Form type: 10-Q
Period end: 2026-06-30
| Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|---|---|
| Revenue | 969,400,000.00 | 830,500,000.00 | ||
| Total Revenue | ||||
| Total COGS | ||||
| Gross Profit | ||||
| General and administrative | 78,000,000.00 | 74,400,000.00 | ||
| Income tax expense (benefit) | 34,500,000.00 | 27,000,000.00 | ||
| Interest expense | 1,600,000.00 | 1,700,000.00 | ||
| Interest income | -5,000,000.00 | -8,000,000.00 | ||
| Other nonoperating income (expense), net | -1,600,000.00 | -2,400,000.00 | ||
| Other operating costs | 659,300,000.00 | 576,000,000.00 | ||
| Other operating costs | 73,200,000.00 | 67,100,000.00 | ||
| Total Expenses | ||||
| Net Income | ||||
| Net income (loss) available to common stockholders | ||||
| Basic earnings per share |
| June 30, 2026 | December 31, 2025 | |
|---|---|---|
| Assets | ||
| Accounts receivable | 335,300,000.00 | 256,800,000.00 |
| Cash and cash equivalents | 119,300,000.00 | 141,900,000.00 |
| Goodwill and intangibles | 468,100,000.00 | 474,400,000.00 |
| Operating lease right-of-use assets | 373,000,000.00 | 369,600,000.00 |
| Other assets (derived) | 561,600,000.00 | 720,300,000.00 |
| Other current assets | 0.00 | 3,300,000.00 |
| Other noncurrent assets | 94,500,000.00 | 96,700,000.00 |
| Prepaid expenses and other current assets | 81,400,000.00 | 73,200,000.00 |
| Property, plant and equipment | 2,680,300,000.00 | 2,499,400,000.00 |
| Total Assets | ||
| Liabilities | ||
| Accounts payable and accrued liabilities | 297,900,000.00 | 244,900,000.00 |
| Accrued compensation | 0.00 | 36,200,000.00 |
| Debt | 341,300,000.00 | 361,200,000.00 |
| Deferred revenue | 0.00 | 5,700,000.00 |
| Deferred tax liabilities | 704,400,000.00 | 701,900,000.00 |
| Distributions payable | 11,400,000.00 | 0.00 |
| Operating lease liabilities, current | 132,800,000.00 | 128,500,000.00 |
| Operating lease liabilities, noncurrent | 251,200,000.00 | 246,800,000.00 |
| Other current liabilities | 0.00 | 5,100,000.00 |
| Other liabilities (derived) | 113,100,000.00 | 51,900,000.00 |
| Other noncurrent liabilities | 88,300,000.00 | 88,400,000.00 |
| Taxes payable | 0.00 | 6,000,000.00 |
| Total Liabilities | ||
| Equity | ||
| Stockholders equity | 2,773,100,000.00 | 2,759,000,000.00 |
| Total Equity | ||
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Operating activities | ||
| Net income | 186,000,000.00 | 167,000,000.00 |
| Stock-based compensation | 11,700,000.00 | 11,700,000.00 |
| Changes in operating assets and liabilities, net | 33,900,000.00 | 15,900,000.00 |
| Net cash from operating activities | ||
| Investing activities | ||
| Investing activities, net | -67,400,000.00 | -183,400,000.00 |
| Net cash from investing activities | - | - |
| Financing activities | ||
| Financing activities, net | -186,800,000.00 | -218,900,000.00 |
| Net cash from financing activities | - | - |
| Net change in cash | - | - |
| Cash at beginning of period | 266,800,000.00 | |
| Cash at end of period | 59,100,000.00 | |
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |
|---|---|---|
| Balance at beginning of period | 2,759,000,000.00 | 2,652,000,000.00 |
| Net income | 186,000,000.00 | 167,000,000.00 |
| Other equity movements | -171,900,000.00 | -201,000,000.00 |
| Balance at end of period | 2,773,100,000.00 | 2,618,000,000.00 |
Matson, Inc. is a public reporting company classified under Water Transportation. The accompanying condensed financial statements as of and for the period ended June 30, 2026 are unaudited and have been prepared from the Company's books and records. In the opinion of management, the statements reflect all adjustments necessary for a fair presentation of the interim results, and the results for the interim period are not necessarily indicative of the results to be expected for the full year.
Revenue for the period was $969.4 million, compared with $830.5 million in the prior period, an increase of 16.7 percent. Net income for the period was $129.4 million. Basic earnings per share were $4.30, based on weighted-average basic shares outstanding of 30.1 million and net income of $129.4 million.
