MATW Matthews International Corporation Class A

Matthews International Reports Results for Fiscal 2025 Third Quarter

Matthews International Reports Results for Fiscal 2025 Third Quarter

Fiscal 2025 Third Quarter Financial Highlights:

  • GAAP Earnings per share of $0.49 vs. $0.06 a year ago
  • Memorialization and Industrial Technologies report higher adjusted EBITDA
  • Outstanding debt reduced by $120 million
  • Company realizing benefits of cost reduction actions
  • Strategic alternatives evaluation progressing well
  • Company maintains outlook for fiscal 2025
  • Webcast: Wednesday, August 6, 2025, 9:00 a.m., (201) 689-8471

PITTSBURGH, Aug. 05, 2025 (GLOBE NEWSWIRE) -- (NASDAQ GSM: MATW) today announced financial results for its third quarter of fiscal 2025.

In discussing the results for the Company’s fiscal 2025 third quarter, Joseph C. Bartolacci, President and Chief Executive Officer, stated:

“We were pleased with our operating results for the fiscal 2025 third quarter. The Company reported earnings per share on a GAAP basis of $0.49 per share for the current quarter compared to $0.06 a year ago. We realized a gain on the divestiture of the SGK business. Additionally, the Memorialization and Industrial Technologies segments each reported higher adjusted EBITDA compared to a year ago while we continued to lower our corporate and other non-operating costs. Non-GAAP adjusted earnings per share was $0.28 for the current quarter.

“We are realizing the benefits of the cost reduction actions that we initiated last year. These initiatives were a key contributor to our year-over-year improvement in the Industrial Technologies segment, particularly in our engineering business which continues to be challenged by the impact of the meritless litigation with Tesla. These initiatives were also a key driver to the reduction in corporate and non-operating costs. Year-to-date, we have reduced corporate and other non-operating costs by 11.4%, or $4.9 million, compared to a year ago, and expect further reductions into next fiscal year as a result of the SGK divestiture.

“Sales for the Memorialization segment for the fiscal 2025 third quarter were higher than a year ago primarily reflecting the recent acquisition of The Dodge Company. We expect this acquisition to be nicely accretive to earnings as we leverage the benefits of our Memorialization commercial platform and we have already begun to realize synergies from integration. Sales volumes for caskets and cemetery memorials were modestly lower for the quarter primarily reflecting lower U.S. casketed deaths and the prior year sales benefit of granite backlog reductions. However, the earnings impact of these declines were offset by inflationary price realization and benefits from the segment’s ongoing productivity initiatives, which were significant factors in the segment’s improved operating margins.

“The Industrial Technologies segment reported a modest decline in sales for the fiscal 2025 third quarter. The decrease mainly resulted from lower engineering sales primarily reflecting the unfavorable consequences of the ongoing Tesla dispute, which impacted customer order rates and willingness to do business with us. However, since the favorable ruling in February 2025, outstanding quotes are now over $150 million and continuing to grow. The quotes are beginning to convert to orders at a modest level and expected to further increase by the end of this calendar year. Sales for the segment’s warehouse automation business were higher for the current quarter as order rates and backlog continued to improve, reflecting the ongoing recovery in this market.

“During the fiscal 2025 third quarter, we reduced consolidated outstanding debt by $120 million. The reduction primarily reflected the proceeds from the SGK divestiture, offset partly by the acquisition of The Dodge Company, settlement of currency hedges in connection with SGK-related assets, and SGK transaction-related costs. Based on our current operating cash flow projections and the potential sale of our European packaging business, we expect further debt reduction in the fiscal 2025 fourth quarter.

“Regarding the integration of the SGK business with SGS, the new company, Propelis Group (“Propelis”), has indicated solid operating results since the May 1, 2025 closing date and has recently increased its projected cost synergy estimates to approximately $60 million.

“Our strategic alternatives evaluation is progressing well. The Board, with the support of J.P. Morgan, has identified several alternatives for further evaluation and consideration toward improving shareholder value and better alignment with the underlying value of the organization. We expect to complete this evaluation over the next several months and will provide an update to our shareholders at that time.

