Matson, Inc.

Thank you for standing by. Welcome to the Mets in the fourth quarter 2025 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 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Justin Schonenberg, Director of Investor Relations and Corporate Development. Please go ahead, sir.

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 28 to 40 of our form 10Q filed on November 5th, 2025 and in our subsequent filings with the SEC. Please also note that the date of this conference call is February 24th, 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, Matson had a solid finish to the year with consolidated fourth quarter results that exceeded our expectations. For the quarter, ocean transportation operating income approached the level achieved in the prior year period primarily due to higher than expected freight rates and volumes in our China service driven by strong e-commerce and e-goods demand. Our China service benefited from strong freight demand in our key customer segments, as well as a more stable trading environment in the Trans-Pacific trade lane as a result of the U.S.-China trade and economic deal announced on October 30th, which greatly reduced uncertainty regarding tariffs, poor entry fees, global trade, and other geopolitical factors. In our domestic ocean trade lanes, we saw higher year-over-year volumes in Hawaii and Guam and lower year-over-year volume in Alaska. In the logistics, quarterly operating income decreased year-over-year primarily due to a lower contribution from supply chain management. For the full year, our consolidated operating income decreased year-over-year primarily due to lower volume and freight rates in our China service over the last three quarters as customers manage freight in a challenging environment marked by uncertainty and volatility arising from tariffs and global trade. Looking ahead, for full year 2026, we expect consolidated operating income to approach the level achieved in the full year 2025 based on our expectations of continued solid U.S. consumer demand and a stable trading environment in the Trans-Pacific trade lane. For 2026 compared to 2025, we also expect to see a more normal operating income seasonality pattern with our second and third quarters being the strongest relative to the first and fourth quarters. I will now go through the fourth quarter and full year performance of our trade lanes, SSAT, and logistics. So please turn to the next slide. Hawaii container volume for the fourth quarter increased 0.6% year over year due to higher general demand. For the full year 2025, container volume increased 1.6% year over year, primarily due to higher general demand and a dry docking of a competitor's vessel in the first half of 2025. For the full year 2026, we expect volume to be comparable to the level in 2025, reflecting similar economic conditions as 2025 and a stable market share. Please turn to slide five. According to UHERO's December economic report, the Hawaii economy remains sluggish as softer tourism and ongoing inflationary pressures, including elevated interest rates, more than offset strength in construction activity. International tourism remains weak and visitor arrivals are expected to decline in 2026 before recovering in 2027. Maui tourism improved in 2025, but remained significantly below the levels prior to the devastating 2023 wildfires. Moving to our China service on slide six, Mattson's container volume in the fourth quarter of 2025 was 7.2% lower year over year. For the full year 2025, container volume decreased 9.5% year over year primarily due to the difficult trading environment in the Trans-Pacific in the last three quarters of 2025 marked by continued uncertainty and volatility arising from tariffs and global trade. Please turn to slide seven. In the fourth quarter of 2025, we saw higher than expected freight rates and volume driven by strong e-commerce and e-goods demand. our China service benefited from a strong freight demand in our key customer segments, as well as a more stable trading environment in the Trans-Pacific trade lane as a result of the U.S.-China trade and economic deal announced on October 30th, which reduced uncertainty regarding tariffs, port entry fees, global trade, and other geopolitical factors. So far in 2026, we've experienced stable freight demand up to the Lunar New Year holiday in mid-February. We did not see a traditional bump in demand prior to Lunar New Year, but we expect freight demand to increase post-holiday as workers return to the factories and production ramps. As such, for the first quarter of 2026, we expect lower volume compared to the prior year period as we return to a more traditional Lunar New Year environment. Please turn to the next slide. For the full year 2026, We expect volume to be modestly higher than the level achieved in 2025 based on continued solid U.S. consumer demand and a more stable trading environment in the Trans-Pacific trade lane. The U.S. consumer remains resilient, and the U.S. economy continues to show good growth. And we believe the significant tariff uncertainties that we encountered last year are mostly behind us. We also expect to see a return to a more normal seasonality pattern in 2026, with our second and third quarters being the strongest relative to the first and fourth quarters. As you may recall, we experienced a significant decline in volume in the second quarter of 2025 due to the implementation of tariffs, so we expect our China volume in the second quarter this year to be higher than that level achieved from last year. 2026, we are not expecting all of our ships to be full. Our focus in the Trans-Pacific trade lane is to maximize the yield in every sailing out of Shanghai and maintain price. The premium rates in our China service reflect our unique value proposition relative to air freight and the consistency and reliability of our CLX and MAX services, which are the fastest and second fastest ocean services from Shanghai to Long Beach. In 2025, we moved with our customers. We added a second weekly feeder service from Vietnam, and in December, commenced a weekly feeder service from Thailand. Our customers continue to look at shifting manufacturing out of China to diversify their operations. We remain focused on expanding our network in Southeast Asia. We continue to believe the maximum tariff uncertainty is behind us with continued cooperation between the U.S. and China. As I said on previous earnings calls, there is too much at stake for both countries not to come to a long-term economic agreement. Please turn to the next slide. In Guam, Mattson's container volume in the fourth quarter of 2025 increased 4.4% year over year. The increase was primarily due to higher general demand. For full year 2025, container volume decreased 4.3% year over year, primarily due to lower general demand. In the near term, we expect Guam's economy to moderate, reflecting a challenging tourism environment. As such, for 2026, we expect container volume to be comparable to the level achieved last year. Please turn to the next slide. In Alaska, Matson's container volume for the fourth quarter of 2025 decreased 3.3% year-over-year. The decrease is primarily due to one less northbound sailing compared to the year-ago period, partially offset by higher export seafood volume on our AAX service. For full year 2025, container volume increased 1.7% year-over-year, primarily due to higher export seafood volume on AAX partially offset by one less northbound sailing compared to the year-ago period. For full year 2026, we expect Alaska volume to be comparable to the level achieved last year. Please turn to slide 11. The Alaska economy continues to show good economic growth and improvement in key economic indicators despite flattish growth in population. In 2025, The state continued to add jobs with oil and gas and healthcare, having the largest year-over-year increase. For 2026, we expect continued economic growth in Alaska, supported by a low unemployment rate, jobs growth, and continued oil and gas production activity. The oil and gas sector continues to be a key driver of Alaska's economy. In recent years, we've seen meaningful investment in the North Slope projects with more accommodative federal policies, there is the potential for significant investment supporting resources, resource development in the state. Please turn to slide 12. In the fourth quarter, our SSAT terminal joint venture contributed $9.3 million, representing a year-over-year increase of $18.8 million. The increase was primarily due to an impairment charge related to a write-down of a terminal operating lease asset at SSAT, which negatively impacted our fourth quarter 2024 operating income by $18.4 million. For the full year 2025, our SSAT terminal joint venture contributed $32.5 million compared to a loss of $1 million in the prior year. The increase was due to the same $18.4 million impairment charge and higher lift volume. In 2026, we expect the contribution from our SSAT terminal joint venture to be comparable to the $32.5 million achieved in 2025. Turning now to logistics on slide 13, operating income in the fourth quarter came in at $7.7 million, or $2.4 million lower than the result in the year-ago period. The decrease was primarily due to a lower contribution from supply chain management. For the full year 2025, operating income was $44.2 million, reflecting a year-over-year decrease of $6.2 million. The decrease was primarily due to lower contributions for freight forwarding and transportation brokerage. For 2026, we are expecting operating income to approach the level achieved in 2025 I'll now turn the call over to my partner, Joel, for a review of our financial performance. Joel. Okay, thanks, Matt.