MATX

Canadian National (CNI) came out with quarterly earnings of $1.54 per share, beating the Zacks Consensus Estimate of $1.49 per share. This compares to earnings of $1.33 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +3.36%. A quarter ago, it was expected that this railroad would post earnings of $1.39 per share when it actually produced earnings of $1.5, delivering a surprise of +7.91%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. CN, which belongs to the Zacks Transportation - Rail industry, posted revenues of $3.41 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 4.12%. This compares to year-ago revenues of $3.02 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. CN shares have added about 25.5% since the beginning of the year versus the S&P 500's gain of 12.8%. While CN has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for CN was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.54 on $3.41 billion in revenues for the coming quarter and $5.80 on $13.15 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Rail is currently in the bottom 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Transportation sector, Matson (MATX), is yet to report results for the quarter ended September 2026. The results are expected to be released on November 4. This ocean transportation and logistics services company is expected to post quarterly earnings of $6.09 per share in its upcoming report, which represents a year-over-year change of +43.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Matson's revenues are expected to be $1.06 billion, up 20.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Canadian National Railway Company (CNI) : Free Stock Analysis Report Matson, Inc. (MATX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

HONOLULU, Oct. 21, 2026 /PRNewswire/ -- Matson, Inc. ("Matson" or the "Company") (NYSE: MATX), a leading U.S. carrier in the Pacific, today announced that it will release its financial results for the third quarter on Wednesday, November 4, 2026. A conference call is scheduled for 4:30 p.m. ET when Matt Cox, Chairman and Chief Executive Officer, and Joel Wine, Executive Vice President and Chief Financial Officer, will discuss Matson's third quarter results. Date of Conference Call: | Wednesday, November 4, 2026 Scheduled Time: | 4:30 p.m. ET / 1:30 p.m. PT / 11:30 a.m. HT The conference call will be broadcast live along with an additional slide presentation on the Company's website at www.matson.com, under Investors. Participants may register for the conference call at: https://register-conf.media-server.com/register/BI628be761a5694531a6c3250e1626f1e7 Registered participants will receive the conference call dial-in number and a unique PIN code to access the live event. While not required, it is recommended you join 10 minutes prior to the event starting time. A replay of the conference call will be available approximately two hours after the event by accessing the webcast link at www.matson.com, under Investors. About the Company Founded in 1882, Matson (NYSE: MATX) is a leading provider of ocean transportation and logistics services. Matson provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in Micronesia. Matson also operates premium, expedited services from China to Long Beach, California, which includes cargo from other Asia origins, provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Alaska to Asia. The Company's fleet of owned and chartered vessels includes containerships, combination container and roll-on/roll-off ships and barges. Matson Logistics, established in 1987, extends the geographic reach of Matson's transportation network throughout North America and Asia. Its integrated logistics services include rail intermodal, highway brokerage, warehousing, freight consolidation, supply chain management, and freight forwarding to Alaska. Additional information about the Company is available at www.matson.com. View original content to download multimedia:https://www.prnewswire.com/news-releases/matson-to-announce-third-quarter-2026-results-on-november-4-2026-302914949.html

Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let's have a look at Matson (NYSE:MATX) and its peers. The growth of e-commerce and global trade continues to drive demand for shipping services, presenting opportunities for marine transportation companies. While ocean freight is more fuel efficient and therefore cheaper than its air and ground counterparts, it results in slower delivery times, presenting a trade off. To improve transit speeds, the industry continues to invest in digitization to optimize fleets and routes. However, marine transportation companies are still at the whim of economic cycles. Consumer spending, for example, can greatly impact the demand for these companies' offerings while fuel costs can influence profit margins. Geopolitical tensions can also affect access to trade routes, and if certain countries are banned from using passageways like the Panama Canal, costs can spiral out of control. The 5 marine transportation stocks we track reported a strong Q2. As a group, revenues beat analysts' consensus estimates by 1.7%. Thankfully, share prices of the companies have been resilient as they are up 5.9% on average since the latest earnings results. Founded by a Swedish orphan, Matson (NYSE:MATX) is a provider of ocean transportation and logistics services. Matson reported revenues of $969.4 million, up 16.7% year on year. This print exceeded analysts' expectations by 8.4%. Overall, it was a stunning quarter for the company with an impressive beat of analysts' EBITDA and EPS estimates. Matson scored the biggest analyst estimate beat in the group. Unsurprisingly, the stock is up 9.7% since reporting and currently trades at $227.49. Is now the time to buy Matson? Access our full analysis of the earnings results here, it's free. Transporting goods along all U.S. coasts, Kirby (NYSE:KEX) provides inland and coastal marine transportation services. Kirby reported revenues of $922.4 million, up 7.8% year on year, outperforming analysts' expectations by 5.9%. The business had a very strong quarter with a decent beat of analysts' EBITDA and EPS estimates. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 6.3% since reporting. It currently trades at $136.23. Is now the time to buy Kirby? Access our full analysis of the earnings results here, it's free. Established in 1996, Pangaea Logistics (NASDAQ:PANL) specializes in global logistics and transportation services, focusing on the shipment of dry bulk cargoes. Pangaea reported revenues of $187.1 million, up 19.4% year on year, falling short of analysts' expectations by 2.9%. It was a mixed quarter as it posted a beat of analysts' EPS estimates. Pangaea delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 13.4% since the results and currently trades at $8.32. Read our full analysis of Pangaea's results here. Operating one of the youngest fleets in the industry, Scorpio Tankers (NYSE: STNG) is an international provider of marine transportation services, specializing in the shipment of refined petroleum. Scorpio Tankers reported revenues of $391.8 million, up 75.9% year on year. This print met analysts' expectations. Overall, it was a strong quarter as it also put up a solid beat of analysts' EBITDA and EPS estimates. The stock is up 9.2% since reporting and currently trades at $85.77. Read our full, actionable report on Scorpio Tankers here, it's free. Headquartered in NYC, Genco (NYSE:GNK) is a shipping company that transports dry bulk cargo along worldwide maritime routes. Genco reported revenues of $92.29 million, up 96.8% year on year. This number came in 2.6% below analysts' expectations. Taking a step back, it was still a satisfactory quarter as it put up a solid beat of analysts' EBITDA estimates. Genco pulled off the fastest revenue growth among its peers. The stock is up 3.6% since reporting and currently trades at $26.50. Read our full, actionable report on Genco here, it's free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market's biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market's primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market's dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. 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Matson’s second quarter results were shaped by robust demand in its China service, which management cited as the primary factor behind the company’s positive performance. CEO Matthew Cox said demand "benefited from tight market conditions and continued demand across e-commerce, garments and e-goods." The company also reported stable results in its domestic trade lanes and year-over-year operating income growth in its logistics business. Matson’s differentiated service model and the elevated freight rates in the transpacific market contributed to a strong operating margin improvement, with management crediting the success to both market dynamics and the company’s operational execution. Is now the time to buy MATX? Find out in our full research report (it’s free). Revenue: $969.4 million vs analyst estimates of $894 million (16.7% year-on-year growth, 8.4% beat) Adjusted EPS: $4.27 vs analyst estimates of $3.82 (11.8% beat) Adjusted EBITDA: $211 million vs analyst estimates of $195.2 million (21.8% margin, 8.1% beat) Operating Margin: 16.1%, up from 13.1% in the same quarter last year Market Capitalization: $6.18 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jacob Lacks (Wolfe Research) asked why Q3 operating income guidance is much higher than last year but Q4 is expected to be lower; CEO Matthew Cox explained this reflects a return to normal seasonality after last year’s tariff-driven demand surge. Jacob Lacks (Wolfe Research) inquired whether spot rate normalization had begun; Cox replied that current demand and rates remain high, with carriers managing capacity tightly, and it is too early to predict post-peak trends. Jacob Lacks (Wolfe Research) questioned the outlook for U.S.-China trade policy; Cox noted the company expects a stable environment, with both governments interested in maintaining trade balance through the end of the year. Reed Seay (Stephens) asked how much recent pricing strength is due to market dynamics versus fuel costs; CFO Joel Wine clarified that most pricing gains are market-driven, with limited impact from fuel surcharges. Tomohiko Sano (JPMorgan) requested more detail on how Southeast Asia cargo differs from China in terms of profitability and customer mix; Cox explained that Southeast Asia cargo yields a slight premium for speed and reliability, with operating costs modestly higher but overall contribution solid. In upcoming quarters, the StockStory team will watch (1) the sustainability of elevated freight rates and volumes in the China service, (2) progress on Southeast Asia expansion and integration into the broader network, and (3) the timeline and operational ramp-up of new Aloha Class vessels. Ongoing recovery of fuel costs and shifts in U.S.-China trade policy will also be key markers. Matson currently trades at $206.77, in line with $207.45 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). ALSO WORTH WATCHING: Top 5 Momentum Stocks. The best time to own a great stock is when the market is finally noticing it. These aren’t just high-quality businesses. Something is happening with them right now. Elite fundamentals meet near-term momentum — both boxes checked at the same time. Find out which stocks our AI platform is flagging this week. See this week’s Strong Momentum stocks — FREE. Get Our Strong Momentum Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+1,154% between June 2020 and June 2025). Find your next big winner with StockStory today.