“Lastly, based on our results through June 30, 2025 and our fourth quarter projections, we are maintaining our previous earnings guidance of adjusted EBITDA of at least $190 million (which includes our estimated 40% share of Propelis adjusted EBITDA from May 1, 2025 through September 30, 2025) for fiscal 2025.”

Third Quarter Fiscal 2025 Consolidated Results (Unaudited)

($ in millions, except per share data)Q3 FY2025 Q3 FY2024 Change % Change 
Sales$349.4  $427.8  $(78.4) (18.3)%
Net income attributable to Matthews$15.4  $1.8  $13.6  NM 
Diluted earnings per share$0.49  $0.06  $0.43  NM 
Non-GAAP adjusted net income$9.2  $17.3  $(8.1) (46.9)%
Non-GAAP adjusted EPS$0.28  $0.56  $(0.28) (50.0)%
Adjusted EBITDA$44.6  $44.7  $(0.2) (0.4)%
Note: See the attached tables for additional important disclosures regarding Matthews’ use of non-GAAP measures as well as reconciliations of non-GAAP measures to corresponding GAAP measures. 
  

Consolidated sales for the quarter ended June 30, 2025 were $349.4 million, compared to $427.8 million for the same quarter a year ago. The decrease primarily reflected the divestiture of SGK on May 1, 2025. The consolidated sales impact of the SGK divestiture was $80.2 million for the current quarter. Sales for the Industrial Technologies segment were lower for the quarter, offset partially by higher sales for the Memorialization segment. SGK also reported sales growth for the current quarter prior to its divestiture.

Net income attributable to the Company for the quarter ended June 30, 2025 was $15.4 million, or $0.49 per share, compared to $1.8 million, or $0.06 per share in the prior year. The gain on the divestiture of SGK (net of transaction-related costs) was the most significant factor in the increase. On a non-GAAP adjusted basis, earnings for the fiscal 2025 third quarter were $0.28 per share, compared to $0.56 per share a year ago. These results do not reflect our 40% interest in the results of Propelis (see "Divestiture of the SGK Business" below). Although adjusted EBITDA was relatively consistent with the same quarter a year ago, interest expense increased primarily reflecting the higher rate on the new bonds compared to the previous bonds. Also, the third quarter last year benefited from significant discrete tax benefits which did not repeat in the current quarter.

Divestiture of the SGK Business

On May 1, 2025, the Company contributed the SGK business to a newly-formed entity, Propelis, in exchange for 40% of the common equity of Propelis, a $50 million preferred equity investment in Propelis, and cash proceeds of $250 million ($228 million net of divested cash).

The consolidated financial information presented in this release reflects the financial results of the SGK business through the closing date. Please note that, as a result of the integration process of Propelis and transition to its stand-alone reporting systems, our 40% portion of the financial results of Propelis will be reported on a one-quarter lag. As a result, the consolidated financial information presented in this release does not include our 40% interest in the financial results of Propelis for May and June 2025.

Based on preliminary financial projections provided by Propelis, their current estimate of adjusted EBITDA for May and June 2025 was $16.8 million. Please note that these projections are unaudited and subject to review and, as a result, may change. Our 40% portion of this amount would be $6.7 million. Accordingly, with the addition of our 40% interest in Propelis, the Company’s consolidated adjusted EBITDA for the fiscal 2025 third quarter would be $51.3 million, compared to $44.7 million a year ago, representing an increase of 14.6%.

Fiscal 2025 Year-to-Date Consolidated Results (Unaudited)

($ in millions, except per share data)YTD FY2025 YTD FY2024 Change % Change
Sales$1,178.8  $1,349.0  $(170.2) (12.6)%
Net income attributable to Matthews$3.0  $8.5  $(5.5) (64.7)%
Diluted earnings per share$0.10  $0.27  $(0.17) (63.0)%
Non-GAAP adjusted net income$24.0  $50.5  $(26.5) (52.5)%
Non-GAAP adjusted EPS$0.76  $1.62  $(0.86) (53.1)%
Adjusted EBITDA$136.0  $147.0  $(11.0) (7.5)%
Note: See the attached tables for additional important disclosures regarding Matthews’ use of non-GAAP measures as well as reconciliations of non-GAAP measures to corresponding GAAP measures. 
  

