Matson, Inc. announces second quarter 2025 results

Matson, Inc. reported net income of $94.7 million, or $2.92 per diluted share, for the quarter ended June 30, 2025. Net income for the quarter ended June 30, 2024 was $113.2 million, or $3.31 per diluted share. Consolidated revenue for the second quarter 2025 was $830.5 million compared with $847.4 million for the second quarter 2024.

Matt Cox, Matson's Chairman and Chief Executive Officer, commented, "Our second quarter financial performance exceeded our expectations amid the challenges of market uncertainty and volatility arising from tariffs and global trade. In Ocean Transportation, our operating income was lower year-over-year primarily due to lower year-over-year volume in our China service. At the onset of tariffs in April, our China service experienced significantly lower year-over-year freight demand, but starting in mid-May our Transpacific services saw a rebound in demand after the U.S. and China agreed to a temporary reduced level of tariffs. During the second quarter, we also moved with our customers as they shifted production throughout Asia in response to the tariffs, which resulted in higher container volume levels outside of China than the levels achieved in the first quarter."

Mr. Cox added, "In our domestic tradelanes, we saw higher year-over-year volume in Hawaii and Alaska and lower year-over-year volume in Guam. In Logistics, our operating income was lower year-over-year primarily due to a lower contribution from transportation brokerage."

"Looking ahead, we expect uncertainty regarding tariffs and global trade, regulatory measures, the trajectory of the U.S. economy and other geopolitical factors to continue. Assuming these factors do not materially change from current conditions, for the full year, we expect Ocean Transportation operating income to be higher than the guidance we provided in early May, but moderately lower than the level achieved in the prior year. We also expect Logistics full year operating income to be comparable to the level achieved in the prior year. For the third quarter 2025, we expect Ocean Transportation operating income to be meaningfully lower than the $226.9 million achieved in the third quarter 2024 primarily due to lower year-over-year freight rates and volume in our China service compared to the elevated demand levels achieved in the third quarter last year and our expectation of a muted peak season this year. For Logistics, in the third quarter 2025, we expect operating income to be comparable to the level achieved in the same period last year."

Second quarter 2025 discussion and outlook for 2025

Ocean Transportation: The Company's container volume in the Hawaii service in the second quarter 2025 was 2.6 percent higher year-over-year. The increase was primarily due to higher general demand. The Hawaii economy remains stable supported by strong construction activity, but faces potential headwinds from slowing tourism, increasing unemployment, and high inflation and interest rates. The Company expects volume in 2025 to be modestly higher than the level achieved in 2024, reflecting modest economic growth in Hawaii and stable market share.

In China, the Company's container volume in the second quarter 2025 decreased 14.6 percent year-over-year primarily due to the challenges of market uncertainty and volatility from tariffs and global trade. Freight rates in the second quarter 2025 were modestly higher than the levels achieved in the same period last year. At the onset of tariffs in April, the Company experienced significantly lower year-over-year freight demand, but starting in mid-May saw a rebound in demand after the U.S. and China agreed to a temporary reduced level of tariffs. During the second quarter, the Company also moved with its customers as they shifted production throughout Asia in response to the tariffs, which resulted in higher container volume levels outside of China than the levels achieved in the first quarter. For the third quarter 2025, the Company expects lower year-over-year freight rates and volume compared to the elevated demand levels achieved in the third quarter last year and the Company's expectation of a muted peak season this year. Assuming tariffs and global trade, regulatory measures, the trajectory of the U.S. economy and other geopolitical factors do not materially change from current conditions, the Company expects, for full year 2025, average freight rates and volume to be lower year-over-year.

In Guam, the Company's container volume in the second quarter 2025 decreased 2.2 percent year-over-year. In the near term, the Company expects Guam's economy to remain stable with a slow recovery in tourism, a low unemployment rate, and some increase in construction activity. For 2025, the Company expects volume to be modestly lower than the level achieved last year.

In Alaska, the Company's container volume for the second quarter 2025 increased 0.9 percent year-over-year. The increase was primarily due to higher AAX volume, partially offset by two fewer northbound sailings compared to the year ago period. In the near term, the Company expects continued economic growth in Alaska supported by a low unemployment rate, jobs growth and continued oil and gas exploration and production activity. For 2025, the Company expects volume to be modestly higher than the level achieved last year.

The contribution in the second quarter 2025 from the Company's SSAT joint venture investment was $7.3 million, or $6.1 million higher than second quarter 2024. The increase was primarily due to higher lift volume. For 2025, the Company expects the contribution from SSAT to be modestly higher than the $17.4 million achieved last year without taking into account the $18.4 million impairment charge at SSAT during the fourth quarter 2024.

In addition to the outlook trends noted above, the Company expects uncertainty regarding tariffs and global trade, regulatory measures, the trajectory of the U.S. economy and other geopolitical factors to continue. Assuming these factors do not materially change from current conditions, the Company expects Ocean Transportation operating income for the full year to be higher than the guidance provided in early May, but moderately lower than the level achieved in the prior year. For the third quarter 2025, the Company expects Ocean Transportation operating income to be meaningfully lower than the level achieved in the same period last year primarily due to lower year-over-year freight rates and volume in the China service compared to the elevated demand levels achieved in the third quarter last year and the Company's expectation of a muted peak season this year.

