Matson (68M) Q2 2026 Earnings Report

The call presented materially more positives than negatives: strong China-driven revenue and margins, sizeable YoY gains in net income and EPS, a raised outlook (notably Q3 Ocean EBIT guidance of ~+45% YoY), robust cash generation, meaningful share repurchases, and a well-funded newbuild program. Headwinds are manageable and largely temporary—SSAT weakness, modest volume declines in Hawaii and Alaska, undercollected fuel costs (low-teens millions) and a tougher Q4 comp—none of which offset the quarter's strong operational and financial performance.

Matson guided to a strong second half led by China: Q3 Ocean Transportation operating income is expected to be ~45% above last year’s Q3 of $147.4M (consolidated Q3 also ~45% higher), while Q4 Ocean Transportation is expected to be modestly below last year’s $136.0M (Logistics modestly above last year’s $7.7M). For full‑year 2026 the company now expects Ocean Transportation op. income > $455.6M, Logistics > $44.2M and consolidated operating income > $499.8M; it also forecasts D&A ≈ $205M (including ≈ $35M dry‑docking amortization), interest income ≈ $18M, interest expense ≈ $6M, other income ≈ $7M, an effective tax rate ≈ 21%, and dry‑docking payments ≈ $45M. CapEx guidance is maintenance/other $150–170M and vessel construction milestones/related costs ≈ $400M (Q2 milestone payments ≈ $180M; expected ≈ $50M in Q3 and ≈ $127M in Q4); cash ≈ $119M and the capital construction fund ≈ $346M (covering ~90% of remaining milestones). Management also noted under‑collected fuel costs in the low‑teens of millions to be recovered by year‑end and reiterated recent quarterly metrics: Q2 consolidated operating income $158.9M (up $45.9M YoY), net income $129.4M, diluted EPS $4.27 (up 46.2% YoY), Q2 China volume +15.2% YoY, Guam +4.4%, Hawaii -1.1%, Alaska -2.3%, SSAT Q2 contribution $4.8M, trailing‑12‑month CFO $584.1M, dividends+repurchases $307.3M, and total debt $341.3M.