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1. Company Snapshot

1.a. Company Description

Matson, Inc., together with its subsidiaries, provides ocean transportation and logistics services.The company's Ocean Transportation segment offers ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, as well as to other island economies in Micronesia.It primarily transports dry containers of mixed commodities, refrigerated commodities, packaged foods and beverages, building materials, automobiles, and household goods; livestock; seafood; general sustenance cargo; and garments, footwear, e-commerce, and other retail merchandise.


This segment also operates an expedited service from China to Long Beach, California, and various islands in the South Pacific, as well as Okinawa, Japan; and provides container stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance, and other terminal services to ocean carriers on the Hawaiian islands of Oahu, Hawaii, Maui, and Kauai, as well as in the Alaska locations of Anchorage, Kodiak, and Dutch Harbor.In addition, the company offers vessel management and container transshipment services.Its Logistics segment provides multimodal transportation brokerage services, including domestic and international rail intermodal, long-haul and regional highway trucking, specialized hauling, flat-bed and project, less-than-truckload, and expedited freight services; less-than-container load consolidation and freight forwarding services; warehousing and distribution services; supply chain management services, and non-vessel operating common carrier freight forwarding services.


The company serves the U.S. military, freight forwarders, retailers, consumer goods, automobile manufacturers, and other customers.The company was formerly known as Alexander & Baldwin Holdings, Inc.and changed its name to Matson, Inc.


in June 2012.Matson, Inc.was founded in 1882 and is headquartered in Honolulu, Hawaii.

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1.b. Last Insights on MATX

Matson's recent performance has been marked by a decline in net income and EPS, with 3Q25 EPS at $4.24, down from $5.89 in 3Q24. Despite this, the company maintains discipline, with smaller profit drops than peers, strong cash flows, and rising dividends. A quarterly dividend of $0.36 per share was declared, to be paid on December 4, 2025. Additionally, the company repurchased approximately 0.6 million shares in 3Q25, indicating a commitment to shareholder value. Its niche focus on high-value routes allows Matson to remain a stable player in the shipping industry.

1.c. Company Highlights

2. Matson's Q3 2025 Earnings: A Mixed Bag

Matson's third-quarter 2025 financial performance was marked by a decline in consolidated operating income, primarily due to lower contributions from Ocean Transportation and Logistics. The company's EPS, however, beat estimates, coming in at $4.24 compared to the expected $3.25. Revenue performance was not explicitly mentioned, but the decrease in operating income suggests a challenging environment. The operating income decline was driven by lower freight rates and volume in the China service, as well as decreased contributions from freight forwarding, transportation brokerage, and supply chain management. As Matthew Cox, Chairman and CEO, noted, "We will continue to focus on delivering for our customers during unsettled times."

Publication Date: Nov -10

📋 Highlights
  • Q3 Consolidated Operating Income Decline: Ocean Transportation and Logistics contributed to a year-over-year drop due to lower freight rates (-12.8% China service volume) and reduced logistics services.
  • Q4 Operating Income Forecast: Expected to fall by ~30% YoY amid continued trade and geopolitical uncertainties, though stabilized by reduced tariff and port fee volatility.
  • Hawaii vs. China Volume Shift: Hawaii saw 0.3% YoY container volume growth, while China services declined 12.8%, reflecting regional demand imbalances.
  • Capital Expenditure and Debt: CapEx rose to $130M, with $248M in new vessel construction milestone payments expected; total debt reduced to $370.9M (-$10.1M QoQ).

Segment Performance

In the Hawaii service, container volume increased 0.3% year-over-year, while in the China service, container volume decreased 12.8% year-over-year. The decline in China service volume was a significant contributor to the decrease in Ocean Transportation operating income. The company's Logistics segment also saw a decline in operating income due to lower contributions from freight forwarding, transportation brokerage, and supply chain management.

Outlook and Guidance

For the fourth quarter 2025, Matson expects consolidated operating income to be approximately 30% lower year-over-year. However, the company is optimistic about a more stable trading environment due to reduced uncertainty regarding tariffs, port entry fees, global trade, and other geopolitical factors. The company's guidance for the full year 2025 includes depreciation and amortization of approximately $196 million, interest income of approximately $32 million, and interest expense of approximately $7 million.

Valuation and Metrics

With a P/E Ratio of 8.13 and an EV/EBITDA of 5.29, Matson's valuation appears reasonable. The company's ROE of 16.23% and ROIC of 10.61% indicate a strong ability to generate returns on equity and invested capital. The dividend yield of 1.26% and free cash flow yield of 12.03% also suggest an attractive return profile for investors.