Interested in Matson, Inc.? Here are five stocks we like better. Matson reported strong second-quarter results, with operating income up $45.9 million year over year to $158.9 million, net income rising 36.6% to $129.4 million, and diluted EPS increasing 46.2% to $4.27. The China service drove growth as container volume rose 15.2%, with freight demand exceeding capacity and higher-than-expected rates across e-commerce, garments and electronics. Southeast Asia now represents 20% to 25% of weekly China-service volume. Matson raised its 2026 outlook, expecting ocean transportation, logistics and consolidated operating income to exceed 2025 levels, while maintaining plans for $150 million to $170 million in capital expenditures and $400 million in vessel-program costs. Big gains on the horizon for shipping stocks in Red Sea conflict? Matson (NYSE:MATX) reported stronger second-quarter results and raised its full-year outlook, citing continued momentum in its China service, resilient consumer demand and a stable Trans-Pacific trading environment. Chairman and Chief Executive Officer Matt Cox said the company’s China service was the primary driver of the quarter, with freight rates exceeding management’s expectations amid tight market conditions and demand across e-commerce, garments and electronic goods. Cox said Matson expects performance in the second half of 2026 to exceed the second half of 2025. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now Global Shipping Companies See Booming Business During Pandemic “Our differentiated service model continues to perform well as we enter the second half of the year with strong momentum, solid customer demand, and a healthy balance sheet,” Cox said. Consolidated operating income rose $45.9 million year over year to $158.9 million in the second quarter. The increase reflected a $45.4 million rise in ocean transportation operating income and a $500,000 improvement in logistics operating income. → MarketBeat Week in Review – 07/27- 07/31 Chief Financial Officer Joel Wine said ocean transportation results benefited primarily from a higher contribution from the China service, partly offset by higher vessel operating expenses, including fuel-related costs. Logistics results improved on higher contributions from freight forwarding and transportation brokerage, while warehousing contributed less than in the prior-year period. Net income increased 36.6% year over year to $129.4 million. Diluted earnings per share rose 46.2% to $4.27. Interest income declined to $5 million from $8 million a year earlier, reflecting a $311 million reduction in the company’s Capital Construction Fund balance over the prior 12 months. Trailing-12-month cash flow from operations totaled $584.1 million. Matson returned $307.3 million to shareholders through dividends and share repurchases over the trailing 12 months. It spent $133.4 million on maintenance capital expenditures, leaving operating cash flow $143.4 million above the combined spending on maintenance capital expenditures, dividends and repurchases. → GE HealthCare Stock Climbs on Vital Diagnostics Demand During the second quarter, Matson repurchased about 0.3 million shares for $67.8 million. Through the first half, it repurchased about 0.7 million shares for $122.2 million. As of June 30, approximately 3.4 million shares remained available under the company’s repurchase authorization. Total debt was $341.3 million at quarter-end, down $9.8 million from the end of the first quarter. Container volume in Matson’s China service increased 15.2% year over year in the second quarter, primarily due to significantly higher demand compared with the prior-year period, when Trans-Pacific demand declined following tariffs imposed in April 2025. Cox said Matson’s CLX and MAX services experienced higher-than-expected freight rates and demand during the quarter. Demand grew in both China and Southeast Asia, supported by e-commerce activity, inventory replenishment and some pull-forward of seasonal goods. Some customers also sought to move cargo ahead of general rate increases, higher fuel surcharges, tariff discussions and uncertainty related to the Iran conflict. Through July, freight demand on Matson’s CLX and MAX services remained above capacity, and the company expects its China service to operate at or near capacity through the peak season. Management expects fourth-quarter demand to follow a more traditional seasonal pattern than in 2025, when a U.S.