Matthews International's Q3 2025: Unpacking Contradictions in Market Expansion, Automation Synergies, and Acquisition Strategies

Customer interest and market expansion, synergies and partnerships in automation business, DBE technology marketability and rights, acquisition strategy and focus, dry processing and customer urgency are the key contradictions discussed in Matthews International Corporation's latest 2025Q3 earnings call.



Divestiture and Financial Impact:
- Matthews International reported consolidated sales of $349 million for Q3 2025, down from $428 million in the same period last year, primarily due to the divestiture of SGK in May 2025.
- The divestiture resulted in a $80.2 million reduction in sales for the current quarter.
- The financial impact was mitigated by the gain from the transaction and reduced corporate costs.

Memorialization Segment Performance:
- The Memorialization segment reported sales of $203.7 million for Q3 2025, slightly up from the previous year, with acquisitions like The Dodge Company contributing approximately $6 million.
- Despite a modest decline in volumes, inflationary pricing helped offset this decline.
- The segment benefited from cost savings initiatives and improved EBITDA performance, partly due to divesting its European cremation business.

Industrial Technologies Segment Dynamics:
- The Industrial Technologies segment reported sales of $87.9 million for Q3 2025, a decline from last year, primarily due to issues in its engineering business.
- However, the warehouse automation business showed strong order trends, contributing positively to backlog growth.
- The ongoing dispute with Tesla impacted sales, while the recovery in the warehouse automation market is driving future growth expectations.

Strategic Acquisitions and Synergies:
- The Dodge Company acquisition, with a current sales run rate of $6 million, contributed approximately $1 million in EBITDA for Q3 2025.
- The acquisition is expected to generate $12 million in annual EBITDA once fully integrated, driven by cost and revenue synergies.
- Strategic acquisitions, like the Dodge Company, are part of Matthews' value creation plan to expand in higher growth and margin businesses.