Core Insights - The podcast features Mark Matson discussing the importance of having a purpose for money and how it relates to overall happiness and wealth building [2][12] - Matson emphasizes that understanding market efficiency is crucial for investors, as most active managers fail to outperform the market [6][9] - The conversation highlights common biases that hinder effective investing, such as familiarity bias and activity bias, which lead investors to make poor decisions [8][11] Investment Philosophy - Matson's core investing philosophy includes the belief that markets are efficient and that returns are linked to the cost of capital [6] - He advocates for broad global diversification to mitigate long-term risks [6] - The podcast discusses the detrimental effects of stock picking and market timing, which are often exacerbated by technology and media [9][10] Behavioral Finance - Matson identifies several cognitive biases that affect investor behavior, including hindsight bias, fear of missing out (FOMO), and emotional responses to market fluctuations [8] - He argues that many investors engage in "churning" their portfolios, believing that activity equates to control, which often leads to increased risk and costs [11] Wealth Building Strategies - For those starting their investment journey, Matson recommends dollar-cost averaging and prioritizing saving, regardless of existing debt [12] - He advises against speculative trading and emphasizes the importance of understanding risk before making investment decisions [11][12] Financial Planning and Retirement - Matson challenges traditional views on retirement, suggesting that the concept may be outdated and advocating for continuous engagement in meaningful work [14] - He highlights the unpredictability of future financial needs and the limitations of common financial planning metrics [14] Purpose of Money - The discussion underscores that money should serve a purpose beyond mere accumulation, focusing on creating fulfillment and connection in life [12][15] - Matson encourages individuals to use money as a tool for positive impact rather than a source of jealousy or resentment [15]

Summary of Asia Shipping Ecosystems Conference Call Industry Overview - The conference call focused on the Asia shipping industry, particularly the outlook for 2026 and the current dynamics affecting the sector [2][7][8]. Key Insights Demand Trends - Demand trends are highly bifurcated: - Asia-Europe and intra-region trade are resilient. - US routes are lagging, with container imports down approximately 7% year-over-year (Y/Y) [2][7]. - Europe has seen an 11% increase in trade, while the rest of the world is up 8% [2][7]. - Global trade excluding North America has grown around 6%, which is double the normal rate [2][7]. Supply Dynamics - Vessel delivery schedules and evolving emissions standards are critical factors shaping the market: - Global demand has increased by approximately 7-8% since Q4 2023, while global capacity has grown by about 11-12% [7]. - Anticipated large vessel deliveries in 2027/28 could lead to a cyclical downturn, reminiscent of 2015-16, but not as severe as the 2008 crash [7]. - Only 13% of the fleet is up for scrapping, indicating muted scrapping activity [7]. Trade Policy and Geopolitical Factors - Trade policy remains uncertain, particularly regarding the USTR 301 tariff issue, which is politically driven and likely to resurface [7][8]. - The Red Sea passage is a significant variable, with carriers expected to act cautiously due to geopolitical developments [9]. Intra-Region Trade - Intra-region trade is a bright spot, driven by supply chain realignment and India's emergence as a major market [7][8]. - Infrastructure gaps in India, particularly in port capacity, are creating demand for smaller feeder vessels [7]. Shipping Alliances - Ongoing reshuffles in shipping alliances are influencing competitive dynamics: - Financial strength allows carriers to manage capacity without engaging in price wars [8]. - Major carriers like Maersk and Hapag-Lloyd have seen volume growth, but rate declines are attributed to individual strategies rather than alliance structures [8]. Stock Ratings and Recommendations - Overweight ratings are maintained for: - TS Lines (intra-region) - COSCO - OOIL - Evergreen Marine - Mitsui OSK - An Underweight rating is retained for YZJ Shipbuilding, as the shipbuilding cycle has peaked [2][7]. Financial Metrics - The report includes financial metrics for various shipping companies, highlighting potential upside and market capitalization [10][11][12]. Conclusion - The Asia shipping sector is navigating a complex landscape with mixed opportunities and risks. Resilience and adaptability will be key themes for 2026 and beyond, with intra-region trade and supply chain realignment presenting potential growth areas [2][7].

