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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, Inc.'s recent performance was driven by increased institutional ownership and analyst interest. Allspring Global Investments Holdings LLC boosted its stake in shares of Matson, Inc. by 97.5% during the fourth quarter, acquiring an additional 39,370 shares. Additionally, the company received a consensus rating of "Hold" from six ratings firms, with four analysts rating the stock with a hold rating and two giving a buy rating. The average 12-month price target among brokers that have issued a rating for the stock suggests a stable outlook.

1.c. Company Highlights

2. Matson's Strong Q4 2025 Results Driven by Robust Demand

Matson's financial performance for the fourth quarter of 2025 was solid, with the company exceeding expectations on the back of higher-than-expected freight rates and volumes in the China service. The company's earnings per share (EPS) came in at $4.6, significantly beating estimates of $2.32. For the full year 2025, consolidated operating income decreased year-over-year, primarily due to lower volume and freight rates in the China service. Revenue growth is estimated to be around 4.3% for the next year, indicating a positive outlook.

Publication Date: Feb -26

📋 Highlights
  • Q4 2025 Ocean Transportation Performance:: Operating income approached prior year levels ($50M expected in Q1 2026) driven by strong China service freight rates and volumes.
  • Full-Year 2025 Consolidated Decline:: Operating income fell year-over-year due to lower China service volumes (-X%) and freight rates (-Y%).
  • SSAT Contribution:: Generated $32.5M in 2025, up from prior year, with 2026 guidance matching 2025 levels.
  • 2025 Cash Flow Strength:: $49.8M excess cash after CapEx, dividends, and buybacks; $307.4M spent on repurchasing 2.7M shares.
  • China Service Expansion:: Thailand volumes started at 50 loads/sailing, expected modest growth in 2026 as customers diversify supply chains.

Segment Performance

The Ocean Transportation segment was a key driver of Matson's performance, with operating income approaching prior year's levels due to strong e-commerce and e-goods demand. The company's China service benefited from a stable trading environment in the Transpacific trade lane. For 2026, Matson expects Ocean Transportation operating income to be approximately $50 million in the first quarter, lower than the first quarter last year. The Logistics operating income decreased year-over-year in 2025, primarily due to lower contributions from freight forwarding and transportation brokerage.

Guidance and Outlook

Matson expects consolidated operating income to approach the level achieved in 2025 for the full year 2026, driven by continued solid U.S. consumer demand and a stable trading environment in the Transpacific trade lane. The company's SSAT terminal joint venture is expected to contribute comparably to 2025 levels. With a current P/E Ratio of 11.78 and an ROE of 16.63%, the company's valuation appears reasonable. Additionally, the Dividend Yield stands at 0.84%, indicating a relatively stable return for investors.

Operational Highlights

Matson's China service is expanding in Southeast Asia as customers diversify their locations in the region. The company is focused on maximizing yield and maintaining a disciplined approach to pricing. The Lunar New Year recovery is expected to follow a traditional pattern, with demand recovering in a normal manner. The company's premium rates in the China service reflect its value proposition relative to air freight.

Capital Allocation

Matson generated strong cash flows in 2025, with cash flow from operations exceeding the aggregate spend on maintenance CapEx, dividends, and share repurchases by $49.8 million. The company repurchased approximately 2.7 million shares for a total cost of $307.4 million in 2025. With a Free Cash Flow Yield of 7.03%, Matson appears to have a healthy capacity to return capital to shareholders.

3. NewsRoom

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Allspring Global Investments Holdings LLC Increases Holdings in Matson, Inc. $MATX

Apr -06

Source: defenseworld.net

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Matson, Inc. (NYSE:MATX) Receives Average Recommendation of “Hold” from Analysts

Apr -06

Source: defenseworld.net

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Contrasting Matson (NYSE:MATX) & Royal Mail (OTCMKTS:ROYMY)

Mar -23

Source: defenseworld.net

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Matson Contributed $8.6 Million to Community Programs in 2025

Mar -18

Source: prnewswire.com

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Algert Global LLC Raises Holdings in Matson, Inc. $MATX

Mar -15

Source: defenseworld.net

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Matson's Protected U.S. Shipping Routes and Premium Pacific Service Anchor the Business as Flat Footed LLC Exits Position

Mar -07

Source: fool.com

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Citigroup Inc. Purchases 16,712 Shares of Matson, Inc. $MATX

Mar -04

Source: defenseworld.net

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American Century Companies Inc. Has $123.30 Million Stock Position in Matson, Inc. $MATX

Mar -03

Source: defenseworld.net

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: 7.4/10

Value: 8.4

Growth: 9.2

Quality: 6.1

Yield: 10.0

Momentum: 4.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Mueller Industries

A-Score: 6.4/10

Value: 4.3

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 9.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Golden Ocean

A-Score: 5.5/10

Value: 6.8

Growth: 3.3

Quality: 5.2

Yield: 8.0

Momentum: 3.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Worthington Industries

A-Score: 5.3/10

Value: 3.9

Growth: 3.1

Quality: 5.9

Yield: 4.0

Momentum: 8.5

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
Matson

A-Score: 5.2/10

Value: 7.6

Growth: 7.0

Quality: 6.5

Yield: 2.0

Momentum: 2.5

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Kirby

A-Score: 4.4/10

Value: 4.8

Growth: 6.1

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 6.3

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

172.48$

Current Price

172.48$

Potential

-0.00%

Expected Cash-Flows