Matson has announced its financial results for the second quarter ended 30 June 2026.
The US carrier reported net income of US$129.4 million, or US$4.27 per diluted share. This compared with US$94.7 million, or US$2.92 per diluted share, in the same quarter last year.
Consolidated revenue increased to US$969.4 million from US$830.5 million.
“Matson had a strong second quarter with momentum in our China service carrying over from the post-Lunar New Year period,” said Matt Cox, Chairman and CEO of Matson.
Cox said the company’s CLX and MAX services recorded stronger-than-expected freight rates and demand for e-commerce, garments and electronic goods.
China service drives Ocean Transportation growth
Ocean Transportation revenue increased by US$91.8 million, or 13.6%, compared with the second quarter of 2025.
The increase was mainly driven by higher container volumes and freight rates in Matson’s China service.
Ocean Transportation operating income rose by US$45.4 million, or 46%, year on year. The stronger China contribution was partly offset by higher vessel operating expenses, particularly fuel-related costs.
Matson’s China service volume increased by 15.2% from the same quarter last year.
The company attributed the rise to stronger demand compared with the second quarter of 2025, when tariffs introduced in April affected the Transpacific market.
Matson expects its China service to operate at or near capacity throughout the peak season.
Domestic trade volumes show mixed performance
Container volume in Matson’s Hawaii service declined by 1.1% year on year due to lower general demand.
The company expects its full-year Hawaii volume to approach the level recorded in 2025. It said the local economy remains stable, supported by construction activity and modest growth in tourist arrivals. However, higher energy-related inflation remains a challenge.
Alaska volume declined by 2.3%, mainly due to lower seafood export volumes on the AAX service. One additional northbound sailing partly offset the decrease.
Matson expects its full-year Alaska volume to approach last year’s level.
Guam container volume increased by 4.4% during the quarter. The company expects full-year volume to remain comparable with 2025.
Other container volumes declined by 11.4%.
| Service | Q2 2026 volume change |
|---|---|
| China | 15.2% |
| Guam | 4.4% |
| Hawaii | -1.1% |
| Alaska | -2.3% |
| Other containers | -11.4% |
SSAT contribution declines
Matson’s SSAT terminal joint venture contributed US$4.8 million during the second quarter.
This compared with US$7.3 million in the same period last year. The decline reflected lower lift volumes and higher operating expenses.
For the first half, SSAT contributed US$9.8 million, down from US$13.9 million a year earlier.
Matson expects the joint venture’s full-year contribution to remain below the US$32.5 million achieved in 2025.
Logistics operating income increases
Logistics revenue increased by US$47.1 million, or 30.4%, year on year.
The growth was mainly due to higher revenue from transportation brokerage.
Logistics operating income reached US$14.9 million, representing an increase of US$0.5 million from the second quarter of 2025.
Higher contributions from freight forwarding and transportation brokerage supported the result. A weaker contribution from warehousing partly offset the improvement.
During the first half, Logistics revenue increased by US$53.8 million, or 18%. However, operating income declined by US$1.2 million, or 5.2%, due mainly to weaker warehousing performance.
Matson raises full-year expectations
Matson expects Ocean Transportation operating income in the third quarter to be approximately 45% higher than the US$147.4 million recorded in the third quarter of 2025.
For the fourth quarter, the company expects Ocean Transportation operating income to be modestly below the US$136 million achieved a year earlier.
Matson expects full-year Ocean Transportation operating income to exceed the US$455.6 million recorded in 2025.
The company also expects Logistics operating income in the third and fourth quarters to be modestly higher year on year. Full-year Logistics operating income is expected to exceed the US$44.2 million recorded in 2025.
At group level, Matson expects full-year consolidated operating income to surpass its 2025 result.
The outlook is based on expectations of continued solid US consumer demand and stable Transpacific trading conditions.
Iran conflict raises fuel costs
Matson said the conflict involving Iran had not affected its operating performance or service levels at the time of the announcement.
However, the situation increased fuel prices across all the company’s markets.
Matson expects to recover these additional fuel costs fully by the end of 2026.
The carrier expects demand in the fourth quarter to follow a more traditional seasonal pattern. This compares with the elevated Transpacific demand recorded in late 2025 following the US-China trade and economic agreement announced on 30 October 2025.
First-half Ocean Transportation performance improves
Ocean Transportation revenue increased by US$60.9 million, or 4.6%, during the first six months of 2026.
Operating income increased by US$26.4 million, or 15.3%.
For the first half, China service volumes increased by 3.6%, while Guam volumes rose by 2.3%.
Hawaii volumes declined by 3.3%, Alaska volumes fell by 2.2% and other container volumes decreased by 7.7%.
Capital expenditure rises
Matson made US$25.4 million in capital expenditure payments during the second quarter, excluding vessel construction costs.
Vessel construction expenditure reached US$181.8 million, including capitalised interest and owner’s items. Dry-docking payments totalled US$12.7 million.
For the full year, Matson expects capital expenditure payments of between US$150 million and US$170 million.
The company also expects approximately US$400 million in vessel construction expenditure and around US$45 million in dry-docking payments.
Full-year depreciation and amortisation expense is expected to reach approximately US$205 million, including US$35 million in dry-docking amortisation.
Matson maintains strong liquidity
Cash and cash equivalents declined to US$119.3 million as of 30 June 2026 from US$141.9 million at the end of 2025.
Matson also held US$345.8 million in cash, cash equivalents and fixed-rate US Treasury investments within its Capital Construction Fund.
Net cash generated from operating activities reached US$231.6 million during the first half, compared with US$194.6 million a year earlier.
Capital expenditure, including capitalised vessel construction costs, totalled US$255.5 million, up from US$175.5 million.
Total debt declined by US$19.9 million during the first half to US$341.3 million. Of this amount, US$301.6 million was classified as long-term debt.
Matson had US$544.2 million available under its revolving credit facility at the end of June.
Share repurchases continue
Matson repurchased approximately 300,000 shares for US$67.8 million during the second quarter.
In April, its board authorised an additional three million shares under the company’s existing repurchase programme and extended it until 31 December 2029.
Approximately 3.4 million shares remained available for repurchase as of 30 June 2026.
Matson also declared a cash dividend of US$0.38 per share. The dividend is payable on 3 September 2026 to shareholders of record as of 6 August.