Consolidated sales for the nine months ended June 30, 2025 were $1.18 billion, compared to $1.35 billion a year ago, representing a decrease of $170.2 million, or 12.6%. The decrease primarily reflected the divestiture of SGK on May 1, 2025 and lower sales for the Industrial Technologies segment. Memorialization segment sales were also lower for the year, which was offset partially by higher sales for SGK pre-divestiture. The consolidated sales impact of the SGK divestiture was $80.2 million for the current year.

Net income attributable to the Company for the nine months ended June 30, 2025 was $3.0 million, or $0.10 per share, compared to $8.5 million, or $0.27 per share in the prior year. On a non-GAAP adjusted basis, earnings for the nine months ended June 30, 2025 were $0.76 per share, compared to $1.62 per share a year ago. Adjusted EBITDA for the first nine months of fiscal 2025 was $136.0 million, compared to $147.0 million a year ago.

Webcast

The Company will host a conference call and webcast on Wednesday, August 6, 2025 at 9:00 a.m. Eastern Time to review its financial and operating results and discuss its corporate strategies and outlook. A question-and-answer session will follow. The conference call can be accessed by dialing (201) 689-8471. The audio webcast can be monitored at . As soon as available after the call, a transcript of the call will be posted on the Investor Relations section of the Company’s website at .

About Matthews International Corporation

Matthews International Corporation is a global provider of memorialization products, industrial Matthews International Corporation operates through two core global businesses – Industrial Technologies and Memorialization. Both are focused on driving operational efficiency and long-term growth through continuous innovation and strategic expansion. The Industrial Technologies segment evolved from our original marking business, which today is a leading global innovator committed to empowering visionaries to transform industries through the application of precision technologies and intelligent processes. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. The Company also has a significant investment in Propelis, a brand solutions business formed through the merger of SGK and SGS & Co. Propelis offers integrated solutions including brand creative, packaging, print solutions, branded environments, and content production. The Company has over 5,400 employees in 19 countries on four continents that are committed to delivering the highest quality products and services.

Forward-looking Information

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 or strategies of the Company regarding the future, including statements regarding the anticipated timing and benefits of the proposed joint venture transaction, and may be identified by the use of words such as “expects,” “believes,” “intends,” “projects,” “anticipates,” “estimates,” “plans,” “seeks,” “forecasts,” “predicts,” “objective,” “targets,” “potential,” “outlook,” “may,” “will,” “could” or the negative of these terms, other comparable terminology and variations thereof. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to be materially different from management’s expectations, and no assurance can be given that such expectations will prove correct. Factors that could cause the Company's results to differ materially from the results discussed in such forward-looking statements principally include our ability to achieve the anticipated benefits of the joint venture transaction that recently closed, changes in domestic or international economic conditions, changes in foreign currency exchange rates, changes in interest rates, changes in the cost of materials used in the manufacture of the Company's products, including changes in costs due to adjustments to tariffs, any impairment of goodwill or intangible assets, environmental liability and limitations on the Company’s operations due to environmental laws and regulations, disruptions to certain services, such as telecommunications, network server maintenance, cloud computing or transaction processing services, provided to the Company by third-parties, changes in mortality and cremation rates, changes in product demand or pricing as a result of consolidation in the industries in which the Company operates, or other factors such as supply chain disruptions, labor shortages or labor cost increases, changes in product demand or pricing as a result of domestic or international competitive pressures, ability to achieve cost-reduction objectives, unknown risks in connection with the Company's acquisitions, divestitures, and business combinations, cybersecurity concerns and costs arising with management of cybersecurity threats, effectiveness of the Company's internal controls, compliance with domestic and foreign laws and regulations, technological factors beyond the Company's control, impact of pandemics or similar outbreaks, or other disruptions to our industries, customers, or supply chains, the impact of global conflicts, such as the current war between Russia and Ukraine, the Company's plans and expectations with respect to its exploration, and contemplated execution, of various strategies with respect to its portfolio of businesses, the Company's plans and expectations with respect to its Board, and other factors described in the Company’s Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission.

