Matson, Inc. (MATX) Q3 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

rising from tariffs and global trade. In ocean transportation, operating income was lower year over year, primarily due to lower year over year freight rates and container volume in our China service. In our domestic trade lanes, we saw higher year over year volume in Hawaii and Alaska and lower year over year volume in Guam. In logistics, Our operating income was lower year over year, primarily due to lower contributions from freight forwarding, transportation brokerage, and supply chain management. For the fourth quarter 2025, we expect consolidated operating income to be approximately 30% lower year over year. We're also optimistic and expect a more stable trading environment for our customers starting in the fourth quarter, as a result of the reduction in uncertainty regarding tariffs, port entry fees, global trade, and other geopolitical factors due to the trade and economic deal between the US and China announced on October 30th. Joel will go into more detail on our updated forecast and outlook later in the presentation. I will now go through the third quarter performance of our trade lanes, SSAT, and logistics, So please turn to the next slide. Container volume in our Hawaii service increased 0.3% in the third quarter year over year. For the full year 2025, we expect volume to be comparable to the level achieved in 2024, reflecting modest economic growth in Hawaii and stable market share. Please turn to slide five. According to UHERO's September economic report, The Hawaii economy is softening as slowing tourism and high inflation and interest rates weigh against stronger construction activity. Construction is a bright spot in the Hawaii economy, supported by public sector projects and the Maui rebuilding effort. Hawaii tourism softened considerably over the s...