Matson guides fourth-quarter operating income about 50% higher on strong China freight

Third-quarter earnings of $6.96 a share beat expectations by $0.64, and revenue of $1.11bn topped the $1.09bn forecast.

Matson expects its fourth-quarter operating income to be about 50% higher than the $143.7m it made in the fourth quarter of 2025.

That outlook matters more than the quarter just reported, which beat on both lines. Earnings were $6.96 a share against expectations $0.64 lower, and revenue was $1.11bn against $1.09bn expected.

Chairman and CEO Matt Cox said the China service outperformed amid elevated freight rates and drove the quarter's strength. He expects similar conditions to continue through early 2027. The guidance is management's own forecast, and it depends on those freight rates holding.

Capital returns continue alongside it. Matson bought back about 0.3 million shares for $59.8m in the third quarter, leaving about 3.1 million shares under its repurchase program. The board declared a dividend of $0.38 a share, payable on December 3 to shareholders of record on November 5.

For the full year, Matson expects capital expenditures of about $130m, vessel construction spending of about $375m and dry-docking payments of about $45m.