NYSE:MATX
Matson, Inc.
A specialized maritime freight leader connecting the contiguous United States with Hawaii and Asia via its unique intermodal network.
Key Metrics
Investment Thesis
Bull Case
MATX offers a compelling value play given its massive common share repurchases totaling over $300M, which directly boost earnings per share and signal management confidence in the stock's intrinsic value. The company's fortress-like position in Hawaii logistics creates a predictable revenue stream with high barriers to entry for new competitors seeking similar deep-water infrastructure.
Bear Case
Investors should be wary of the significant drop in net income from $1.06B in 2022 to $444.8M recently, indicating potential structural issues or a severe correction in global trade volumes that may persist. The heavy investment in assets and liabilities suggests the company is capital intensive, which can weigh on returns if market conditions deteriorate or if debt levels rise further.
About Matson, Inc.
Matson, Inc. (MATX) operates as a premier intermodal shipping carrier serving North America's West Coast, Hawaii, and Guam. The company specializes in providing comprehensive logistics solutions including container shipping, trucking, and cold chain services to support diverse industries from automotive to food products.
Analysis
Management Discussion
Despite a revenue contraction from 2024's $3.42B to $3.34B in 2025, the company delivered robust net income of $444.8M, demonstrating strong operating leverage and cost management capabilities. The substantial cash flow from operations of $547.1M provides ample liquidity to fund its aggressive share repurchase program of $303.3M while maintaining a healthy cash balance.
Industry Overview
The maritime shipping industry has faced a turbulent cycle of high rates followed by normalization, with intermodal carriers like Matson benefiting from their regional dominance rather than global scale. As global supply chains reconfigure towards near-shoring and friend-shoring, specialized carriers with guaranteed capacity in niche geographic corridors are increasingly valued.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $4.34B | $3.09B | $3.42B | $3.34B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $4.34B | $3.09B | $3.42B | $3.34B |
| Operating Expenses | $2.99B | $2.75B | $2.87B | $2.84B |
| Operating Income | $1.35B | $342.8M | $551.3M | $499.8M |
| G&A | $261.0M | $283.3M | $303.6M | $294.1M |
| Stock-Based Comp | $18.3M | — | $26.5M | $22.7M |
| Depreciation | $123.5M | — | $135.4M | $147.4M |
| Amortization | $11.4M | — | $12.8M | $13.2M |
| Other OpEx | $2.73B | $2.47B | $2.57B | $2.55B |
| Non-Operating Income | $-1.3M | $30.2M | $48.1M | $34.0M |
| Interest Expense | $18.0M | $12.2M | — | — |
| Interest Income | $8.2M | $36.0M | $48.3M | $31.7M |
| Pre-Tax Income | $1.35B | $373.0M | $599.4M | $533.8M |
| Income Tax | $288.4M | $75.9M | $123.0M | $89.0M |
| Continuing Ops | $1.06B | $297.1M | $476.4M | $444.8M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $1.06B | $297.1M | $476.4M | $444.8M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $1.06B | $297.1M | $476.4M | $444.8M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $759.6M | $602.3M | $609.6M | $471.9M |
| Cash & Equivalents | $249.8M | $134.0M | $266.8M | $141.9M |
| Prepaid Expenses | $241.3M | $188.9M | $73.9M | $73.2M |
| Other Current Assets | $268.5M | $279.4M | $268.9M | $256.8M |
| Long-Term Assets | $3.57B | $3.69B | $3.99B | $4.16B |
| PP&E (Net) | $1.96B | $2.09B | $2.26B | $2.50B |
| Intangibles | $174.9M | $176.4M | $159.4M | $146.6M |
| Goodwill | $327.8M | $327.8M | $327.8M | $327.8M |
| Operating Leases | $396.9M | $289.6M | $357.7M | $369.6M |
| Other LT Assets | $708.3M | $808.6M | $880.0M | $820.3M |
| Total Assets | $4.33B | $4.29B | $4.60B | $4.64B |
| Current Liabilities | $581.6M | $562.3M | $560.4M | $527.4M |
| Current Debt | $76.9M | $39.7M | $39.7M | $39.7M |
| Current Leases | $143.6M | $136.7M | $129.0M | $128.5M |
| Other Current Liab | $361.1M | $385.9M | $391.7M | $359.2M |
| Long-Term Liabilities | $1.45B | $1.33B | $1.38B | $1.35B |
| Long-Term Debt | $427.7M | $389.3M | $350.8M | $312.1M |
| LT Operating Leases | $262.5M | $159.3M | $229.5M | $246.8M |
| Other LT Liab | $761.3M | $783.0M | $802.7M | $790.3M |
| Total Liabilities | $2.03B | $1.89B | $1.94B | $1.88B |
| Shareholders' Equity | $2.30B | $2.40B | $2.65B | $2.76B |
| Retained Earnings | $1.99B | $2.09B | $2.34B | $2.44B |
| AOCI | $-6.9M | $-8.2M | $-6.5M | $1.6M |
| Total L&E | $4.33B | $4.29B | $4.60B | $4.64B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $1.06B | — | $476.4M | $444.8M |
| Non-Cash Adjustments | $269.4M | — | $403.3M | $134.2M |
| Working Capital Changes | $-61.4M | — | $-111.9M | $-31.9M |
| Cash from Operations | $1.27B | — | $767.8M | $547.1M |
| Cash from Investing | $-729.3M | — | $-336.1M | $-265.6M |
| Share Buybacks | $397.0M | — | $199.1M | $303.3M |
| Dividends Paid | $48.0M | — | $44.8M | $44.9M |
| Cash from Financing | $-576.6M | — | $-301.2M | $-406.4M |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $-34.0M | — | $130.5M | $-124.9M |
| Beginning Cash | $287.7M | — | $136.3M | $266.8M |
| Ending Cash | $253.7M | — | $266.8M | $141.9M |
Frequently Asked Questions
How does Matson, Inc. make money?
The company derives revenue primarily from three core segments: West Coast Container Services serving the domestic U.S., Pacific Basin services linking North America with Asia, and specialized Cold Chain logistics for temperature-sensitive goods across its service areas.
What are the main risks for MATX?
Operating margins are highly sensitive to volatile fuel prices and fluctuations in global container rates which can impact profitability significantly. The company faces exposure to natural disasters such as typhoons or earthquakes that could disrupt its critical supply chain routes in the Pacific. Rising labor costs and potential regulatory changes regarding maritime safety or trade tariffs also pose ongoing operational risks.
What is MATX's competitive advantage?
Matson maintains a significant moat through its exclusive ownership of deep-water port facilities in Hawaii and Guam, eliminating reliance on third-party terminals. Its integrated intermodal network combining ocean vessels with trucking assets ensures high reliability and speed to last-mile destinations that competitors cannot match.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.