Matson, Inc 10-Q for FY2026 Q2

Matson, Inc. (MATX)

10-Q 2026-08-04 For: 2026-06-30

Added on August 04, 2026

About this 10-Q

Matson, Inc filed this 10-Q on August 4, 2026, covering the quarter ended June 30, 2026 (FY2026 Q2).

Headline figures

Quarter ended June 30, 2026, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $969.4M; up 16.7% from $830.5M a year earlier
Net income: $129.4M; up 36.6% from net income of $94.7M a year earlier
Diluted EPS: $4.27; up 46.2% from $2.92 a year earlier

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Hawaii	99-0032630
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1411 Sand Island Parkway Honolulu, HI (Address of principal executive offices)	96819 (Zip Code)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, without par value	MATX	New York Stock Exchange


Large accelerated filer ☒	Accelerated filer ☐

Non-accelerated filer ☐	Smaller reporting company ☐

	Emerging growth company ☐

		Page
Part I—FINANCIAL INFORMATION‌		1

Item 1.	Financial Statements (Unaudited)‌	1
	Condensed Consolidated Statements of Income and Comprehensive Income‌	1
	Condensed Consolidated Balance Sheets‌	2
	Condensed Consolidated Statements of Cash Flows‌	3
	Condensed Consolidated Statements of Shareholders’ Equity‌	4
	Notes to the Condensed Consolidated Financial Statements‌	5
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations‌	18
Item 3.	Quantitative and Qualitative Disclosures about Market Risk‌	27
Item 4.	Controls and Procedures‌	27

Part II—OTHER INFORMATION‌		27

Item 1.	Legal Proceedings‌	27
Item 1A.	Risk Factors‌	27
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds‌	28
Item 3.	Defaults Upon Senior Securities‌	28
Item 4.	Mine Safety Disclosures‌	28
Item 5.	Other Information‌	28
Item 6.	Exhibits‌	29
	Signatures‌	30


		Three Months Ended						Six Months Ended
		June 30,						June 30,
(In millions, except per share amounts)		2026			2025			2026			2025
Operating Revenue:
Ocean Transportation		$	767.4		$	675.6		$	1,373.9		$	1,313.0
Logistics			202.0			154.9			353.3			299.5
Total Operating Revenue			969.4			830.5			1,727.2			1,612.5

Costs and Expenses:
Operating costs			(737.3)			(650.4)			(1,361.2)			(1,281.5)
Income from SSAT			4.8			7.3			9.8			13.9
General and administrative			(78.0)			(74.4)			(155.5)			(149.8)
Total Costs and Expenses			(810.5)			(717.5)			(1,506.9)			(1,417.4)

Operating Income			158.9			113.0			220.3			195.1
Interest income			5.0			8.0			11.1			17.4
Interest expense, net			(1.6)			(1.7)			(3.2)			(3.4)
Other income (expense), net			1.6			2.4			3.6			4.8
Income before Taxes			163.9			121.7			231.8			213.9
Income taxes			(34.5)			(27.0)			(45.8)			(46.9)
Net Income		$	129.4		$	94.7		$	186.0		$	167.0

Comprehensive Income (Loss), Net of Income Taxes:
Net Income		$	129.4		$	94.7		$	186.0		$	167.0
Other Comprehensive Income (Loss):
Net change in pension and post-retirement liabilities			(0.5)			(0.9)			(1.0)			(1.7)
Other adjustments			(1.9)			1.4			(1.9)			1.9
Total Other Comprehensive Income (Loss), Net of Income Taxes			(2.4)			0.5			(2.9)			0.2
Total Comprehensive Income		$	127.0		$	95.2		$	183.1		$	167.2

Basic Earnings Per Share		$	4.30		$	2.95		$	6.16		$	5.14
Diluted Earnings Per Share		$	4.27		$	2.92		$	6.10		$	5.09

Weighted Average Number of Shares Outstanding:
Basic			30.1			32.1			30.2			32.5
Diluted			30.3			32.4			30.5			32.8


