10-Q · August 4, 2026
Matson delivered a strong Q2, with revenue of $969.4 million up 16.7% year over year, diluted EPS of $4.27 up 46.2%, and operating income of $158.9 million up 40.6%. China demand, volume and freight rates drove Ocean…
Earnings analysis · 10-Q
MATX earnings analysis
Filed November 5, 2026 · Our reading of the company's report
The latest report
Matson reported a strong third quarter, with $1.114 billion of revenue and diluted EPS of $6.96, both above consensus, while Ocean Transportation operating income rose 62.2% to $239.1 million. Management raised its…
Read full summary
Matson reported a strong third quarter, with $1.114 billion of revenue and diluted EPS of $6.96, both above consensus, while Ocean Transportation operating income rose 62.2% to $239.1 million. Management raised its outlook and expects fourth-quarter 2026 consolidated operating income to be approximately 50% above fourth-quarter 2025. The principal offsets are elevated geopolitical and tariff uncertainty, substantial vessel-construction and fleet-upgrade execution risk, and expanding AI, cybersecurity, and environmental-compliance exposures.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $6.96
- Segment
- Ocean Transportation operating income: $239.1 million, up 62.2% year over year, according to the reported earnings update.
- Segment
- Logistics: fourth-quarter operating income expected to be modestly higher year over year; current-quarter segment revenue and operating income were not disclosed in the provided filing extract.
What stood out
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Revenue and EPS beat consensus
Third-quarter 2026 revenue was $1.114 billion and diluted EPS was $6.96, exceeding consensus estimates of $1.0658 billion and $6.23 by approximately 4.5% and 11.7%, respectively.
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China-led Ocean Transportation acceleration
Ocean Transportation operating income increased 62.2% year over year to $239.1 million, driven by stronger China freight rates and volume.
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Fourth-quarter outlook raised
Management expects fourth-quarter 2026 consolidated operating income to be approximately 50% above fourth-quarter 2025, a meaningful improvement from the prior outlook for Ocean Transportation operating income to be modestly below the prior-year period.
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Continued shareholder returns
Matson repurchased 268,542 shares during the quarter at an average price of $220.52, and had 3,132,636 shares remaining under its repurchase program at September 30, 2026.
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No reported control deficiencies
Management states that disclosure controls and procedures were effective as of September 30, 2026, and that there were no internal-control changes during the quarter that materially affected, or were reasonably likely to materially affect, financial reporting.
What to watch
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Tariff and geopolitical exposure
The filing identifies heightened geopolitical and trade-policy exposure, including U.S. entry fees on certain Chinese-owned, operated, or built vessels and Chinese port entry fees on certain U.S.-owned, operated, or U.S.-flagged vessels; the filing states these measures could reduce demand for services.
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Vessel construction and capex execution
The company has significant fleet-upgrade commitments: three new 3,400-TEU dual-fuel-capable vessels are scheduled for delivery in the first quarter of 2027, third quarter of 2027, and second quarter of 2028. Delivery delays or specification failures could delay the CLX service upsize and adversely affect results and cash flow.
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Expanding AI and cyber exposure
The filing newly emphasizes AI-related operational and cybersecurity risks, including inaccurate or biased AI output, unauthorized disclosure of sensitive information, and AI-enabled cyberattacks that could increase the frequency, speed, scale, and automation of attacks.
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Jones Act eligibility risk
Jones Act exposure remains material: if non-U.S. citizens were able to own more than 25% of common stock, Matson could lose U.S.-citizen status, potentially becoming ineligible for coastwise trade and subject to vessel seizure or forfeiture.
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Environmental compliance costs
Environmental proceedings are disclosed when management reasonably believes monetary sanctions will be at least $1 million, while the company also warns that evolving sustainability requirements could require significant additional capital and compliance costs.
Management's outlook
Management raised its outlook and expects fourth-quarter 2026 Ocean Transportation and consolidated operating income to be approximately 50% above fourth-quarter 2025, versus the prior outlook for Ocean Transportation operating income to be modestly below fourth-quarter 2025. Fourth-quarter 2026 Logistics operating income is expected to be modestly higher year over year.
Earlier filings 4
10-Q · May 5, 2026
Matson Inc. reported Q1 2026 earnings with diluted EPS of $1.85, beating estimates of $1.62, reflecting a 14.2% surprise. However, total revenue of $757.8 million missed expectations of $776.2 million, indicating a 3.1%…
10-K · February 27, 2026
Matson positions itself as a leading, Jones Act‑anchored ocean transportation and logistics provider focused on Hawaii, Alaska, Guam and expedited China–U.S. services, while investing in a material fleet renewal…
10-Q · May 6, 2025
Matson reported Q1 revenue of $782.0M, up 8.3% year-over-year (from $722.1M) but down versus the prior quarter (from $890.0M). Operating income rose to $82.1M and net income to $72.3M (diluted EPS $2.18) versus Q1 2024,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.