Matson Rides E-Commerce Wave to Strong Finish, Bets Big on 2026 Fleet

HONOLULU, HI – February 24, 2026 – By Melissa Adams

Ocean carrier Matson, Inc. (NYSE: MATX) navigated the choppy waters of global trade to deliver fourth-quarter 2025 results that exceeded expectations, powered by a surge in e-commerce demand and a newly stabilized U.S.-China trade relationship. The company reported a net income of $143.1 million, or $4.60 per diluted share, for the quarter, signaling a solid end to a volatile year and setting a steady course for 2026 with a significant investment in fleet modernization.

For the full year 2025, Matson posted a net income of $444.8 million, with an earnings per share of $13.81. While the full-year figures reflect challenges faced earlier in the year, the strong fourth-quarter performance painted a picture of resilience and strategic adaptation.

"Matson had a solid finish to the year with consolidated fourth quarter results that exceeded our expectations," said Matt Cox, Matson's Chairman and Chief Executive Officer. He attributed the success primarily to "higher than expected freight rates and volume in our China service driven by strong e-commerce and e-goods demand."

Transpacific Trade and E-Commerce Boom

The standout performer in Matson's portfolio was its expedited China-to-Long Beach service. While container volume in this lane was down 7.2% year-over-year for the quarter, higher freight rates more than compensated, underscoring the premium value of Matson's reliable, fast transit times. This performance was bolstered by what the company described as a more stable trading environment following a U.S.-China trade and economic deal announced on October 30, 2025, which reduced uncertainty around tariffs and other geopolitical factors.

The results align with powerful trends in the U.S. economy, where retail e-commerce sales were projected to surpass $1.29 trillion in 2025. This explosion in online shopping has created a voracious appetite for the rapid, dependable shipping services that are Matson's specialty, allowing the company to effectively capitalize on the movement of e-goods from Asia to North American consumers.

However, the strong fourth quarter followed a difficult period. Cox noted that for the full year, consolidated operating income decreased primarily due to lower volume and freight rates in the China service during the first three quarters of 2025, as customers managed freight in a challenging environment.

A Mixed Bag in Domestic Markets

Closer to home, Matson's vital lifeline services to Hawaii, Alaska, and Guam painted a more nuanced economic picture, with each region facing unique local conditions.

In Hawaii, container volume saw a slight 0.6% increase in the fourth quarter. This modest growth comes against a backdrop of what Matson termed a "sluggish" economy, hampered by softer tourism and inflationary pressures. While visitor spending has been robust, overall arrivals have not fully recovered, particularly from Japan. The state's economy is being propped up by a strong construction sector, fueled in part by public infrastructure projects and rebuilding efforts on Maui.

Alaska presented a different story. Container volume decreased by 3.3% in the fourth quarter, a change Matson attributed primarily to having one less northbound sailing compared to the prior year. Despite this, the state's economic outlook remains positive. Job growth is expected to continue into 2026, driven by renewed momentum in oil and gas development on the North Slope, including the Pikka Phase 1 project which anticipates first oil in early 2026. Federal infrastructure spending is also expected to keep the construction sector buzzing.

Meanwhile, Guam showed healthy demand, with container volume rising 4.4% in the fourth quarter. The island's economy is expanding, largely on the back of robust military and civilian construction. Activity related to the Marine Corps base Camp Blaz is a primary driver, with construction employment now exceeding pre-pandemic levels. While tourism is recovering, it remains the construction boom that is filling Matson's containers bound for the territory.

Charting the Future with a Modern Fleet

Looking ahead, Matson is making a significant down payment on its future with a major fleet modernization program. The company announced plans for approximately $425 million in capital expenditures for new vessel construction in 2026. This is a key part of a larger, nearly $1 billion investment in three new Aloha Class containerships being built at Philly Shipyard.

These state-of-the-art vessels are designed for Matson's crucial Hawaii and expedited China services. With a capacity of 3,600 TEU, they will feature dual-fuel engines capable of running on conventional marine fuel or cleaner-burning liquefied natural gas (LNG). This move is central to Matson's environmental strategy, which aims for a 40% reduction in greenhouse gas emissions by 2030 and net-zero emissions by 2050.

The first of these new ships is slated for delivery in late 2026, with the subsequent two arriving in 2027. They will replace three older, less efficient vessels, ensuring Matson maintains a modern, reliable, and more environmentally friendly fleet to service its core Pacific routes.

A Steady Outlook for 2026

While Matson projects a slower start to 2026, with first-quarter operating income expected to be lower than the prior year due to decreased volume in its China service, the full-year outlook is one of stability. The company expects consolidated operating income for 2026 to approach the levels achieved in 2025, supported by solid U.S. consumer demand and a stable Transpacific trading environment.

"For 2026 compared to 2025, we also expect to see a more normal operating income seasonality pattern with our second and third quarters being the strongest," Cox added, suggesting a return to more predictable operational rhythms.

Reinforcing its financial health, the company also returned value to shareholders, repurchasing approximately 700,000 shares in the fourth quarter for $78.1 million and declaring a quarterly cash dividend of $0.36 per share. This blend of strong operational performance, strategic long-term investment, and shareholder returns positions Matson to continue its role as a critical link in the Pacific supply chain.