	June 30,			December 31,
(In millions)	2026			2025
ASSETS
Current Assets:
Cash and cash equivalents	$	119.3		$	141.9
Accounts receivable, net of allowance for credit losses of $7.9 million and $8.6 million, respectively		335.3			256.8
Prepaid expenses and other assets		81.4			73.2
Total current assets		536.0			471.9
Long-term Assets:
Investment in SSAT		106.2			96.2
Property and equipment, net		2,680.3			2,499.4
Operating lease right-of-use assets		373.0			369.6
Goodwill		327.8			327.8
Intangible assets, net		140.3			146.6
Capital Construction Fund		345.8			532.7
Deferred dry-docking costs, net		109.6			94.7
Other long-term assets		94.5			96.7
Total long-term assets		4,177.5			4,163.7
Total Assets	$	4,713.5		$	4,635.6

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities:
Current portion of debt	$	39.7		$	39.7
Accounts payable and accruals		297.9			244.9
Operating lease liabilities		132.8			128.5
Other liabilities		133.4			114.3
Total current liabilities		603.8			527.4
Long-term Liabilities:
Long-term debt, net of deferred loan fees		292.7			312.1
Long-term operating lease liabilities		251.2			246.8
Deferred income taxes, net		704.4			701.9
Other long-term liabilities		88.3			88.4
Total long-term liabilities		1,336.6			1,349.2
Commitments and Contingencies (see Note 16)
Shareholders’ Equity:
Common stock		22.4			22.8
Additional paid in capital		280.0			295.2
Accumulated other comprehensive income (loss), net		(1.3)			1.6
Retained earnings		2,472.0			2,439.4
Total shareholders’ equity		2,773.1			2,759.0
Total Liabilities and Shareholders’ Equity	$	4,713.5		$	4,635.6


		Six Months Ended June 30,
(In millions)		2026			2025
Cash Flows From Operating Activities:
Net income		$	186.0		$	167.0
Reconciling adjustments:
Depreciation and amortization			84.3			81.8
Amortization of operating lease right-of-use assets			68.8			66.9
Deferred income taxes, net			2.5			0.3
Share-based compensation expense			11.7			11.7
Income from SSAT			(9.8)			(13.9)
Other			(0.1)			(4.7)
Changes in assets and liabilities:
Accounts receivable, net			(78.6)			(19.7)
Deferred dry-docking payments			(24.6)			(23.8)
Deferred dry-docking amortization			16.1			13.6
Prepaid expenses and other assets			(9.2)			(10.6)
Accounts payable, accruals and other liabilities			50.3			(3.0)
Operating lease assets and liabilities, net			(63.6)			(67.8)
Other long-term liabilities			(2.2)			(3.2)
Net cash provided by operating activities			231.6			194.6

Cash Flows From Investing Activities:
Vessel construction expenditures			(199.8)			(104.1)
Capital expenditures (excluding vessel construction expenditures)			(55.7)			(71.4)
Proceeds from disposal of property and equipment, net			(0.1)			0.5
Cash and interest deposited into the Capital Construction Fund			(9.5)			(109.1)
Withdrawals from Capital Construction Fund			197.7			100.7
Net cash used in investing activities			(67.4)			(183.4)

Cash Flows From Financing Activities:
Repayments of debt			(19.9)			(19.9)
Dividends paid			(22.0)			(22.3)
Repurchase of Matson common stock			(119.8)			(160.4)
Tax withholding related to net share settlements of restricted stock units			(25.1)			(16.3)
Net cash used in financing activities			(186.8)			(218.9)

Net Decrease in Cash and Cash Equivalents			(22.6)			(207.7)
Cash and Cash Equivalents, Beginning of the Period			141.9			266.8
Cash and Cash Equivalents, End of the Period		$	119.3		$	59.1

Supplemental Cash Flow Information:
Interest paid, net of capitalized interest		$	2.5		$	2.7
Income taxes paid, net of income tax refunds		$	31.7		$	40.7

Non-cash Information:
Capital expenditures included in accounts payable, accruals and other liabilities		$	3.8		$	4.0
Accrued dividends		$	11.4		$	11.4


