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MATTHEWS INTERNATIONAL REPORTS RESULTS FOR FISCAL 2026 SECOND QUARTERApril 30, 2026 4:15 PM
PR Newswire (US)
Fiscal 2026 Second Quarter Financial Highlights:Memorialization reports higher sales and adjusted EBITDAArbitrator reaffirms Matthews' right to develop, produce, market and sell proprietary dry battery electrode solutions to third partiesPropelis JV achieves key milestone toward executing on synergy targets Bond refinancing and reduced debt drive lower recurring interest expenseCompany maintains outlook for fiscal 2026 Webcast: Friday, May 1, 2026, 9:00 a.m., 203-518-9843PITTSBURGH, April 30, 2026 /PRNewswire/ -- Matthews International Corporation (NASDAQ GSM: MATW) today announced financial results for its second quarter of fiscal 2026.
In discussing the results for the Company's fiscal 2026 second quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated:"We are pleased with our operating results for the fiscal 2026 second quarter. While our GAAP earnings were unfavorably impacted by unusual charges and amortization, we are happy to report non-GAAP adjusted earnings per share growth this quarter compared to last year despite recent divestitures. The Memorialization segment reported higher sales and adjusted EBITDA, and the Product Identification business also delivered higher sales. Although we continue to experience challenges in our energy storage solutions business, customer interest remains very strong. Corporate and other non-operating costs also declined meaningfully compared to last year. We continue to work on additional cost reduction plans to scale our structure as post-divestiture support obligations expire over the coming quarters.""Sales for the Memorialization segment for the fiscal 2026 second quarter were higher than a year ago primarily reflecting the recent acquisition of The Dodge Company. This acquisition continues to be nicely accretive to earnings as we leverage the benefits of our Memorialization commercial platform and have already begun to realize cost synergies from integration. Sales volumes of caskets and cemetery memorials declined in the quarter due to lower U.S. casketed deaths. Inflationary price realization offset lower sales volumes of caskets and cemetery memorials in the quarter. The earnings impact of these sales increases and benefits from the segment's ongoing productivity initiatives were significant factors in the segment's improved operating margins.""The Propelis Group ("Propelis") continues to report solid operating results since formation of the joint venture between our SGK business and SGS in May of 2025. During the quarter, Propelis successfully converted to a new business system platform that is expected to enable the integration of graphic production work across the global enterprise, activating a significant portion of the estimated $60 million of targeted cost synergies for realization in the second half of calendar 2026. Additionally, we expect Propelis to redeem a portion of preferred shareholders' interests in the second half of our fiscal year.""The Industrial Technologies segment reported a decline in sales for the fiscal 2026 second quarter. The decrease mainly resulted from the divestiture of the warehouse automation business during the fiscal first quarter of 2026 and challenges in our engineering business, including the impacts of the ongoing Tesla dispute. During the quarter, we received a favorable ruling from an arbitrator again confirming our right to develop, produce, market and sell our proprietary dry battery electrode ("DBE") solutions to third parties. Matthews successfully defeated Tesla's most meaningful claims as the arbitrator issued an interim decision denying the broad injunctive relief requested by Tesla and rejecting Tesla's attempts to prohibit us from selling Matthews' proprietary DBE technology and equipment. Instead, the interim decision includes a narrow injunction preventing Matthews from using certain parts in dry battery electrode machines. Matthews already has replacement parts, and thus the injunction is not expected to materially impede Matthews' operations or sales. Importantly, this most recent ruling provides further clarity for Matthews and its customers on a going forward basis. Interest from other customers in our dry battery electrode solutions remains very strong, and we anticipate will start to convert to orders in the second half of fiscal 2026. The Product Identification business achieved a major milestone during the quarter by recording its first commercial sales of the MPERIA® Axian Inkjet (XIJ) systems. We have received significant customer interest in the new product, and buildout of the supply chain to meet anticipated market demand is ongoing.""During the fiscal 2026 second quarter, we redeemed $300 million aggregate principal of 8.625% Senior Secured Second Lien Notes due 2027, which has reduced interest expense for the quarter. The refinancing was funded using the proceeds from the recent divestitures of the warehouse automation and European packaging businesses combined with additional borrowings from our existing revolving credit facility." "The Board, with the support of J.P. Morgan, identified several alternatives for evaluation and consideration toward improving shareholder value and better alignment with the underlying value of the organization. The divestitures of SGK in 2025, and the warehouse automation and European packaging businesses in the first quarter are all outcomes of this effort to simplify Matthews' business structure and enhance shareholder value. The Company's strategic alternatives review remains ongoing.""For the remainder of fiscal 2026, we expect the Memorialization segment to continue to deliver modest year-to-year sales growth. Additionally, we expect conditions for the engineering business to remain challenging and dependent upon winning substantial new orders. Lastly, our projected share of the Propelis' financial results includes the expectation for significant cost synergies to be executed and realized during the remainder of the year. Based on our results through March 31, 2026, and projections for the remainder of fiscal 2026, we are maintaining our previous earnings guidance of adjusted EBITDA of $180 million (which includes our estimated 40% share