 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(In thousands, except per share data)
        
 Three Months Ended

June 30,
   Nine Months Ended

June 30,
  
 2025 2024 % Change 2025 2024 % Change
Sales$349,377  $427,833  (18.3)% $1,178,848  $1,349,042  (12.6)%
Cost of sales (227,421)  (295,996) (23.2)%  (787,088)  (936,670) (16.0)%
Gross profit 121,956   131,837  (7.5)%  391,760   412,372  (5.0)%
Gross margin 34.9%  30.8%    33.2%  30.6%  
            
Selling and administrative expenses (100,394)  (116,098) (13.5)%  (345,688)  (347,124) (0.4)%
Amortization of intangible assets (3,474)  (9,037) (61.6)%  (16,362)  (27,791) (41.1)%
Gain on sale of SGK Business 57,103     NM   57,103     NM 
Operating profit 75,191   6,702  NM   86,813   37,457  131.8%
Operating margin 21.5%  1.6%    7.4%  2.8%  
            
Interest and other deductions, net (16,327)  (13,754) 18.7%  (45,423)  (39,633) 14.6%
Income (loss) before income taxes 58,864   (7,052) NM   41,390   (2,176) NM 
Income taxes (43,477)  8,829  NM   (38,391)  10,677  NM 
Net income 15,387   1,777  NM   2,999   8,501  (64.7)%
Non-controlling interests      %       %
Net income attributable to Matthews$15,387  $1,777  NM  $2,999  $8,501  (64.7)%
            
Earnings per share -- diluted$0.49  $0.06  NM  $0.10  $0.27  (63.0)%
            
Earnings per share -- non-GAAP(1)$0.28  $0.56  (50.0)% $0.76  $1.62  (53.1)%
            
Dividends declared per share$0.25  $0.24  4.2% $0.75  $0.72  4.2%
            
Diluted Shares 31,425   31,228     31,408   31,223   
(1)See reconciliation of non-GAAP financial information provided in tables at the end of this release
NM: Not meaningful
 



 
SEGMENT INFORMATION (Unaudited)

(In thousands)
    
 Three Months Ended

June 30,
 Nine Months Ended

June 30,
 2025

 2024

 2025

 2024

Sales:       
Memorialization$203,728  $202,664  $599,834  $632,891 
Industrial Technologies 87,901   91,731   249,269   319,241 
Brand Solutions 57,748   133,438   329,745   396,910 
 $349,377  $427,833  $1,178,848  $1,349,042 



Adjusted EBITDA:       
Memorialization$42,801  $38,737  $124,451  $122,051 
Industrial Technologies 9,047   4,196   16,921   23,846 
Brand Solutions 5,004   16,054   32,892   44,317 
Corporate and Non-Operating (12,302)  (14,241)  (38,277)  (43,186)
Total Adjusted EBITDA(1)$44,550  $44,746  $135,987  $147,028 
        
(1)See reconciliation of non-GAAP financial information provided in tables at the end of this release
 



 
CONDENSED CONSOLIDATED BALANCE SHEET INFORMATION (Unaudited)

(In thousands)
   
 June 30, 2025 September 30, 2024
ASSETS   
Cash and cash equivalents$20,383  $40,816 
Accounts receivable, net 158,891   205,984 
Inventories, net 210,539   237,888 
Other current assets 126,466   147,855 
Total current assets 516,279   632,543 
Property, plant and equipment, net 230,665   279,499 
Goodwill 516,050   697,123 
Other intangible assets, net 83,840   126,026 
Other long-term assets 359,131   99,699 
Total assets$1,705,965  $1,834,890 
    
LIABILITIES   
Long-term debt, current maturities$6,379  $6,853 
Other current liabilities 304,371   427,922 
Total current liabilities 310,750   434,775 
Long-term debt 696,120   769,614 
Other long-term liabilities 185,263   193,295 
Total liabilities 1,192,133   1,397,684 
    
SHAREHOLDERS' EQUITY   
Total shareholders' equity 513,832   437,206 
Total liabilities and shareholders' equity$1,705,965  $1,834,890 
        



 
CONDENSED CONSOLIDATED CASH FLOWS INFORMATION (Unaudited)

(In thousands)
  
