Matson, Inc.

Thank you for standing by. Welcome to Matson's First Quarter 2026 Financial Results Conference Call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Justin Schoenenberg, Director of Investor Relations and Corporate Development. Please go ahead, Sarah.

Thank you. Joining me on the call today are Matt Cox, Chairman and Chief Executive Officer, and Joel Winney, Executive Vice President and Chief Financial Officer. Slides from this presentation are available for download at our website, www.matson.com, under the Investors tab. Before we begin, I would like to remind you that during the course of this call, we will make forward-looking statements within the meaning of the federal securities laws regarding expectations, predictions, projections, or future events. We believe that our expectations and assumptions are reasonable. We caution you to consider the risk factors that could cause actual results to differ materially from those in the forward-looking statements in the press release the presentation slides, and this conference call. These risk factors are described in our press release and presentation and are more fully detailed under the caption Risk Factors on pages 12 to 23 of Form 10-K filed on February 27, 2026 and in our subsequent filings with the SEC. Please also note that the date of this conference call is May 4, 2026, and any forward-looking statements that we make today are based on assumptions as of this date. We undertake no obligation to update these forward-looking statements. I will now turn the call over to Matt.

Thanks, Justin, and thanks to those on the call. Starting on slide three, in the first quarter 2026, ocean transportation operating income exceeded our expectations, primarily due to higher freight demand post-Lunar New Year in our China service. In our domestic trade lanes, we saw lower year over year volume in Hawaii and Alaska. In logistics, operating income was lower year over year, primarily due to a lower contribution from supply chain management. To date, the Iran conflict has not impacted our operating performance or service levels. However, it has impacted fuel prices in all our markets. While we have effective mechanisms to recover the cost of fuel by the end of the year, For the second quarter, we expect a negative impact from the lag in the recovery of fuel costs. I'll go into more detail later in the presentation on the effects of fuel prices and our recovery mechanisms. Lastly, we are raising our full year outlook for consolidated operating income and now expect to modestly exceed the level achieved in 2025. The primary driver behind raising outlook for consolidated operating income is the strengthening of freight demand in our China service post-lunar new year that we expect now to continue through peak season. Joel will go into more detail on the outlook later in the presentation. I will now go through the first quarter performance in our trade lanes, SSAT, and logistics, so please turn to the next slide. In our Hawaii service, container volume for the first quarter decreased 5.6% year over year, primarily due to lower general demand and the dry docking of a competitor's vessel in the year-ago period. For the full year 2026, we expect volume to be comparable to the level achieved in 2025, reflecting similar economic conditions in Hawaii and stable market share. Please turn to slide five. According to UHERO's February Economic Report, Hawaii's economy is expected to experience modest growth supported by construction activity, while tourism remains soft and inflationary pressures persist. Construction continues to be a bright spot for the labor market with a high level of public and private building activity, including the rebuilding of Maui. Regarding tourism, the outlook for international visitors remains weak. offsetting modest growth in domestic tourist arrivals. Lastly, inflation remains elevated and may continue to weigh on discretionary spending and overall demand. Moving on to our China service on slide six. Mattson's volume in the first quarter of 2026 was 9.5% lower year over year, primarily due to lower general demand. As we noted on the fourth quarter earnings call, We expected volume in the first quarter to be lower than the prior year as we return to a more traditional Lunar New Year freight cycle. Please turn to slide seven for additional commentary on current business trends. In the first quarter, we did not see a traditional bump in demand prior to Lunar New Year. Post-holiday, the freight demand exceeded our expectation and was driven by Higher demand across several of our key market segments such as e-commerce, e-goods, and garments. We saw continued air to ocean freight conversions and further growth and penetration into Southeast Asia ports. E-commerce from South China continues to be a solid recurring contributor to volume demand. E-goods volume picked up in the post-holiday due to strong demand for data center servers and racks which has continued into the second quarter. With respect to air to ocean freight conversions, we've benefited from elevated freight costs and reduced air cargo capacity in select markets. In the first quarter of 2026, we saw strong volume from our feeder network in North and South Vietnam and Thailand. Our Thailand feeder service, which commenced operations in late December, 2025 has received positive feedback and has exceeded our expectations to date on volume. Overall, the uptick in freight demand we saw post-Lunar New Year has continued to build in the second quarter as demand strengthens and volumes return to a more traditional seasonal pattern. With increasing demand, we remain focused on maximizing the yield on every sailing out of Shanghai, and our freight rates remain at healthy levels. As a result, we expect second quarter 2026 container volume to be higher compared to the prior year period, which included a market decline in Trans-Pacific demand due to the tariffs imposed in April of 2025. As a reminder, our container volume declined 30% last April before recovering in May and June. Encouragingly, conditions are more stable today. For the full year 2026, we expect container volume to be moderately higher than the level achieved in 2025 as we expect the demand strength in the second quarter to continue through peak season. Please turn to the next slide. In our Guam service, Mattson's container volume in the first quarter of 2026 was flat year over year. In the near term, we expect Guam's economy to remain stable. As such, for the full year 2026, We expect container volume to be comparable to the level achieved last year. Please turn to the next slide. In our Alaska service, Matson's container volume in the first quarter of 2026 decreased 2% year over year. The decrease was primarily due to lower general demand, partially offset by an additional northbound sailing, and an additional AAX sailing compared to the year-ago period. In the near term, we expect continued economic growth in Alaska, supported by a low unemployment rate, job growth, and continued oil and gas exploration and production activity. As such, for full year 2026, we expect container volume to be comparable to the level achieved last year. Please turn to slide 10. In the first quarter, Our SSAT terminal joint venture contributed $5 million, representing a year-over-year decrease of $1.6 million. The decrease was primarily due to lower lift volume. For the full year 2026, we expect the contribution from SSAT to be lower than the $32.5 million achieved in full year 2025. Turning now to logistics on slide 11. Operating income in the first quarter came in at $6.8 million, or $1.7 million lower than the result in the year-ago period. The decrease was primarily due to lower contribution from supply chain management. For full year 2026, we expect operating income to approach the level achieved in full year 2025. Please turn to the next slide. Before I turn the call over to Joel for a review of our financial performance, I'd like to share a few thoughts on the recent volatility in fuel prices attributed to the Iran conflict. We expect fuel price volatility to impact our near-term earnings due to a timing lag between when we incur fuel costs and when we can fully recover these costs through our fuel surcharge. These mechanisms are very effective at recovering the cost of fuel over time. Historically in our maritime business, we have been successful in recouping the cost of fuel within any calendar year, although fluctuations can occur between quarters. In the first quarter of this year, the impact was not material as we experienced escalating fuel prices only during the last few weeks of the quarter. For the second quarter, We expect to lag in the recovery of fuel costs, but we expect to fully recover our fuel costs by the end of the year, with most of that occurring in the third quarter. These expectations regarding the impact of fuel costs and the recoverability of these costs have been factored into our outlook. And with that, I will now turn the call over to my partner, Joel.