Matson (MATX) Q1 2025 earnings summary

Executive summary

• Q1 2025 net income rose to $72.3 million, with EPS at $2.18, driven by higher China freight rates and healthy post-Lunar New Year demand; consolidated revenue increased to $782.0 million.

• Operating income more than doubled to $82.1 million, and EBITDA reached $131.7 million, up from $82.8 million in 1Q24.

• Hawaii and Alaska saw higher container volumes year-over-year, while Guam and China experienced declines; logistics operating income fell due to weaker freight forwarding and brokerage.

• The 2025 outlook was lowered due to uncertainty around tariffs, global trade, regulatory measures, and macroeconomic factors.

• Approximately 0.5 million shares were repurchased for $69.2 million; a $0.34/share dividend was declared.

Financial highlights

• Q1 2025 operating income was $82.1 million, up 122.5% year-over-year; diluted EPS was $2.18, up from $1.04; net income margin rose to 9.2%.

• Total revenue for Q1 2025 was $782.0 million, up 8.3% year-over-year.

• Ocean Transportation revenue grew 10.1% to $637.4 million, with operating income up 166.7% to $73.6 million; Logistics revenue rose 1.0% to $144.6 million, but operating income fell 8.6% to $8.5 million.

• Interest income was $9.4 million, up $600,000 year-over-year; interest expense decreased to $1.7 million.

• Cash and cash equivalents at quarter-end: $122.0 million, down from $266.8 million at year-end 2024.

Outlook and guidance

• Q2 and full-year 2025 operating income for both ocean transportation and logistics expected to be meaningfully lower than 2024, due to lower China volumes and rates, and ongoing trade/tariff uncertainty.

• Depreciation and amortization for 2025 projected at $200 million; interest income at $31 million; interest expense at $7 million; effective tax rate at 23%.

• Maintenance and other CapEx for 2025 expected at $100–$120 million; new vessel construction milestone payments at $305 million; $40 million for dry-docking.

• Lowered guidance reflects uncertainty in tariffs, global trade, and U.S. economic trajectory.