 Nine Months Ended June 30,
 2025 2024
Cash flows from operating activities:   
Net income$2,999  $8,501 
Adjustments to reconcile net income to net cash flows from operating activities:  
Depreciation and amortization 56,571   70,441 
Gain on sale of SGK Business (57,103)   
Changes in working capital items (50,559)  (29,154)
Other operating activities 14,211   (6,452)
Net cash (used in) provided by operating activities (33,881)  43,336 
    
Cash flows from investing activities:   
Capital expenditures (26,390)  (33,180)
Acquisitions, net of cash acquired (57,842)  (5,825)
Proceeds from sale of SGK Business 228,004    
Other investing activities 9,477   374 
Net cash provided by (used in) investing activities 153,249   (38,631)
    
Cash flows from financing activities:   
Net proceeds from long-term debt (70,292)  27,780 
Purchases of treasury stock (12,122)  (20,525)
Dividends (24,740)  (24,063)
Other financing activities (32,286)  12,712 
Net cash used in financing activities (139,440)  (4,096)
    
Effect of exchange rate changes on cash (361)  35 
    
Net change in cash and cash equivalents$(20,433) $644 
        

Reconciliations of Non-GAAP Financial Measures

Included in this report are measures of financial performance that are not defined by GAAP, including, without limitation, adjusted EBITDA, adjusted net income and EPS, constant currency sales, constant currency adjusted EBITDA, net debt and net debt leverage ratio. The Company defines net debt leverage ratio as outstanding debt (net of cash) relative to adjusted EBITDA. The Company uses non-GAAP financial measures to assist in comparing its performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect the Company’s core operations including acquisition and divestiture costs, ERP system integration costs, strategic initiative and other charges (which includes non-recurring charges related to certain commercial and operational initiatives and exit activities), stock-based compensation and the non-service portion of pension and postretirement expense. Constant currency sales and constant currency adjusted EBITDA remove the impact of changes due to foreign exchange translation rates. To calculate sales and adjusted EBITDA on a constant currency basis, amounts for periods in the current fiscal year are translated into U.S. dollars using exchange rates applicable to the comparable periods of the prior fiscal year. Management believes that presenting non-GAAP financial measures is useful to investors because it (i) provides investors with meaningful supplemental information regarding financial performance by excluding certain items that management believes do not directly reflect the Company's core operations, (ii) permits investors to view performance using the same tools that management uses to budget, forecast, make operating and strategic decisions, and evaluate historical performance, and (iii) otherwise provides supplemental information that may be useful to investors in evaluating the Company’s results. The Company's calculations of its non-GAAP financial measures, however, may not be comparable to similarly titled measures reported by other companies. The Company believes that the presentation of these non-GAAP financial measures, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provided herein, provide investors with an additional understanding of the factors and trends affecting the Company’s business that could not be obtained absent these disclosures.

 
ADJUSTED EBITDA RECONCILIATION (Unaudited)

(In thousands)
    
 Three Months Ended

June 30,
 Nine Months Ended

June 30,
 2025 2024 2025 2024
Net income$15,387  $1,777  $2,999  $8,501 
Income tax provision (benefit) 43,477   (8,829)  38,391   (10,677)
Income (loss) before income taxes$58,864  $(7,052) $41,390  $(2,176)
Interest expense, including RPA and factoring financing fees(1) 16,804   14,005   50,668   40,539 
Depreciation and amortization* 15,836   23,657   56,571   70,441 
Acquisition and divestiture related items(2)** (9,473)  2,266   6,877   5,565 
Strategic initiatives and other items(3)**† 10,315   6,246   16,303   17,128 
Gain on sale of SGK Business (57,103)     (57,103)   
Highly inflationary accounting losses (primarily non-cash)(4) 325   185   1,036   895 
Stock-based compensation 8,841   5,331   19,838   14,309 
Non-service pension and postretirement expense(5) 141   108   407   327 
Total Adjusted EBITDA$44,550  $44,746  $135,987  $147,028 
Adjusted EBITDA margin 12.8%  10.5%  11.5%  10.9%
        
