Matthews International Corporation · NASDAQ:MATW
Matthews International — Q2 2025 Earnings Presentation
17 slides from Matthews International's earnings presentation, May 1, 2025
Slide 1: Second Quarter Fiscal 2025 Earnings Review
Second Quarter Fiscal 2025 Earnings Review May 1, 2025 www.matw.com | Nasdaq: MATW Joseph C. Bartolacci President and Chief Executive Officer Steven F. Nicola Chief Financial Officer
Slide 2: Disclaimer
DISCLAIMER Any forward-looking statements contained in this release are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs,
Slide 3: Business Overview
Matthews lanes OVERVIEW INTERNATIONAL
Slide 4: Business Update
BUSINESS UPDATE • Benefits from ongoing productivity and cost reduction initiatives and improved price realization MEMORIALIZATION • Lower casketed deaths and impact of granite backlog reduction efforts in the prior year INDUSTRIAL • Engineering business remains challenged by the impact of the Tesla
Slide 5: Outlook for Fiscal 2025
OUTLOOK FOR FISCAL 2025 Key Drivers • SGK Brand Solutions (SGK) transaction expected to close in early May 2025 • Projected pro-forma adjusted EBITDA to be at least $190 million (updated based on the expected completion of the SGK transaction) • Solid performance expected for the Memorialization seg
Slide 6: Financial Overview
Matthews Gaul OVERVIEW INTERNATIONAL
Slide 7: Q2 2025 Summary
Q2 2025 SUMMARY 2nd Quarter ("Q2") Highlights ($ in millions except per-share amounts) Sales Q2 Q2 2024 Q2 2025 • SGK Brand Solutions segment current quarter sales higher than a year ago Sales $ 471.2 $ 427.6 GAAP EPS Diluted EPS $ 0.29 $ (0.29) • Net loss and higher interest expense, unfavorable ta
Slide 8: Memorialization
MEMORIALIZATION ($ in millions) Q2 Sales YTD Sales $222.2 $430.2 $205.6 $396.1 Sales • Lower casketed deaths impacted unit volumes • Improved price realization partially offset declines Q2 FY2024 Q2 FY2025 FY2024 FY2025 Adjusted EBITDA Q2 Adjusted EBITDA & Margin* YTD Adjusted EBITDA & Margin* • Low
Slide 9: Industrial Technologies
INDUSTRIAL TECHNOLOGIES ($ in millions) Q2 Sales YTD Sales $116.1 $227.5 Sales • Energy storage sales continues to be $80.8 $161.4 impacted by recent challenges • Warehouse automation sales unfavorably impacted by market conditions • Unfavorable currency impacts of $1.5 million for Q2 and $1.9 milli
Slide 10: SGK Brand Solutions
SGK BRAND SOLUTIONS ($ in millions) Q2 Sales YTD Sales $141.2 $272.0 $132.9 $263.5 Sales • Sales growth, primarily reflecting higher brand sales in the U.S. and Asia-Pacific regions and increased merchandising sales • Unfavorable currency impacts of $2.5 million for Q2 and $3.2 million YTD Adjusted
Slide 11: Capitalization and Cash Flows
CAPITALIZATION AND CASH FLOWS ($ in millions) Total Debt and Net Debt* Operating Cash Flow $822.2 $781.9 $29.8 $776.5 $735.7 $(18.7) 09/30/24 03/31/25 Note: Dark gray shades on the left represent Total Debt. YTD FY2024 YTD FY2025 Cash • Q2 cash flows reflected costs related to the SGK transaction, $
Slide 12: Supplemental Information
Matthews Bug INFORMATION INTERNATIONAL
Slide 13: Reconciliations of Non-GAAP Financial Measures
RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES Included in this report are measures of financial performance that are not defined by GAAP, including, without limitation, adjusted EBITDA, adjusted net income and EPS, constant currency sales, constant currency adjusted EBITDA, and net debt and net deb
Slide 14: Adjusted EBITDA
ADJUSTED EBITDA Three Months Ended March 31, Six Months Ended March 31, NON-GAAP RECONCILIATION (Unaudited) (In thousands) 2025 2024 2025 2024 Net (loss) income $ (8,916) $ 9,027 $ (12,388) $ 6,724 Income tax benefit (2,728) (1,122) (5,086) (1,848) (Loss) income before income taxes $ (11,644) $ 7,90
Slide 15: Adjusted Net Income and Earnings Per Share
ADJUSTED NET INCOME AND EARNINGS PER SHARE NON-GAAP RECONCILIATION (Unaudited) (In thousands, except per share data) Three Months Ended Six Months Ended March 31, March 31, 2025 2024 2025 2024 per share per share per share per share Net (loss) income attributable to Matthews $ (8,916) $ (0.29) $ 9,0
Slide 16: Constant Currency Sales and Adjusted EBITDA
CONSTANT CURRENCY SALES AND ADJUSTED EBITDA NON-GAAP RECONCILIATION (Unaudited) (In thousands) Corporate and Non- Memorialization Industrial Technologies SGK Brand Solutions Operating Consolidated Reported sales for the quarter ended March 31, 2025 $ 205,620 $ 80,835 $ 141,174 $ — $ 427,629 Changes
Slide 17: Net Debt and Net Debt Leverage Ratio
NET DEBT AND NET DEBT LEVERAGE RATIO NON-GAAP RECONCILIATION (Unaudited) (Dollars in thousands) March 31, 2025 December 31, 2024 September 30, 2024 Long-term debt, current maturities $ 6,357 $ 7,260 $ 6,853 Long-term debt 815,823 801,951 769,614 Total debt 822,180 809,211 776,467 Less: Cash and cash
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