Matson, Inc. Q4 FY2025 earnings call

Matson had solid fourth quarter with consolidated results exceeding expectations. China service benefited from strong e-commerce demand and stable trading environment post-U.S.-China deal. Domestic ocean trade lanes had varying volume trends. Logistics operating income decreased YOY. SSAT terminal joint venture contribution changed due to impairment charge and lift volume. Strong cash flows generated with capital returned to shareholders. Capital expenditures planned for new vessels, maintenance, etc.

Ocean Transportation operating income approached prior year level due to higher freight rates and volumes in China service; domestic ocean trade lanes: Hawaii and Guam had higher year-over-year volumes, Alaska had lower; China service: Fourth quarter container volume 7.2% lower YOY, full year 2025 9.5% lower YOY but benefited from strong e-commerce demand and stable trading environment post-U.S.-China deal; Logistics: Fourth quarter operating income decreased YOY due to lower supply chain management contribution; Full year consolidated operating income decreased due to lower China service volume and freight rates. Hawaii container volume: Fourth quarter +0.6% YOY, full year 2025 +1.6% YOY, 2026 expected comparable. Guam container volume: Fourth quarter +4.4% YOY, full year 2025 -4.3% YOY, 2026 expected comparable. Alaska container volume: Fourth quarter -3.3% YOY, full year 2025 +1.7% YOY, 2026 expected comparable. SSAT terminal joint venture: Fourth quarter contributed $9.3 million, full year 2025 $32.5 million, 2026 expected comparable. Logistics: Fourth quarter operating income $7.7 million, full year 2025 $44.2 million, 2026 expected to approach 2025 level

Full year 2026 consolidated operating income expected to approach 2025 level. First quarter 2026 Ocean Transportation operating income expected ~$50 million (lower than prior year). Logistics operating income in first quarter 2026 expected modestly lower than 2025 first quarter. Full year 2026 Ocean Transportation operating income expected to approach $455.6 million of 2025. Logistics operating income expected to approach $44.2 million of 2025. Full year 2026 consolidated operating income expected to approach $499.8 million of 2025. Depreciation and amortization, interest income/expense, other income, tax rate, dry-docking payments also outlined

Q: A year ago, you gave more of a guidance range depending on the return of Red Sea sailings. This year, you're giving more of a point estimate. To the extent we see a broader resumption in Red Sea sailings, do you think that matters for you? And is this in the guidance one way or the other?

A: From our perspective, due to relative positioning, broader Transpacific trade is oversupplied. Red Sea resumption adds ~7%-9% capacity but guidance is independent as product distanced from generic ocean services.

Q: Have you seen signs of normal seasonal recovery post-Lunar New Year?

A: Feels like traditional recovery, normal at point but time will tell.

Q: Is data center-related volume spilling into expedited ocean service?

A: Yes, electronic goods like racking and servers moving from air freight to expedited ocean service.

Q: How's pricing environment in 2026?

A: 2026 likely to have disciplined approach like 2025, focus on yield management, ramp post-Lunar New Year.

Q: Thailand route volume and opportunity?

A: Starting at 50 loads per sailing, expected slow growth, continued growth in Thailand and Vietnam, cargo moves via truck and direct ocean service.

Q: Impact of Maritime Action Plan on Matson?

A: Aspirational blueprint for U.S. shipbuilding, no specific time frame or Jones Act changes, likely needs congressional approval.

Q: Any port fees in 4Q results?

A: $6.4 million port fees paid in fourth quarter