1. MATX reported Q1 2025 net income of $72.3 million, up 100.5%. 2. Revenue rose to $782 million driven by higher China freight rates. 3. Expectations for Q2 2025 operating income could be significantly lower. 4. Container volume in Guam dropped 14.3%, affecting future forecasts. 5. Management remains confident despite geopolitical uncertainties impacting demand.
Despite strong past performance, lowered future income projections could weigh on stock.
Lowered projections amidst geopolitical risks may impact investor sentiment and stock performance.
Anticipated declines in operating income and container volumes in upcoming quarters.
a leading U.S. carrier in the Pacific, today reported net income of $72.3 million, or $2.18 per diluted share, for the quarter ended March 31, 2025. Net income for the quarter ended March 31, 2024 was $36.1 million, or $1.04 per diluted share. Consolidated revenue for the first quarter 2025 was $782.0 million compared with $722.1 million for the first quarter 2024.
Matt Cox, Matson's Chairman and Chief Executive Officer, commented, "Our first quarter financial performance was as expected with significantly higher year-over-year consolidated operating income. The year-over-year increase was primarily driven by our China service, which benefitted from the carryover of elevated freight rates from the fourth quarter of 2024 combined with healthy freight demand following a traditional post-Lunar New Year period. For our domestic tradelanes, 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 a lower contribution from freight forwarding and transportation brokerage, partially offset by a higher contribution from supply chain management."
Mr. Cox added, "Currently, there is significant uncertainty regarding tariffs and global trade, regulatory measures, the trajectory of the U.S. economy and other geopolitical factors. Given the pronounced market decline in demand in the Transpacific in April, coupled with limited visibility to our container demand, we expect Ocean Transportation operating income in the second quarter 2025 to be meaningfully lower than the level achieved in the second quarter 2024.
The Company's container volume in the Hawaii service in the first quarter 2025 was 3.2 percent higher year-over-year. The increase was primarily due to the dry-docking of a competitor's vessel. The Hawaii economy remains stable with low unemployment, strong construction activity, and stable tourism, offset by challenging population growth and high inflation and interest rates. The Company expects volume in 2025 to be comparable to the level achieved in 2024, reflecting modest economic growth in Hawaii and stable market share.
In China, the Company achieved significantly higher freight rates in the first quarter 2025 compared to the year ago period. The year-over-year increase benefitted from the carryover of elevated freight rates from the fourth quarter of 2024. Container volume in the first quarter 2025 decreased 1.4 percent year-over-year.
Ocean Transportation revenue increased $58.4 million, or 10.1 percent, during the three months ended March 31, 2025, compared with the three months ended March 31, 2024. The increase was primarily due to significantly higher freight rates in China. On a year-over-year FEU basis, Hawaii container volume increased 3.2 percent primarily due to the dry-docking of a competitor's vessel; Alaska volume increased 4.8 percent, partially offset by an additional sailing in the year ago period.
Matson's Cash and Cash Equivalents decreased by $144.8 million from $266.8 million at December 31, 2024 to $122.0 million at March 31, 2025. As of March 31, 2025, the Company generated net cash from operating activities of $89.0 million.
Founded in 1882, Matson (NYSE: MATX) is a leading provider of ocean transportation and logistics services. Matson provides a vital lifeline of ocean freight transportation services to the domestic non-contiguous economies of Hawaii, Alaska, and Guam, and to other island economies in Micronesia.
Additional information about the Company is available at www.matson.com.