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China trade fight weakens Matson earnings

U.S.-flag carrier income, earnings lower in Q2

Stuart Chirls
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The 2,700-TEU Matson Matsonia. (Photo: Matson)
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Key Takeaways:

  • Matson's Q2 2025 earnings were lower than Q2 2024, primarily due to decreased trans-Pacific trade volume impacted by US tariffs on Chinese goods.
  • While freight rates increased slightly, reduced China volume (down 14.6%) significantly affected ocean transportation income.
  • Matson raised its full-year ocean transportation operating income guidance, but it remains lower than 2024 levels, and Q3 2025 is expected to be significantly lower than Q3 2024.
  • Matson stopped shipping electric vehicles with lithium-ion batteries due to safety concerns.
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Matson said earnings were hit by U.S. tariffs on China and said that an expected recovery of trans-Pacific trade won’t equal year-ago volumes.

The U.S.-flag carrier (NYSE: MATX) reported revenue for the second quarter ended June 30 totaled $830.5 million compared with $847.4 million for the same period in 2024. Net income fell to $94.7 million, or $2.92 per diluted share, from $113.2 million, or $3.31 per diluted share a year ago.

Operating income was $113.0 million from $124.6 million y/y, while earnings before interest, taxes, depreciation and amortization (EBITDA) declined to $163.6 million versus $171.5 million in the year-ago quarter.

Freight rates were modestly higher in the quarter y/y.

The Honolulu-based company said ocean transportation income was lower year-over-year due to China volumes that fell 14.6%. Demand rebounded following the April tariff pause between China and the U.S., while shifting trade flows boosted container volumes outside of China higher than in the first quarter. 

Hawaii and Alaska volumes were higher y/y.

SONAR chart shows recovery of eastbound China-U.S. container volumes in the second quarter.

Chairman and Chief Executive Matt Cox in a release said that the company was raising its full-year ocean transportation operating income guidance higher than it provided in May, but moderately lower than the level achieved in the prior year. 

Third quarter results are expected to be “meaningfully lower” from a year ago on trade and tariff volatility, as well as the expectation of a “muted” peak shipping season.

Also this week, Matson in a letter to customers said it would no longer ship electric vehicles powered by lithium-ion batteries due to increasing safety concerns. The carrier is an established carrier of roll-on roll-off cargo to Hawaii and Alaska, and hauled 30,000 vehicles in 2024.

Find more articles by Stuart Chirls here.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.