Matson, Inc. Reports 3.1% Revenue Decline and 21.7% Drop in Net Income for Q1 2026

Matson, Inc. reported a decline in financial performance for the first quarter of 2026, with total operating revenue decreasing to $757.8 million from $782.0 million in the same period of 2025, representing a 3.1% drop. The company's net income also fell to $56.6 million, down 21.7% from $72.3 million year-over-year. Basic earnings per share decreased to $1.86 from $2.20, reflecting the overall decline in profitability. The decrease in revenue was primarily attributed to a $30.9 million reduction in the Ocean Transportation segment, which was partially offset by a $6.7 million increase in the Logistics segment.

In terms of operational metrics, Matson's container volume in its Hawaii service decreased by 5.6%, while the China service saw a 9.5% decline in volume, primarily due to lower demand following the Lunar New Year. The Alaska service experienced a 2.0% drop in volume, although the Guam service remained flat. The company's investment in SSA Terminals, LLC (SSAT) contributed $5.0 million to income, down from $6.6 million in the prior year, reflecting lower lift volumes. The company anticipates that the contribution from SSAT for the full year 2026 will be lower than the $32.5 million achieved in 2025.

Matson's operating costs and expenses decreased slightly to $696.4 million from $699.9 million, primarily due to a reduction in Ocean Transportation operating costs. The company reported an operating income of $61.4 million, down 25.2% from $82.1 million in the previous year. The decrease in operating income was driven by lower contributions from both the Ocean Transportation and Logistics segments. The company expects operating income for the second quarter of 2026 to be approximately $20 million higher than the $113.0 million achieved in the second quarter of 2025.

Looking ahead, Matson's management remains cautiously optimistic about the company's performance for the remainder of 2026. The company expects container volumes to stabilize, particularly in the China service, as demand strengthens post-Lunar New Year. For the full year, Matson anticipates that Ocean Transportation operating income will modestly exceed the levels achieved in 2025, supported by solid U.S. consumer demand and a stable trading environment. The company also plans to continue its capital expenditures, including approximately $400 million for new vessel construction, as part of its fleet renewal program.