Matson, Inc. Q4 FY2024 earnings call

• Matson's Q4 2024 was strong, with China service driving operating income growth.
• Logistics operating income increased due to higher supply chain management contribution.
• SSAT terminal joint venture had impairment charge related to terminal operating lease asset.
• Hawaii, Guam, and Alaska volume outlooks provided.
• Uncertainties around Red Sea situation and tariffs affecting China freight rates.
• Committed to returning capital to shareholders via dividends and share repurchases.

Ocean Transportation

• China Service: Q4 2024 volume 7.2% higher y-o-y; full year 2024 container volume increased 2.4% y-o-y. Higher freight rates for CLX and MAX services.
• Hawaii: Q4 2024 container volume decreased 1.7% y-o-y; full year 2024 decreased 2.3% y-o-y. Expected volume comparable to 2024 in 2025.
• Guam: Q4 2024 container volume decreased 10% y-o-y; full year 2024 decreased 6.5% y-o-y. Expected modestly higher volume in 2025.
• Alaska: Q4 2024 container volume increased 1.1% y-o-y; full year 2024 increased 0.6% y-o-y. Expected to approximate 2024 level in 2025.

Logistics

• Q4 2024 operating income $10.1 million, $1.2 million higher y-o-y, driven by supply chain management. Full year 2024 operating income $50.4 million, $2.4 million higher y-o-y.

SSAT Joint Venture

• Q4 2024 incurred a loss of $9.5 million, including $18.4 million impairment charge. Full year 2024 loss $1 million vs. prior year income $2.2 million.

• First Quarter 2025: Ocean Transportation operating income expected meaningfully higher due to elevated China freight rates; Logistics operating income modestly lower.
• Full Year 2025: Ocean Transportation operating income expected moderately lower to approaching 2024 level depending on Red Sea normalization; Logistics operating income modestly lower. Depreciation, interest, and tax rates outlined.

• Red Sea disruption impacting freight rates and supply chain.
• Uncertainty around proposed tariffs and their impact on freight demand.
• SSAT joint venture impairment risk.
• Four-month delay in new vessel construction in Philadelphia.

Q: Breakout of 1Q EBIT drivers A: Higher China freight rates compared to prior year Q: Rate trends sequentially A: Rates stepped down at end of 2024 but remained steady Q: Capital allocation and growth opportunities A: Organic growth in Ocean Transportation; organic and M&A in Logistics Q: USTR China shipbuilding proposal A: Early innings, too early to tell impact; Matson has 4 Chinese-built vessels Q: Red Sea impact on freight rates A: Red Sea disruption led to rate increase; normalization could lower rates Q: Shipbuilding delay in Philadelphia A: Delay due to graving dock issue; fixed price contract with limited risk Q: Jones Act support A: Continued bipartisan support, expected to remain unchanged