Matson (MATX) stock price is $237.30, up 2.38% on the day, as of Oct 20, 2026. It has a market cap of $7.16Bn and a P/E ratio of 15.43, and is classified in the Marine Shipping industry (Industrials sector).
Enterprise Value
Margins
P/FCF
Key Stats
Market Cap7.16 Bn
P/E15.43
P/S2.07
Div. Yield0.01
Total Debt (Qtr)332.40 Mn
Revenue Growth (1y) (Qtr)16.72
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About
Matson, Inc. is a maritime shipping and logistics company that provides ocean transportation and related services primarily in the Pacific region. The company operates a fleet of container vessels, roll on/roll off ships, and specialized barges that move goods between the U. S. mainland and Pacific islands including Hawaii, Alaska, Guam, and Micronesia. Matson also owns and operates terminal facilities at key ports to facilitate cargo handling and storage. Its core mission…
Matson, Inc. is a maritime shipping and logistics company that provides ocean transportation and related services primarily in the Pacific region. The company operates a fleet of container vessels, roll on/roll off ships, and specialized barges that move goods between the U. S. mainland and Pacific islands including Hawaii, Alaska, Guam, and Micronesia. Matson also owns and operates terminal facilities at key ports to facilitate cargo handling and storage. Its core mission is to provide reliable, scheduled transportation for a variety of cargo types.
Matson generates revenue mainly from freight charges for containerized cargo, which include base rates and various surcharges such as fuel adjustment fees and peak season charges. The company also earns income from terminal handling fees for loading and unloading containers at its owned facilities. In addition, Matson’s logistics division provides revenue through intermodal rail services, highway brokerage, warehousing, distribution, and customs brokerage fees. Revenue is recognized when the transportation or logistics service is completed and delivered to the customer.
The company operates through the following segments: Ocean Transportation, and Logistics.
Ocean Transportation: This segment provides vessel chartering, cargo loading and unloading, and terminal operations for containerized freight moving between the U. S. mainland and Pacific islands. It manages a schedule of regular sailings that serve major ports such as Los Angeles, Oakland, Seattle, and Honolulu. The segment also offers specialized services for refrigerated cargo, project cargo, and vehicle transport using roll on/roll off vessels.
Logistics: This segment offers rail intermodal transportation, highway brokerage, warehousing, distribution, and customs clearance services that complement the ocean shipping business. It coordinates the movement of containers from ports to inland destinations via rail trucks and provides storage solutions at its warehouses located near major logistics hubs. The segment also handles customs documentation and clearance for imported and exported goods.
Within the Pacific shipping market, Matson holds a leading position due to its dedicated fleet, extensive terminal network, and long standing customer relationships. The company’s competitive advantages include a high frequency of sailings, reliable transit times, and integrated logistics capabilities that allow customers to source both ocean and inland services from a single provider. Its primary competitors include Pasha Hawaii, Crowley Maritime, and other regional carriers that also serve the non contiguous U. S. markets.
Matson's customer base consists of retailers, manufacturers, agricultural producers, and government agencies that require dependable freight movement to and from Hawaii, Alaska, and other Pacific territories. The company serves businesses that ship consumer goods such as electronics, apparel, and household products, as well as shippers of perishable foods, automobiles, and construction materials. While specific customer names are not disclosed in public filings, the diversified base helps stabilize demand across different economic cycles.
Sector:IndustrialsSector rationaleMatson's primary revenue is derived from ocean transportation via a fleet of container vessels and roll on/roll off ships, as well as logistics services including rail intermodal, highway brokerage, and warehousing. These activities fall directly under the Marine Shipping and Logistics industries within the Industrials sector.Industries:Marine ShippingMarine ShippingPrimaryMatson operates a fleet of container vessels, roll on/roll off ships, and specialized barges to provide ocean transportation between the U.S. mainland and Pacific islands. Its primary revenue is generated from freight charges for containerized cargo and terminal handling fees.LogisticsLogisticsSecondaryThe company has a dedicated Logistics segment that provides highway brokerage, warehousing, distribution, and customs brokerage services. This segment coordinates the movement of containers from ports to inland destinations via rail and trucks.Classified using BQ-MICSCIK: 0000003453
Bull & bear
Investment Thesis
▲ Bull case
Vietnam catchment basin expansion and direct service capacity can offset China volume loss. Management noted that 20% of current volumes week by week with the recent Ho Chi Minh service are originated in Vietnam. The company has the ability to scale that volume upward by working with feeder partners and swapping to larger vessels if needed. This provides a structural shift toward diversification that reduces reliance on any single origin and positions the company to capture growth from Asia’s manufacturing relocation trend.
The termination of the de minimis exemption for low value e commerce shipments creates a lasting tailwind for ocean freight. Air to ocean conversion accelerates as shippers seek cheaper alternatives for low value goods. Executives highlighted in the Q&A that the change is here to stay and will increase demand for their premium China Long Beach Express service. This catalyst is not fully reflected in current guidance and could drive upside to earnings estimates.
Strong balance sheet and liquidity provide optionality to weather uncertainty. Total debt reduced to $351,100,000 as of March 31 2026. Trailing twelve month operating cash flow remains robust at approximately $820,000,000. The Capital Construction Fund covers over 90% of remaining new vessel milestone payments, deferring large cash outflows until 2028 and preserving financial flexibility for share repurchases and dividends.