of Propelis adjusted EBITDA) for fiscal 2026."Divestiture of the SGK BusinessAs previously reported, on May 1, 2025, the Company contributed the SGK business to a newly formed entity, Propelis, in exchange for cash and other consideration. The fiscal 2025 consolidated financial information presented in this release reflects the financial results of the SGK business through the closing date. As a result of the integration process of Propelis and transition to its stand-alone reporting systems, our 40% portion of the financial results of Propelis is reported on a one-quarter lag. Consequently, for the three months ended March 31, 2026, the Company's portion of earnings (losses) for its equity-method investment in Propelis includes the months from October 2025 through December 2025. For the six months ended March 31, 2026, the Company's portion of earnings (losses) for its equity-method investment in Propelis includes the months from July 2025 through December 2025.The Company's consolidated adjusted EBITDA for the fiscal second quarter of 2026 includes approximately a $9.5 million adjusted EBITDA contribution from Propelis. Based on preliminary financial projections provided by Propelis, their current estimate of adjusted EBITDA for the period January 1, 2026 through March 31, 2026 was $24.8 million. For comparison, our 40% portion of this amount would be $9.9 million. The Company's consolidated adjusted EBITDA for the fiscal six months ended March 31, 2026 includes a $22.4 million adjusted EBITDA contribution from Propelis. Based on preliminary financial projections provided by Propelis, their current estimate of adjusted EBITDA for the period October 1, 2025 through March 31, 2026 was $48.5 million. For comparison, our 40% portion of this amount would be $19.4 million. Please note that these projections are unaudited and subject to review and, as a result, may change.WebcastThe Company will host a conference call and webcast on Friday, May 1, 2026 at 9:00 a.m. Eastern Time to review its financial and operating results and discuss its corporate strategies and outlook. A question-and-answer session will follow. The conference call can be accessed by dialing (203)-518-9843, Conference ID: Matthews. The audio webcast can be monitored at www.matw.com. As soon as available after the call, a transcript of the call will be posted on the Investor Relations section of the Company's website at www.matw.com. About Matthews International CorporationMatthews International Corporation operates through two core global businesses – Industrial Technologies and Memorialization. Both are focused on driving operational efficiency and long-term growth through continuous innovation and strategic expansion. The Industrial Technologies segment evolved from our original marking business, which today is a leading global innovator committed to empowering visionaries to transform industries through the application of precision technologies and intelligent processes. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. In addition, the Company also has a significant investment in Propelis, a brand solutions business formed through the merger of SGK and SGS & Co. Propelis delivers integrated solutions including brand creative, packaging, print solutions, branded environments, and content production. Matthews International has over 4,300 employees in 15 countries on four continents that are committed to delivering the highest quality products and services.Forward-looking InformationAny forward-looking statements contained in this release are included pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intentions or strategies of the Company regarding the future, and may be identified by the use of words such as "expects," "believes," "intends," "projects," "anticipates," "estimates," "plans," "seeks," "forecasts," "predicts," "objective," "targets," "potential," "outlook," "may," "will," "could" or the negative of these terms, other comparable terminology and variations thereof. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to be materially different from management's expectations, and no assurance can be given that such expectations will prove correct. Factors that could cause the Company's results to differ materially from the results discussed in such forward-looking statements principally include risks to our ability to achieve the anticipated benefits of the joint venture transaction with Peninsula Parent LLC, d.b.a. Propelis Group ("Propelis"), changes in domestic or international economic conditions, changes in foreign currency exchange rates, changes in interest rates, changes in the cost of materials used in the manufacture of the Company's products, including changes in costs due to adjustments to tariffs or supply chain disruptions, any impairment of goodwill or intangible assets, environmental liability and limitations on the Company's operations due to environmental laws and regulations, disruptions to certain services, such as telecommunications, network server maintenance, cloud computing or transaction processing services, provided to the Company by third-parties, changes in mortality and cremation rates, changes in product demand or pricing as a result of consolidation in the industries in which the Company operates, or other factors such as labor shortages or labor cost increases, changes in product demand or pricing as a result of domestic or international competitive pressures, ability to achieve cost-reduction objectives, unknown risks in connection with the Company's acquisitions, divestitures, and business combinations, cybersecurity concerns and costs arising with management of cybersecurity threats, effectiveness of the Company's internal controls, compliance with domestic and foreign laws and regulations, technological factors beyond the Company's control, impact of pandemics or similar outbreaks, or other disruptions to our industries, customers, or supply chains, the impact of global conflicts, such as the current war between Russia and Ukraine and hostilities in the Middle East, and conflicts and related sanctions or trade restrictions involving Venezuela, the Company's plans and expectations with respect to its exploration, and contemplated execution, of various strategies with respect to its portfolio of businesses, the Company's plans and expectations with respect to its Board of Directors, and other factors described in the Company's Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)(In thousands, except per share data)
