 2025[32] - Net cash from operating activities was $370.2 million for the nine months ended September 30, 2025, down from $593.1 million in the same period of 2024, largely due to a federal tax refund received in 2024[32] - Capital expenditures totaled $258.7 million for the nine months ended September 30, 2025, compared to $184.7 million in 2024, indicating an increase of $74.0 million, or 40.0%[32] - Vessel construction expenditures increased to $141.7 million in 2025 from $39.8 million in 2024, indicating a substantial rise in capital investment[48] - Total capital expenditures, excluding vessel construction, were $117.0 million in 2025, compared to $144.9 million in 2024[48] Debt and Shareholder Returns - As of September 30, 2025, total debt decreased by $30.0 million to $370.9 million, with $331.2 million classified as long-term debt[32] - The company declared a cash dividend of $0.36 per share, payable on December 4, 2025, to shareholders of record as of November 6, 2025[33] - The company repurchased approximately 0.6 million shares for a total cost of $66.4 million during the third quarter of 2025[33] - The company repurchased $225.8 million of common stock in 2025, up from $167.4 million in 2024, reflecting a 35% increase in stock buybacks[48] Future Outlook - The company expects Q4 2025 consolidated operating income to be approximately 30% lower than the $147.5 million achieved in Q4 2024[2][11] - The company anticipates a more stable trading environment in Q4 2025 due to reduced uncertainty regarding tariffs and global trade following a recent trade deal between the U.S. and China[2][5] - For full year 2025, the company expects depreciation and amortization expense to be approximately $196 million[11][14] - Interest income for full year 2025 is expected to be around $32 million, while interest expense is projected to be approximately $7 million[12][13] Tax and Interest Payments - Income tax payments for the nine months ended September 30, 2025, were $62.5 million, compared to a refund of $85.1 million in 2024[48] - Interest paid, net of capitalized interest, was $4.4 million in 2025, a decrease from $5.3 million in 2024[48]