Jake Lacks

Jake Lacks inquired about Matson's 2026 guidance approach compared to the previous year, specifically if the Red Sea sailings situation impacts their outlook. He also asked about the observed seasonal recovery post-Lunar New Year and whether data center-related volumes are shifting from air freight to Matson's expedited ocean service.

Answer

Matt Cox, Chairman and CEO, stated that Matson's guidance is independent of the Red Sea situation, as their product is increasingly distanced from generic ocean services, and the Transpacific trade is already oversupplied. He noted that the post-Lunar New Year recovery feels traditional, without a significant pre-holiday spike. Cox confirmed that a subcomponent of e-goods, including racking and servers for data centers, is indeed moving from air freight to their expedited service, a trend observed in Q4 2025 and expected to continue in 2026. Joel Wine, Executive VP and CFO, clarified that $6.4 million in port fees were paid in Q4.

Jake Lacks sought clarification on whether any port fees were paid and included in Matson's Q4 2025 financial results.

Answer

Joel Wine, Executive Vice President and CFO, confirmed that the previously disclosed $6.4 million represented the total port fees paid in the fourth quarter.

Jake Lacks from Wolfe Research asked if the employee buyout program costs are included in the $3.5 billion savings plan, sought an early indication of the program's potential size, and requested an update on the 'Efficiency Reimagined' initiative's outlook for 2026.

Answer

CFO Brian Dykes confirmed the driver separation package is a key lever to achieve the $3.5 billion savings target by accelerating planned attrition. Regarding 'Efficiency Reimagined,' he noted a significant ramp-up in Q2 that will continue through the second half of the year and is expected to generate a similar level of savings in 2026. CEO Carol Tomé added that while it's too early to provide specific numbers on the driver buyout, it is progressing as expected.