Three Months EndedMarch 31,
Six Months EndedMarch 31,
2026
2025
% Change
2026
2025
% ChangeSales$ 258,619
$ 427,629
(39.5) %
$ 543,382
$ 829,471
(34.5) %Cost of sales(156,635)
(283,517)
(44.8) %
(341,725)
(559,667)
(38.9) %Gross profit101,984
144,112
(29.2) %
201,657
269,804
(25.3) %Gross margin39.4 %
33.7 %
37.1 %
32.5 %
Selling and administrative expenses(98,540)
(131,812)
(25.2) %
(210,932)
(243,222)
(13.3) %Amortization of intangible assets(2,674)
(4,280)
(37.5) %
(5,640)
(12,888)
(56.2) %Gain (loss) on divestitures, net(3,945)
(2,072)
90.4 %
109,264
(2,072)
NMOperating (loss) profit(3,175)
5,948
(153.4) %
94,349
11,622
NMOperating margin(1.2) %
1.4 %
17.4 %
1.4 %
Interest and other deductions, net(8,533)
(17,592)
(51.5) %
(21,639)
(29,096)
(25.6) %Loss on debt extinguishment(16,343)
—
NM
(16,343)
—
NM(Loss) income before income taxes(28,051)
(11,644)
140.9 %
56,367
(17,474)
NMIncome taxes6,217
2,728
127.9 %
(34,572)
5,086
NM
Net (loss) income$ (21,834)
$ (8,916)
144.9 %
$ 21,795
$ (12,388)
NM
(Loss) earnings per share -- diluted$ (0.69)
$ (0.29)
137.9 %
$ 0.69
$ (0.40)
NM
Earnings per share -- non-GAAP (1)$ 0.37
$ 0.34
8.8 %
$ 0.18
$ 0.48
(62.5) %
Dividends declared per share$ 0.255
$ 0.25
2.0 %
$ 0.510
$ 0.50
2.0 %
Diluted Shares 31,487
31,192
31,730
31,113
(1) See reconciliation of non-GAAP financial information provided in tables at the end of this releaseNM: Not meaningful SEGMENT INFORMATION (Unaudited)(In thousands)
Three Months EndedMarch 31,
Six Months EndedMarch 31,
2026
2025
2026
2025Sales:
Memorialization$ 215,257
$ 205,620
$ 419,432
$ 396,106Industrial Technologies43,362
80,835
112,377
161,368Brand Solutions—
141,174
11,573
271,997
$ 258,619
$ 427,629
$ 543,382
$ 829,471Adjusted EBITDA:
Memorialization$ 48,831
$ 45,038
$ 87,780
$ 81,650Industrial Technologies(3,313)
6,042
(7,771)
7,874Brand Solutions9,615
15,596
22,309
27,888Corporate and Non-Operating(10,389)
(15,262)
(22,336)
(25,975)Total Adjusted EBITDA (1) $ 44,744
$ 51,414
$ 79,982
$ 91,437
(1) See reconciliation of non-GAAP financial information provided in tables at the end of this release CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited)(In thousands)
March 31, 2026September 30, 2025ASSETS
Cash and cash equivalents
$ 36,088
$ 32,433Accounts receivable, net
100,734
132,940Inventories, net
195,893
202,827Other current assets
146,879
151,968Total current assets
479,594
520,168Investments
276,166
288,637Property, plant and equipment, net
185,594
224,575Goodwill
433,201
487,561Other intangible assets, net
91,985
105,958Other long-term assets
64,823
67,543Total assets
$ 1,531,363
$ 1,694,442
LIABILITIES
Long-term debt, current maturities
$ 7,298
$ 7,230Other current liabilities
285,870
343,250Total current liabilities
293,168
350,480Long-term debt
571,950
703,602Other long-term liabilities
154,026
159,418Total liabilities
1,019,144
1,213,500
SHAREHOLDERS' EQUITY
Total shareholders' equity
512,219
480,942Total liabilities and shareholders' equity
$ 1,531,363
$ 1,694,442 CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited)(In thousands)
Six Months Ended March 31,
2026
2025Cash flows from operating activities:
Net income (loss)$ 21,795
$ (12,388)Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization24,204
40,735(Gain) loss on divestitures, net(109,264)
2,072Loss on debt extinguishment16,343
—Changes in working capital items(37,955)
(43,362)Other operating activities17,447
(5,738)Net cash used in operating activities(67,430)
(18,681)
Cash flows from investing activities:
Capital expenditures(9,300)
(18,271)Acquisitions, net of cash acquired(524)
(2,218)Proceeds from sale of assets3,506
14,608Proceeds from divestitures243,397
2,049Other investing activities2,580
(63)Net cash provided by (used in) investing activities239,659
(3,895)
Cash flows from financing activities:
Net (payments on) proceeds from long-term debt(130,426)
50,218Purchases of treasury stock(5,698)
(4,426)Dividends(17,535)
(17,047)Other financing activities(14,740)
4,806Net cash (used in) provided by financing activities(168,399)
33,551
Effect of exchange rate changes on cash(175)
(1,545)
Net change in cash and cash equivalents$ 3,655
$ (570)
Reconciliations of Non-GAAP Financial MeasuresIncluded in this report are measures of financial performance that are not defined by GAAP, including, without limitation, adjusted EBITDA, adjusted net income and EPS, constant currency sales, constant currency adjusted EBITDA, net debt and net debt leverage ratio. The Company defines net debt leverage ratio as outstanding debt (net of cash) relative to adjusted EBITDA. The Company uses non-GAAP financial measures to assist in comparing its performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect the Company's core operations including acquisition and divestiture costs, ERP system integration costs, strategic initiative and other charges (which includes non-recurring charges related to certain commercial and operational initiatives and exit activities), stock-based compensation and the non-service portion of pension and postretirement expense. Constant currency sales and constant currency adjusted EBITDA remove the impact of changes due to foreign exchange translation rates. To calculate sales and adjusted EBITDA on a constant currency basis, amounts for periods in the current fiscal year are translated into U.S. dollars using exchange rates applicable to the comparable periods of the prior fiscal year. Management believes that presenting non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items that management believes do not directly reflect the Company's core operations, (ii) permits investors to view performance using the same tools that management uses to budget, forecast, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company's results. The Company's calculations of its non-GAAP financial measures, however, may not be comparable to similarly titled measures reported by other companies. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provided herein, provide investors with an additional understanding of the factors and trends affecting the Company's business that could not be obtained absent these disclosures.
