Matthews International 2025 Q4 Earnings 60% EPS Improvement Amid Strategic Divestitures

Matthews International (MATW) reported Q4 2025 earnings on Nov 21, 2025, with a 60% improvement in EPS to a $0.89 loss from $2.23 in 2024. The company guided to $180M+ adjusted EBITDA for 2026, leveraging the Dodge acquisition and cost reductions.

Revenue

Matthews International’s total revenue declined 28.6% to $318.84 million in Q4 2025, driven by strategic divestitures of SGK and warehouse automation. The Memorialization segment, bolstered by the Dodge acquisition, reported $209.7 million in revenue, up from $196.8 million in 2024. Industrial Technologies revenue fell to $93 million from $113.9 million, while Brand Solutions revenue dropped sharply to $16.2 million from $135.9 million, reflecting the SGK divestiture.

Earnings/Net Income

The company narrowed its net loss to $27.47 million in Q4 2025, a 59.7% reduction from $68.16 million in 2024. Earnings per share improved to a $0.89 loss from $2.23, reflecting disciplined cost management and operational adjustments. The EPS improvement underscores progress in stabilizing core operations.

Price Action

Matthews’ stock edged down 1.72% in the latest trading day and 2.93% in the past week, but gained 5.24% month-to-date.

CEO Commentary

CEO Joe Bartolacci highlighted operational improvements in memorialization and warehouse automation, alongside cost reductions. Strategic moves included the pending $230 million warehouse automation sale, expected to reduce debt by $160 million, and the Axiom printhead’s success. Bartolacci emphasized confidence in resolving Tesla litigation and expanding energy storage partnerships, with a focus on solid-state battery opportunities.

Guidance

Bartolacci guided to fiscal 2026 adjusted EBITDA of at least $180 million, driven by the Dodge acquisition and cost discipline. Debt reduction through warehouse automation and European packaging divestitures, along with $160 million in net proceeds, remains a priority. The company aims to convert $150 million in quoted opportunities into orders by 2026.

Additional News

Matthews completed the $230 million warehouse automation sale, retaining a 40% stake in Propelus, which now outperforms expectations. The company also acquired The Dodge Company and B. Heynck GmbH, strengthening its memorialization segment. Share repurchases totaled 5,262 shares at $20.33 average cost in Q4, while litigation with Tesla over proprietary technology remains unresolved.

Matthews’ strategic focus on high-margin segments, debt reduction, and innovation in energy storage positions it for long-term growth, despite near-term challenges in engineering and industrial technologies.