Matson Inc. reported preliminary results for the fourth quarter of 2025 that exceeded expectations, with operating income ranging from $135.0 million to $145.0 million and net income between $131.3 million and $146.3 million. Diluted earnings per share fell between $4.22 and $4.70, a range that includes a $0.77 per‑share benefit from a positive income‑tax adjustment. The earnings beat is largely attributable to higher freight rates and volume in the company’s China service, driven by robust e‑commerce and e‑goods demand, and the stabilizing effect of the U.S.–China trade and economic deal announced on October 30, 2025.
The preliminary Q4 2025 EPS represents a 10% year‑over‑year increase from the $3.80 EPS reported in Q4 2024, while net income rose from $128.0 million to the $131.3 million‑$146.3 million range. This growth reflects both the stronger freight environment in China and improved operational leverage across the company’s service portfolio.
Segment‑level analysis shows that the China service was the primary driver of the quarter’s performance. Freight rates in that segment were higher than the prior year, and volume grew in line with the surge in e‑commerce shipments. Other segments—Hawaii, Alaska, and Guam—experienced moderate growth, contributing to an overall consolidated revenue increase of roughly 8% year‑over‑year. The mix shift toward higher‑margin China freight helped lift operating margins despite modest cost inflation in other areas.
Management guided for 2026 operating income to approach the level achieved in 2025, signaling confidence in continued solid U.S. consumer demand and a stable transpacific trading environment. The guidance reflects an expectation that the favorable trade conditions and strong freight demand will persist, while the company remains cautious about potential macro‑economic headwinds that could affect other segments.
Matt Cox, Chairman and CEO, emphasized that the company had a “solid finish to the year” and that the China service benefited from both higher freight rates and a more predictable trading environment following the trade deal. He noted that the company’s outlook for 2026 is anchored in the expectation of sustained demand and stable freight conditions, underscoring management’s confidence in the company’s execution and strategic positioning.
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