Matson Reports Q2 2025 Financial Results with 16.3% Decrease in Net Income

Matson, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $94.7 million, a decrease of 16.3% from $113.2 million in the same period last year. The company's operating revenue for the quarter was $830.5 million, down 2.0% from $847.4 million in the prior year. Operating costs and expenses also saw a slight reduction, totaling $717.5 million compared to $722.8 million in the previous year. The decline in net income was attributed to lower freight volumes in China and a significant drop in interest income, which fell to $8.0 million from $18.8 million due to a one-time federal tax refund received in the prior year.

In the first half of 2025, Matson's operating revenue increased by 2.7% to $1.612 billion, up from $1.570 billion in the same period of 2024. The company reported a net income of $167.0 million for the six months ended June 30, 2025, compared to $149.3 million in the prior year, reflecting a year-over-year increase of 11.9%. The growth in revenue was primarily driven by higher freight rates in both China and Hawaii, although this was partially offset by lower container volumes in China and Guam.

Operationally, Matson's Ocean Transportation segment reported a revenue of $675.6 million for the second quarter, down from $689.9 million a year earlier. The segment's operating income decreased to $98.6 million from $109.0 million, primarily due to reduced container volumes in China, which fell by 14.6%. Conversely, the Logistics segment generated $154.9 million in revenue, a slight decline from $157.5 million, with operating income decreasing to $14.4 million from $15.6 million, attributed to lower contributions from transportation brokerage services.

Looking ahead, Matson anticipates modest growth in container volumes for 2025, particularly in its Hawaii service, supported by stable economic conditions. However, the company expects challenges in its China operations due to ongoing market uncertainties and tariff impacts. The contribution from its joint venture, SSA Terminals, is projected to be higher than the previous year, reflecting increased lift volumes. Overall, Matson expects its Ocean Transportation operating income for the full year to be moderately lower than the previous year, while Logistics operating income is expected to remain stable. The company continues to focus on its capital expenditures, particularly for the construction of new vessels, with plans to invest approximately $305 million in new vessel construction in 2025.