Group 1 - The company Matthews International (MATW) reported a decent quarter, with a focus on net debt figures related to the proceeds from the SGK sale and the European packaging business [2] - The Valkyrie Trading Society is a team of analysts that share high conviction and obscure developed market ideas, aiming for downside-limited investments that can generate non-correlated and outsized returns in the current economic environment [2] - The Value Lab offers members a portfolio with real-time updates, 24/7 chat support, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions [2]

FORM 10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 ____________________________________________________________ For the Quarterly Period Ended December 31, 2025 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Transition Period from _____ to _____ Commission File No. 0-09115 ____________________________________________________________ ...

Core Viewpoint - Matthews International is undergoing a strategic pivot focused on divestitures, debt reduction, and enhancing its core business in memorialization and high-value intellectual property, with significant gains from recent asset sales [3][4][6]. Financial Performance - For Q1 of fiscal 2026, Matthews reported a net income of $43.6 million, a turnaround from a net loss of $3.5 million in the previous year, primarily due to gains from divestitures [4][9]. - Consolidated sales decreased to $285 million from $402 million a year ago, with divestitures accounting for approximately $120 million of the decline [11]. - Adjusted EBITDA for the quarter was $35.2 million, down from $40.0 million, reflecting lower performance in the engineering business [11]. Debt Management - Remaining pension liabilities have significantly decreased to below $10 million from over $300 million a few years ago [1]. - Net debt as of December 31, 2025, was reported at $506 million, a reduction of $173 million in the quarter, aided by divestiture proceeds [1][6]. - The company executed early redemption of $300 million of 8.625% senior secured notes, which is expected to save about $12 million annually in interest expenses [6]. Divestitures and Strategic Focus - Matthews completed the sale of its warehouse automation business for $225 million, achieving a 15x adjusted EBITDA multiple [2]. - The sale of Saueressig, a European packaging business, for $41 million helped the company avoid significant restructuring costs and further reduce pension liabilities [2]. - The strategic pivot includes a focus on memorialization, which saw segment sales increase to $204.2 million from $190.5 million, supported by the Dodge acquisition [12]. Future Outlook - The company anticipates adjusted EBITDA guidance of at least $180 million for fiscal 2026, factoring in contributions from the Dodge acquisition and additional cost actions in the engineering business [19]. - Management expects to exit its 40% equity position in Propelis within 18 to 24 months, with anticipated synergies exceeding $60 million [5][8]. - Capital spending for fiscal 2026 is projected to be around $25 million, with a quarterly dividend of $0.255 per share declared [19].

Matthews International (NasdaqGS:MATW) Q1 2026 Earnings call February 04, 2026 09:00 AM ET Company ParticipantsDan Stopar - CFOJoe Bartolacci - President and CEOConference Call ParticipantsColin Rusch - AnalystDaniel Moore - AnalystJustin Bergner - AnalystLiam Burke - AnalystOperatorGood day, everyone, and welcome to the Matthews International First Quarter Fiscal 2026 financial results. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during th ...