Shareholder return commitment remains intact with a steady buyback program. In Q1 2026 the company repurchased 400,000 shares for $54,400,000. The board recently added 3,000,000 shares to the program extending it to December 2029. This signals confidence in intrinsic value and provides a floor for the stock price.
The ongoing fleet renewal program with three new LNG powered Aloha Class vessels will deliver improved fuel efficiency, lower emissions and higher speed. These enhancements strengthen the competitive advantage of the Hawaii and China Long Beach Express lanes. Aligning with increasing ESG preferences among customers could allow the company to command premium pricing. The new vessels also support long term operational reliability and reduce exposure to fuel price volatility.
Vietnam catchment basin expansion and direct service capacity can offset China volume loss. Management noted that 20% of current volumes week by week with the recent Ho Chi Minh service are originated in Vietnam. The company has the ability to scale that volume upward by working with feeder partners and swapping to larger vessels if needed. This provides a structural shift toward diversification that reduces reliance on any single origin and positions the company to capture growth from Asia’s manufacturing relocation trend.
The termination of the de minimis exemption for low value e commerce shipments creates a lasting tailwind for ocean freight. Air to ocean conversion accelerates as shippers seek cheaper alternatives for low value goods. Executives highlighted in the Q&A that the change is here to stay and will increase demand for their premium China Long Beach Express service. This catalyst is not fully reflected in current guidance and could drive upside to earnings estimates.
Strong balance sheet and liquidity provide optionality to weather uncertainty. Total debt reduced to $351,100,000 as of March 31 2026. Trailing twelve month operating cash flow remains robust at approximately $820,000,000. The Capital Construction Fund covers over 90% of remaining new vessel milestone payments, deferring large cash outflows until 2028 and preserving financial flexibility for share repurchases and dividends.
Shareholder return commitment remains intact with a steady buyback program. In Q1 2026 the company repurchased 400,000 shares for $54,400,000. The board recently added 3,000,000 shares to the program extending it to December 2029. This signals confidence in intrinsic value and provides a floor for the stock price.
The ongoing fleet renewal program with three new LNG powered Aloha Class vessels will deliver improved fuel efficiency, lower emissions and higher speed. These enhancements strengthen the competitive advantage of the Hawaii and China Long Beach Express lanes. Aligning with increasing ESG preferences among customers could allow the company to command premium pricing. The new vessels also support long term operational reliability and reduce exposure to fuel price volatility.
Persistent tariff driven volume weakness in the China service remains a material headwind. Management acknowledged a roughly 30% year over year decline since April 2025. They expect both lower rates and lower volume for the full year 2026. This suggests the downturn may be more structural than temporary.
Exposure to potential future container equipment cost increases looms as the USTR’s proposed additional duties on ship to shore cranes, containers and certain chassis could raise capital expenses. Executives warned in the earnings call that they would likely face higher equipment costs despite the current exemption based on vessel size. Such cost increases would pressure margins and could require additional capital allocation. This risk is not fully priced into current valuation multiples.
Logistics segment continues to underperform, with operating income down $1,700,000 year over year in Q1 2026. The decline was driven by weaker supply chain management contributions. Full year guidance calls for logistics operating income to approach the prior year level. This suggests limited near term recovery in this higher margin business line.
Fuel price volatility from the Iran conflict introduces near term earnings pressure. While the company has mechanisms to recover fuel costs by year end, the lag creates a negative impact on Q2 FY26 consolidated operating income. This temporary headwind is not fully reflected in current earnings expectations. Prolonged geopolitical tension could extend the duration of this pressure.
The SSAT joint venture contribution is declining, falling to $5,000,000 in Q1 2026 versus $6,600,000 a year earlier, and full year 2026 guidance expects the contribution to be lower than the $32,500,000 achieved in 2025, removing a source of earnings stability that helped offset Ocean Transportation weakness in prior periods.
Persistent tariff driven volume weakness in the China service remains a material headwind. Management acknowledged a roughly 30% year over year decline since April 2025. They expect both lower rates and lower volume for the full year 2026. This suggests the downturn may be more structural than temporary.
Exposure to potential future container equipment cost increases looms as the USTR’s proposed additional duties on ship to shore cranes, containers and certain chassis could raise capital expenses. Executives warned in the earnings call that they would likely face higher equipment costs despite the current exemption based on vessel size. Such cost increases would pressure margins and could require additional capital allocation. This risk is not fully priced into current valuation multiples.
Logistics segment continues to underperform, with operating income down $1,700,000 year over year in Q1 2026. The decline was driven by weaker supply chain management contributions. Full year guidance calls for logistics operating income to approach the prior year level. This suggests limited near term recovery in this higher margin business line.
Fuel price volatility from the Iran conflict introduces near term earnings pressure. While the company has mechanisms to recover fuel costs by year end, the lag creates a negative impact on Q2 FY26 consolidated operating income. This temporary headwind is not fully reflected in current earnings expectations. Prolonged geopolitical tension could extend the duration of this pressure.
The SSAT joint venture contribution is declining, falling to $5,000,000 in Q1 2026 versus $6,600,000 a year earlier, and full year 2026 guidance expects the contribution to be lower than the $32,500,000 achieved in 2025, removing a source of earnings stability that helped offset Ocean Transportation weakness in prior periods.