Core Points - Matson, Inc. will present an overview of the company at the Stephens 2025 Annual Investment Conference on November 18, 2025 [1] - The presentation slides will be accessible on Matson's website on the same day [2] Company Overview - Matson, founded in 1882, is a leading provider of ocean transportation and logistics services, primarily serving Hawaii, Alaska, Guam, and other Micronesian islands [3] - The company operates a fleet that includes containerships and roll-on/roll-off ships, and offers premium expedited services from China to Long Beach, California [3] - Matson Logistics, established in 1987, enhances the company's transportation network across North America and Asia, providing various logistics services [3]

Financial Performance - In Q3 2025, the company's operating revenue was $880.1 million, down 8.5% from $962.0 million in Q3 2024[98]. - Operating income for Q3 2025 was $161.0 million, a decrease of 33.6% compared to $242.3 million in Q3 2024[98]. - The company's net income for Q3 2025 was $134.7 million, down 32.3% from $199.1 million in Q3 2024[98]. - For full year 2025, the company expects operating income to be approximately 30% lower than the $147.5 million achieved in Q4 2024[94]. - Ocean Transportation revenue decreased by $80.4 million, or 10.1%, to $718.3 million for the three months ended September 30, 2025, compared to $798.7 million in the same period of 2024[109]. - Operating income for Ocean Transportation fell by $79.5 million, or 35.0%, to $147.4 million for the three months ended September 30, 2025, down from $226.9 million in 2024[111]. - Logistics revenue decreased by $1.5 million, or 0.9%, to $161.8 million for the three months ended September 30, 2025, compared to $163.3 million in 2024[120]. - Operating income for Logistics dropped by $1.8 million, or 11.7%, to $13.6 million for the three months ended September 30, 2025[121]. - Ocean Transportation revenue for the nine months ended September 30, 2025, decreased by $36.3 million, or 1.8%, to $2,031.3 million compared to $2,067.6 million in 2024[116]. - Logistics operating income for the nine months ended September 30, 2025, decreased by $3.8 million, or 9.4%, to $36.5 million compared to $40.3 million in 2024[125]. Container Volume - Container volume in Hawaii increased by 0.3% year-over-year in Q3 2025, while in China, it decreased by 12.8% due to ongoing trade uncertainties[85][86]. - Hawaii container volume increased by 0.3% to 36,300 FEUs, while China container volume decreased by 12.8% to 34,900 FEUs for the three months ended September 30, 2025[110]. Cash Flow and Capital Management - Cash and cash equivalents decreased by $174.1 million to $92.7 million as of September 30, 2025, compared to $266.8 million at the end of 2024[126]. - Net cash provided by operating activities fell by $222.9 million to $370.2 million for the nine months ended September 30, 2025, compared to $593.1 million in 2024[127]. - The Company had a working capital deficit of $93.5 million as of September 30, 2025, compared to a surplus of $49.2 million at December 31, 2024[133]. - Total Debt decreased by $30.0 million to $370.9 million as of September 30, 2025, due to scheduled fixed interest debt repayments[135]. - The Company repurchased approximately 2.0 million shares for a total cost of $229.3 million during the nine months ended September 30, 2025, compared to 1.4 million shares for $169.2 million in the same period of 2024[139]. - The Company paid $225.8 million to repurchase Matson common stock during the nine months ended September 30, 2025, up from $167.4 million in the prior year[132]. - The Company paid $33.7 million in dividends during the nine months ended September 30, 2025, compared to $33.5 million in the same period of 2024[132]. - CCF cash and cash equivalents increased to $376.7 million as of September 30, 2025, from $230.7 million at December 31, 2024[134]. - The Company made milestone payments of $136.5 million under vessel construction agreements during the nine months ended September 30, 2025, compared to $35.8 million in the same period of 2024[138]. - The Company has $544.0 million of remaining borrowing availability under the revolving credit facility as of September 30, 2025[137]. Tax and Interest - The effective tax rate for Q3 2025 was 20.2%, with an expected rate of approximately 22.0% for the full year 2025[96]. - Interest income for the full year 2025 is expected to be approximately $32 million, while interest expense is projected to be around $7 million[95]. Joint Ventures - The contribution from the SSAT joint venture in Q3 2025 was $9.3 million, an increase of $2.4 million from Q3 2024[91]. - The Company's SSAT terminal joint venture investment contributed $23.2 million during the nine months ended September 30, 2025, up from $8.5 million in the same period of 2024[119]. Future Outlook - The company anticipates full year 2025 depreciation and amortization expense to be around $196 million[94]. - The Company declared a cash dividend of $0.36 per share payable on December 4, 2025[143]. - The Company intends to use CCF cash and cash equivalents to fund future milestone payments for the construction of three new Aloha Class vessels[138].