Financial Data and Key Metrics Changes - The company reported net income of $43.6 million, or $1.39 per share, compared to a net loss of $3.5 million, or -$0.11 per share a year ago, primarily due to a significant gain from the divestiture of the warehouse automation business [23] - Consolidated sales for the first quarter were $285 million, down from $402 million a year ago, reflecting divestitures of the SGK business and European packaging and tooling businesses [24] - Consolidated Adjusted EBITDA for the first quarter was $35.2 million, compared to $40 million a year ago, primarily due to lower operating performance in the engineering business [25] Business Line Data and Key Metrics Changes - The memorialization segment reported sales of $204.2 million, up from $190.5 million a year ago, with a 7% year-over-year increase driven by higher casket volumes and inflationary pricing [26] - The industrial technology segment's sales were $69 million, down from $80.5 million a year ago, primarily due to lower sales in the engineering business and the divestiture of the tooling business [27] - The brand solutions segment reported sales of $11.6 million, significantly down from $130.8 million a year ago, due to the divestiture of the SGK business [30] Market Data and Key Metrics Changes - The company noted strong demand for mausoleum construction, which is expected to positively impact the Gibraltar Construction business [10] - The energy solutions business faced challenges in the European market and U.S. battery space, but interest in their solutions remains strong, with over $100 million in the lead pipeline [16] Company Strategy and Development Direction - The company successfully executed a strategic pivot to reduce its leverage ratio below 3x, achieving this through the sale of its warehouse automation and Saueressig businesses [4][5] - Future cash realization is expected to be driven by a 40% interest in Propelis, with anticipated synergies exceeding $60 million [8] - The company is exploring strategic partnerships to enhance the adoption of its technologies without heavy capital expenditure [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the memorialization segment's growth, expecting a full year contribution from the Dodge acquisition to drive sales [19] - The company remains cautious about the timing of orders in the energy business due to slowed demand in North America and Europe [20] - Management highlighted the importance of patience in realizing the full value of their assets and maintaining a focus on shareholder returns [21] Other Important Information - The company reported cash flow used in operating activities of $52 million for the first quarter, reflecting typical seasonal lower earnings [31] - Outstanding debt at the end of the quarter was $537 million, with net debt declining by $173 million due to cash proceeds from divestitures [32] - The board declared a quarterly dividend of $0.255 per share, payable on February 23, 2026 [33] Q&A Session Summary Question: Can you discuss the potential customers for ultracapacitors and batteries in North America and Asia? - Management indicated ongoing conversations with OEMs and battery manufacturers in North America, emphasizing the shift towards dry battery electrode technology [36][37] Question: Are there any potential M&A opportunities in the energy sector? - Management noted a focus on joint development opportunities rather than acquisitions, as partnerships may provide necessary capital investments [39][40] Question: What are the expectations for the memorialization market in 2026? - Management expects continued growth in the memorialization segment, driven by the integration of the Dodge acquisition and inflationary pricing [48][50] Question: What is the anticipated revenue from energy storage in fiscal 2026? - Management projected revenue from energy storage to be in the range of $30-35 million [61] Question: What are the expectations for CapEx and free cash flow in fiscal 2026? - Management indicated CapEx should be around $25 million, with expectations for positive cash generation in the latter part of the fiscal year [62]

Matthews International (NasdaqGS:MATW) Q1 2026 Earnings call February 04, 2026 09:00 AM ET Speaker6Good day, everyone, and welcome to the Matthews International First Quarter Fiscal 2026 financial results. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. You may register to ask a question at any time by pressing the star and one on your telephone keypad. You may withdraw yourself from the queue by pressing ...

First Quarter Fiscal 2026 Earnings Review February 4, 2026 Joseph C. Bartolacci President and Chief Executive Officer Daniel E. Stopar Chief Financial Officer and Treasurer www.matw.com | Nasdaq: MATW DISCLAIMER Any forward-looking statements contained in this release are included pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intentions ...