ADJUSTED EBITDA RECONCILIATION (Unaudited)(In thousands)
Three Months EndedMarch 31,
Six Months EndedMarch 31,
2026
2025
2026
2025Net (loss) income$ (21,834)
$ (8,916)
$ 21,795
$ (12,388)Income tax (benefit) provision(6,217)
(2,728)
34,572
(5,086)(Loss) income before income taxes$ (28,051)
$ (11,644)
$ 56,367
$ (17,474)Propelis depreciation, amortization, interest and
other items (1)18,776
—
33,979
—Interest expense, including RPA and factoring
financing fees (2)10,424
17,010
25,725
33,864Loss on debt extinguishment16,343
—
16,343
—Depreciation and amortization *11,508
18,231
24,204
40,735Acquisition and divestiture related items (3)**194
13,701
1,312
14,278Strategic initiatives and other items (4)**†6,394
5,373
21,644
5,988(Gain) loss on divestitures, net3,945
2,072
(109,264)
2,072Highly inflationary accounting losses (primarily non-
cash) (5)—
520
16
711Stock-based compensation 5,136
6,018
9,543
10,997Non-service pension and postretirement expense (6)75
133
113
266Total Adjusted EBITDA$ 44,744
$ 51,414
$ 79,982
$ 91,437Adjusted EBITDA margin17.3 %
12.0 %
14.7 %
11.0 %(1) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis.(2) Includes fees for receivables sold under the RPA and factoring arrangements totaling $382 and $1,145 for the three months ended March 31, 2026 and 2025, respectively and $1,050 and $2,317 for the six months ended March 31, 2026 and 2025, respectively.(3) Includes certain non-recurring items associated with recent acquisition and divestiture activities.(4) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled $2,175 and $1,757 for the three months ended March 31, 2026 and 2025, respectively and $11,172 and $8,624 for the six months ended March 31, 2026 and 2025, respectively. Fiscal 2025 includes costs related to the Company's 2025 contested proxy which totaled $4,538 for the three months ended March 31, 2025 and $4,902 for the six months ended March 31, 2025. Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $8,655 for the six months ended March 31, 2025. Fiscal 2025 also includes loss recoveries totaling $1,170 for the six months ended March 31, 2025 which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015. 5) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries.(6) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.* Depreciation and amortization was $8,041 and $7,170 for the Memorialization segment, $2,966 and $5,644 for the Industrial Technologies segment, and $501 and $699 for Corporate and Non-Operating, for the three months ended March 31, 2026 and 2025, respectively. Depreciation and amortization was $16,188 and $14,372 for the Memorialization segment, $6,444 and $11,318 for the Industrial Technologies segment, $609 and $13,578 for the Brand Solutions segment, and $963 and $1,467 for Corporate and Non-Operating, for the six months ended March 31, 2026 and 2025, respectively. Depreciation and amortization was $4,718 for the Brand Solutions segment for the three months ended March 31, 2026.
** Acquisition costs, ERP system integration costs, and strategic initiatives and other charges were $380 and $2,410 for the Memorialization segment, $2,739 and $192 for the Industrial Technologies segment, income of $91 and charges of $416 for the Brand Solutions segment, and $3,560 and $16,056 for Corporate and Non-Operating, for the three months ended March 31, 2026 and 2025, respectively. Acquisition costs, ERP system integration costs, and strategic initiatives and other charges were $449 and $3,713 for the Memorialization segment, $13,092 and $4,311 for the Industrial Technologies segment, $3,402 and $1,130 for the Brand Solutions segment, and $6,013 and $11,112 for Corporate and Non-Operating, for the six months ended March 31, 2026 and 2025, respectively.