-China trade agreement announced in late October helped extend elevated freight demand later into the quarter. For the full year, Matson expects China-service volume to exceed 2025 levels, based on continued solid U.S. consumer demand and a stable trading environment. Management also highlighted the expansion of its Southeast Asia network. Cargo from Southeast Asia now accounts for 20% to 25% of weekly China-service volume, substantially higher than at the beginning of 2025. Cox said Matson has developed services in North and South Vietnam and Thailand intended to provide speed and reliability for customers with time-sensitive cargo. In response to analyst questions, Cox said Matson expects a normal seasonal decline in Trans-Pacific freight volumes after the peak period. He added that the company’s outlook assumes that U.S. and Chinese officials remain interested in maintaining a stable trade environment through year-end and into 2027. Matson’s Hawaii container volume declined 1.1% year over year in the second quarter, mainly because of lower general demand. The company expects full-year Hawaii volume to approach 2025 levels, assuming similar economic conditions and stable market share. The company described Hawaii’s economy as stable, supported by construction activity, federal contracts, Maui wildfire rebuilding and infrastructure investment. Tourist arrivals have improved modestly, although the increase has been led by domestic rather than higher-spending international visitors, Cox said. Guam container volume increased 4.4% year over year, while Alaska volume declined 2.3%. The Alaska decline reflected lower export seafood volume on the AAX service, partly offset by one additional northbound sailing. Matson expects full-year volume in both Guam and Alaska to be comparable to or approach 2025 levels. Matson’s SSAT joint venture contributed $4.8 million in the quarter, down $2.5 million year over year due to lower lift volume and higher operating expenses. The company expects SSAT’s full-year contribution to be below the $32.5 million reported for 2025. Logistics operating income increased $500,000 year over year to $14.9 million. Matson expects full-year logistics operating income to exceed the $44.2 million reported in 2025. For the third quarter, Matson expects ocean transportation operating income to be approximately 45% above the $147.4 million earned in the third quarter of 2025, driven primarily by the China service. The company expects third-quarter logistics operating income to be modestly above the $13.6 million earned a year earlier and consolidated operating income to rise approximately 45% year over year. For the fourth quarter, Matson expects ocean transportation operating income to be modestly below the $136 million reported in the fourth quarter of 2025, while logistics operating income is expected to be modestly higher than the prior-year level. For full-year 2026, Matson now expects ocean transportation operating income to exceed the $455.6 million recorded in 2025, logistics operating income to exceed $44.2 million, and consolidated operating income to surpass $499.8 million. The company said higher fuel prices related to the Iran conflict had not affected operations or service levels, though it had under-collected fuel costs in the low teens of millions of dollars across its trade lanes at the end of the second quarter. Matson expects to recover those costs by year-end. Matson maintained its 2026 maintenance and other capital-expenditure forecast of $150 million to $170 million and its expected vessel-construction milestone payments and related costs of $400 million. Its first new Aloha Class vessel, Makua, was approximately 89% complete and is scheduled for delivery in the first quarter of 2027. Malama was 64% complete with expected delivery in the third quarter of 2027, while Makena was 30% complete and targeted for delivery in the second quarter of 2028. Wine said the new vessels are larger but should have daily operating costs and fuel consumption similar to existing vessels. Matson expects the additional capacity to be incrementally profitable, particularly during the second and third-quarter peak periods. Matson, Inc (NYSE: MATX) is a U.S.-based provider of ocean transportation and supply chain logistics services with a focus on Pacific trade lanes. The company operates a fleet of container ships that regularly service Hawaii, Alaska, Guam, Micronesia and other Pacific islands, as well as mainland U.S. ports. Matson's ocean transportation segment offers scheduled liner services, expedited shipping options and specialized project cargo handling for industries ranging from retail to heavy machinery. In addition to its core liner operations, Matson offers ocean transportation services between Asia and the U.S. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Matson Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Matson, Inc. has reported past second-quarter 2026 results showing sales of US$767.4 million and revenue of US$969.4 million, with net income rising to US$129.4 million and diluted earnings per share from continuing operations increasing to US$4.27 compared to a year earlier. Alongside these stronger earnings, Matson completed a substantial multi-year share repurchase program that has retired almost 40% of its shares since 2021, materially reshaping its capital structure. We’ll now examine how Matson’s earnings beat and upgraded 2026 outlook affect the earlier investment narrative around freight demand and fleet renewal. Capitalize on the AI infrastructure supercycle with our selection of the 55 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own Matson today, you need to believe its focus on premium transpacific routes and LNG-ready fleet renewal can offset trade volatility and high vessel spending. The latest