Matson, Inc. Reports Decline in Revenue and Net Income for Q3 2025

Matson, Inc. reported a decline in financial performance for the third quarter of 2025, with total operating revenue of $880.1 million, down 8.5% from $962.0 million in the same period last year. The company's net income also fell to $134.7 million, a decrease of 32.3% compared to $199.1 million in the prior year. Basic earnings per share were $4.28, down from $5.98, while diluted earnings per share decreased to $4.24 from $5.89. For the nine months ended September 30, 2025, total operating revenue was $2.492 billion, a slight decline of 1.5% from $2.532 billion in 2024, with net income at $301.7 million, down 13.4% from $348.4 million.

The decrease in revenue and profitability was attributed to lower freight rates and container volumes, particularly in the China service, which saw a 12.8% decline in volume year-over-year. The Ocean Transportation segment, which is Matson's primary business, reported revenue of $718.3 million for the third quarter, down from $798.7 million, while operating income fell to $161.0 million from $242.3 million. The Logistics segment also experienced a decline, with revenue of $161.8 million, down from $163.3 million, and operating income of $13.6 million, compared to $15.4 million in the previous year.

Operationally, Matson's container volume in its Hawaii service increased by 0.3%, while Alaska saw a 4.1% increase. However, Guam's volume decreased by 4.2%, and the overall volume from China was significantly impacted by ongoing trade uncertainties. The company's investment in SSA Terminals, a joint venture, contributed $9.3 million to income, an increase from $6.9 million in the prior year, reflecting higher lift revenue.

Looking ahead, Matson anticipates continued challenges in the fourth quarter of 2025, expecting lower freight rates and volumes, particularly in its China service. The company projects that Ocean Transportation operating income for the fourth quarter will be approximately 30% lower than the previous year. Despite these challenges, Matson expects to maintain its market share in Hawaii and anticipates modest growth in Alaska, supported by a stable economic environment. The company also plans to continue its capital expenditures, particularly for the construction of three new Aloha Class vessels, with total capital expenditures expected to reach approximately $248 million for the year.