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Financial Data and Key Metrics Changes - In Q3 2025, consolidated operating income decreased by $81.3 million year-over-year to $161 million, primarily due to lower contributions from Ocean Transportation and Logistics [14] - Net income decreased by 32.3% year-over-year to $134.7 million, and diluted earnings per share decreased by 28% year-over-year to $4.24 per share [14] - Interest income was $7.6 million in the quarter compared to $10.4 million in the same period last year [14] Business Line Data and Key Metrics Changes - In Ocean Transportation, operating income was lower year-over-year due to decreased freight rates and container volume in the China service [4] - Logistics operating income in Q3 was $13.6 million, down $1.8 million from the previous year, primarily due to lower contributions from freight forwarding, transportation brokerage, and supply chain management [12][13] - Container volume in Hawaii increased by 0.3% year-over-year, while in Guam, it decreased by 4.2% year-over-year [5][11] Market Data and Key Metrics Changes - Container volume in the China service decreased by 12.8% year-over-year due to ongoing uncertainty from tariffs and global trade [6] - The Trans-Pacific trade lane experienced muted peak season demand compared to the previous year, leading to lower freight rates and volume expectations for Q4 2025 [7][8] - In Alaska, container volume increased by 4.1% year-over-year, supported by economic growth and job creation [11] Company Strategy and Development Direction - The company remains optimistic about a more stable trading environment starting in Q4 2025 due to a trade deal between the U.S. and China [5][9] - The company is committed to maintaining service reliability and superior customer service, focusing on managing transportation needs amid market volatility [21] - The company plans to continue returning excess capital to shareholders through dividends and share repurchases [16] Management Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging due to tariffs and global trade uncertainties, but they expect improvements following the recent trade deal [4][5] - The company anticipates consolidated operating income for Q4 2025 to be approximately 30% lower year-over-year [17] - Management emphasized the importance of delivering for customers during unsettled times as a key to future success [21] Other Important Information - The company expects to incur approximately $20 million in port entry fees in Q4 2025, which will not be passed on to customers [9][10] - The company has repurchased approximately 13.1 million shares since initiating its share repurchase program, representing 30.2% of its stock [16] Q&A Session Summary Question: Are current pricing levels sustainable given the pressure on traditional spot rates? - Management indicated that they have consciously held prices despite falling spot rates, believing that their pricing strategy is sustainable and reflects the value provided [25][26] Question: What are the factors affecting utilization headwinds in the quarter? - Management attributed lower utilization to a premium in their pricing relative to market rates and the front-loading of inventory by customers [28][29] Question: Is there a possibility of refund for the incurred port fees? - Management is awaiting final regulations from the USTR and the China Ministry of Transport to determine if refunds or rebates are possible [34] Question: How is the company responding to changes in sourcing from China? - Management noted a trend of customers diversifying their sourcing strategies while still recognizing China's importance as a manufacturing source [46][47] Question: What is the current share of cargo from sources other than China? - Management reported that approximately 20% of cargo on CLX and MAX services comes from other countries, with Vietnam being a significant contributor [48] Question: How are pricing dynamics evolving in domestic lanes? - Management stated that pricing in domestic trades has remained stable, with annual rate increases aligned with underlying cost increases [49]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated operating income decreased by $81.3 million year-over-year to $161 million, primarily due to lower contributions from Ocean Transportation and Logistics [14] - Net income decreased by 32.3% year-over-year to $134.7 million, and diluted earnings per share decreased