(1)Includes fees for receivables sold under the RPA and factoring arrangements totaling$974and$1,225for the three months endedJune 30, 2025and2024, respectively, and$3,291and$3,638for theninemonths endedJune 30, 2025and2024, respectively.
(2)Includes certain non-recurring items associated with recent acquisition and divestiture activities and also includes a loss of$2,072for the three andninemonths endedJune 30, 2025related to the divestiture of a business in the Industrial Technologies segment. The fiscal 2025 third quarter amount reflects a reclassification of transaction costs totaling$9,738, which have been presented as a component of gain on sale of SGK Business.
(3)Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled$5,795and$3,166for the three months endedJune 30, 2025and2024, respectively, and$14,419and$8,138for theninemonths endedJune 30, 2025and2024, respectively. Fiscal 2025 includes costs related to the Company's 2025 contested proxy which totaled$207for the three months endedJune 30, 2025and$5,109for theninemonths endedJune 30, 2025. Fiscal 2025 includes net gains on the sales of certain significant property and other assets of$8,655for theninemonths endedJune 30, 2025. Fiscal 2025 also includes loss recoveries totaling$538for the three months endedJune 30, 2025and$1,708for theninemonths endedJune 30, 2025which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015.
(4)Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries.
(5)Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.
 

* Depreciation and amortization was $7,394 and $7,073 for the Memorialization segment, $5,489 and $5,796 for the Industrial Technologies segment, $2,357 and $9,702 for the Brand Solutions segment, and $596 and $1,086 for Corporate and Non-Operating, for the three months ended June 30, 2025 and 2024, respectively. Depreciation and amortization was $21,766 and $20,400 for the Memorialization segment, $16,807 and $17,744 for the Industrial Technologies segment, $15,935 and $28,943 for the Brand Solutions segment, and $2,063 and $3,354 for Corporate and Non-Operating, for the nine months ended June 30, 2025 and 2024, respectively.

** Acquisition and divestiture costs, ERP system integration costs, and strategic initiatives and other charges were $552 and $1,108 for the Memorialization segment, $9,079 and $4,490 for the Industrial Technologies segment, $1,692 and $1,473 for the Brand Solutions segment, and income of $10,481 and costs of $1,441 for Corporate and Non-Operating, for the three months ended June 30, 2025 and 2024, respectively. Acquisition costs, ERP system integration costs, and strategic initiatives and other charges were $4,265 and $2,204 for the Memorialization segment, $15,462 and $14,288 for the Industrial Technologies segment, $2,822 and $2,694 for the Brand Solutions segment, and $631 and $3,507 for Corporate and Non-Operating, for the nine months ended June 30, 2025 and 2024, respectively.

Strategic initiatives and other items includes charges for exit and disposal activities (including severance and other employee termination benefits) totaling expenses of $2,438 and $1,079 for the three months ended June 30, 2025 and 2024, respectively, and expenses of $1,133 and $3,862 for the nine months ended June 30, 2025 and 2024, respectively.

 
ADJUSTED NET INCOME AND EPS RECONCILIATION (Unaudited)

(In thousands, except per share data)
    
 Three Months Ended

June 30,
 Nine Months Ended

June 30,
 2025

 2024

 2025

 2024

  per share  per share  per share  per share
Net income attributable to Matthews$15,387 $0.49  $1,777 $0.06  $2,999 $0.10  $8,501 $0.27 
Acquisition and divestiture costs(1) (6,901) (0.22)  1,626  0.05   5,807  0.19   4,036  0.13 
Strategic initiatives and other charges(2) 10,615  0.33   6,715  0.22   14,516  0.45   15,812  0.51 
Gain on sale of SGK Business (14,155) (0.45)       (14,155) (0.45)     
Highly inflationary accounting losses (primarily non-cash)(3) 325  0.01   185  0.01   1,036  0.03   895  0.03 
Non-service pension and postretirement expense(4) 106     82     305  0.01   246  0.01 
Amortization 2,605  0.08   6,777  0.22   12,271  0.39   20,843  0.67 
Tax-related(5) 1,207  0.04   136     1,207  0.04   136   
Adjusted net income$9,189 $0.28  $17,298 $0.56  $23,986 $0.76  $50,469 $1.62 
            
