Matthews International Reveals Impressive Financial Results for First Quarter of Fiscal 2026

Matthews International Reports First Quarter Financials for Fiscal 2026

Matthews International Corporation recently declared its financial outcomes for the first quarter of its fiscal year 2026, showing remarkable progress compared to the prior year. As President and CEO Joseph C. Bartolacci noted during the announcement, the company is pleased to report earnings per share (EPS) of $1.39, a significant turnaround from a loss of $0.11 per share reported in the previous year.

The substantial rise in EPS reflects Matthews' strategic focus on enhancing operational efficiency and its decision to divest non-core business assets. The company successfully executed the sale of its warehouse automation segment, which netted $225.4 million in cash, thereby generating a substantial gain on the divestiture. Moreover, the company completed the sale of its European packaging operations, effectively shedding any controlling interests in its Brand Solutions sector.

Memorialization Segment Performance

The Memorialization segment has reported an increase in sales and adjusted EBITDA. This growth is largely attributed to the recent acquisition of The Dodge Company, which is expected to positively impact earnings as the company integrates its commercial platform with this new asset. Additionally, rising inflationary prices and increased sales for caskets and cemetery memorials have further bolstered performance, bringing significant improvement to operating margins.

Challenges in Industrial Technologies

However, the Industrial Technologies segment has faced a downturn, experiencing a decline in sales. This drop can be traced back to ongoing issues within the engineering sector, particularly the dispute with Tesla. Despite these challenges, the demand for dry battery electrode solutions remains strong, and the company anticipates this interest will translate into orders in the latter half of the fiscal year. The initial installations of the MPERIA® Axian Inkjet (XIJ) systems have shown promise, generating considerable customer interest.

During the first quarter of fiscal 2026, Matthews successfully reduced its total outstanding debt by $174 million. This decrease was primarily a result of the proceeds from divestitures, although it was partly offset by typical first-quarter changes in working capital and reduced earnings. In January 2026, the corporation redeemed $300 million of outstanding 8.625% notes due in 2027, which is projected to lower interest expenses and enhance cash flow in the future.

Future Aspirations and Strategic Alternatives

Regarding the integration of SGK with SGS, which culminated in the formation of the Propelis Group, the new company has shown strong operating results since its inception in May 2025. New management is progressing towards achieving their projected cost synergy estimate of $60 million, much of which is expected to be realized in 2026.

The Board of Directors, in collaboration with J.P. Morgan, has indicated the exploration of multiple strategies to increase shareholder value, including the recent divestiture of non-core assets. The ongoing review of the company’s strategic options aims to simplify Matthews' operational structure while enhancing shareholder returns.

Outlook for Fiscal 2026

Matthews International is committed to maintaining its previous guidance for fiscal 2026, targeting at least $180 million in adjusted EBITDA. This figure accounts for an estimated 40% of the Propelis adjusted EBITDA. The company will host a conference call on February 4, 2026, to further discuss its financial and operational outcomes alongside corporate strategies moving forward.

Matthews International Corporation remains dedicated to operational efficiency and innovation within its two primary sectors: Industrial Technologies and Memorialization. By focusing on organic growth and strategic acquisitions, it continues to bolster its position in the marketplace while effectively serving its customers and stakeholders across the globe.

With a dedicated workforce of approximately 4,300 employees across 15 countries, Matthews International is unwavering in its pursuit of delivering high-quality products and services to its clientele.

> For more detailed insights, stakeholders can access the full presentation on the company’s investor relations website following the conference call.

Webcast Information

To participate in the upcoming conference call on February 4, 2026, at 9:00 AM Eastern Time, please dial (203)-518-9856. Following the call, a transcript will be available on Matthews International’s Investor Relations page.