earnings beat and upgraded 2026 outlook support that near-term catalyst around freight demand resilience in China, while the biggest current risk still looks like global trade uncertainty and rate pressure rather than anything fundamentally new from this quarter. The most relevant recent announcement is the completion of Matson’s multi-year buyback, which has retired about 39.6% of shares since 2021. Coupled with higher Q2 2026 earnings and raised guidance, this materially amplifies earnings per share sensitivity to both positive catalysts in China and Southeast Asia volumes and to downside risks if tariffs, competition or trade flows turn against its concentrated routes. Yet against these strong results, investors should still pay close attention to the risk that persistent trade tensions could... Read the full narrative on Matson (it's free!) Matson's narrative projects $3.8 billion revenue and $456.2 million earnings by 2029. This requires 4.6% yearly revenue growth and about a $27.1 million earnings increase from $429.1 million today. Uncover how Matson's forecasts yield a $224.00 fair value, a 8% upside to its current price. Some of the most optimistic analysts were already assuming revenue near US$3.9 billion and earnings above US$490 million by 2029, so when you compare that with this quarter’s strong China-driven beat, it shows just how much more upside they see relative to consensus and why these views might shift again as new data comes in. Explore 8 other fair value estimates on Matson - why the stock might be worth less than half the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Matson research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision. Our free Matson research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Matson's overall financial health at a glance. Early movers are already taking notice. See the stocks they're targeting before they've flown the coop: Outshine the giants: these 17 early-stage AI stocks could fund your retirement. Uncover the next big thing with 21 elite penny stocks that balance risk and reward. AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include MATX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Consolidated Operating Income: Increased $45.9 million year-over-year to $158.9 million in Q2 2026. Net Income: Increased 36.6% year-over-year to $129.4 million. Diluted EPS: Increased 46.2% year-over-year to $4.27 per share. Ocean Transportation Operating Income: Increased $45.4 million year-over-year, driven by higher contribution from China service. Logistics Operating Income: $14.9 million in Q2 2026, up $0.5 million year-over-year. Hawaii Container Volume: Decreased 1.1% year-over-year in Q2 2026. China Service Container Volume: Increased 15.2% year-over-year in Q2 2026. Guam Container Volume: Increased 4.4% year-over-year in Q2 2026. Alaska Container Volume: Decreased 2.3% year-over-year in Q2 2026. SSAT Contribution: $4.8 million in Q2 2026, a decrease of $2.5 million year-over-year. Cash Flow from Operations (TTM): $584.1 million. Maintenance CapEx (TTM): $133.4 million. Share Repurchases: Repurchased approximately 0.3 million shares for $67.8 million in Q2 2026. Total Debt: $341.3 million as of June 30, 2026. Warning! GuruFocus has detected 9 Warning Signs with MATX. Is MATX fairly valued? Test your thesis with our free DCF calculator. Release Date: August 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Matson Inc (NYSE:MATX) delivered a strong second quarter with consolidated operating income increasing $45.9 million year-over-year to $158.9 million, driven primarily by its China service. The company raised its full-year 2026 outlook, expecting consolidated operating income to be higher than the $499.8 million achieved in 2025. China service container volume increased 15.2% year-over-year in Q2 2026, with freight rates exceeding expectations due to tight market conditions and strong demand across e-commerce, garments, and e-goods. Logistics segment operating income grew year-over-year in Q2 2026, driven by higher contributions from freight forwarding and transportation brokerage. The company continues to return excess capital to shareholders, having repurchased approximately 34% of its stock since August 2021 and maintaining a strong balance sheet with cash flow from operations exceeding maintenance CapEx, dividends, and share repurchases by $143.4 million in the trailing twelve months. Southeast Asia cargo now represents 20-25% of China service volume, reflecting successful expansion and diversification of the company's cargo mix. Hawaii service container volume decreased 1.1% year-over-year in Q2 2026 due to lower general demand, with expectations of only approaching 2025 levels for the full year. Alaska service container volume decreased 2.3% year-over-year in Q2 2026, primarily due to lower export seafood volume. SSAT investment joint venture contribution decreased by $2.5 million year-over-year in Q2 2026 due to lower lift volume and higher operating expenses, with expectations of lower full-year contribution compared to 2025. The company faces geopolitical uncertainties, including the Iran conflict