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Matson Raises Outlook as China Rates, Earnings

[ August 7, 2026   //   Gary Burrows ]

Matson reported sharply higher second-quarter earnings and raised its full-year outlook as stronger China service demand and freight rates more than offset softer volumes in Hawaii and Alaska.

Net income rose to US$129.4 million from US$94.7 million a year earlier. Revenue increased 16.7 percent to US$969.4 million, while consolidated operating income climbed 40.6 percent to US$158.9 million.

Chairman and CEO Matt Cox said momentum in Matson’s China service carried over from the post-Lunar New Year period, with the company’s CLX and MAX services benefiting from stronger-than-expected rates and demand for e-commerce, garments and electronics amid tighter trans-Pacific capacity.

China service volume increased 15.2 percent year over year to 37,200 40-foot equivalent units, or FEUs. By comparison, Hawaii volume declined 1.1 percent, Alaska volume fell 2.3 percent and Guam volume rose 4.4 percent.

Ocean Transportation revenue increased 13.6 percent to US$767.4 million, while operating income jumped 46 percent to US$144 million. Matson attributed the improvement primarily to its China service, partly offset by higher vessel operating expenses related to fuel.

The company expects its China services to operate at or near capacity through peak season. It also forecast third-quarter Ocean Transportation operating income at about 45 percent above the US$147.4 million reported in the third quarter of 2025.

Matson said fourth-quarter demand should return to a more traditional seasonal pattern following the unusually elevated trans-Pacific market late last year. For full-year 2026, the company now expects consolidated operating income to exceed the US$499.8 million reported in 2025.

The Iran conflict has not affected Matson’s operations or service levels, Cox said, although it has increased fuel prices across the company’s markets. Matson expects to recover those fuel costs by year-end.

In Logistics, second-quarter revenue rose 30.4 percent to US$202 million, while operating income increased 3.5 percent to US$14.9 million. Higher contributions from freight forwarding and transportation brokerage were partly offset by weaker warehousing results.

Matson expects full-year Logistics operating income to exceed the US$44.2 million reported in 2025. The company also plans about US$400 million in vessel construction expenditures this year, alongside US$150 million to US$170 million in other capital spending.

Tags: Matson