Matthews International Corp
NASDAQ:MATW
Matthews International Corp
Matthews International Corp. engages in the provision of brand solutions, memorialization products, and industrial technologies. The company is headquartered in Pittsburgh, Pennsylvania and currently employs 11,000 full-time employees. The firm operates through three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment delivers brand management, pre-media services, printing plates and cylinders, engineered products, and imaging services for consumer goods and retail customers, merchandising display systems, and marketing and design services primarily to the consumer goods and retail industries. The Memorialization segment produces and delivers bronze and granite memorials and other memorialization products, caskets, and cremation and incineration equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment delivers marking and coding equipment and consumables, industrial automation products and order fulfillment systems and industrial products for the warehousing and industrial industries.
Matthews International Corp. engages in the provision of brand solutions, memorialization products, and industrial technologies. The company is headquartered in Pittsburgh, Pennsylvania and currently employs 11,000 full-time employees. The firm operates through three segments: SGK Brand Solutions, Memorialization and Industrial Technologies. The SGK Brand Solutions segment delivers brand management, pre-media services, printing plates and cylinders, engineered products, and imaging services for consumer goods and retail customers, merchandising display systems, and marketing and design services primarily to the consumer goods and retail industries. The Memorialization segment produces and delivers bronze and granite memorials and other memorialization products, caskets, and cremation and incineration equipment primarily for the cemetery and funeral home industries. The Industrial Technologies segment delivers marking and coding equipment and consumables, industrial automation products and order fulfillment systems and industrial products for the warehousing and industrial industries.
Leverage Milestone: Matthews achieved its target of lowering leverage below 3x, reducing net debt to about $500 million after significant divestitures.
Key Divestitures: The company sold its warehouse automation business for $225 million and its European Packaging and Surfaces (Saueressig) business for $41 million, improving the balance sheet and cash flow.
Earnings & Revenue: Q1 revenue was $285 million, down from $402 million last year due to divestitures; adjusted EBITDA was $35 million, down from $40 million, but considered strong given the portfolio changes.
Memorialization Growth: Memorialization segment had a strong quarter, with a 7% sales increase year-over-year, aided by the Dodge acquisition and higher casket volumes.
Industrial Tech Weakness: Industrial Technologies segment sales fell 14% year-over-year, with a shift toward new product launches like Axian and headwinds in Energy Solutions.
Propelis Value: The 40% stake in Propelis is seen as a significant future cash driver, with run-rate EBITDA above initial expectations and possible near-term preferred equity repayments.
2026 Guidance: Adjusted EBITDA guidance for fiscal 2026 set at at least $180 million, factoring in Memorialization growth and Propelis contributions.
Capital Allocation: Interest expense will drop by $12 million annually after refinancing, and management emphasized future flexibility for M&A and partnerships.
