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    Jacob Lacks • Wolfe Research, LLC

    Jacob Lacks's questions to Matson Inc (MATX) leadership

    Jacob Lacks's questions to Matson Inc (MATX) leadership • Q2 2025

    Question

    Jacob Lacks of Wolfe Research, LLC inquired about Matson's third-quarter volume expectations, questioning if the anticipated decline is due to lapping extra sailings from the prior year or a new utilization headwind. He also asked about the competitive impact of new expedited services and whether the seasonal earnings pattern between Q3 and Q4 would resemble recent years.

    Answer

    Matthew Cox, Chairman, Director & CEO, explained that the Q3 outlook is shaped by several factors, including lapping last year's heightened demand, customers having healthy inventory levels which suggests a more muted peak season, and the expectation of a traditional Q3 to Q4 seasonal decline. Regarding competition, Cox noted that while other carriers are attempting to offer near-expedited services, these are difficult to sustain in a low spot-rate environment and may not have staying power. He affirmed that the back-half seasonality should follow a relatively traditional pattern.

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    Jacob Lacks's questions to Matson Inc (MATX) leadership • Q1 2025

    Question

    Jacob Lacks from Wolfe Research questioned if Matson would consider temporarily canceling MAX sailings due to the sharp decline in China volumes. He also asked about any observed market changes following the recent elimination of the de minimis exemption for shipments.

    Answer

    Matthew Cox, Chairman and CEO, affirmed Matson's commitment to not blanking sailings, emphasizing that service reliability is a core part of their brand and a long-term value driver, especially during disruptive periods. Regarding the de minimis exemption, Cox noted that some e-commerce firms are already shifting business models to hold inventory in the U.S., which he sees as a long-term opportunity for Matson to capture cargo that previously moved via airfreight.

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    Jacob Lacks's questions to Matson Inc (MATX) leadership • Q4 2024

    Question

    Jacob Lacks from Wolfe Research inquired about Matson's view on the USTR's proposed rule on Chinese shipbuilding, the potential indirect impacts from changes to the de minimis exemption, and whether the full-year guidance implies structurally higher earnings compared to pre-Red Sea levels.

    Answer

    Chairman and CEO Matthew Cox characterized the USTR proposal as 'early innings' in a broader U.S.-China trade discussion, noting it's too early to determine the impact. EVP and CFO Joel M. Wine stated that changes to the de minimis rule could be 'neutral to positive' if it shifts freight from air to Matson's expedited ocean services. Matthew Cox confirmed that pricing is structurally higher, attributing it to a growing mix of demand from customers converting from airfreight and from the e-commerce segment.

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    Jacob Lacks's questions to Matson Inc (MATX) leadership • Q3 2024

    Question

    Jacob Lacks inquired about the sustainability of robust import data compared to weaker domestic freight data. He also asked if management's view of 2023 as a 'normal' baseline for operating income has changed, and followed up on whether the MAX fleet would remain at six vessels and if another cost step-down could occur in 2026.

    Answer

    Chairman and CEO Matthew Cox attributed import strength to a healthy U.S. consumer, a structural shift to e-commerce, airfreight conversion, and risk management ahead of ILA negotiations. He noted that while 2023 was once seen as a potential baseline, 2024 has been significantly stronger, and it's difficult to predict when conditions will normalize. EVP and CFO Joel M. Wine confirmed the MAX fleet will remain at six ships and does not expect a significant cost step-down in 2026 beyond the savings already identified for 2025.

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