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What changed in Matson, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Matson, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+237 added−249 removedSource: 10-K (2026-02-27) vs 10-K (2025-02-28)

Top changes in Matson, Inc.'s 2025 10-K

237 paragraphs added · 249 removed · 217 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

67 edited+2 added−6 removed48 unchanged
Biggest changePFEIFFER (4)(7) 1992 979814 2,245 300 — 713’ 6” 23.0 28,000 — MOKIHANA (4) 1983 655397 1,994 354 1,323 860’ 2” 23.0 30,000 — MAUNALEI (4)(7) 2006 1181627 1,992 328 — 681’ 1” 22.1 33,000 — MATSON KODIAK (4)(7) 1987 910308 1,668 280 — 710’ 0” 20.0 20,000 — MATSON ANCHORAGE (4)(7) 1987 910306 1,668 280 — 710’ 0” 20.0 20,000 — MATSON TACOMA (4)(7) 1987 910307 1,668 280 — 710’ 0” 20.0 20,000 — KAMOKUIKI (5) 2000 9232979 707 100 — 433’ 9” 17.5 8,000 — OLOMANA (6) ​ 2004 ​ 9184225 ​ 645 ​ 120 ​ — ​ 388’ 7” ​ 14.0 ​ 8,000 ​ — IMUA (6) 2004 9184237 645 90 — 388’ 6” 15.0 8,000 — LILOA II (6) 2006 9184249 630 90 — 388’ 6” 15.0 ​ 8,000 ​ — PAPA MAU (6) 1999 9141704 521 60 — 381’ 5” 14.0 6,000 — Vessels-Chartered: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MATSON MAGNOLIA (6) ​ 2006 ​ 9302578 ​ 5,060 ​ 454 ​ — ​ 964’ 9” ​ 23.0 ​ 67,000 ​ December 2027 MATSON WAIKIKI (6) ​ 2008 ​ 9349801 ​ 4,946 ​ 400 ​ — ​ 902’ 0” ​ 22.5 ​ 62,000 ​ September 2028 MATSON LANAI (6) ​ 2007 ​ 9334143 ​ 4,253 ​ 400 ​ — ​ 855’ 2” ​ 24.3 ​ 53,000 ​ August 2027 MATSON MAUI (6) ​ 2007 ​ 9340764 ​ 4,253 ​ 400 ​ — ​ 854’ 8” ​ 24.5 ​ 50,000 ​ March 2026 MATSON OAHU (6) ​ 2008 ​ 9352406 ​ 4,245 ​ 535 ​ — ​ 853’ 0” ​ 24.3 ​ 53,000 ​ November 2027 MATSON KAUAI (6) ​ 2008 ​ 9353278 ​ 4,218 ​ 350 ​ — ​ 881’ 11” ​ 24.8 ​ 52,000 ​ August 2027 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Barges-Owned: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MAUNA LOA (4) 2013 1247426 500 78 — 362’ 6” — 13,000 — HALEAKALA (4) 2022 1324310 620 72 — 362’ 6” — 15,000 — ISLANDER (5) 2024 ​ 1348946 ​ 100 ​ — ​ — ​ 180’ 0” ​ — ​ 2,000 ​ — Barges-Chartered: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ILIULIUK BAY (4) 2013 1249384 178 — — 250’ 0” — 4,000 December 2025 (1) Container numbers are based upon vessel construction specifications.
Biggest changePFEIFFER (4)(7) 1992 979814 2,245 300 — 713’ 6” 23.0 28,000 — MAUNALEI (4)(7) 2006 1181627 1,992 328 — 680’ 8” 22.1 33,000 — MATSON KODIAK (4)(7) 1987 910308 1,668 280 — 710’ 0” 20.0 20,000 — MATSON ANCHORAGE (4)(7) 1987 910306 1,668 280 — 710’ 0” 20.0 20,000 — MATSON TACOMA (4)(7) 1987 910307 1,668 280 — 710’ 0” 20.0 20,000 — KAMOKUIKI (5) 2000 9232979 689 100 — 433’ 9” 17.5 8,000 — OLOMANA (6) ​ 2004 ​ 9184225 ​ 645 ​ 120 ​ — ​ 388’ 7” ​ 14.0 ​ 8,000 ​ — IMUA (6) 2004 9184237 645 90 — 388’ 6” 15.0 8,000 — LILOA II (6) 2006 9184249 630 90 — 388’ 6” 15.0 ​ 8,000 ​ — PAPA MAU (6) 1999 9141704 521 60 — 381’ 5” 14.0 6,000 — Vessels-Chartered: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ MATSON MAGNOLIA (6) ​ 2006 ​ 9302578 ​ 5,060 ​ 454 ​ — ​ 964’ 9” ​ 23.0 ​ 67,000 ​ December 2027 MATSON WAIKIKI (6) ​ 2008 ​ 9349801 ​ 4,946 ​ 400 ​ — ​ 902’ 3” ​ 22.5 ​ 62,000 ​ September 2028 MATSON LANAI (6) ​ 2007 ​ 9334143 ​ 4,253 ​ 400 ​ — ​ 853’ 2” ​ 24.3 ​ 53,000 ​ August 2027 MATSON MAUI (6) ​ 2007 ​ 9340764 ​ 4,253 ​ 400 ​ — ​ 856’ 9” ​ 24.5 ​ 52,000 ​ March 2029 MATSON OAHU (6) ​ 2008 ​ 9352406 ​ 4,245 ​ 535 ​ — ​ 853’ 2” ​ 24.3 ​ 53,000 ​ November 2027 MATSON KAUAI (6) ​ 2008 ​ 9353278 ​ 4,218 ​ 350 ​ — ​ 881’ 11” ​ 24.8 ​ 52,000 ​ August 2027 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Barges-Owned: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ HALEAKALA (4) 2022 1324310 620 72 — 362’ 6” — 