Matthews Q1 earnings miss expectations, reaffirms FY25 outlook.

Matthews International Corporation reported Q1 non-GAAP EPS of $0.14, missing estimates by $0.08, and revenue of $401.8M, a decline of 10.7% Y/Y and missing estimates by $25.04M. Adjusted EBITDA for the fiscal 2025 first quarter was $40M, compared to $45.5M a year ago. The company reaffirmed its FY25 outlook.

Matthews International Corporation (MATW) reported its financial results for the first quarter of fiscal 2025, which ended on January 31, 2025. The company's non-GAAP EPS came in at $0.14, missing analysts' estimates by $0.08 [1]. Revenue for the quarter was $401.8 million, a decline of 10.7% year-over-year (YoY) and missing estimates by $25.04 million [1]. Adjusted EBITDA for the quarter was $40 million, compared to $45.5 million in the same period last year [1].

Despite the miss on earnings and revenue, Matthews International maintained its outlook for fiscal 2025, subject to the completion of the SGK Brand Solutions (SGK) transaction [1]. The company also announced a positive arbitration ruling that affirmed its right to sell its Dry Battery Electrode (DBE) solutions [1].

The Memorialization and SGK segments continued their solid performance in the quarter, while results for the Industrial Technologies segment were challenged by the impact of the Tesla litigation [1]. Matthews expects to improve in this business. The company initiated the required regulatory filing process for the SGK transaction and remains on track to complete it by mid-2025 [1].

Matthews also announced significant cost reduction actions, which are now underway [1]. The company's Board of Directors is conducting a comprehensive evaluation of strategic alternatives for its entire portfolio.

In addition to the financial results, Matthews reported a positive arbitration ruling regarding its ownership rights to the DBE technology. The company intends to immediately begin marketing, selling, and delivering its DBE solutions to other customers, unlocking their value for shareholders [1].

Matthews' cost reduction program is on track, and the company expects to generate synergies exceeding $50 million from the SGK transaction, greatly enhancing the value of its 40% interest in the new entity [1].

References:
[1] Matthews International Corporation. (2025, February 6). Matthews International Reports Results for Fiscal 2025. Retrieved from https://www.matw.com/investors/news-events/press-releases/detail/268/matthews-international-reports-results-for-fiscal-2025