† Strategic initiatives and other items includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling expenses of $782 and income of $2,471 for the three months ended March 31, 2026 and 2025, respectively, and expenses of $2,305 and income of $1,305 for the six months ended March 31, 2026 and 2025, respectively. ADJUSTED NET INCOME AND EPS RECONCILIATION (Unaudited)(In thousands, except per share data)
Three Months EndedMarch 31,
Six Months EndedMarch 31,
2026
2025
2026
2025
per share
per share
per share
per shareNet (loss) income attributable to
Matthews$ (21,834)$ (0.69)
$ (8,916)$ (0.29)
$ 21,795$ 0.69
$ (12,388)$ (0.40)Acquisition and divestiture costs (1)1790.01
12,3530.40
9560.04
12,7080.41Strategic initiatives and other
charges (2)4,9450.15
3,1970.11
17,5140.55
3,9010.13(Gain) loss on divestitures, net3,8440.13
——
(68,451)(2.16)
——Highly inflationary accounting
losses (primarily non-cash) (3)——
5200.01
16—
7110.02Non-service pension and
postretirement expense (4)57—
990.01
85—
1990.01Amortization2,0060.06
3,2100.10
4,2300.13
9,6660.31Loss on debt extinguishment12,2420.39
——
12,2420.39
——Propelis amortization and other
unusual items (5)10,2090.32
——
17,2500.54
——Adjusted net income$ 11,648$ 0.37
$ 10,463$ 0.34
$ 5,637$ 0.18
$ 14,797$ 0.48
Note: Adjustments to net income for non-GAAP reconciling items were calculated using an income tax rate of 21.1% and 50.6% for the three and six months ended March 31, 2026, respectively, and 25.7% and 24.9% for the three and six months ended March 31, 2025, respectively.(1) Includes certain non-recurring costs associated with recent acquisition and divestiture activities.(2) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled $2,175 and $1,757 for the three months ended March 31, 2026 and 2025, respectively and $11,172 and $8,624 for the six months ended March 31, 2026 and 2025, respectively. Fiscal 2025 includes costs related to the Company's 2025 contested proxy which totaled $4,538 for the three months ended March 31, 2025 and $4,902 for the six months ended March 31, 2025. Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $8,655 for the six months ended March 31, 2025. Fiscal 2025 also includes loss recoveries totaling $1,170 for the six months ended March 31, 2025 which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015. (3) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries.(4) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.(5) Represents the Company's portion of amortization and other items incurred by Propelis. CONSTANT CURRENCY SALES AND ADJUSTED EBITDA RECONCILIATION (Unaudited)(In thousands)
Memorialization
Industrial
Technologies
Brand Solutions
Corporate and
Non-Operating
ConsolidatedReported sales for the quarter
ended March 31, 2026$ 215,257
$ 43,362
$ —
$ —
$ 258,619Changes in foreign exchange
translation rates(1,031)
(3,104)
(804)
—
(4,939)Constant currency sales for the
quarter ended March 31, 2026$ 214,226
$ 40,258
$ (804)
$ —
$ 253,680
Reported sales for the six months
ended March 31, 2026$ 419,432
$ 112,377
$ 11,573
$ —
$ 543,382Changes in foreign exchange
translation rates(1,515)
(5,978)
—
—
(7,493)Constant currency sales for the six
months ended March 31, 2026$ 417,917
$ 106,399
$ 11,573
$ —
$ 535,889
Reported adjusted EBITDA for the
quarter ended March 31, 2026$ 48,831
$ (3,313)
$ 9,615
$ (10,389)
$ 44,744Changes in foreign exchange
translation rates(132)
145
118
(5)
126Constant currency adjusted
EBITDA for the quarter ended
March 31, 2026$ 48,699
$ (3,168)
$ 9,733
$ (10,394)
$ 44,870
Reported adjusted EBITDA for the
six months ended March 31, 2026$ 87,780
$ (7,771)
$ 22,309
$ (22,336)
$ 79,982Changes in foreign exchange
translation rates(167)
429
63
(70)
255Constant currency adjusted
EBITDA for the six months ended
March 31, 2026$ 87,613
$ (7,342)
$ 22,372
$ (22,406)
$ 80,237
Contact:Daniel E. Stopar
Chief Financial Officer and Treasurer
Phone: (412) 442-8200
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Original: MATTHEWS INTERNATIONAL REPORTS RESULTS FOR FISCAL 2026 SECOND QUARTER
US Market News
5月前
MATTHEWS INTERNATIONAL REPORTS RESULTS FOR FISCAL 2026 FIRST QUARTERFebruary 3, 2026 4:15 PM
PR Newswire (US)
Fiscal 2026 First Quarter Financial Highlights:Memorialization reports higher sales and adjusted EBITDACommercialization of MPERIA® Axian Inkjet (XIJ) systems progressing wellProceeds from divestitures drive $174 million reduction in outstanding debtRedemption of $300 million of 8.625% Notes due 2027Company maintains outlook for fiscal 2026Webcast: Wednesday, February 4, 2026, 9:00 a.m., 203-518-9856PITTSBURGH, Feb. 3, 2026 /PRNewswire/ -- Matthews International Corporation (NASDAQ GSM: MATW) today announced financial results for its first quarter of fiscal 2026.
