Matthews International (MATW) investor relations material

Executive summary

• Achieved a strategic pivot by reducing leverage ratio below 3x through major divestitures and debt reduction, including the sale of warehouse automation and European packaging businesses.

• Q1 2026 net income was $43.6M ($1.39/share), reversing a prior-year loss, driven by divestiture gains and improved Memorialization segment performance.

• Memorialization segment remains core, with sales rising to $204.2M, strong performance, and successful Dodge acquisition integration.

• Industrial Technologies segment sales declined to $69M, impacted by divestitures, engineering challenges, and ongoing Tesla litigation.

• Brand Solutions now consists solely of Propelis investment, following SGK Business divestiture.

Financial highlights

• Q1 2026 consolidated sales were $284.8M, down from $402M year-over-year due to divestitures.

• Adjusted EBITDA was $35.2M, down from $40M prior year, reflecting lower engineering performance.

• Adjusted net loss was $6M ($0.19/share) vs. adjusted net income of $4.3M ($0.14/share) prior year.

• Gross margin improved to 35.0% from 31.3% year-over-year.

• Operating profit included $113.2M in net pre-tax gains on divestitures.

Outlook and guidance

• FY2026 adjusted EBITDA guidance maintained at at least $180M, including estimated 40% share of Propelis.

• Full-year growth in Memorialization expected from Dodge acquisition and cost reductions in engineering.

• Energy business order timing uncertain; $30-35M revenue expected from energy storage in FY2026.

• CapEx projected at $20–30M; working capital benefits of $5-10M anticipated.

• Board is conducting a strategic review of the business portfolio.