and US tariffs, which have impacted fuel prices and led to undercollected fuel costs of low teens of millions of dollars at the end of Q2 2026. Fourth quarter 2026 Ocean Transportation operating income is expected to be modestly lower than the $136 million achieved in Q4 2025, due to a tough comparison with the elevated demand following the US-China trade agreement in October 2025. Interest income decreased to $5 million in Q2 2026 from $8 million in the prior year period due to a $311 million reduction in the CCF balance as construction milestones on new vessels were achieved. Q: Can you provide more color on the bridge for the 45% year-over-year increase outlook for third-quarter Ocean Transportation operating income across pricing, volumes, and key costs?A: Joel Wine (CFO) explained that the increase is driven by both higher freight rates and higher volumes. Rates are currently higher than in Q3 2025, and the volume environment is expected to be better this year. Last year's Q3 was highly unusual due to tariff impacts in April and May, a mini surge in June and early July, and a muted peak season in August and September, resulting in less volume than normal. This year, the China trade is expected to see a better volume environment with higher all-in rates. Q: You are guiding to 3Q Ocean EBIT to be much higher year-over-year, but 4Q to be a bit lower. Are you assuming that all the global trade strength we see today fully subsides in the next couple of months?A: Matt Cox (CEO) clarified that the company expects a normalization of the traditional transpacific pattern, where Q2 and Q3 are the strongest quarters and Q1 and Q4 are lower. They are not expecting anything unusual, just a normal falloff after peak season, with the backdrop of strong consumer demand and a stable US economy. The Q4 2025 comparison is tough due to the elevated demand following the US-China trade agreement announced on October 30, 2025. Q: How do you view the cost structure of the new Aloha Class vessels compared to the current CLX vessels, and should improved profitability be realized immediately following delivery?A: Joel Wine (CFO) stated that the cost structure is very similar to existing vessels, with similar daily operating costs and fuel burn, but with larger capacity. The additional capacity should be incrementally profitable, especially during Q2 and Q3 peak seasons. While the incremental capacity may not be fully used in Q1 and Q4, the vessels are expected to be highly profitable and flow through to the bottom line as each is phased in. Q: How is the Southeast Asia cargo (now 20%-25% of China service volume) different from China-origin cargo in terms of profitability, pricing structures, seasonality, and customer concentration?A: Matt Cox (CEO) explained that Matson has become the fastest and most reliable carrier in North/South Vietnam and Thailand, achieving a significant premium over the market. Freight rates are similar but slightly lower than China-origin direct cargo, and operating costs are slightly higher due to positioning equipment and connecting carrier agreements. However, the ending yield is highly satisfactory. The customer base is largely the same as those using the China service, as many have facilities in multiple countries, making the value proposition already known and trusted. Q: How are you thinking about China trade policy over the next several months, and is your expectation that the one-year truce gets extended in November and port fees remain on hold?A: Matt Cox (CEO) stated that the company's outlook reflects a stable trading environment, with the expectation that both the US and Chinese governments are interested in creating stability and will not want to upset the current situation through the end of the year and into next year. This expectation is based on the belief that neither government wants to disrupt the current trade dynamics. Q: Have you seen any sign of traditional ocean spot rates starting to normalize, or has the strength generally held up?A: Matt Cox (CEO) noted that the market is currently at or near peak demand levels. International ocean carriers recently implemented an August 1 rate increase, and they have done a remarkable job of providing the right amount of tonnage to carry the trade without large backlogs or significant empty sailings. It is too early to predict what will happen after the first or second week of October as the market transitions into a normal peak season. Q: How much of the stronger-than-expected pricing is due to continued price discovery for your value proposition versus temporary factors like fuel costs?A: Matt Cox (CEO) and Joel Wine (CFO) clarified that fuel costs have not significantly impacted the China service pricing. Early rate actions with fuel components were taken in March/April, and the rest of the pricing environment has been market-driven. The strength is attributed to resilient international trades across the globe absorbing carrier capacity, leading to satisfactory freight rates that are expected to continue through peak season. Q: When the broader ocean rates came down last year, Matson rates held more stable. Should