In discussing the results for the Company's fiscal 2026 first quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated:"We are very pleased with our operating results for the fiscal 2026 first quarter. The Company reported earnings per share on a GAAP basis of $1.39 for the current quarter compared to a loss of $0.11 a year ago. We executed the previously announced sale of the warehouse automation business, receiving $225.4 million in cash proceeds and generating a gain on the divestiture. We also finalized the sale of the European packaging business, marking the full disposition of any controlling interests in the Brand Solutions segment. Additionally, the Memorialization segment reported higher sales and adjusted EBITDA compared to a year ago."Sales for the Memorialization segment for the fiscal 2026 first quarter were higher than a year ago primarily reflecting the recent acquisition of The Dodge Company. We expect this acquisition to be nicely accretive to earnings as we leverage the benefits of our Memorialization commercial platform and have already begun to realize cost synergies from integration. Inflationary price realization and higher sales volumes for caskets and cemetery memorials also contributed to sales growth in the quarter. The earnings impact of these sales increases and benefits from the segment's ongoing productivity initiatives were significant factors in the segment's improved operating margins."The Industrial Technologies segment reported a decline in sales for the fiscal 2026 first quarter. The decrease mainly resulted from challenges in our engineering business, including the impacts of the ongoing Tesla dispute. However, interest from other customers in our dry battery electrode solutions remains very strong, which we anticipate will start to convert to orders in the second half of fiscal 2026. Initial beta installations of the MPERIA® Axian Inkjet (XIJ) systems are performing well and we've received significant customer interest in the new product."During the fiscal 2026 first quarter, we reduced consolidated outstanding debt by $174 million. The reduction primarily reflected the proceeds from the warehouse automation and European packaging divestitures, offset partly by unfavorable impacts from typical first quarter reductions in working capital, seasonally lower earnings and funding of expenditures associated with divestitures, strategic initiatives and other items. In January, we redeemed $300 million aggregate principal of 8.625% Senior Secured Second Lien Notes due 2027, which is expected to significantly reduce interest expense and improve future cash flow. "Regarding the integration of the SGK business with SGS, the new company, Propelis Group ("Propelis"), has reported solid operating results since formation of the joint venture in May of 2025. The new management team has made good progress towards achieving its projected cost synergy estimate of approximately $60 million, much of which is expected to be realized in calendar 2026."The Board, with the support of J.P. Morgan, identified several alternatives for evaluation and consideration toward improving shareholder value and better alignment with the underlying value of the organization. The divestitures of SGK in 2025, and the warehouse automation and European packaging businesses this quarter are all outcomes of this effort to simplify Matthews' business structure and enhance shareholder value. The Company's strategic alternatives review remains ongoing."Lastly based on our results through December 31, 2025, and projections for the remainder of fiscal 2026. we are maintaining our previous earnings guidance of adjusted EBITDA of at least $180 million (which includes our estimated 40% share of Propelis adjusted EBITDA) for fiscal 2026."Divestiture of the SGK BusinessAs previously reported, on May 1, 2025, the Company contributed the SGK business to a newly formed entity, Propelis, in exchange for cash and other consideration. The fiscal 2025 consolidated financial information presented in this release reflects the financial results of the SGK business through the closing date. As a result of the integration process of Propelis and transition to its stand-alone reporting systems, our 40% portion of the financial results of Propelis is reported on a one-quarter lag. Accordingly, the consolidated financial information presented in this release includes our 40% interest in the financial results of Propelis for the quarter ended September 2025.WebcastThe Company will host a conference call and webcast on Wednesday, February 4, 2026 at 9:00 a.m. Eastern Time to review its financial and operating results and discuss its corporate strategies and outlook. A question-and-answer session will follow. The conference call can be accessed by dialing (203)-518-9856. The audio webcast can be monitored at www.matw.com. As soon as available after the call, a transcript of the call will be posted on the Investor Relations section of the Company's website at www.matw.com.About Matthews International CorporationMatthews International Corporation operates through two core global businesses – Industrial Technologies and Memorialization. Both are focused on driving operational efficiency and long-term growth through continuous innovation and strategic expansion. The Industrial Technologies segment evolved from our original marking business, which today is a leading global innovator committed to empowering visionaries to transform industries through the application of precision technologies and intelligent processes. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. In addition, the Company also has a significant investment in Propelis, a brand solutions business formed through the merger of SGK and SGS & Co. Propelis delivers integrated solutions including brand creative, packaging, print solutions, branded environments, and content production. Matthews International has over 4,300 employees in 15 countries on four continents that are committed to delivering the highest quality products and services.Forward-looking InformationAny forward-looking statements contained in this release are included pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intentions or strategies of Matthews International Corporation and its consolidated subsidiaries (collectively "Matthews" or the "Company") regarding the future, including statements regarding the anticipated benefits and risks associated with the joint venture transaction with Peninsula Parent LLC, d.b.a. Propelis Group ("Propelis") and the timing thereof, and may be identified by the use of words such as "expects," "believes," "intends," "projects," "anticipates," "estimates," "plans," "seeks," "forecasts," "predicts," "objective," "targets," "potential," "outlook," "may," "will," "could" or the negative of these terms, other comparable terminology and variations thereof. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to be materially different from management's expectations, and no assurance can be given that such expectations will prove correct. Factors that could cause the Company's results to differ materially from the results discussed in such forward-looking statements principally include risks to our ability to achieve the anticipated benefits of the joint venture transaction with Propelis that closed in fiscal year 2025, changes in domestic or international economic conditions, changes in foreign currency exchange rates, changes in interest rates, changes in the cost of materials used in the manufacture of the Company's products, including changes in costs due to adjustments to tariffs, any impairment of goodwill or intangible assets, environmental liability and limitations on the Company's operations due to environmental laws and regulations, disruptions to certain services, such as telecommunications, network server maintenance, cloud computing or transaction processing services, provided to the Company by third-parties, changes in mortality and cremation rates, changes in product demand or pricing as a result of consolidation in the industries in which the Company operates, or other factors such as supply chain disruptions, labor shortages or labor cost increases, changes in product demand or pricing as a result of domestic or international competitive pressures, ability to achieve cost-reduction objectives, unknown risks in connection with the Company's acquisitions, divestitures, and business combinations, cybersecurity concerns and costs arising with management of cybersecurity threats, effectiveness of the Company's internal controls, compliance with domestic and foreign laws and regulations, technological factors beyond the Company's control, impact of pandemics or similar outbreaks, or other disruptions to our industries, customers, or supply chains, the impact of global conflicts, such as the current war between Russia and Ukraine, and conflicts and related sanctions or trade restrictions involving Venezuela, the Company's plans and expectations with respect to its exploration, and contemplated execution, of various strategies with respect to its portfolio of businesses, the Company's plans and expectations with respect to its Board of Directors, and other factors described in the Company's Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)(In thousands, except per share data)
Three Months EndedDecember 31,
2025
2024
% ChangeSales
$ 284,763
$ 401,842
(29.1) %Cost of sales
(185,090)
(276,150)
(33.0) %Gross profit
99,673
125,692
(20.7) % Gross margin
35.0 %
31.3 %
Selling and administrative expenses
(112,392)
(111,410)
0.9 %Amortization of intangible assets
(2,966)
(8,608)
(65.5) %Gain on divestitures, net
113,209
—
NMOperating profit
97,524
5,674
1,618.8 % Operating margin
34.2 %
1.4 %
Interest and other deductions, net
(13,106)
(11,504)
13.9 %Income (loss) before income taxes
84,418
(5,830)
NMIncome taxes
(40,789)
2,358
NM
Net income (loss)
$ 43,629
$ (3,472)
NM
Earnings (loss) per share -- diluted
$ 1.39
$ (0.11)
NM
(Loss) earnings per share -- non-GAAP (1)
$ (0.19)
$ 0.14
NM
Dividends declared per share
$ 0.255
$ 0.25
2.0 %
Diluted Shares
31,464
31,110
(1) See reconciliation of non-GAAP financial information provided in tables at the end of this releaseNM: Not meaningful SEGMENT INFORMATION (Unaudited)(In thousands)
Three Months EndedDecember 31,
2025
2024Sales:
Memorialization$ 204,175
$ 190,486Industrial Technologies69,015
80,533Brand Solutions11,573
130,823
$ 284,763
$ 401,842
Adjusted EBITDA:
Memorialization$ 38,949
$ 36,612Industrial Technologies(4,458)
1,832Brand Solutions12,694
12,292Corporate and Non-Operating(11,947)
(10,713)Total Adjusted EBITDA (1) $ 35,238
$ 40,023
(1) See reconciliation of non-GAAP financial information provided in tables at the end of this release CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited)(In thousands)
December 31, 2025September 30, 2025ASSETS
Cash and cash equivalents
$ 31,357
$ 32,433Accounts receivable, net
115,476
132,940Inventories, net
192,378
202,827Other current assets
149,932
151,968Total current assets
489,143
520,168Investments
287,118
288,637Property, plant and equipment, net
191,255
224,575Goodwill
431,794
487,561Other intangible assets, net
93,762
105,958Other long-term assets
59,794
67,543Total assets
$ 1,552,866
$ 1,694,442
LIABILITIES
Long-term debt, current maturities
$ 7,271
$ 7,230Other current liabilities
317,582
343,250Total current liabilities
324,853
350,480Long-term debt
529,756
703,602Other long-term liabilities
155,041
159,418Total liabilities
1,009,650
1,213,500
SHAREHOLDERS' EQUITY
Total shareholders' equity
543,216
480,942Total liabilities and shareholders' equity
$ 1,552,866
$ 1,694,442 CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited)(In thousands)
Three Months Ended December 31,
2025
2024Cash flows from operating activities:
Net income (loss)$ 43,629
$ (3,472)Adjustments to reconcile net income (loss) to net cash flows from operating activities:
Depreciation and amortization12,696
22,504Gain on divestitures, net(113,209)
—Changes in working capital items1,519
(39,170)Other operating activities3,373
(4,871)Net cash used in operating activities(51,992)
(25,009)
Cash flows from investing activities:
Capital expenditures(5,257)
(9,532)Acquisitions, net of cash acquired(524)
(2,218)Proceeds from sale of assets3,476
13,249Proceeds from divestitures240,168
—Other investing activities(420)
(63)Net cash provided by investing activities237,443
1,436
Cash flows from financing activities:
Net (payments on) proceeds from long-term debt(172,000)
31,949Purchases of treasury stock(5,163)
(4,275)Dividends(9,474)
(9,237)Net cash (used in) provided by financing activities(186,637)
18,437
Effect of exchange rate changes on cash110
(2,167)
Net change in cash and cash equivalents$ (1,076)