Financial Performance - Earnings per share on a GAAP basis for Q1 fiscal 2026 was $1.39, compared to a loss of $0.11 in the same quarter last year [2]. - Net income for the three months ended December 31, 2025, was $43,629,000, a significant improvement from a net loss of $3,472,000 in the same period of 2024 [17]. - Adjusted net loss for the three months ended December 31, 2025, was $(6,011,000), translating to an adjusted loss per share of $(0.19), compared to adjusted net income of $4,334,000 and $0.14 per share in 2024 [23]. - Adjusted EBITDA for the same period was $35,238,000, with an adjusted EBITDA margin of 12.4%, compared to $40,023,000 and a margin of 10.0% in 2024 [20]. Sales and Revenue - The Memorialization segment reported sales of $204.2 million, an increase from $190.5 million a year ago, driven by the acquisition of The Dodge Company and higher sales volumes [15]. - The Industrial Technologies segment experienced a decline in sales to $69.0 million from $80.5 million, primarily due to challenges in the engineering business [15]. - Reported sales for the three months ended December 31, 2025, totaled $284,763,000, while constant currency sales were $282,208,000, reflecting a decrease due to foreign exchange translation rates [25]. Cash Flow and Financing - The company experienced a net cash used in operating activities of $51,992,000 for the three months ended December 31, 2025, compared to $25,009,000 in 2024 [17]. - Cash flows from investing activities provided $237,443,000 in the three months ended December 31, 2025, primarily due to proceeds from divestitures of $240,168,000 [17]. - The company reported a net cash used in financing activities of $186,637,000 for the three months ended December 31, 2025, compared to a net cash provided of $18,437,000 in 2024 [17]. Debt and Liabilities - The company executed divestitures generating $225.4 million in cash proceeds, leading to a $174 million reduction in outstanding debt [6]. - The company redeemed $300 million of 8.625% Senior Secured Second Lien Notes due 2027, expected to significantly reduce interest expense [6]. - Total assets decreased to $1.55 billion from $1.69 billion, while total liabilities reduced to $1.01 billion from $1.21 billion [16]. Strategic Initiatives - The integration of the SGK business with SGS into Propelis Group is projected to achieve cost synergies of approximately $60 million, expected to be realized in calendar 2026 [7]. - The company maintains its earnings guidance for fiscal 2026, projecting adjusted EBITDA of at least $180 million, including an estimated 40% share of Propelis adjusted EBITDA [9]. - The company incurred acquisition and divestiture costs of $777,000 in Q4 2025, up from $355,000 in Q4 2024 [23]. - Strategic initiatives and other charges amounted to $12,569,000 in Q4 2025, compared to $704,000 in Q4 2024 [23]. - The company reported a gain on divestitures of $(72,295,000) in Q4 2025, which negatively impacted adjusted net income [23]. Profitability Metrics - Adjusted EBITDA for the total company was $35.2 million, down from $40.0 million in the prior year [15]. - The gross profit margin improved to 35.0% from 31.3% year-over-year, reflecting better operating margins in the Memorialization segment [13].

Core Viewpoint - Matthews International reported a quarterly loss of $0.19 per share, significantly missing the Zacks Consensus Estimate of $0.05, compared to earnings of $0.14 per share a year ago [1] Financial Performance - The company experienced an earnings surprise of -522.22%, having previously expected earnings of $0.22 per share but only achieving $0.05, which is a surprise of +127.27% from the prior quarter [2] - Revenues for the quarter were $284.76 million, slightly missing the Zacks Consensus Estimate by 0.08%, and down from $401.84 million year-over-year [3] Stock Performance and Outlook - Matthews International shares have increased by approximately 2% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [4] - The company's earnings outlook is mixed, with current consensus EPS estimates at $0.35 for the upcoming quarter and $1.14 for the current fiscal year, with revenues expected to be $290.2 million and $1.14 billion respectively [8] Industry Context - The Funeral Services industry, to which Matthews International belongs, is currently ranked in the top 40% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [9] - Another company in the same industry, Carriage Services, is expected to report quarterly earnings of $0.80 per share, reflecting a year-over-year increase of +29% [10]

Group 1 - The recent development at Matthews International (MATW) involves an activist presence from Barington, which has led to a standstill agreement while they remain invested [2] - The Valkyrie Trading Society is a team of analysts focused on high conviction and obscure developed market ideas, aiming for downside-limited and non-correlated returns in the current economic environment [2] - The Value Lab offers a portfolio with real-time updates, 24/7 chat support, regular global market news reports, feedback on member stock ideas, new trades monthly, quarterly earnings write-ups, and daily macro opinions [2] Group 2 - The company has a beneficial long position in MATW shares, indicating confidence in the stock's performance [3] - Seeking Alpha emphasizes that past performance does not guarantee future results and that no specific investment recommendations are provided [4]