Note: The after-tax gain on sale of the SGK Business reflects the estimated discrete tax impacts of the divestiture transaction. Other adjustments to net income for non-GAAP reconciling items were calculated using an income tax rate of 18.2% and 23.7% for the three and nine months ended June 30, 2025, respectively, and 13.0% and 18.8% for the three and nine months ended June 30, 2024, respectively.
(1)Includes certain non-recurring items associated with recent acquisition and divestiture activities and also includes a loss of$2,072for the three andninemonths endedJune 30, 2025related to the divestiture of a business in the Industrial Technologies segment. The fiscal 2025 third quarter amount reflects a reclassification of transaction costs totaling$9,738, which have been presented as a component of gain on sale of SGK Business.
(2)Includes certain non-recurring costs associated with commercial, operational and cost-reduction initiatives, and costs associated with global ERP system integration efforts. Also includes legal costs related to an ongoing dispute with Tesla, Inc. ("Tesla"), which totaled$5,795and$3,166for the three months endedJune 30, 2025and2024, respectively, and$14,419and$8,138for theninemonths endedJune 30, 2025and2024, respectively. Fiscal 2025 includes costs related to the Company's 2025 contested proxy which totaled$207for the three months endedJune 30, 2025and$5,109for theninemonths endedJune 30, 2025. Fiscal 2025 includes net gains on the sales of certain significant property and other assets of$8,655for theninemonths endedJune 30, 2025. Fiscal 2025 also includes loss recoveries totaling$538for the three months endedJune 30, 2025and$1,708for theninemonths endedJune 30, 2025which were related to a previously disclosed theft of funds by a former employee initially identified in fiscal 2015.
(3)Represents exchange losses associated with highly inflationary accounting related to the Company's Turkish subsidiaries.
(4)Non-service pension and postretirement expense includes interest cost, expected return on plan assets, amortization of actuarial gains and losses, curtailment gains and losses, and settlement gains and losses. These benefit cost components are excluded from adjusted EBITDA since they are primarily influenced by external market conditions that impact investment returns and interest (discount) rates. Curtailment gains and losses and settlement gains and losses are excluded from adjusted EBITDA since they generally result from certain non-recurring events, such as plan amendments to modify future benefits or settlements of plan obligations. The service cost and prior service cost components of pension and postretirement expense are included in the calculation of adjusted EBITDA, since they are considered to be a better reflection of the ongoing service-related costs of providing these benefits. Please note that GAAP pension and postretirement expense or the adjustment above are not necessarily indicative of the current or future cash flow requirements related to these employee benefit plans.
(5)Represents tax-related items incurred in connection with assets the Company previously wrote off in Russia.
 



 
CONSTANT CURRENCY SALES AND ADJUSTED EBITDA RECONCILIATION (Unaudited)

(In thousands)
          
 Memorialization Industrial Technologies Brand Solutions Corporate and Non-Operating Consolidated
Reported sales for the quarter ended June 30, 2025$203,728  $87,901  $57,748  $  $349,377 
Changes in foreign exchange translation rates (222)  (2,944)  (1,405)     (4,571)
Constant currency sales for the quarter ended June 30, 2025$203,506  $84,957  $56,343  $  $344,806 
          
Reported sales for the nine months ended June 30, 2025$599,834  $249,269  $329,745  $  $1,178,848 
Changes in foreign exchange translation rates 285   (1,029)  1,839      1,095 
Constant currency sales for the nine months ended June 30, 2025$600,119  $248,240  $331,584  $  $1,179,943 



          
Reported adjusted EBITDA for the quarter ended June 30, 2025$42,801  $9,047  $5,004  $(12,302) $44,550 
Changes in foreign exchange translation rates 4   (150)  (384)  81   (449)
Constant currency adjusted EBITDA for the quarter ended June 30, 2025$42,805  $8,897  $4,620  $(12,221) $44,101 
          
Reported adjusted EBITDA for the nine months ended June 30, 2025$124,451  $16,921  $32,892  $(38,277) $135,987 
Changes in foreign exchange translation rates 81   (80)     27   28 
Constant currency adjusted EBITDA for the nine months ended June 30, 2025$124,532  $16,841  $32,892  $(38,250) $136,015 
                    



