Matthews International 2025 Q4 Earnings Beats Expectations with 60% Net Loss Reduction

Matthews International (MATW) reported Q4 2025 earnings on Nov 21, 2025, surpassing analyst expectations with adjusted EPS of $0.50 (vs. $0.23 forecast) and revenue of $318.8M (vs. $290.8M estimate). The company narrowed its net loss by 59.7% to $27.5M and raised FY2026 adjusted EBITDA guidance to at least $180M, driven by divestiture proceeds and cost cuts.

Revenue

Matthews International’s Q4 2025 revenue fell to $318.84 million, a 28.6% decline from $446.69 million in the prior year, primarily due to strategic divestitures. The Memorialization segment led with $209.7 million in revenue, up from $196.8 million, bolstered by the Dodge acquisition and increased bronze memorial sales. Industrial Technologies revenue dropped to $93 million from $113.9 million, while Brand Solutions revenue fell sharply to $16.2 million from $135.9 million, reflecting the sale of the SGK business.

Earnings/Net Income

The company reduced its net loss to $27.47 million ($0.89/share) in Q4 2025, a 59.7% improvement from $68.16 million ($2.23/share) in Q4 2024. Adjusted EBITDA for the quarter was $51.5 million, down from $58.1 million year-over-year. The narrowing of losses and improved EPS reflect effective cost management and strategic divestitures.

Post-Earnings Price Action Review

Following the earnings release, MATW’s stock closed at $24.65, down 1.44% despite beating expectations. The stock edged down 1.72% during the latest trading day, declined 2.93% for the week, but gained 5.24% month-to-date. The mixed price action suggests investor caution amid ongoing restructuring efforts and litigation risks, though the positive earnings surprise and debt-reduction progress remain supportive.

CEO Commentary

CEO Joe Bartolacci highlighted strong Memorialization performance and the Dodge acquisition’s contribution, while emphasizing cost cuts ($8.5M saved) and divestitures (SGK, warehouse automation for $230M). The company retains a 40% stake in Propelis, which outperforms expectations, and is advancing dry battery electrode technology for energy storage. Leadership remains confident in deleveraging to 2.5x net leverage by FY2026.

Guidance

Matthews International targets adjusted EBITDA of at least $180 million for FY2026, driven by full-year Dodge integration, $160M in warehouse automation proceeds, and $30M from European packaging/tooling sales. Memorialization growth and energy storage opportunities (e.g., $50M battery separator line) are key drivers, with corporate costs expected to decline post-2025.

Additional News

Matthews International finalized the $230M sale of its warehouse automation unit to Duravant LLC, accelerating debt reduction. The company also retained a 40% stake in Propelis, which now operates at a higher EBITDA run rate than anticipated. Additionally, $8.5M in corporate cost cuts were announced, supporting FY2026 deleveraging goals.