Matson Raises Full-Year Outlook After Strong China-Service Demand

The Tip Desk · November 10, 2026 · 5 min read

Third-quarter net income reached $209.4 million, or $6.96 a share, as China freight rates and volume lifted Ocean Transportation operating income 62.2%.

Matson, Inc. (MATX), a leading U.S. carrier in the Pacific, reported net income of $209.4 million, or $6.96 a share, for the quarter ended September 30, 2026, compared with $134.7 million, or $4.24 a share, a year earlier. Consolidated revenue was $1,113.5 million. Consolidated operating income was $255.2 million and EBITDA was $310.6 million.

The company raised its full-year 2026 outlook. Chairman and Chief Executive Officer Matt Cox said Matson had a stronger-than-expected third quarter, with China service speed and reliability as differentiators amid pressure on global shipping networks and congestion at key Asia ports. Strong demand and elevated freight rates in that service, he said, drove a substantial year-over-year increase in Ocean Transportation operating income, particularly compared with last year’s muted peak season. Domestic ocean tradelanes and logistics, he said, saw stable performance.

Ocean Transportation revenue was $891.3 million, up 24.1% from $718.3 million. Operating income was $239.1 million, up 62.2% from $147.4 million, and the operating margin widened to 26.8% from 20.5%. The company said the revenue increase was primarily due to higher freight rates and volume in the China service and an increase in fuel-related surcharge revenue. Operating income rose on a higher China contribution and higher fuel-related surcharge revenue, partially offset by higher vessel operating expense primarily due to higher fuel-related costs.

China service container volume increased 16.0% year-over-year to 40,500 forty-foot equivalent units from 34,900 FEU, after a 15.2% increase in the second quarter. Hawaii container volume fell 0.3% to 36,200 FEU from 36,300 FEU, after a 1.1% decline in the second quarter, primarily due to lower general demand. Alaska volume decreased 4.8% to 22,000 FEU from 23,100 FEU, after a 2.3% decline, primarily due to lower southbound seafood volume and an additional northbound sailing in the year-ago period. Guam volume increased 4.3% to 4,800 FEU from 4,600 FEU. Other containers volume fell 6.5% to 4,300 FEU from 4,600 FEU.

The SSAT terminal joint venture contributed $7.4 million, $1.9 million lower than $9.3 million a year earlier, primarily due to lower lift volume.

Logistics revenue was $222.2 million, up 37.3% from $161.8 million, primarily due to higher revenue in transportation brokerage. Logistics operating income was $16.1 million, up $2.5 million from $13.6 million, with the operating margin at 7.2% versus 8.4%. The company said the increase was primarily due to higher contributions from transportation brokerage and freight forwarding, partially offset by a lower contribution from warehousing.

Cox said the company expects the strong demand and elevated freight rates experienced in the China service in the third quarter to continue through year-end and into early 2027. The company now expects Ocean Transportation operating income in the fourth quarter 2026 to be approximately 50% higher than the $136.0 million achieved in the fourth quarter 2025. That outlook reversed a second-quarter guide that Ocean Transportation operating income in the fourth quarter would be modestly lower than the year-ago period. Consolidated operating income in the fourth quarter is expected to be approximately 50% higher than the $143.7 million achieved in the fourth quarter 2025. Logistics operating income is expected to be modestly higher than the $7.7 million achieved in the fourth quarter 2025.

For full year 2026, the company expects Hawaii volume to be modestly lower than 2025, China volume to be higher, Guam volume to be modestly higher, and Alaska volume to be modestly lower. It expects the SSAT contribution to be lower than the $32.5 million achieved in full year 2025. Depreciation and amortization is expected to be approximately $205 million, inclusive of dry-docking amortization of approximately $35 million. Interest income is expected to be approximately $20 million and interest expense, net, approximately $6 million. Other income (expense), net, is expected to be approximately $10 million in income. The company expects the fourth-quarter effective tax rate to be approximately 20.0% compared with last year’s 5.2%, which benefited from a one-time tax adjustment of $18.5 million, or $0.59 a share.

In the third quarter, Matson made capital expenditure payments excluding vessel construction of $41.8 million, vessel construction expenditures of $52.5 million, and dry-docking payments of $15.9 million. For full year 2026, it expects capital expenditure payments of approximately $130 million, vessel construction expenditures of approximately $375 million, and dry-docking payments of approximately $45 million.

Cash and cash equivalents were $221.9 million at September 30, 2026, up $80.0 million from $141.9 million at December 31, 2025. The Capital Construction Fund held $298.6 million of cash and cash equivalents and investments in fixed-rate U.S. Treasuries. Net cash from operating activities was $460.6 million in the nine months ended September 30, 2026, compared with $370.2 million a year earlier. Total debt was $331.2 million, down $30.0 million during the nine months. Available borrowings under the revolving credit facility were $544.2 million.

Matson repurchased approximately 0.3 million shares in the third quarter for a total cost of $59.8 million, leaving about 3.1 million shares remaining in the repurchase program. On October 20, 2026, the board declared a cash dividend of $0.38 a share payable December 3, 2026.