At period end, the Company had debt of $341.3 million classified as noncurrent, compared with $341.3 million of debt, including current maturities, in the prior period. Operating lease right-of-use assets were $373.0 million, an increase of 26.8 percent from $294.2 million in the prior period, with related current operating lease liabilities of $132.8 million, compared with $109.1 million, and noncurrent operating lease liabilities of $251.2 million, compared with $185.0 million. Total debt, including operating lease obligations and other liabilities, was $1,940.4 million at period end. Interest expense for the period was $1.6 million, compared with $1.7 million in the prior period, and interest income was $5.0 million, compared with $8.0 million in the prior period.
Total stockholders' equity increased 5.9 percent to $2,773.1 million from $2,618.0 million. Distributions payable were $11.4 million, unchanged from the prior period.
| Current | Prior | |
|---|---|---|
| Debt | 341,300,000.00 | 361,200,000.00 |
| Operating lease liabilities, current | 132,800,000.00 | 128,500,000.00 |
| Operating lease liabilities, noncurrent | 251,200,000.00 | 246,800,000.00 |
| Total debt | 725,300,000.00 | 736,500,000.00 |
| Current | Prior | |
|---|---|---|
| Property, plant and equipment | 2,680,300,000.00 | 2,499,400,000.00 |
| Total property and equipment | 2,680,300,000.00 | 2,499,400,000.00 |
| Current | Prior | |
|---|---|---|
| Stockholders equity | 2,773,100,000.00 | 2,759,000,000.00 |
| Total stockholders' equity | 2,773,100,000.00 | 2,759,000,000.00 |
Matson, Inc. is a public reporting company classified under Water Transportation. For the three months ended June 30, 2026, operating revenue was $969.4 million, an increase of $138.9 million, or 16.7 percent, compared with $830.5 million in the three months ended June 30, 2025, driven primarily by [COMPLETE: description of revenue drivers by service line]. Operating costs and expenses increased $93.0 million, or 13.0 percent, to $810.5 million, and operating income increased $45.9 million, or 40.6 percent, to $158.9 million compared with $113.0 million in the prior-year period. The increase in operating costs and expenses reflected higher other operating costs of $659.3 million compared with $576.0 million, an increase of 14.5 percent, and additional other operating costs of $73.2 million compared with $67.1 million, an increase of 9.1 percent, as well as general and administrative expenses of $78.0 million compared with $74.4 million, an increase of 4.8 percent, attributable to [COMPLETE: description of cost drivers].
Interest income decreased $3.0 million, or 37.5 percent, to $5.0 million from $8.0 million in the prior-year period, while interest expense, net decreased 5.9 percent to $1.6 million from $1.7 million. Other income (expense), net was $1.6 million of income compared with $2.4 million of income in the prior-year period, a decrease of $0.8 million. Income before taxes increased $42.2 million, or 34.7 percent, to $163.9 million, and income tax expense increased $7.5 million, or 27.8 percent, to $34.5 million compared with $27.0 million in the prior-year period. As a result, net income was $129.4 million, an increase of $34.7 million, or 36.6 percent, compared with $94.7 million in the prior-year period. Basic earnings per share was $4.30, compared with $2.95 in the prior-year period, based on weighted-average basic shares outstanding of 30.1 million.
For the third quarter of 2026, we expect consolidated operating income to be approximately 45 percent higher than the level achieved in the third quarter of 2025, and for full year 2026 we expect consolidated operating income to be higher than the level achieved in full year 2025 based on our expectations of continued solid U.S. consumer demand and a stable trading environment in the Transpacific tradelane. For full year 2026, we expect depreciation and amortization expense to be approximately $205 million, inclusive of dry-docking amortization of approximately $35 million. We expect interest income for full year 2026 to be approximately $18 million, interest expense, net to be approximately $6 million, and other income (expense), net to be approximately $7 million in income, which is attributable to the amortization of certain components of net periodic benefit costs or gains related to our pension and post-retirement plans.
Cash and cash equivalents were $119.3 million at June 30, 2026, an increase of 101.9 percent from $59.1 million in the prior-year period, and accounts receivable increased 16.0 percent to $335.3 million from $289.1 million. Total debt outstanding was $341.3 million, consistent with $341.3 million of debt, including current maturities, in the prior-year period, and operating lease liabilities increased to $132.8 million of current liabilities and $251.2 million of noncurrent liabilities from $109.1 million and $185.0 million, respectively. Property, plant and equipment increased 13.6 percent to $2,680.3 million from $2,359.7 million, and stockholders' equity increased 5.9 percent to $2,773.1 million from $2,618.0 million. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and we do not have material foreign currency or commodity price exposure. Management believes that our cash and cash equivalents, together with cash expected to be generated from operations and available sources of liquidity, will be sufficient to fund our operations and capital requirements for at least the next twelve months.