 
NET DEBT AND NET DEBT LEVERAGE RATIO RECONCILIATION (Unaudited)

(Dollars in thousands)
        
 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024
        
Long-term debt, current maturities$6,379  $6,357  $7,260  $6,853 
Long-term debt 696,120   815,823   801,951   769,614 
Total debt 702,499   822,180   809,211   776,467 
        
Less: Cash and cash equivalents (20,383)  (40,246)  (33,513)  (40,816)
        
Net Debt$682,116  $781,934  $775,698  $735,651 
        
Adjusted EBITDA (trailing 12 months)$194,116  $194,312  $199,698  $205,157 
        
Net Debt Leverage Ratio 3.5   4.0   3.9   3.6 
                

Matthews International Corporation

Corporate Office

Two NorthShore Center

Pittsburgh, PA 15212-5851

Phone: (412) 442-8200

 Contact:  Steven F. Nicola
  Chief Financial Officer and Treasurer


EN
05/08/2025

Underlying

Reports on Matthews International Corporation Class A

 PRESS RELEASE

Matthews International Reports Results for Fiscal 2025 Third Quarter

Matthews International Reports Results for Fiscal 2025 Third Quarter Fiscal 2025 Third Quarter Financial Highlights: GAAP Earnings per share of $0.49 vs. $0.06 a year agoMemorialization and Industrial Technologies report higher adjusted EBITDAOutstanding debt reduced by $120 millionCompany realizing benefits of cost reduction actionsStrategic alternatives evaluation progressing wellCompany maintains outlook for fiscal 2025Webcast: Wednesday, August 6, 2025, 9:00 a.m., (201) 689-8471 PITTSBURGH, Aug. 05, 2025 (GLOBE NEWSWIRE) -- (NASDAQ GSM: MATW) today announced financial results f...

 PRESS RELEASE

Matthews International Declares Quarterly Dividend

Matthews International Declares Quarterly Dividend PITTSBURGH, July 30, 2025 (GLOBE NEWSWIRE) -- (NASDAQ GSM: MATW) announced that its Board of Directors declared, at its regularly scheduled meeting today, a dividend of $0.25 per share on the Company’s common stock. The dividend is payable August 25, 2025 to stockholders of record August 11, 2025. About Matthews International CorporationMatthews International Corporation is a global provider of memorialization products, industrial Matthews International Corporation operates through two core global businesses – Industrial Technologies a...

 PRESS RELEASE

Matthews International Announces Third Quarter Fiscal 2025 Earnings Re...

Matthews International Announces Third Quarter Fiscal 2025 Earnings Release and Conference Call PITTSBURGH, July 10, 2025 (GLOBE NEWSWIRE) -- (Nasdaq GSM: MATW) today announced plans to release its third quarter fiscal year 2025 earnings results after the market closes on Tuesday, August 5, 2025. The Company will host a conference call and webcast to review the financial and operating results for the period and discuss its outlook. Participating in the call will be Joseph C. Bartolacci, President and CEO and Steven F. Nicola, Chief Financial Officer and Treasurer. A question-and-a...

Moody's Ratings affirms Matthews' B1 CFR following the majority stake ...

Moody's Ratings (Moody's) affirmed Matthews International Corporation's (Matthews) B1 corporate family rating (CFR) and B1-PD probability of default rating (PDR). At the same time, we affirmed the B3 rating on the $300 million senior secured second lien notes due 2027. We also changed Matthews' spec...

 PRESS RELEASE

Matthews International Announces Acquisition of the Dodge Company

Matthews International Announces Acquisition of the Dodge Company PITTSBURGH, May 12, 2025 (GLOBE NEWSWIRE) -- Matthews Memorialization, a division of Matthews International Corporation (NASDAQ GSM: MATW) (“Matthews”), today announced it has acquired The Dodge Company (“Dodge”) for $57 Million. Dodge is a leading supplier of embalming chemicals and supplies in North America and sells a variety of other related products to Funeral Homes. Matthews Memorialization is a leading supplier to Funeral Homes and Cemeteries in North America, selling a broad range of products including caskets, bron...

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