Slide 1: 1Q 2025 Earnings Conference Call
1Q 2025 Earnings Conference Call May 5, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements made during this presentation that set forth expectations, predictions, projections or are about future events are based on facts and situations that are known to us as of May 5, 2025. We believe that our expectations and assumptions are reasonable. Actual resul
Slide 3: Opening Remarks
Opening Remarks • 1Q25 as expected with significantly higher YoY consolidated operating income ─ Our China service was the primary driver and benefitted from the carryover of elevated freight rates from 4Q24 combined with healthy freight demand following a traditional post-Lunar New Year period ─ Hi
Slide 4: Hawaii Service
Hawaii Service 1Q25 Performance Container Volume (FEU Basis) • Container volume increased 3.2% YoY 40,000 due to the dry-docking of a competitor’s vessel 38,000 36,000 34,000 32,000 Full Year 2025 Outlook 30,000 • Expect volume in 2025 to be 28,000 comparable to the level achieved last year reflecti
Slide 5: Hawaii Service − Current Business Trends
Hawaii Service − Current Business Trends Select Hawaii Economic Indicators UHERO Projections (3) Unemployment Rate and Visitor Arrivals by Air 2025P 2026P 2027P 4.5% 1,000 Real GDP 1.6% 1.6% 1.1% 4.0% 900 Construction Jobs Growth 2.5% 0.9% (0.7)% 800 Population Growth 0.0% (0.1)% (0.1)% 3.5% 700 Une
Slide 6: China Service
China Service 1Q25 Performance Container Volume (1) (FEU Basis) • Significantly higher freight rates YoY 43,000 ─ Elevated freight rates from 4Q24 were carried over into 1Q25 38,000 • Container volume decreased 1.4% YoY 33,000 28,000 23,000 18,000 13,000 8,000 Q1 Q2 Q3 Q4 2024 2025 (1) Includes cont
Slide 7: China Service − Current Business Trends
China Service − Current Business Trends • Currently, there is significant uncertainty regarding tariffs and global trade, regulatory measures, the trajectory of the U.S. economy and other geopolitical factors • Since the tariffs were implemented in April, our container volume has declined approximat
Slide 8: China Service – Current Business Trends (continued)
China Service – Current Business Trends (continued) • Believe we are in the early innings of the U.S.-China trade negotiations ─ Expect disruptive conditions in the Transpacific with ocean carriers blanking China sailings and implementing service changes due to lower volume in response to the tariff
Slide 9: USTR 301 – Initial Observations
USTR 301 – Initial Observations • On April 17, 2025, United States Trade Representative (USTR) finalized its notice of action under Section 301 ─ Follows the President’s Executive Order on April 9, 2025 Relevant Actions and Proposed Actions Exemptions • Certain service fees on (i) the maritime • A g
Slide 10: Guam Service
Guam Service 1Q25 Performance Container Volume (FEU Basis) • Container volume decreased 14.3% YoY 6,000 • Primarily due to lower demand from 5,500 retail and food and beverage segments 5,000 4,500 4,000 3,500 3,000 Full Year 2025 Outlook 2,500 2,000 • Expect Guam’s economy to remain stable with a sl
Slide 11: Alaska Service
Alaska Service 1Q25 Performance Container Volume (FEU Basis) • Container volume increased 4.8% YoY 24,000 ─ Higher northbound volume, partially offset by an additional 22,000 sailing in the year ago period 20,000 18,000 16,000 Full Year 2025 Outlook • Expect continued economic growth 14,000 supporte
Slide 12: SSAT Joint Venture
SSAT Joint Venture 1Q25 Performance Equity in Income of JV ($ in millions) • Terminal joint venture contribution was $8.0 $6.6 million; YoY increase of $6.2 $6.0 million ─ Primarily due to higher lift volume $4.0 $2.0 $0.0 ($2.0) Full Year 2025 Outlook ($4.0) • Expect the contribution from SSAT to (
Slide 13: Matson Logistics
Matson Logistics 1Q25 Performance Operating Income ($ in millions) • Operating income of $8.5 million; YoY $18.0 decrease of approximately $0.8 million $16.0 ─ Lower contribution from freight $14.0 forwarding and transportation brokerage, partially offset by a $12.0 higher contribution from supply c
Slide 14: Financial Results − Summary Income Statement
Financial Results − Summary Income Statement First Quarter Quarter Ended 3/31 Δ ($ in millions, except per share data) 2025 2024 $ % Revenue Ocean Transportation $637.4 $579.0 $58.4 10.1% Logistics 144.6 143.1 1.5 1.0% Total Revenue $782.0 $722.1 $59.9 8.3% Operating Income Ocean Transportation $73.
Slide 15: Cash Generation and Uses of Cash
Cash Generation and Uses of Cash Last Twelve Months Ended March 31, 2025 ($ in millions) $900 $820.2 ($39.7) $800 ($182.8) $700 ($161.2) $600 $500 ($65.5) $400 ($45.0) ($218.7) $300 $200 ($13.5) $100 $93.8 $0 Cash CashFlow from Flow Paydown of Paydown of Maint. Maint. New Vessel New Vessel Capital C
Slide 16: Financial Results − Summary Balance Sheet
Financial Results − Summary Balance Sheet March 31, December 31, ($ in millions) 2025 2024 Share Repurchase ASSETS Cash and cash equivalents • 1Q25: approximately 0.5 million $122.0 $266.8 Other current assets 346.0 342.8 shares repurchased for total cost Total current assets 468.0 609.6 of $69.2 mi
Slide 17: 2025 Outlook
2025 Outlook 2Q25 Outlook FY 2025 Outlook Items To be meaningfully lower than Ocean Transportation Ocean Transportation To be lower than the $500.9 the $109.0 million achieved in Operating Income Operating Income million achieved in 2024 2Q24 Logistics To be lower than the $15.6 Logistics To be lowe
Slide 18: Capital Expenditures Update
Capital Expenditures Update ($ in millions) FY 2025 Comments Expected New vessel $305 • Includes owner’s items and capitalized interest expense construction milestone payments and related costs Expected Maintenance and $100 – $120 • 2025 capex includes approximately $14 million in equipment lease ot
Slide 19: Closing Thoughts
Closing Thoughts • We are navigating an unsettled and rapidly changing environment ─ For the last two decades, we have operated our expedited ocean service through significant periods of uncertainty and disruption ─ We have come out of those periods better for it as we demonstrate what we do best fo
Slide 20: Appendix
Appendix
Slide 21: Appendix − Non-GAAP Measures
Appendix − Non-GAAP Measures Matson reports financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). The Company also considers other non-GAAP measures to evaluate performance, make day-to-day operating decisions, help investors understand our ability to incur and