Matthews International Reports Significant Decline in Q2 Fiscal 2025 Financial Performance

Matthews International Corporation reported a significant decline in financial performance for the second quarter of fiscal 2025, with total sales of $427.6 million, down from $471.2 million in the same period last year. The company experienced a net loss of $8.9 million, compared to a net income of $9.0 million in the prior year. For the first six months of fiscal 2025, sales totaled $829.5 million, a decrease from $921.2 million in the previous year, reflecting lower sales in the Memorialization and Industrial Technologies segments, partially offset by increased sales in the SGK Brand Solutions segment.

The decline in revenue was attributed to several factors, including lower unit sales of caskets and memorial products due to a decrease in U.S. death rates, as well as reduced sales in the Industrial Technologies segment, which faced slower market conditions and customer delays. The Memorialization segment reported sales of $205.6 million for the quarter, down from $222.2 million, while the Industrial Technologies segment saw sales drop to $80.8 million from $116.1 million. Conversely, the SGK Brand Solutions segment reported an increase in sales to $141.2 million, up from $132.9 million, driven by higher brand sales in the Asia-Pacific region.

Operationally, Matthews International has been undergoing strategic changes, including a pending divestiture of its SGK Brand Solutions business, which is expected to close in the third quarter of fiscal 2025. The company has also initiated restructuring programs aimed at reducing costs, particularly in its engineering and tooling operations in Europe. As of March 31, 2025, the company had classified the SGK Brand Solutions business as held-for-sale, with total assets held-for-sale amounting to $428.0 million and liabilities of $102.4 million.

In terms of financial health, Matthews reported total assets of $1.83 billion and total liabilities of $1.42 billion as of March 31, 2025. The company’s cash and cash equivalents stood at $40.2 million, a slight decrease from $40.8 million at the end of the previous fiscal year. The company’s long-term debt increased to $815.8 million from $769.6 million, reflecting ongoing financing activities. The company has a domestic credit facility of $750 million, which was amended in September 2024, and it is currently in compliance with all debt covenants.

Looking ahead, Matthews International anticipates continued challenges in its operational segments, particularly in the Memorialization and Industrial Technologies areas, due to external market conditions and internal restructuring efforts. The company is focused on enhancing its operational efficiency and is exploring additional strategic alternatives to drive long-term value creation for its shareholders.