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Dec 31, 2023

Matson Q4 2023 Earnings Report

Matson's Q4 2023 earnings decreased compared to the previous year due to lower freight rates in China and higher operating costs, partially offset by higher volumes in China.

Key Takeaways

Matson, Inc. reported a net income of $62.4 million, or $1.78 per diluted share, for the quarter ended December 31, 2023. Consolidated revenue for the fourth quarter 2023 was $788.9 million. The Ocean Transportation and Logistics business segments performed well. The company expects consolidated operating income for 2024 to approximate the level achieved last year.

4Q23 EPS was $1.78.

Full Year 2023 EPS was $8.32.

Full Year 2023 Net Income was $297.1 million.

Full Year 2023 EBITDA was $516.7 million.

Total Revenue
$789M
Previous year: $802M
-1.6%
EPS
$1.78
Previous year: $2.1
-15.2%
Hawaii Containers Volume
35.4K
Previous year: 36.1K
-1.9%
Hawaii Automobiles Volume
10.1K
Previous year: 10.8K
-6.5%
Alaska Containers Volume
17.8K
Previous year: 17.9K
-0.6%
Gross Profit
$145M
Previous year: $161M
-10.0%
Cash and Equivalents
$134M
Previous year: $250M
-46.4%
Free Cash Flow
$208M
Total Assets
$4.29B
Previous year: $4.33B
-0.8%

Matson

Matson

Matson Revenue by Segment

Forward Guidance

The Company expects consolidated operating income to approximate the $342.8 million achieved in 2023 and expects comparable seasonality to the prior year.

Positive Outlook

  • U.S. consumer demand is expected to lead to similar demand for Matson’s CLX and CLX+ services in 2024 as in 2023.
  • Trade dynamics across all tradelanes in 2024 to be comparable to 2023 as consumer-related spending activity is expected to remain stable.
  • Full year 2024 Ocean Transportation operating income to be higher than the $294.8 million achieved in 2023.
  • Contribution from SSAT to be higher than the levels achieved in 2023 due to an expected increase in lift volumes.

Challenges Ahead

  • Challenging business conditions for transportation brokerage at least through the first half of the year.
  • Logistics operating income being lower in 2024 than the level achieved in 2023.
  • Consolidated operating income to approximate the $342.8 million achieved in 2023
  • Ocean Transportation operating income to be lower than the $27.8 million achieved in the first quarter 2023.
  • Logistics operating income to be lower than the $10.9 million achieved in the first quarter 2023.

Revenue & Expenses

Visualization of income flow from segment revenue to net income