$ (7,303) Reconciliations of Non-GAAP Financial Measures Included in this report are measures of financial performance that are not defined by GAAP, including, without limitation, adjusted EBITDA, adjusted net income and EPS, constant currency sales, constant currency adjusted EBITDA, net debt and net debt leverage ratio. The Company defines net debt leverage ratio as outstanding debt (net of cash) relative to adjusted EBITDA. The Company uses non-GAAP financial measures to assist in comparing its performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect the Company's core operations including acquisition and divestiture costs, ERP system integration costs, strategic initiative and other charges (which includes non-recurring charges related to certain commercial and operational initiatives and exit activities), stock-based compensation and the non-service portion of pension and postretirement expense. Constant currency sales and constant currency adjusted EBITDA remove the impact of changes due to foreign exchange translation rates. To calculate sales and adjusted EBITDA on a constant currency basis, amounts for periods in the current fiscal year are translated into U.S. dollars using exchange rates applicable to the comparable periods of the prior fiscal year. Management believes that presenting non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items that management believes do not directly reflect the Company's core operations, (ii) permits investors to view performance using the same tools that management uses to budget, forecast, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company's results. The Company's calculations of its non-GAAP financial measures, however, may not be comparable to similarly titled measures reported by other companies. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provided herein, provide investors with an additional understanding of the factors and trends affecting the Company's business that could not be obtained absent these disclosures.ADJUSTED EBITDA RECONCILIATION (Unaudited)(In thousands)
Three Months EndedDecember 31,
2025
2024Net income (loss)$ 43,629
$ (3,472)Income tax provision (benefit)40,789
(2,358)Income (loss) before income taxes$ 84,418
$ (5,830)Propelis depreciation, amortization, interest and other items (1)15,203
—Interest expense, including RPA and factoring financing fees (2)15,301
16,854Depreciation and amortization *12,696
22,504Acquisition and divestiture related items (3)**1,118
577Strategic initiatives and other items (4)**†15,250
615Gain on divestitures, net(113,209)
—Highly inflationary accounting losses (primarily non-cash) (5)16
191Stock-based compensation 4,407
4,979Non-service pension and postretirement expense (6)38
133Total Adjusted EBITDA$ 35,238
$ 40,023Adjusted EBITDA margin12.4 %
10.0 %
(1) Represents the Company's portion of depreciation, intangible amortization, interest expense, and other items incurred by Propelis.(2) Includes fees for receivables sold under the RPA and factoring arrangements totaling $668 and $1,172 for the three months ended December 31, 2025 and 2024, respectively. (3) Includes certain non-recurring items associated with recent acquisition and divestiture activities.(4) )Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled $8,997 and $6,867 for the three months ended December 31, 2025 and 2024, respectively. Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $8,702. Fiscal 2025 also includes loss recoveries totaling $1,170 for the three months ended December 31, 2024 which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015. 5) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries.(6) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.* Depreciation and amortization was $8,147 and $7,202 for the Memorialization segment, $3,478 and $5,674 for the Industrial Technologies segment, $609 and $8,860 for the Brand Solutions segment, and $462 and $768 for Corporate and Non-Operating, for the three months ended December 31, 2025 and 2024, respectively.** Acquisition and divestiture costs, ERP system integration costs, and strategic initiatives and other charges were $69 and $1,303 for the Memorialization segment, $10,353 and $4,119 for the Industrial Technologies segment, $3,493 and $714 for the Brand Solutions segment, and charges of $2,453 and income of $4,944 for Corporate and Non-Operating, for the three months ended December 31, 2025 and 2024, respectively.† Strategic initiatives and other items includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling expenses of $1,523 and $313 for the three months ended December 31, 2025 and 2024, respectively.ADJUSTED NET INCOME AND EPS RECONCILIATION (Unaudited)(In thousands, except per share data)
Three Months EndedDecember 31,
2025
2024
per share
per shareNet income (loss) attributable to Matthews$ 43,629$ 1.39
$ (3,472)$ (0.11)Acquisition and divestiture costs (1)7770.03
3550.01Strategic initiatives and other charges (2)12,5690.40
7040.02Gain on divestitures, net(72,295)(2.30)
——Highly inflationary accounting losses (primarily non-cash) (3)16—
1910.01Non-service pension and postretirement expense (4)28—
100—Amortization2,2240.07
6,4560.21Propelis amortization and other unusual items (5)7,0410.22
——Adjusted net (loss) income$ (6,011)$ (0.19)
$ 4,334$ 0.14
Note: Adjustments to net income for non-GAAP reconciling items were calculated using an income tax rate of 41.2% and 22.9% for the three months ended December 31, 2025 and December 31, 2024, respectively.(1) Includes certain non-recurring costs associated with recent acquisition and divestiture activities.(2) Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled $8,997 and $6,867 for the three months ended December 31, 2025 and 2024, respectively. Fiscal 2025 includes net gains on the sales of certain significant property and other assets of $8,702. Fiscal 2025 also includes loss recoveries totaling $1,170 for the three months ended December 31, 2024 which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015. (3) Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries.(4) Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.(5) Represents the Company's portion of amortization and other items incurred by Propelis. CONSTANT CURRENCY SALES AND ADJUSTED EBITDA RECONCILIATION (Unaudited)(In thousands)
Memorialization
Industrial
Technologies
Brand Solutions
Corporate and
Non-Operating
ConsolidatedReported sales for the three months
ended December 31, 2025$ 204,175
$ 69,015
$ 11,573
$ —
$ 284,763Changes in foreign exchange
translation rates(485)
(2,874)
804
—
(2,555)Constant currency sales for the
three months ended December 31,
2025$ 203,690
$ 66,141
$ 12,377
$ —
$ 282,208
Reported adjusted EBITDA for the
three months ended December 31,
2025$ 38,949
$ (4,458)
$ 12,694
$ (11,947)
$ 35,238Changes in foreign exchange
translation rates(35)
284
(55)
(65)
129Constant currency adjusted
EBITDA for the three months ended
December 31, 2025$ 38,914
$ (4,174)
$ 12,639
$ (12,012)
$ 35,367
Contact:Daniel E. Stopar
Chief Financial Officer and Treasurer
Phone: (412) 442-8200
View original content to download multimedia:https://www.prnewswire.com/news-releases/matthews-international-reports-results-for-fiscal-2026-first-quarter-302677941.htmlSOURCE Matthews International Corporation
Original: MATTHEWS INTERNATIONAL REPORTS RESULTS FOR FISCAL 2026 FIRST QUARTER
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