Matthews International (NASDAQ:MATW) Announces Quarterly Earnings Results

Key Points

• Matthews International significantly missed quarterly expectations: EPS was $0.06 versus the $0.41 consensus, while revenue fell to $246.02 million from $349 million a year earlier. The company reported a $23.7 million net loss and lower adjusted EBITDA.
• Full-year adjusted EBITDA guidance was reduced to $158 million-$162 million due to delayed engineering orders, energy-storage overcapacity, weak mortality volumes, higher costs, tariffs, and delayed Propelis synergies.
• Management is restructuring its European engineering operations to target approximately $10 million in annual savings, while retaining longer-term optimism about battery technology, Propelis, and Axion growth opportunities. Analysts’ average rating is “Reduce,” and the company’s $0.255 quarterly dividend implies a 4.3% yield.

Matthews International (NASDAQ:MATW - Get Free Report) issued its quarterly earnings data on Friday. The company reported $0.06 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.41 by ($0.35), Zacks reports. The business had revenue of $246.02 million for the quarter, compared to analysts' expectations of $264.54 million. Matthews International had a return on equity of 5.88% and a net margin of 0.80%.

Here are the key takeaways from Matthews International's conference call:

• Fiscal third-quarter results weakened materially: Matthews reported a $23.7 million net loss, or $0.75 per share, versus net income of $15.4 million a year earlier. Sales fell to $246 million from $349 million, while adjusted EBITDA declined to $35 million from $44.6 million, primarily due to engineering weakness and recent divestitures.
• The company reduced full-year adjusted EBITDA guidance to $158 million-$162 million, citing delayed engineering orders, continued energy-storage industry overcapacity, lower-than-expected mortality volumes, rising material and labor costs, tariffs, and delayed Propelis synergies.
• Memorialization sales increased 2.1% to $208.1 million, but adjusted EBITDA slipped to $42.2 million as historically low U.S. death rates and higher copper, steel, fuel, and labor costs offset price increases; management also observed some customer migration toward lower-priced products.
• Matthews is restructuring its European engineering operations to reduce annual costs by approximately $10 million and is evaluating strategic alternatives for the business. Management expects improvement in fiscal 2027 but acknowledged that German labor regulations may delay the savings.
• Management remains optimistic about longer-term growth opportunities: DBE battery technology testing interest is reportedly at record levels, Propelis is still expected to reach a $130 million annualized EBITDA run rate by the end of calendar 2026, and Axion printhead systems are converting beta customers while a new Linx partnership expands access to U.K. and French markets.

Matthews International Stock Performance

Matthews International stock traded down $3.96 during trading hours on Friday, reaching $23.70. 2,207,581 shares of the stock were exchanged, compared to its average volume of 259,538. The stock has a market cap of $739.49 million, a P/E ratio of 76.45 and a beta of 1.09. The company has a debt-to-equity ratio of 1.12, a quick ratio of 0.97 and a current ratio of 1.64. Matthews International has a 52-week low of $21.95 and a 52-week high of $30.93. The firm's 50 day moving average is $26.78 and its 200 day moving average is $26.60.

Matthews International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, August 24th. Shareholders of record on Monday, August 10th will be paid a $0.255 dividend. This represents a $1.02 annualized dividend and a yield of 4.3%. The ex-dividend date of this dividend is Monday, August 10th. Matthews International's payout ratio is currently 329.03%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Inspire Advisors LLC acquired a new position in Matthews International during the fourth quarter worth $215,000. State of Wyoming lifted its holdings in Matthews International by 33.5% in the fourth quarter. State of Wyoming now owns 4,637 shares of the company's stock valued at $121,000 after acquiring an additional 1,164 shares during the period. Aquatic Capital Management LLC acquired a new stake in Matthews International in the third quarter valued at $193,000. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of Matthews International by 39.6% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,857 shares of the company's stock worth $239,000 after purchasing an additional 2,798 shares in the last quarter. Finally, iSAM Funds UK Ltd acquired a new position in shares of Matthews International during the 3rd quarter worth $116,000. 83.08% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on MATW shares. Weiss Ratings reiterated a "sell (d+)" rating on shares of Matthews International in a research note on Monday. Wall Street Zen cut Matthews International from a "buy" rating to a "hold" rating in a research report on Sunday, May 10th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Matthews International currently has an average rating of "Reduce".

About Matthews International

Matthews International Corporation NASDAQ: MATW is a diversified industrial company headquartered in Pittsburgh, Pennsylvania. The company operates through two primary business segments—Brand Solutions and Memorialization—offering a broad range of products and services designed to meet the needs of industrial manufacturers, brand marketers and the funeral industry worldwide.

In its Brand Solutions segment, Matthews International provides engraving and digital printing systems, automated finishing equipment, thermal management products and electronics assembly solutions.

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