by 28% year-over-year to $4.24 per share [14] - Interest income was $7.6 million in the quarter compared to $10.4 million in the same period last year [14] Business Line Data and Key Metrics Changes - In Ocean Transportation, operating income was lower year-over-year due to decreased freight rates and container volume in the China service [4] - Logistics operating income in Q3 was $13.6 million, down $1.8 million from the previous year, primarily due to lower contributions from freight forwarding, transportation brokerage, and supply chain management [12][13] - Container volume in Hawaii increased by 0.3% year-over-year, while in Guam, it decreased by 4.2% year-over-year [5][11] Market Data and Key Metrics Changes - Container volume in the China service decreased by 12.8% year-over-year due to ongoing uncertainty from tariffs and global trade [6] - The Trans-Pacific trade lane experienced muted peak season demand compared to the previous year, leading to lower freight rates and volume expectations for Q4 2025 [7][8] - In Alaska, container volume increased by 4.1% year-over-year, supported by economic growth and job creation [11] Company Strategy and Development Direction - The company remains optimistic about a more stable trading environment starting in Q4 2025 due to a trade and economic deal between the U.S. and China [5][9] - The company is committed to maintaining service reliability and superior customer service, focusing on managing transportation needs amid market volatility [21] - The company plans to continue returning excess capital to shareholders through dividends and share repurchases, with a focus on maintaining a strong balance sheet [16] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment remains challenging due to tariffs and global trade uncertainties, but expressed optimism following the recent trade deal [4][5] - The company expects consolidated operating income in Q4 2025 to be approximately 30% lower year-over-year [17] - Management highlighted the importance of adapting to customer needs and maintaining pricing strategies amid fluctuating market conditions [21] Other Important Information - The company has not passed port entry fees on to customers, maintaining a consistent pricing strategy [10] - The company expects to pay approximately $20 million in port entry fees in Q4 2025 and $80 million annually in 2026 and 2027 [9] - The company has repurchased approximately 13.1 million shares since initiating its share repurchase program, representing 30.2% of its stock [16] Q&A Session Summary Question: Are current pricing levels sustainable given the pressure on traditional spot rates? - Management indicated that while absolute freight rates may come down, it will be in an orderly manner consistent with seasonal patterns [25][26] Question: What are the factors affecting utilization headwinds in the quarter? - Management attributed lower utilization to a premium pricing strategy and front-loading of inventory rather than broader market supply and demand [28][29] Question: Is there a mechanism for refunding the $6.4 million in port fees? - Management stated that they are awaiting final regulations to determine if refunds or rebates are possible [34] Question: How is the company responding to recent spot market fluctuations? - Management noted that their pricing is disconnected from spot market fluctuations, focusing instead on expedited services for customers with urgent needs [38][39] Question: Are customers diversifying sourcing strategies due to trade discussions? - Management observed a trend of customers adopting a "China plus one" strategy, diversifying sourcing while still recognizing China's importance [46][47] Question: What is the pricing strategy for domestic lanes? - Management confirmed that pricing increases are aligned with underlying cost increases, maintaining a steady pricing environment [49]

