MATX earnings analysis
What we found in MATX's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Matson delivered a strong Q2, with revenue of $969.4 million up 16.7% year over year, diluted EPS of $4.27 up 46.2%, and operating income of $158.9 million up 40.6%. China demand, volume and freight rates drove Ocean Transportation margin expansion, while Logistics posted strong revenue growth but lower profitability margins. Management's outlook remains constructive, calling for 3Q consolidated operating income approximately 45% above the comparable 2025 quarter and full-year operating income above 2025, though elevated vessel-construction outlays reduced cash and CCF balances.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue accelerated to $969.4M
- Q2 operating revenue rose $138.9 million, or 16.7%, year over year to $969.4 million. This was also a sequential rebound from $757.8 million in Q1 2026.
- EPS and margins expanded sharply
- Diluted EPS increased $1.35, or 46.2%, year over year to $4.27, while operating income grew $45.9 million, or 40.6%, to $158.9 million. The 16.4% consolidated operating margin improved from 13.6% a year ago and 7.4% in Q1 2026.
- Ocean Transportation led profit growth
- Ocean Transportation generated $144.0 million of Q2 operating income, up $45.4 million (46.0%), on revenue growth of $91.8 million. Its operating margin expanded 4.2 percentage points to 18.8%.
- China demand remains the key catalyst
- China container volume rose 4,900 FEU, or 15.2%, to 37,200 FEU, supporting higher freight rates and demand. Management expects the China service to operate at or near capacity through peak season.
- Operating cash generation improved
- Six-month operating cash flow increased $37.0 million to $231.6 million, versus $194.6 million a year earlier. Non-vessel-construction capex was $55.7 million, down from $71.4 million.
- Debt reduction supports liquidity
- Debt declined $19.9 million from year-end to $341.3 million, and the company retained $544.2 million of revolver availability at June 30, 2026.
- Logistics revenue growth continued
- Logistics revenue increased $47.1 million, or 30.4%, to $202.0 million, and segment operating income increased $0.5 million to $14.9 million. Management expects 3Q and 4Q operating income to exceed the respective 2025 levels of $13.6 million and $7.7 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Several domestic lanes posted volume declines
- Hawaii volume fell 1.1% to 35,600 FEU, Alaska volume fell 2.3% to 21,200 FEU, and Other container volume fell 11.4% to 3,900 FEU in Q2. Management attributes Hawaii's decline to lower general demand and Alaska's to lower export seafood volume.
- Logistics margin compressed
- Logistics revenue grew 30.4% to $202.0 million, but operating margin contracted to 7.4% from 9.3% as operating costs increased 33.2%, versus revenue growth of 30.4%.
- SSAT earnings contribution weakened
- The SSAT joint venture contribution declined $2.5 million to $4.8 million in Q2 because of lower lift volume and higher operating expenses; management expects full-year contribution below 2025's $32.5 million.
- Vessel program is consuming liquidity
- Cash and cash equivalents fell $22.6 million to $119.3 million and CCF balances fell $186.9 million to $345.8 million as vessel construction milestone payments totaled $196.1 million. The company expects about $400 million of 2026 vessel-construction spending.
- Working capital weakened
- Accounts receivable increased $78.5 million to $335.3 million, while the working-capital deficit widened $12.3 million to $67.8 million from year-end.
- No formal risk-factor update; fuel exposure persists
- The filing states there were no material changes to risk factors from the 2025 10-K. Nonetheless, management noted the Iran conflict had lifted fuel prices, although it expects to fully recover fuel costs by year-end.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $4.27
- Operating margin
- 16.4%
- Segment
- Ocean Transportation revenue: $767.4 million, up $91.8 million (13.6%) year over year; operating income: $144.0 million, up $45.4 million (46.0%).
- Segment
- Logistics revenue: $202.0 million, up $47.1 million (30.4%) year over year; operating income: $14.9 million, up $0.5 million (3.5%).
What they said about what is next.
Management expects 3Q26 consolidated and Ocean Transportation operating income to be approximately 45% above 3Q25's $147.4 million Ocean Transportation result. It expects 4Q26 Ocean Transportation operating income to be modestly below 4Q25's $136.0 million, but full-year Ocean Transportation operating income above 2025's $455.6 million and Logistics operating income above 2025's $44.2 million. Full-year capex is expected at $150 million-$170 million, plus approximately $400 million of vessel-construction spending and approximately $45 million of dry-docking payments; no EPS or revenue outlook was provided.
The filing reads better than the one before it.
What came before.
- 10-Q · May 5, 2026
- Matson Inc. reported Q1 2026 earnings with diluted EPS of $1.85, beating estimates of $1.62, reflecting a 14.2% surprise. However, total revenue of $757.8 million missed expectations of $776.2 million, indicating a 3.1%…
- 10-K · February 27, 2026
- Matson positions itself as a leading, Jones Act‑anchored ocean transportation and logistics provider focused on Hawaii, Alaska, Guam and expedited China–U.S. services, while investing in a material fleet renewal…
- 10-Q · May 6, 2025
- Matson reported Q1 revenue of $782.0M, up 8.3% year-over-year (from $722.1M) but down versus the prior quarter (from $890.0M). Operating income rose to $82.1M and net income to $72.3M (diluted EPS $2.18) versus Q1 2024,…
- 10-Q · October 31, 2024
- Matson reported Q3 2024 operating revenue of $962.0 million and diluted EPS of $5.89, driven by strong Ocean Transportation performance. Operating income expanded to $242.3 million and cash and equivalents increased to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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