Logistics: In the second quarter 2025, operating income for the Company's Logistics segment was $14.4 million, or $1.2 million lower compared to the level achieved in the second quarter 2024. The decrease was primarily due to a lower contribution from transportation brokerage. For the third quarter 2025, the Company expects Logistics operating income to be comparable to the $15.4 million achieved in the third quarter 2024. For full year 2025, the Company expects Logistics operating income to be comparable to the level achieved in the prior year.

Consolidated Operating Income: For the third quarter 2025, the Company expects consolidated operating income to be meaningfully lower than the $242.3 million achieved in the third quarter 2024. For full year 2025, the Company expects consolidated operating income to be higher than the guidance provided in early May, but moderately lower than the $551.3 million achieved in 2024.

Depreciation and Amortization: For full year 2025, the Company expects depreciation and amortization expense to be approximately $200 million, inclusive of dry-docking amortization of approximately $26 million.

Interest Income: The Company expects interest income for the full year 2025 to be approximately $31 million. In the second quarter 2024, the Company's interest income of $18.8 million included $10.2 million in interest income earned on the federal tax refund related to the Company's 2021 federal tax return.

Interest Expense: The Company expects interest expense for the full year 2025 to be approximately $7 million.

Other Income (Expense): The Company expects full year 2025 other income (expense) to be approximately $9 million in income, which is attributable to the amortization of certain components of net periodic benefit costs or gains related to the Company's pension and post-retirement plans.

Income Taxes: In the second quarter 2025, the Company's effective tax rate was 22.2 percent. For the full year 2025, the Company expects its effective tax rate to be approximately 22.0 percent.

Capital and Vessel Dry-docking Expenditures: For the second quarter 2025, the Company made capital expenditure payments excluding new vessel construction expenditures of $48.9 million, new vessel construction expenditures (including capitalized interest and owner's items) of $37.4 million, and dry-docking payments of $13.4 million. For the full year 2025, the Company expects to make other capital expenditure payments, including maintenance capital expenditures, of approximately $100 to $120 million, new vessel construction expenditures (including capitalized interest and owner's items) of approximately $305 million, and dry-docking payments of approximately $40 million.

Results by segment

Ocean Transportation — Three months ended June 30, 2025 compared with 2024

			Three Months Ended June 30,
(Dollars in millions)			2025				2024			Change
Ocean Transportation revenue			$	675.6			$	689.9		$	(14.3)			(2.1)	%
Operating costs and expenses				(577.0)				(580.9)			3.9			(0.7)	%
Operating income			$	98.6			$	109.0		$	(10.4)			(9.5)	%
Operating income margin				14.6	%			15.8	%
Volume (Forty-foot equivalent units (FEU)) (1)
Hawaii containers				36,000				35,100			900			2.6	%
Alaska containers				21,700				21,500			200			0.9	%
China containers (2)				32,300				37,800			(5,500)			(14.6)	%
Guam containers				4,500				4,600			(100)			(2.2)	%
Other containers (3)				4,400				4,400			—			—	%
(1)	Approximate volume included for the period are based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period.
(2)	Includes containers transshipped from other Asia origins.
(3)	Includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan.

Ocean Transportation revenue decreased $14.3 million, or 2.1 percent, during the three months ended June 30, 2025, compared with the three months ended June 30, 2024. The decrease was primarily due to lower volume in China, partially offset by higher freight rates in China.

On a year-over-year FEU basis, Hawaii container volume increased 2.6 percent primarily due to higher general demand; Alaska volume increased 0.9 percent primarily due to higher AAX volume, partially offset by two fewer northbound sailings compared to the year ago period; China volume was 14.6 percent lower primarily due to the challenges of market uncertainty and volatility from tariffs and global trade; Guam volume decreased 2.2 percent; and Other containers volume was flat.

Ocean Transportation operating income decreased $10.4 million, or 9.5 percent, during the three months ended June 30, 2025, compared with the three months ended June 30, 2024. The decrease was primarily due to lower volume in China, partially offset by higher freight rates in China and the timing of fuel-related surcharge collections.

The Company's SSAT terminal joint venture investment contributed $7.3 million during the three months ended June 30, 2025, compared to a contribution of $1.2 million during the three months ended June 30, 2024. The increase was primarily driven by higher lift volume.

Ocean Transportation — Six months ended June 30, 2025 compared with 2024

			Six Months Ended June 30,
(Dollars in millions)			2025			2024			Change
Ocean Transportation revenue			$	1,313.0		$	1,268.9		$	44.1			3.5	%
Operating costs and expenses				(1,140.8)			(1,132.3)			(8.5)			0.8	%
Operating income			$	172.2		$	136.6		$	35.6			26.1	%
Operating income margin				13.1	%		10.8	%
Volume (Forty-foot equivalent units (FEU)) (1)
Hawaii containers				71,700			69,700			2,000			2.9	%
Alaska containers				41,400			40,300			1,100			2.7	%
China containers (2)				60,800			66,700			(5,900)			(8.8)	%
Guam containers				8,700			9,500			(800)			(8.4)	%
Other containers (3)				7,800			8,000			(200)			(2.5)	%
(1)	Approximate volume included for the period are based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period.
(2)	Includes containers transshipped from other Asia origins.
(3)	Includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan.