Financial Data and Key Metrics Changes - In Q3 2025, consolidated operating income decreased by $81.3 million year-over-year to $161 million, primarily due to lower contributions from ocean transportation and logistics [15][16] - Net income decreased by 32.3% year-over-year to $134.7 million, and diluted earnings per share decreased by 28% year-over-year to $4.24 per share [16] - Interest income was $7.6 million in the quarter compared to $10.4 million in the same period last year [16] Business Line Data and Key Metrics Changes - Ocean transportation operating income was lower year-over-year due to decreased freight rates and container volume in the China service [4] - Logistics operating income decreased by $1.8 million year-over-year to $13.6 million, primarily due to lower contributions from freight forwarding, transportation brokerage, and supply chain management [13][15] - The SSAT terminal joint venture contributed $9.3 million, a year-over-year increase of $2.4 million due to higher lift revenue [13] Market Data and Key Metrics Changes - Container volume in the Hawaii service increased by 0.3% year-over-year, while in Guam, it decreased by 4.2% year-over-year due to lower general demand [5][12] - Container volume in the China service decreased by 12.8% year-over-year, primarily due to tariff uncertainties impacting global trade [6][8] - In Alaska, container volume increased by 4.1% year-over-year, supported by economic growth and job creation [12] Company Strategy and Development Direction - The company remains committed to maintaining high service reliability and superior customer service, focusing on managing transportation needs amid market volatility [24] - The recent trade and economic deal between the U.S. and China is viewed as a positive step towards a more stable trading environment [5][24] - The company plans to continue returning excess capital to shareholders through dividends and share repurchases in the absence of large growth investment opportunities [18] Management's Comments on Operating Environment and Future Outlook - Management expects consolidated operating income in Q4 2025 to be approximately 30% lower year-over-year due to ongoing market challenges [4][19] - There is optimism for a more stable trading environment starting in Q4 2025 due to reduced uncertainty regarding tariffs and global trade [5][10] - The Hawaii economy is softening, with tourism and inflation impacting growth, while construction remains a bright spot [6] Other Important Information - The company has not passed port entry fees on to customers and maintains a philosophy of charging based on the value provided [10][11] - Total debt at the end of Q3 was $370.9 million, a reduction of $10.1 million from the previous quarter [18] Q&A Session Summary Question: Are current pricing levels sustainable given the pressure on traditional spot rates? - Management believes that while absolute freight rates may come down, it will be in an orderly manner consistent with previous seasonal patterns [28][29] Question: Are the $6.4 million in port fees included in the operating profit down 30% in Q4? - Yes, the port fees are included in the operating profit [33] Question: Is there a mechanism to get the $6.4 million in port fees refunded? - Management is awaiting final regulations from the USTR and the China Ministry of Transport to determine if refunds are possible [37] Question: Are customers weary of sourcing from China? - There is a trend of customers diversifying their sourcing strategies, but China remains an important manufacturing source [48][50] Question: What percentage of cargo on CLX and MAX services comes from sources other than China? - Approximately 20% of cargo comes from other sources, primarily Vietnam, with expectations for growth from Thailand and other regions [51] Question: How is pricing progressing in domestic lanes? - The company has seen a steady pricing environment with annual rate increases that mirror underlying cost increases [52]

Financial Performance - Ocean Transportation revenue decreased by 101% YoY to $7183 million in 3Q25[43] - Logistics revenue decreased by 09% YoY to $1618 million in 3Q25[43] - Consolidated operating income is expected to be approximately 30% lower YoY in 4Q25[7, 51] - Equity in income of JV increased by $24 million YoY to $93 million in 3Q25[38] - Matson Logistics operating income decreased approximately $18 million YoY to $136 million in 3Q25[42] Volume Trends - Hawaii container volume increased slightly by 03% YoY in 3Q25[8] - China container volume decreased significantly by 128% YoY in 3Q25[21] - Guam container volume decreased by 42% YoY in 3Q25[24] - Alaska container volume increased by 41% YoY in 3Q25[33] Outlook and Strategic Initiatives - The company expects a more stable trading environment due to the U S and China trade deal[7, 22, 55] - The company anticipates paying approximately $20 million in port entry fees in 4Q25 before the suspension[23]

Financial 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]