we expect similar price action or more in-tandem movement this time?A: Matt Cox (CEO) indicated that the company's guidance for Q3 and the full year reflects their pricing expectations. They expect to step rates down after peak season as they approach the end of the year, which is already incorporated into their Q3 and Q4 guidance. Q: As you look out to 2027 with the new vessels on pace for delivery, is the current volume backdrop shaping up as expected for their deployment?A: Matt Cox (CEO) expressed enthusiasm for the additional capacity, with the first vessel arriving in Q1 2027, just in time for the Q2 and Q3 peaks. The new vessels will replace smaller ones that will be redeployed to domestic trades (Hawaii or Alaska). The additional capacity will support the Southeast Asia strategy and broaden the markets served, positioning the company well for future growth. Q: Can you discuss the profitability and pricing structure of Southeast Asia cargo versus China-origin cargo in more detail?A: Matt Cox (CEO) elaborated that while the all-in freight rates for Southeast Asia cargo are slightly lower than China direct, and operating costs are a bit higher due to equipment positioning and connecting carrier agreements, the company is highly satisfied with the bottom-line yield. The strategy is to capture the top 5% of the market that needs speed and reliability, achieving a significant premium over the market. The customer base is largely the same as the China service, as many have facilities in multiple countries. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Strong second quarter performance was primarily driven by the China service, where freight rates exceeded expectations due to tight market conditions and robust demand in e-commerce, garments, and e-goods. The China service benefited from customers pull-forward of seasonal goods to derisk upcoming tariff discussions and uncertainties related to the Iran conflict. Southeast Asia expansion has become a key strategic priority, with regional cargo now representing 20% to 25% of China service volume, significantly higher than early 2025 levels. Management attributes the success in Vietnam and Thailand to a differentiated service model that targets the top 5% of the market requiring high speed and reliability. Hawaii and Alaska trade lanes performed largely as expected, though Hawaii faced headwinds from higher energy-related inflation and a shift toward lower-spending domestic tourists. The company maintains a healthy balance sheet and strong cash flows, allowing for the return of $307.3 million to shareholders through dividends and repurchases over the trailing 12 months. Full year 2026 consolidated operating income is expected to be higher than 2025, supported by a resilient U.S. consumer and a stable Transpacific trading environment. Third quarter Ocean Transportation operating income is projected to be approximately 45% higher year-over-year, driven by both higher freight rates and improved volume compared to a muted 2025 period. Fourth quarter demand is expected to reflect a traditional seasonal falloff, contrasting with the elevated demand seen in late 2025 following the U.S.-China trade agreement. The new Aloha Class vessel program remains on schedule, with the first vessel, Makua, expected for delivery in Q1 2027 to provide additional capacity for peak season. Management assumes a stable trading environment where neither the U.S. nor Chinese governments seek to disrupt trade through the end of the year. The Iran conflict has impacted fuel prices across all markets, resulting in an under-collection of fuel costs in the low teens of millions of dollars as of Q2 end. Management expects to fully recover the elevated fuel costs by the end of the year through existing recovery mechanisms. Capital Construction Fund (CCF) balance decreased by $311 million over the last 12 months due to milestone payments for the new Aloha Class vessels. SSAT joint venture contribution is expected to be lower than the $32.5 million achieved in 2025 due to lower lift volume and higher operating expenses. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that the lower Q4 outlook is due to a return to traditional seasonality rather than a collapse in trade. The comparison is difficult because Q4 2025 was unusually strong following a specific trade agreement that eased tariff uncertainties. International carriers have successfully managed capacity to match demand, preventing large backlogs while maintaining high utilization. Matson expects to step rates down historically after the peak season ends in October, which is reflected in their guidance. Southeast Asia cargo yields a slightly lower margin than China direct cargo due to connecting carrier costs and equipment positioning. Despite higher costs, the service achieves a significant premium over market rates by serving customers who previously relied on airfreight. The new vessels have similar daily operating costs and fuel burn to current ships but offer larger capacity. Profitability gains will be driven by incremental utilization of the larger capacity, particularly during Q2 and Q3 peak periods.