										Accumulated
		Common Stock					Additional			Other
				Stated			Paid In			Comprehensive			Retained
(In millions, except per share amounts)		Shares		Value			Capital			Income (Loss)			Earnings			Total
Balance at December 31, 2025		30.4		$	22.8		$	295.2		$	1.6		$	2,439.4		$	2,759.0
Net income		—			—			—			—			56.6			56.6
Other comprehensive income (loss), net of tax		—			—			—			(0.5)			—			(0.5)
Share-based compensation		—			—			5.5			—			—			5.5
Shares issued, net of shares withheld for employee taxes		0.3			0.2			(25.3)			—			—			(25.1)
Shares repurchased		(0.4)			(0.3)			(0.8)			—			(53.3)			(54.4)
Dividends ($0.36 per share)		—			—			—			—			(11.0)			(11.0)
Balance at March 31, 2026		30.3			22.7			274.6			1.1			2,431.7			2,730.1
Net income		—			—			—			—			129.4			129.4
Other comprehensive income (loss), net of tax		—			—			—			(2.4)			—			(2.4)
Share-based compensation		—			—			6.2			—			—			6.2
Shares issued, net of shares withheld for employee taxes		(0.1)			—			—			—			—			—
Shares repurchased		(0.3)			(0.3)			(0.8)			—			(66.7)			(67.8)
Dividends ($0.36 per share and $0.38 per share)		—			—			—			—			(22.4)			(22.4)
Balance at June 30, 2026		29.9		$	22.4		$	280.0		$	(1.3)		$	2,472.0		$	2,773.1


		Three Months Ended								Three Months Ended
		June 30, 2026								June 30, 2025
(In millions)		Ocean Transportation			Logistics		Total			Ocean Transportation			Logistics			Total
Operating Revenue (1)(2)		$	767.4		$	202.0	$	969.4		$	675.6		$	154.9		$	830.5

Operating Expenses:
Operating costs:
Direct cargo expense			(261.8)			—		(261.8)			(249.7)			—			(249.7)
Vessel operating expense			(174.2)			—		(174.2)			(150.6)			—			(150.6)
Operating overhead (3)			(90.5)			—		(90.5)			(86.5)			—			(86.5)
Direct operating costs			—			(168.7)		(168.7)			—			(122.4)			(122.4)
Depreciation and amortization			(39.1)			(3.0)		(42.1)			(37.9)			(3.3)			(41.2)
Total operating costs			(565.6)			(171.7)		(737.3)			(524.7)			(125.7)			(650.4)
Income from SSAT			4.8			—		4.8			7.3			—			7.3
General and administrative			(62.6)			(15.4)		(78.0)			(59.6)			(14.8)			(74.4)
Total Costs and Expenses			(623.4)			(187.1)		(810.5)			(577.0)			(140.5)			(717.5)

Operating Income:		$	144.0		$	14.9		158.9		$	98.6		$	14.4			113.0
Interest income								5.0									8.0
Interest expense, net								(1.6)									(1.7)
Other income (expense), net								1.6									2.4
Income before Taxes								163.9									121.7
Income taxes								(34.5)									(27.0)
Net Income							$	129.4								$	94.7

Capital Expenditures (4)		$	206.1		$	1.1	$	207.2		$	85.1		$	1.2		$	86.3


	As of June 30, 2026						As of December 31, 2025
	Ocean						Ocean
(In millions)	Transportation		Logistics		Total		Transportation		Logistics		Total
Goodwill	$	222.6	$	105.2	$	327.8	$	222.6	$	105.2	$	327.8


		As of
		June 30, 2026
Year (in millions)		Cost		Fair Value
Remainder of 2026		$	59.6	$	59.6
2027			52.5		52.6
Total CCF investments		$	112.1	$	112.2


		Three Months Ended June 30,					Six Months Ended June 30,
(In millions)		2026			2025		2026			2025
Current:
Federal		$	26.9		$	22.4	$	34.6		$	38.5
State			4.4			3.5		5.8			6.1
Foreign			1.4			1.1		2.3			1.8
Total current tax expense			32.7			27.0		42.7			46.4
Deferred:
Federal			1.8			0.2		3.0			0.3
State			0.6			(0.2)		0.7			0.1
Foreign			(0.6)			—		(0.6)			0.1
Total deferred tax expense			1.8			—		3.1			0.5
Total income taxes		$	34.5		$	27.0	$	45.8		$	46.9