12,000 — MAUNA LOA (4) 2013 1247426 600 72 — 362’ 6” — 13,000 — EXPLORER (5) ​ 2012 ​ 1345855 ​ 162 ​ — ​ — ​ 230’ 0” ​ — ​ 3,000 ​ — ISLANDER (5) 2024 ​ 1348946 ​ 100 ​ — ​ — ​ 180’ 0” ​ — ​ 2,000 ​ — PACIFIC (5) 2015 ​ 1352540 ​ — ​ — ​ — ​ 373’ 8” ​ — ​ 14,000 ​ — OCEANIA (5) ​ 2010 ​ 1227936 ​ — ​ — ​ — ​ 288’ 2” ​ — ​ 7,000 ​ — Barges-Chartered: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ILIULIUK BAY (4) 2013 1249384 178 — — 250’ 0” — 4,000 December 2032 (1) Twenty-foot Equivalent Units (“TEU”) is a standard measure of cargo volume correlated to a standard 20-foot dry cargo container.
The vessels then continue on to Ningbo and Shanghai, China, where they are loaded with cargo to be discharged primarily in Long Beach, California at a Matson-exclusive terminal operated by SSAT. These vessels also carry cargo destined for Hawaii which originated in Guam, Micronesia, Okinawa, China and other Asian countries. ​ Matson operates a second expedited service to the U.S.
The vessels then continue on to Ningbo and Shanghai, China, where they are loaded with cargo to be discharged primarily at Long Beach, California at a Matson-exclusive terminal operated by SSAT. These vessels also carry cargo destined for Hawaii which originated in Guam, Micronesia, Okinawa, China and other Asian countries. ​ Matson operates a second expedited service to the U.S.
West Coast, including three facilities dedicated for MatNav’s use, in Long Beach and Oakland, California and in Tacoma, Washington. ​ Matson utilizes the services of other third-party terminal operators at the other ports where its vessels are served. ​ ​ ​ 3 Table of Contents Vessel Information: ​ Vessels: ​ Matson’s fleet includes both owned and chartered vessels and barges.
West Coast, including three facilities dedicated for Matson’s use, in Long Beach and Oakland, California and in Tacoma, Washington. ​ Matson utilizes the services of other third-party terminal operators at the other ports where its vessels are served. ​ ​ ​ 3 Table of Contents Vessel Information: ​ Vessels: ​ Matson’s fleet includes both owned and chartered vessels and barges.
Freight Forwarding Services: Matson Logistics provides Freight Forwarding services primarily to the Alaska market through its wholly-owned subsidiary, Span Intermediate, LLC (“Span Alaska”). Span Alaska’s business aggregates LCL freight at its cross-dock facility in Auburn, Washington for consolidation and shipment to its service center in Anchorage and a network of other facilities in Alaska.
Freight Forwarding Services: Matson Logistics provides Freight Forwarding services primarily to the Alaska market through its wholly-owned subsidiary, Span Intermediate, LLC (“Span Alaska”). Span Alaska’s business aggregates LCL freight at its cross-dock facilities in Auburn, Washington for consolidation and shipment to its service center in Anchorage and a network of other facilities in Alaska.
For additional information on Logistics revenues for the years ended December 31, 2024, 2023 and 2022, see Note 2 to the Consolidated Financial Statements in Item 8 of Part II below. ​ Seasonality: ​ Matson Logistics’ businesses experience seasonality in demand for their services as follows: (i) Transportation Brokerage Services generally sees elevated truckload and intermodal shipment activity starting in the second quarter of each year, culminating in a peak season throughout the third quarter; (ii) Freight Forwarding Services experiences seasonal trends similar to Matson’s Ocean Transportation Alaska service; and (iii) Supply Chain Management and Other Services demand is generally stronger in the second and third quarters similar to Matson’s Ocean Transportation China service. ​ ​ C.
