Matson (MATX) Q4 2024 earnings summary

Executive summary

• Fourth quarter and full year 2024 results exceeded expectations, driven by strong China service performance and higher freight rates, especially in the CLX and MAX services.

• Logistics operating income increased year-over-year, mainly from higher supply chain management contributions.

• An $18.4 million impairment charge related to the SSAT joint venture reduced Q4 diluted EPS by $0.42.

• Q4 2024 net income was $128.0 million ($3.80 per diluted share), up from $62.4 million ($1.78 per share) in Q4 2023.

• Full year 2024 net income reached $476.4 million and EBITDA was $738.9 million, both significantly higher year-over-year.

Financial highlights

• Q4 consolidated operating income rose $72.2 million year-over-year to $147.5 million; net income was $128 million and diluted EPS was $3.80.

• Full year 2024 consolidated operating income increased $208.5 million to $551.3 million; net income and EPS were impacted by the SSAT impairment.

• Q4 2024 total revenue rose 12.9% year-over-year to $890.3 million; full-year revenue up 10.6% to $3,421.8 million.

• Q4 EBITDA rose 63.5% year-over-year to $195.2 million; full-year EBITDA up 43.0% to $738.9 million.

• Cash flow from operations for 2024 was $767.8 million; $243.9 million returned to shareholders via dividends and share repurchases.

Outlook and guidance

• Q1 2025 ocean transportation operating income expected to be meaningfully higher than Q1 2024, driven by elevated China freight rates.

• Full year 2025 ocean transportation operating income expected to be moderately lower than 2024 if Red Sea trade normalizes mid-year, or to approach 2024 levels if disruption persists.

• Logistics operating income for 2025 expected to be modestly lower due to challenging conditions.

• 2025 CapEx projected at $425–$445 million, with $305 million for new vessel construction.

• Depreciation and amortization for 2025 expected at ~$200 million; interest income ~$31 million; interest expense ~$7 million.