Ocean Transportation revenue increased $44.1 million, or 3.5 percent, during the six months ended June 30, 2025, compared with the six months ended June 30, 2024. The increase was primarily due to higher freight rates in China and Hawaii, partially offset by lower volume in China.

On a year-over-year FEU basis, Hawaii container volume increased 2.9 percent primarily due to the dry-docking of a competitor's vessel in the first half of 2025; Alaska volume increased 2.7 percent due to higher AAX volume and retail-related demand, partially offset by three fewer northbound sailings compared to the year ago period; China volume decreased 8.8 percent due to the challenges of market uncertainty and volatility from tariffs and global trade; Guam volume decreased 8.4 percent primarily due to lower demand from retail and food and beverage segments; and Other containers volume decreased 2.5 percent.

Ocean Transportation operating income increased $35.6 million, or 26.1 percent, during the six months ended June 30, 2025, compared with the six months ended June 30, 2024. The increase was primarily due to higher freight rates in China and the domestic tradelanes, the timing of fuel-related surcharge collections, and a higher contribution from SSAT, primarily offset by lower volume in China and higher operating overhead costs and direct cargo expense.

The Company's SSAT terminal joint venture investment contributed $13.9 million during the six months ended June 30, 2025, compared to a contribution of $1.6 million during the six months ended June 30, 2024. The increase was primarily driven by higher lift volume.

Logistics — Three months ended June 30, 2025 compared with 2024

		Three Months Ended June 30,
(Dollars in millions)		2025			2024			Change
Logistics revenue		$	154.9		$	157.5		$	(2.6)		(1.7)	%
Operating costs and expenses			(140.5)			(141.9)			1.4		(1.0)	%
Operating income		$	14.4		$	15.6		$	(1.2)		(7.7)	%
Operating income margin			9.3	%		9.9	%

Logistics revenue decreased $2.6 million, or 1.7 percent, during the three months ended June 30, 2025, compared with the three months ended June 30, 2024. The decrease was primarily due to lower revenue in transportation brokerage.

Logistics operating income decreased $1.2 million, or 7.7 percent, during the three months ended June 30, 2025, compared with the three months ended June 30, 2024. The decrease was primarily due to a lower contribution from transportation brokerage.

Logistics — Six months ended June 30, 2025 compared with 2024

		Six Months Ended June 30,
(Dollars in millions)		2025			2024			Change
Logistics revenue		$	299.5		$	300.6		$	(1.1)		(0.4)	%
Operating costs and expenses			(276.6)			(275.7)			(0.9)		0.3	%
Operating income		$	22.9		$	24.9		$	(2.0)		(8.0)	%
Operating income margin			7.6	%		8.3	%

Logistics revenue decreased $1.1 million, or 0.4 percent, during the six months ended June 30, 2025, compared with the six months ended June 30, 2024. The decrease was primarily due to lower revenue in transportation brokerage.

Logistics operating income decreased $2.0 million, or 8.0 percent, during the six months ended June 30, 2025, compared with the six months ended June 30, 2024. The decrease was primarily due to a lower contribution from transportation brokerage and freight forwarding.

Liquidity, Cash Flows and Capital Allocation

Matson's Cash and Cash Equivalents decreased by $207.7 million from $266.8 million at December 31, 2024 to $59.1 million at June 30, 2025. As of June 30, 2025, there was $656.7 million of cash and cash equivalents and investments in fixed-rate U.S. Treasuries in the Capital Construction Fund. Matson generated net cash from operating activities of $194.6 million during the six months ended June 30, 2025, compared to $344.5 million during the six months ended June 30, 2024. The year-over-year decline in net cash from operating activities is due primarily to the receipt of a federal tax refund of $118.6 million in second quarter 2024 related to the Company's 2021 federal tax return, as reflected in prepaid expenses and other assets. Capital expenditures (including capitalized vessel construction expenditures) totaled $175.5 million for the six months ended June 30, 2025, compared with $125.1 million for the six months ended June 30, 2024. Total debt decreased by $19.9 million during the six months to $381.0 million as of June 30, 2025, of which $341.3 million was classified as long-term debt. As of June 30, 2025, Matson had available borrowings under its revolving credit facility of $643.9 million.

During the second quarter 2025, Matson repurchased approximately 0.9 million shares for a total cost of $93.7 million.2 As of the end of the second quarter 2025, there were approximately 2.5 million shares remaining in the Company's share repurchase program. Matson's Board of Directors also declared a cash dividend of $0.36 per share payable on September 4, 2025 to all shareholders of record as of the close of business on August 7, 2025.