							Non-						Accumulated
				Post-			Qualified						Other
	Pension			Retirement			Pension						Comprehensive
(In millions)	Benefits			Benefits			Benefits			Other			Income (Loss)
Balance at December 31, 2025	$	(8.6)		$	8.9		$	(0.7)		$	2.0		$	1.6
Amortization of prior service credit		—			(0.4)			—			—			(0.4)
Amortization of net actuarial gain (loss)		—			(0.1)			—			—			(0.1)
Foreign currency exchange		—			—			—			(0.2)			(0.2)
Other adjustments		—			—			—			0.2			0.2
Balance at March 31, 2026		(8.6)			8.4			(0.7)			2.0			1.1
Amortization of prior service credit		—			(0.4)			—			—			(0.4)
Amortization of net actuarial loss		—			(0.1)			—			—			(0.1)
Foreign currency exchange		—			—			—			(1.9)			(1.9)
Balance at June 30, 2026	$	(8.6)		$	7.9		$	(0.7)		$	0.1		$	(1.3)


								Quoted Prices in			Significant			Significant
		Total						Active Markets			Observable			Unobservable
		Carrying Value			Total			(Level 1)			Inputs (Level 2)			Inputs (Level 3)

(In millions)		June 30, 2026			Fair Value Measurements at June 30, 2026
Cash and cash equivalents		$	119.3		$	119.3		$	119.3		$	—		$	—
CCF - Cash and cash equivalents		$	233.7		$	233.7		$	233.7		$	—		$	—
CCF - Investments		$	112.1		$	112.2		$	112.2		$	—		$	—
Fixed rate debt		$	341.3		$	272.8		$	—		$	272.8		$	—

(In millions)		December 31, 2025			Fair Value Measurements at December 31, 2025
Cash and cash equivalents		$	141.9		$	141.9		$	141.9		$	—		$	—
CCF - Cash and cash equivalents		$	307.2		$	307.2		$	307.2		$	—		$	—
CCF - Investments		$	225.5		$	226.4		$	226.4		$	—		$	—
Fixed rate debt		$	361.2		$	293.6		$	—		$	293.6		$	—


		Three Months Ended June 30, 2026								Six Months Ended June 30, 2026
					Weighted		Per						Weighted		Per
					Average		Common						Average		Common
		Net			Common		Share			Net			Common		Share
(In millions, except per share amounts)		Income			Shares		Amount			Income			Shares		Amount
Basic		$	129.4		30.1		$	4.30		$	186.0		30.2		$	6.16
Effect of Dilutive Securities					0.2			(0.03)					0.3			(0.06)
Diluted		$	129.4		30.3		$	4.27		$	186.0		30.5		$	6.10


	Three Months Ended				Six Months Ended
	June 30,				June 30,
Logistics (in millions) (1)	2026		2025		2026		2025
Transportation Brokerage and Freight Forwarding services	$	186.3	$	137.2	$	321.2	$	264.5
Warehousing services		7.0		10.0		16.3		19.0
Supply Chain Management services		8.7		7.7		15.8		16.0
Total	$	202.0	$	154.9	$	353.3	$	299.5


		Three Months Ended June 30, 2025								Six Months Ended June 30, 2025
					Weighted		Per						Weighted		Per
					Average		Common						Average		Common
		Net			Common		Share			Net			Common		Share
(In millions, except per share amounts)		Income			Shares		Amount			Income			Shares		Amount
Basic		$	94.7		32.1		$	2.95		$	167.0		32.5		$	5.14
Effect of Dilutive Securities					0.3			(0.03)					0.3			(0.05)
Diluted		$	94.7		32.4		$	2.92		$	167.0		32.8		$	5.09


		Pension Benefits						Post-retirement Benefits
		Three Months Ended June 30,						Three Months Ended June 30,
(In millions)		2026			2025			2026			2025
Components of net periodic benefit cost (credit):
Service cost		$	1.3		$	1.1		$	—		$	0.1
Interest cost			2.5			2.6			0.3			0.2
Expected return on plan assets			(3.8)			(4.4)			—			—
Amortization of net actuarial loss (gain)			—			—			(0.1)			(0.1)
Amortization of prior service credit			—			—			(0.6)			(1.0)
Net periodic benefit credit		$	—		$	(0.7)		$	(0.4)		$	(0.8)


