Matthews International: Earnings Highlight Industrial Tech Gains Amid Deleveraging, Dividend, and Acquisition Plans

Matthews International reported earnings with a bright spot in industrial technologies results, driven by bottoming out in the segment, particularly in warehouse automation business. The company also plans to split SGK proceeds into deleveraging, dividend, and bolt-on acquisitions.

Matthews International Corporation (MATW) reported its third-quarter 2025 earnings, significantly surpassing analyst expectations with an earnings per share (EPS) of $0.49, compared to the forecasted $0.22. The company's revenue reached $349 million, exceeding projections of $321.95 million [1]. The stock price rose by 2.83% to $24.07, reflecting positive investor sentiment.

Key Takeaways
The company's EPS of $0.49 beat the forecast by 122.73%, and revenue of $349 million also surpassed expectations. Despite a year-over-year decline in consolidated sales from $428 million to $349 million, the company maintained stable adjusted EBITDA figures and achieved a notable increase in pro forma consolidated adjusted EBITDA, including contributions from Propellus. Matthews International operates with a substantial debt burden, with a debt-to-equity ratio of 2.14, yet maintains strong dividend credentials, having raised its dividend for 27 consecutive years [1].

Market Reaction
Following the earnings announcement, MATW's stock price increased by 2.83% to $24.07. This movement reflects investor optimism and positions the stock within its 52-week range, which spans from $18.50 to $32.24. The positive market reaction underscores confidence in the company's strategic initiatives and financial health [1].

Outlook & Guidance
Matthews International maintains its FY2025 adjusted EBITDA guidance of $190 million and anticipates further debt reduction in the coming quarter. The company is exploring the potential sale of its European packaging business and continues to review strategic alternatives to enhance shareholder value [1].

Executive Commentary
CEO Joe Bartolacci highlighted the company's progress, stating, "We are seeing the early results of our value creation plan." He emphasized the role of software in driving innovation, particularly in the automation sector, and reaffirmed the commitment to reducing battery costs [1].

Risks and Challenges
Ongoing disputes with Tesla regarding battery technology patents could impact future operations. The decline in consolidated sales year-over-year poses a challenge to revenue growth. Macroeconomic factors and market saturation in key sectors may affect future performance [1].

References:
[1] https://www.investing.com/news/transcripts/earnings-call-transcript-matthews-international-q3-2025-earnings-beat-forecasts-93CH-4173738