China trade fight weakens Matson earnings
Matson said earnings were hit by U.S. tariffs on China and said that an expected recovery of trans-Pacific trade won’t equal year-ago volumes.
The U.S.-flag carrier (NYSE: MATX) reported revenue for the second quarter ended June 30 totaled $830.5 million compared with $847.4 million for the same period in 2024. Net income fell to $94.7 million, or $2.92 per diluted share, from $113.2 million, or $3.31 per diluted share a year ago.
Operating income was $113.0 million from $124.6 million y/y, while earnings before interest, taxes, depreciation and amortization (EBITDA) declined to $163.6 million versus $171.5 million in the year-ago quarter.
Freight rates were modestly higher in the quarter y/y.
The Honolulu-based company said ocean transportation income was lower year-over-year due to China volumes that fell 14.6%. Demand rebounded following the April tariff pause between China and the U.S., while shifting trade flows boosted container volumes outside of China higher than in the first quarter.
Hawaii and Alaska volumes were higher y/y.
Chairman and Chief Executive Matt Cox in a release said that the company was raising its full-year ocean transportation operating income guidance higher than it provided in May, but moderately lower than the level achieved in the prior year.
Third quarter results are expected to be “meaningfully lower” from a year ago on trade and tariff volatility, as well as the expectation of a “muted” peak shipping season.
Also this week, Matson in a letter to customers said it would no longer ship electric vehicles powered by lithium-ion batteries due to increasing safety concerns. The carrier is an established carrier of roll-on roll-off cargo to Hawaii and Alaska, and hauled 30,000 vehicles in 2024.
