Matthews International Corp reported Q3 earnings with a GAAP EPS increase to $0.49 from $0.06 YoY and a $120mln reduction in outstanding debt due to the SGK divestiture. Memorialization and Industrial Technologies segments reported higher adjusted EBITDA, despite a decline in overall sales. The company maintains its earnings guidance for fiscal 2025 and is progressing with strategic alternatives to enhance shareholder value.
Matthews International Corp (MATW) reported its third-quarter (Q3) fiscal 2025 earnings, showcasing a significant improvement in financial performance. The company's GAAP earnings per share (EPS) increased to $0.49 from $0.06 year-over-year (YoY), marking a substantial recovery. Additionally, the company reduced its outstanding debt by $120 million, primarily due to the divestiture of the SGK business [1].
The Memorialization and Industrial Technologies segments reported higher adjusted EBITDA despite a decline in overall sales. The Memorialization segment benefited from the recent acquisition of The Dodge Company, which contributed to higher sales despite lower casket and memorial volumes. The Industrial Technologies segment, however, faced challenges due to the impact of Tesla litigation but showed signs of recovery through warehouse automation [2].
Matthews International maintains its earnings guidance for fiscal 2025, expecting at least $190 million in adjusted EBITDA. The company also anticipates further debt reduction in the fourth quarter of fiscal 2025. Additionally, the strategic alternatives evaluation is progressing well, with the board and J.P. Morgan identifying several alternatives to improve shareholder value [2].
Analysts remain bullish on the stock, with an average rating of "buy" and a median 12-month price target of $38.00, representing a 39.1% increase from its August 4 closing price of $23.16. The stock currently trades at 29 times the next 12-month earnings, compared to a P/E ratio of 11 three months ago [1].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX57D445:0-matthews-international-beats-q3-sales-estimates-debt-cut-by-120-mln/
[2] https://www.globenewswire.com/news-release/2025/08/05/3127869/12919/en/Matthews-International-Reports-Results-for-Fiscal-2025-Third-Quarter.html
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