Slide 1: Fourth Quarter 2024 Earnings Conference Call
Fourth Quarter 2024 Earnings Conference Call February 25, 2025 1 Fourth Quarter 2024 Earnings Conference Call
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 February 25, 2025. We believe that our expectations and assumptions are reasonable. Actual
Slide 3: Opening Remarks – Recap of 2024
Opening Remarks – Recap of 2024 • Very strong 4Q24 that exceeded our expectations, capping off a strong year • 4Q24 Results – Our China service was the primary driver of the YoY increase in Ocean Transportation operating income and consolidated operating income • Seasonally stronger freight demand w
Slide 4: Hawaii Service
Hawaii Service Fourth Quarter 2024 Performance Container Volume (FEU Basis) • Container volume decreased 1.7% YoY due to lower general demand 41,000 39,000 37,000 Full Year 2024 Performance (1.7)% 35,000 • Container volume decreased 2.3% YoY primarily due to lower general demand 33,000 31,000 29,000
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 2024P 2025P 2026P 10.0% 1,000 Real GDP 0.3% 2.9% 2.5% 9.0% 900 Construction Jobs Growth 5.6% 3.1% 0.3% 8.0% 800 Population Growth (0.2)% 0.0% 0.1% Visitor Ar
Slide 6: China Service
China Service Fourth Quarter 2024 Performance Container Volume (FEU Basis) • Container volume increased 7.2% YoY due to 43,000 seasonally stronger freight demand 7.2% • Significantly higher YoY freight rates for both the 38,000 CLX and MAX 33,000 • Elevated freight rates were supported by a resilien
Slide 7: China Service – Current Business Trends
China Service – Current Business Trends • Stronger seasonal demand in 4Q24 – Some customers advancing freight ahead of a potential ILA disruption and proposed tariff increases – Also saw some customers in late December moving freight ahead of the earlier Lunar New Year this year • Experienced a trad
Slide 8: China Service – Outlook
China Service – Outlook • Where our China freight rates ultimately settle out in 2025 will depend on a number of macro factors including geopolitical conditions, supply chain activity, and the trajectory of the U.S. economy – Too early to tell how Red Sea, tariffs/trade, U.S. economy and other facto
Slide 9: Guam Service
Guam Service Fourth Quarter 2024 Performance Container Volume (FEU Basis) • Container volume decreased 10.0% YoY 5,500 – Primarily due to lower demand from retail and food and beverage segments 5,000 Full Year 2024 Performance (10.0)% 4,500 • Container volume decreased 6.5% YoY – Primarily due to lo
Slide 10: Alaska Service
Alaska Service Fourth Quarter 2024 Performance Container Volume (FEU Basis) • Container volume increased 1.1% YoY primarily 24,000 due to higher northbound volume, partially offset by an additional sailing in the year ago period 22,000 20,000 Full Year 2024 Performance 1.1% 18,000 • Container volume
Slide 11: Alaska Service – Current Business Trends
Alaska Service – Current Business Trends • Alaska economy continues to show good Alaska Employment Growth(1)(2) growth across key indicators despite 4.0% YoY Growth in Employment flattish growth in population 2.0% 0.0% – Low unemployment rate -2.0% – Job count returned to pre-pandemic -4.0% levels -
Slide 12: SSAT Joint Venture
SSAT Joint Venture Fourth Quarter 2024 Performance Equity in Income of Joint Venture • Terminal joint venture investment incurred a loss of $ 8.0 $9.5 million; YoY decrease of $13.6 million $ 6.0 – $18.4 million impairment charge, partially offset by higher YoY lift volume $ 4.0 – The impairment cha
Slide 13: Matson Logistics
Matson Logistics Fourth Quarter 2024 Performance Operating Income • Operating income of $10.1 million; YoY increase $ 18.0 of $1.2 million $ 16.0 – Higher contribution from supply chain management $ 14.0 Full Year 2024 Performance $ 12.0 $ in millions $ 10.0 • Operating income of $50.4 million; YOY
Slide 14: Financial Results – Summary Income Statement
Financial Results – Summary Income Statement Year-to-Date Fourth Quarter YTD Ended 12/31 Δ Quarter Ended 12/31 Δ ($ in millions, except per share data) 2024 2023 $ % 2024 2023 $ % Revenue Ocean Transportation $ 2,809.7 $ 2,477.0 $ 332.7 13.4% $ 742.1 $ 639.7 $ 102.4 16.0% Logistics 612.1 617.6 (5.5)
Slide 15: Cash Generation and Uses of Cash
Cash Generation and Uses of Cash Last Twelve Months Ended December 31, 2024 $900.0 $800.0 $767.8 ($39.7) ($214.5) $700.0 $600.0 ($95.6) $ in millions $500.0 ($31.1) ($44.8) $400.0 ($199.1) $300.0 $200.0 ($12.5) $130.5 $100.0 $0.0 Cash Flow from Paydown of Maint. New Vessel Capital Dividends Share Ot
Slide 16: Financial Results – Summary Balance Sheet
Financial Results – Summary Balance Sheet December 31, December 31, ($ in millions) 2024 2023 ASSETS Cash and cash equivalents $ 266.8 $ 134.0 Other current assets 342.8 468.3 Total current assets 609.6 602.3 Share Repurchase Investment in SSAT 84.1 85.5 Property and equipment, net 2,260.9 2,089.9 •
Slide 17: Review of 2024 Capital Expenditures
Review of 2024 Capital Expenditures FY 2024 Comments Capitalized vessel $95.6 million • Includes $6.0 million of capitalized interest and construction expenditures other costs Maintenance and other $214.5 million • $90.5 million in capex for LNG installations on capital expenditures Daniel K. Inouye
Slide 18: Capital Expenditures Update
Capital Expenditures Update ($ in millions) FY 2025 FY 2026 FY 2027 Comments Expected New vessel $305 $350 $220 • Includes owner’s items and capitalized interest expense construction milestone payments and related costs Expected Maintenance $120 – $140 ~$100 ~$100 • 2025 capex includes ~$20 million
Slide 19: 2025 Outlook
2025 Outlook FY 2025 Outlook Items First Quarter Full Year Full Year (Normalization of Trade Flow in (No Normalization of Trade Flow Red Sea by Middle of 2025)(1) in Red Sea in 2025)(1) Operating Income: To be meaningfully higher than the To be moderately lower than the To approach the $500.9 millio
Slide 20: Closing Thoughts
Closing Thoughts • Our China service shines during periods of uncertainty – Speed, reliability, and service – our core differentiators • Today, our China service appeals to an even broader set of customers than when we first started moving freight in the Transpacific tradelane nearly 20 years ago –
Slide 21: Appendix
Appendix 21 Fourth Quarter 2024 Earnings Conference Call
Slide 22: 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