Core Viewpoint - Matson exceeded expectations in Q4 2025 due to higher freight rates and volumes in its China service, driven by strong e-commerce demand and a stable trading environment. The company anticipates operating income in 2026 to approach 2025 levels, supported by stable US consumer demand and a return to a more traditional seasonal pattern [18][24]. Financial Performance - Matson's consolidated operating income for Q4 2025 was $143.7 million, a decrease of $3.8 million year over year, primarily due to lower contributions from ocean transportation and logistics [25]. - For the full year 2025, consolidated operating income decreased by $51.5 million to $499.8 million, with ocean transportation and logistics contributing $45.3 million and $6.2 million less, respectively [25]. - The company generated cash flow from operations of $547.1 million over the trailing twelve months, returning $348.2 million to shareholders through dividends and share repurchases [25][26]. Trade Lane Performance - Container volumes in Hawaii increased by 0.6% year over year in Q4 2025, while volumes in Guam rose by 4.4%. However, container volumes in Alaska and China decreased by 3.3% and 7.2%, respectively [24][19]. - The logistics segment saw a decrease in operating income due to lower contributions from supply chain management, with Q4 2025 operating income at $7.7 million, down $2.4 million from the previous year [19][25]. Market Outlook - For 2026, Matson expects operating income to approach the levels achieved in 2025, with a more normal seasonal pattern anticipated, particularly in the second and third quarters [24][27]. - The company is focused on expanding its network in Southeast Asia, with expectations of modest volume growth from new services in Thailand and Vietnam [19][31]. Strategic Initiatives - Matson's SSAT terminal joint venture showed a significant turnaround, contributing $32.5 million in 2025, compared to a loss of $1 million in the prior year [19]. - The company plans to continue its share repurchase program and maintain capital expenditures, with a focus on maximizing yield in the Trans-Pacific trade lane [20][26]. Regulatory Environment - The maritime action plan proposed by the administration is viewed as aspirational, with no immediate impact on Matson or the Jones Act. The plan aims to revive US shipbuilding but lacks specific timeframes or changes to existing regulations [21][32].

Financial Data and Key Metrics Changes - For Q4 2025, consolidated operating income decreased by $3.8 million year-over-year to $143.7 million, with lower contributions from ocean transportation and logistics of $1.4 million and $2.4 million respectively [17] - For the full year 2025, consolidated operating income decreased by $51.5 million year-over-year to $499.8 million, primarily due to lower contributions from ocean transportation and logistics [19] - Interest income for Q4 was $6.7 million, down $3.6 million from the prior year due to a lower balance of cash and cash equivalents [18] Business Line Data and Key Metrics Changes - Ocean transportation operating income for Q4 approached the prior-year level, driven by higher-than-expected freight rates and volumes in the China service [4] - Logistics operating income for Q4 decreased to $7.7 million, down $2.4 million year-over-year, primarily due to lower contributions from supply chain management [16] - For the full year 2025, logistics operating income was $44.2 million, reflecting a year-over-year decrease of $6.2 million [16] Market Data and Key Metrics Changes - Hawaii container volume for Q4 increased by 0.6% year-over-year, while for the full year 2025, it increased by 1.6% [7] - China service container volume for Q4 decreased by 7.2% year-over-year, and for the full year 2025, it decreased by 9.5% [8] - Guam's container volume for Q4 increased by 4.4% year-over-year, but for the full year 2025, it decreased by 4.3% [12] Company Strategy and Development Direction - The company is focused on maximizing yield in the Transpacific trade lane and expanding its network in Southeast Asia as customers diversify their operations [11][30] - The company plans to continue returning capital to shareholders through dividends and share repurchase programs [22][30] - The company expects to maintain a disciplined approach to pricing in 2026, focusing on yield management rather than filling ships [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the U.S. economy's resilience and expects a stable trading environment in the Transpacific trade lane [10][28] - The company anticipates a more normal operating income seasonality pattern in 2026, with stronger performance expected in the second and third quarters [6][10] - Management noted that tariff uncertainties from 2025 are mostly behind them, which should provide stability moving forward [10][28] Other Important Information - The company generated cash flow from operations of $547.1 million over the trailing 12 months, exceeding capital expenditures, dividends, and share repurchases by $49.8 million [19] - The company repurchased approximately 2.7 million shares for a total cost of $307.4 million in 2025 [20] Q&A Session Summary Question: Impact of Red Sea sailings on guidance - Management indicated that the broader transpacific trade is oversupplied and that the guidance is independent of whether the Red Sea opens or not [35] Question: Signs of seasonal recovery post-Lunar New Year - Management noted a traditional recovery from Lunar New Year, with no significant spike in demand pre-holiday [39] Question: Pricing environment in 2026 - Management expects to maintain a disciplined approach to pricing, focusing on yield management rather than filling ships [46] Question: Volume from Thailand route - Management indicated that the Thailand route is starting with 50 loads per sailing and expects slow and steady volume growth [49] Question: Maritime Action Plan impact - Management described the Maritime Action Plan as aspirational with no specific time frames or impacts on the Jones Act [53]

4Q 2025 Earnings Conference Call February 24, 2026 Forward-Looking Statements Statements made during this presentation that set forth expectations, predictions, projections or are about future events are based on facts and situations that are known to us as of February 24, 2026. We believe that our expectations and assumptions are reasonable. Actual results may differ materially, due to risks and uncertainties, such as those described on pages 28-40 of our Form 10-Q filed on November 5, 2025 and other subse ...

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 [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]