Our primary market risk exposure is interest rate risk on our cash, cash equivalents, and short-term investments. As of June 30, 2026, we held cash and cash equivalents of $119.3 million, compared to $59.1 million in the prior period, an increase of 101.9 percent. Changes in market interest rates affect the amount of interest income we earn on these balances. Interest income was $5.0 million in the current period, compared with $8.0 million in the prior period.
We are also exposed to interest rate risk with respect to our outstanding indebtedness. Debt at the current period end was $341.3 million, classified as noncurrent, compared with $341.3 million classified as debt, including current maturities, in the prior period. Interest expense for the period was $1.6 million, a decrease of 5.9 percent from $1.7 million in the prior period. A significant change in market interest rates could affect the interest income we earn on our invested balances as well as our overall cost of borrowing in future periods.
We do not have material foreign currency or commodity price exposure.
Management, under the supervision and with the participation of the Company's Principal Executive Officer and Principal Financial Officer, carried out an evaluation of the effectiveness of the design and operation of the Company's disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, as of June 30, 2026. The Company's certifying officers are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)). Based upon that evaluation, management concluded that the Company's disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report.
There were no changes in the Company's internal control over financial reporting that occurred during the quarter that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives, and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
[COMPLETE: Management's conclusion language set forth above must be reviewed and adopted by management before filing.]
Matson, Inc. is involved in legal proceedings arising in the ordinary course of business from time to time. These matters may include, among other things, claims and disputes incidental to the conduct of the Company's operations. Management does not currently believe that any pending matter is material to the Company's financial statements.
The Company evaluates its pending legal matters on an ongoing basis and will record accruals or provide additional disclosure if and when developments warrant. Based on information currently available, the Company is not a party to any legal proceedings, other than ordinary routine litigation incidental to its business, that management believes would have a material effect on its financial statements.
There have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K, other than as described below. [COMPLETE: reference to specific Annual Report on Form 10-K filing date and period]. We are a public reporting company classified under Water Transportation, and our business remains subject to risks arising from economic conditions and demand in the trade lanes we serve. In the China service, our container volume in the second quarter 2026 increased 15.2 percent year-over-year primarily due to significantly higher demand compared to the prior year period, which included a market decline in Transpacific demand due to the tariffs imposed in April 2025. Our CLX and MAX services saw higher-than-expected freight rates and demand across e-commerce, garments and e-goods against a backdrop of tighter supply conditions in the Transpacific tradelane, and there can be no assurance that these conditions will continue. While we expect volume in full year 2026 to approach the level achieved in 2025, based on our expectation of similar economic conditions and stable market share, and expect our China service to be at or near capacity through peak season, changes in tariffs, trade policy, consumer demand or vessel supply could cause actual results to differ materially from these expectations.
Our results of operations are also exposed to cost pressures that could adversely affect profitability. Operating costs and expenses increased, driven primarily by higher other operating costs, which increased to $659.3 million from $576.0 million, an increase of 14.5 percent, and a second category of other operating costs, which increased to $73.2 million from $67.1 million, an increase of 9.1 percent, while general and administrative expenses increased 4.8 percent to $78.0 million from $74.4 million. Continued cost inflation of this nature, if not offset by revenue growth, could reduce our margins. For the period ended June 30, 2026, we generated revenue of $969.4 million and net income of $129.4 million, and a sustained decline in demand or freight rates could materially reduce these results in future periods.
We are exposed to market and financial risks, including interest rate risk. Our primary market risk exposure is interest rate risk on cash, cash equivalents, and short-term investments, and changes in interest rates could reduce the income we earn on these balances. Interest income decreased to $5.0 million from $8.0 million, a decrease of 37.5 percent, in the current period. We do not have material foreign currency or commodity price exposure. Debt at the current period end was $341.3 million, classified as noncurrent, and total liabilities were $1,940.4 million, and our leverage and lease commitments could constrain our financial flexibility. Operating lease liabilities consisted of a current portion of $132.8 million, up 21.7 percent from $109.1 million in the prior period, and a noncurrent portion of $251.2 million, up 35.8 percent from $185.0 million, and growth in these obligations increases our fixed charges in future periods.
In addition, we are subject to litigation and regulatory risks. We are involved in legal proceedings arising in the ordinary course of business from time to time. While management does not currently believe any pending matter is material to the financial statements, an adverse outcome in one or more proceedings could have a material adverse effect on our business, financial condition or results of operations.
The following sets forth the disclosure required by Item 408(a) of Regulation S-K regarding Rule 10b5-1 trading arrangements of the directors and officers of Matson, Inc. for the quarter ended June 30, 2026. [COMPLETE: Rule 10b5-1 trading arrangement adoptions and terminations from the D&O questionnaires]