Matson Raises Profit Forecast as China Volumes Rebound
The shipping company expects second-quarter operating income of $153.0 million to $160.0 million.
Matson Inc. (MATX), the ocean transportation and logistics company, raised its second-quarter profit expectations after China container volume returned to growth and trans-Pacific pricing strengthened.
The preliminary forecast marked a sharp acceleration from the start of the year. Consolidated operating income was expected to more than double from $61.4 million in the first quarter and rise roughly 35% to 42% from $113.0 million a year earlier.
Matson expects second-quarter net income of $124.8 million to $130.3 million and diluted earnings of $4.12 to $4.30 a share. That compared with first-quarter net income of $56.6 million and earnings of $1.85 a share. The projected range remained below the tax-benefited $4.60 a share reported for the fourth quarter of 2025.
China container volume rose 15.2% from a year earlier, swinging from declines of 9.5% in the first quarter and 7.2% in the fourth quarter. China service was the main driver of the year-over-year operating-income increase as CLX and MAX freight rates and demand across e-commerce, garments and electronic goods exceeded earlier expectations.
The company now expects its China service to operate at or near capacity through the peak season. Hawaii volume improved to a 1.1% decline from a 5.6% drop in the first quarter, while Guam growth accelerated to 4.4% from flat volume. Alaska volume fell 2.3% as lower AAX export-seafood shipments weighed on the trade.
Logistics operating income returned to year-over-year growth, supported by freight forwarding and transportation brokerage and partly offset by warehousing. The shift followed a 20% decline to $6.8 million in the first quarter, when weaker supply-chain management results pressured the segment.
The latest operating-income forecast stood $20 million to $27 million above the roughly $133.0 million implied by Matson's May guidance. The company didn't repeat its full-year outlook, which in May called for 2026 consolidated operating income to modestly exceed the 2025 level.
Matson repurchased about 0.3 million shares for $67.8 million during the quarter, and the board added 3.0 million shares to the authorization, leaving 3.4 million available. Quarter-end cash rose to about $119.3 million as total debt declined to $341.3 million.