Matthews International (MATW) investor relations material

Executive summary

• Q3 2026 was challenging, with all major risk factors materializing, including delays in engineering orders, tariff impacts, slower synergy realization at Propelis, and geopolitical/economic headwinds; significant divestitures and restructuring actions were taken, and the CEO announced retirement with succession planning underway.

• Net loss for Q3 2026 was $23.7 million (EPS: $(0.75)), compared to net income of $15.4 million (EPS: $0.49) last year; sales for the nine months ended June 30, 2026 were $789.4 million, down from $1.18 billion in 2025, primarily due to divestitures.

• Adjusted EBITDA for Q3 2026 was $35.0 million (margin 14.2%), down from $44.6 million (margin 12.8%) last year; for the nine months, adjusted EBITDA was $115.0 million, down from $136.0 million.

• Major divestitures included SGK, warehouse automation, and European packaging and tooling businesses; proceeds and Propelis equity redemption were used to reduce debt.

• Product Identification sales grew 5% year-over-year in Q3, supported by new partnerships and product launches.

Financial highlights

• Q3 2026 sales were $246.0 million, down from $349.4 million in Q3 2025; YTD sales were $789.4 million, down from $1,178.8 million YTD 2025.

• Q3 2026 diluted EPS was $(0.75), compared to $0.49 in Q3 2025; adjusted EPS was $0.06, down from $0.28.

• Memorialization segment sales rose to $627.5 million for the nine months, up $27.7 million year-over-year, driven by the Dodge acquisition and price realization.

• Industrial Technologies sales dropped to $150.3 million from $249.3 million, reflecting divestitures and project delays.

• Net cash used in operating activities was $69.5 million for the nine months ended June 30, 2026.

Outlook and guidance

• Adjusted EBITDA guidance for fiscal 2026 revised to $158–$162 million, including estimated 40% share of Propelis adjusted EBITDA.

• Memorialization segment expected to deliver record full-year adjusted EBITDA of ~$175 million, but faces continued input cost pressures and demographic headwinds.

• Propelis expected to reach $130 million annualized EBITDA run rate by end of calendar 2026, with marketing process for sale to begin within 12 months; synergy realization ongoing but below initial forecasts.

• Industrial Technologies faces ongoing delays in energy storage and engineering projects, with improvement anticipated in 2027.

• Capital spending for fiscal 2026 estimated at $15–25 million, funded by operating cash.