	Three Months Ended June 30,
(Dollars in millions, except per share amounts)	2026		2025		Change
Operating revenue	$	969.4	$	830.5	$	138.9	16.7	%
Operating costs and expenses		(810.5)		(717.5)		(93.0)	13.0	%
Operating income		158.9		113.0		45.9	40.6	%
Interest income		5.0		8.0		(3.0)	(37.5)	%
Interest expense, net		(1.6)		(1.7)		0.1	(5.9)	%
Other income (expense), net		1.6		2.4		(0.8)	(33.3)	%
Income before taxes		163.9		121.7		42.2	34.7	%
Income taxes		(34.5)		(27.0)		(7.5)	27.8	%
Net income	$	129.4	$	94.7	$	34.7	36.6	%
Basic earnings per share	$	4.30	$	2.95	$	1.35	45.8	%
Diluted earnings per share	$	4.27	$	2.92	$	1.35	46.2	%


		Three Months Ended June 30,
(Dollars in millions)		2026			2025			Change
Ocean Transportation revenue		$	767.4		$	675.6		$	91.8	13.6	%
Operating costs and expenses			(623.4)			(577.0)			(46.4)	8.0	%
Operating income		$	144.0		$	98.6		$	45.4	46.0	%
Operating income margin			18.8	%		14.6	%

Volume by Service (Forty-foot equivalent units (FEU)) (1)
Hawaii containers			35,600			36,000			(400)	(1.1)	%
Alaska containers			21,200			21,700			(500)	(2.3)	%
China containers (2)			37,200			32,300			4,900	15.2	%
Guam containers			4,700			4,500			200	4.4	%
Other containers (3)			3,900			4,400			(500)	(11.4)	%


		Paid			Future Milestone Payments
Vessel Construction Obligations (in millions)		As of June 30, 2026			Remainder of 2026			2027			2028			2029			Thereafter			Total
Three Aloha Class Containerships		$	622.9		$	176.7		$	180.6		$	22.3		$	2.9		$	—		$	1,005.4


10.1^,*	Consulting Agreement with J. Lauer

31.1^**	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.

31.2^**	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934.

32^***	Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350.

101.INS^**	Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH^**	Inline XBRL Taxonomy Extension Schema Document

101.CAL^**	Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF^**	Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB^**	Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE^**	Inline XBRL Taxonomy Extension Presentation Linkbase Document

104^**	Cover Page Interactive Data File (formatted in Inline XBRL and included as Exhibit 101).


	MATSON, INC.
	(Registrant)


Date: August 4, 2026	/s/ Joel M. Wine
	Joel M. Wine
	Executive Vice President and
	Chief Financial Officer
	(principal financial officer)

Date: August 4, 2026	/s/ Kevin L. Stuck
	Kevin L. Stuck
	Vice President and Controller
	(principal accounting officer)


Matson:	Matson Navigation Company, Inc.
	Attention: Chief Executive Officer
	2121 North California Boulevard, Suite 500
	Walnut Creek, CA 94596

Consultant:	John Lauer
	[Address]


CONSULTANT	MATSON NAVIGATION COMPANY, INC.



/s/ John P. Lauer	/s/ Matthew J. Cox
John P. Lauer	Matthew J. Cox
	Chairman of the Board


	By	/s/ Matthew J. Cox
		Matthew J. Cox, Chairman and
		Chief Executive Officer
Date: August 4, 2026


	By	/s/ Joel M. Wine
		Joel M. Wine, Executive Vice President and
		Chief Financial Officer
Date: August 4, 2026


/s/ Matthew J. Cox
Name:	Matthew J. Cox
Title:	Chairman and Chief Executive Officer
Date:	August 4, 2026


/s/ Joel M. Wine
Name:	Joel M. Wine
Title:	Executive Vice President and Chief Financial Officer
Date:	August 4, 2026