Operational Highlights

Matson has not passed on port entry fees to customers, instead charging rates based on the value they provide with their expedited services. The company's share repurchase program has been active, with 13.1 million shares repurchased since August 2021. The company's capital expenditure projections have increased to approximately $130 million due to some CapEx expected to occur before the end of 2025.

3. NewsRoom

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AXQ Capital LP Takes Position in Matson, Inc. $MATX

Nov -25

Source: defenseworld.net

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MATSON TO PARTICIPATE AT STEPHENS 2025 ANNUAL INVESTMENT CONFERENCE

Nov -11

Source: prnewswire.com

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Matson, Inc. (MATX) Q3 2025 Earnings Call Transcript

Nov -05

Source: seekingalpha.com

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MATSON, INC. ANNOUNCES THIRD QUARTER 2025 RESULTS

Nov -04

Source: prnewswire.com

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Ethic Inc. Sells 2,206 Shares of Matson, Inc. $MATX

Nov -01

Source: defenseworld.net

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Matson, Inc. $MATX Shares Sold by D.A. Davidson & CO.

Oct -31

Source: defenseworld.net

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Matson Is Quietly Winning The Pacific Trade Game

Oct -24

Source: seekingalpha.com

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MATSON ANNOUNCES QUARTERLY DIVIDEND OF $0.36 PER SHARE

Oct -23

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.12%)

6. Segments

Ocean Transportation

Expected Growth: 1.2%

Matson's Ocean Transportation segment growth of 1.2% is driven by increased demand for Hawaii and Guam trade lanes, improved vessel utilization, and higher average freight rates. Additionally, the company's strategic investments in fleet modernization and terminal upgrades have enhanced operational efficiency, contributing to the segment's growth.

Logistics

Expected Growth: 0.8%

Matson's logistics segment growth is driven by increasing demand for Hawaii-bound freight, expansion of its logistics services, and strategic acquisitions. The company's focus on providing premium services, including expedited shipping and supply chain management, has also contributed to its growth. Additionally, Matson's investments in technology and infrastructure have improved operational efficiency, further supporting growth.

7. Detailed Products

Ocean Transportation

Matson's ocean transportation services provide reliable and efficient movement of goods between the US mainland, Hawaii, Guam, and Micronesia.

Intermodal

Matson's intermodal services offer a seamless door-to-door transportation solution, combining ocean and land transportation.

Logistics

Matson's logistics services provide customized supply chain solutions, including warehousing, distribution, and freight forwarding.

SPR (Span Alaska Protection Racket)

Matson's SPR service provides specialized protection for high-value or sensitive cargo, such as electronics and pharmaceuticals.

Less than Container Load (LCL) Shipping

Matson's LCL shipping service allows customers to ship smaller quantities of goods, consolidated with other shipments.

8. Matson, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Matson, Inc. operates in a niche market with limited substitutes, but customers may still opt for alternative transportation methods, such as air freight or trucking, which could impact the company's revenue.

Bargaining Power Of Customers

Matson, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's specialized services and long-term contracts further limit customer bargaining power.

Bargaining Power Of Suppliers

Matson, Inc. relies on a limited number of suppliers for fuel, equipment, and other essential services. While the company has some bargaining power due to its size, suppliers may still exert some influence over prices and terms.

Threat Of New Entrants

The barriers to entry in the Jones Act shipping market are high, with significant capital expenditures required to establish a new shipping company. This limits the threat of new entrants to Matson, Inc.'s market share.

Intensity Of Rivalry

Matson, Inc. operates in a highly competitive market with several established players, including Horizon Lines and Crowley Maritime. The company must continually invest in its fleet and services to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 19.07%
Debt Cost 3.95%
Equity Weight 80.93%
Equity Cost 9.55%
WACC 8.48%
Leverage 23.56%

11. Quality Control: Matson, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Hafnia

A-Score: 7.6/10

Value: 7.9

Growth: 9.3

Quality: 6.9

Yield: 10.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Mueller Industries

A-Score: 6.3/10

Value: 4.5

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Golden Ocean

A-Score: 5.3/10

Value: 6.7

Growth: 3.3

Quality: 5.0

Yield: 10.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Matson

A-Score: 5.1/10

Value: 8.0

Growth: 7.1

Quality: 6.6

Yield: 2.0

Momentum: 1.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Worthington Industries

A-Score: 5.0/10

Value: 3.6

Growth: 3.1

Quality: 5.7

Yield: 3.0

Momentum: 8.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Kirby

A-Score: 4.3/10

Value: 6.3

Growth: 6.1

Quality: 6.7

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

116.39$

Current Price

116.39$

Potential

-0.00%

Expected Cash-Flows