For additional information on Logistics revenues for the years ended December 31, 2025, 2024 and 2023, see Note 2 to the Consolidated Financial Statements in Item 8 of Part II below. ​ Seasonality: ​ Matson Logistics’ businesses experience seasonality in demand for their services as follows: (i) Transportation Brokerage services generally sees elevated truckload and intermodal shipment activity starting in the second quarter of each year, culminating in a peak season throughout the third quarter; (ii) Freight Forwarding services experiences seasonal trends similar to Matson’s Ocean Transportation Alaska service; and (iii) Supply Chain Management and other services demand is generally stronger in the second and third quarters similar to Matson’s Ocean Transportation China service. ​ ​ C.
There are also two primary U.S. flagged Jones Act barge operators, Alaska Marine Lines, which mainly provides services from Seattle, Washington to the ports of Anchorage, Dutch Harbor, and other locations in Alaska, and Samson Tug & Barge, which mainly serves Western Alaska and other locations.
There are also two primary U.S. flagged Jones Act barge operators, Alaska Marine Lines, which mainly provides services from Seattle, Washington to the ports of Anchorage, Kodiak and Dutch Harbor, and other locations in Alaska, and Samson Tug & Barge, which mainly serves Western Alaska and other locations.
West Coast with three exclusive use terminals provided by SSAT that allow for quicker and more reliable port calls; a dedicated inter-island barge network which is integrated with Matson’s line haul schedule; roll-on/roll-off service from Long Beach and Oakland; a world-class customer service team; and efficiency and experience in handling cargo of many types. ​ Alaska Service: Matson’s Alaska service has one major U.S. flagged Jones Act competitor, Totem Ocean Trailer Express, Inc., which operates a roll-on/roll-off service between Tacoma, Washington and Anchorage, Alaska.
West Coast with three exclusive use terminals provided by SSAT that allow for quicker and more reliable port calls; a dedicated inter-island barge network which is integrated with Matson’s line haul schedule; roll-on/roll-off service from Long Beach and Oakland; a world-class customer service team; and efficiency and experience in handling cargo of many types. ​ Alaska Service: Matson’s Alaska service has one primary U.S. flagged Jones Act competitor, Totem Ocean Trailer Express, Inc., which operates a roll-on/roll-off service between Tacoma, Washington and Anchorage, Alaska.
Matson also leases containers, chassis and other equipment under various operating lease agreements. ​ Operating Costs: ​ Major components of Matson’s Ocean Transportation operating costs are as follows: ​ Direct Cargo Expense includes terminal handling costs including labor and wharfage, outside purchased transportation and other related costs. ​ Vessel Operating Expense includes crew wages and related costs; fuel; pilots, tugs, lines and related costs; vessel charter expenses; and other vessel operating related expenses. ​ Operating Overhead Expense includes vessel repair and maintenance costs, inactive vessel costs, dry-docking amortization, equipment lease costs, equipment repair costs, insurance, port engineers and other maintenance costs, and other vessel and shoreside related overhead and other indirect costs. ​ Competition: ​ The following is a summary of major competitors in Matson’s Ocean Transportation segment: ​ Hawaii Service: Matson’s Hawaii service has one major U.S. flagged Jones Act competitor, Pasha, which operates container and roll-on/roll-off services between the ports of Long Beach, Oakland and San Diego, California to Hawaii.
Matson also leases containers, chassis and other equipment under various operating lease agreements. ​ Operating Costs: ​ Major components of Matson’s Ocean Transportation operating costs are as follows: ​ Direct Cargo Expense includes terminal handling costs including stevedoring and wharfage, outside purchased transportation and other related costs. ​ Vessel Operating Expense includes crew wages and related costs; fuel; pilots, tugs, lines and related costs; vessel charter expenses; and other vessel operating-related expenses. ​ Operating Overhead Expense includes vessel repair and maintenance costs, inactive vessel costs, dry-docking amortization, equipment lease costs, equipment repair costs, insurance, port engineers and other maintenance costs, and other vessel and shoreside related overhead and other indirect costs. ​ Competition: ​ The following is a summary of major competitors in Matson’s Ocean Transportation segment: ​ Hawaii Service: Matson’s Hawaii service has one primary U.S. flagged Jones Act competitor, Pasha, which operates container and roll-on/roll-off services between the ports of Long Beach, Oakland and San Diego, California to Hawaii.
The NZX service also delivers and sells domestic bulk fuel to a variety of these islands. ​ Terminal and Other Related Services: ​ Matson provides stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance and other terminal services (collectively, “terminal services”) at terminals located on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai; and in the Alaska terminal locations of Anchorage, Kodiak and Dutch Harbor. ​ SSAT currently provides terminal and stevedoring services to various carriers at eight terminal facilities on the U.S.
The NZX service also delivers and sells domestic bulk fuel to a variety of these islands. ​ Terminal and Other Related Services: ​ Matson provides stevedoring, refrigerated cargo services, inland transportation, container equipment maintenance and other terminal services (collectively, “terminal services”) at terminals located on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai; and in the Alaska terminal locations of Anchorage, Kodiak and Dutch Harbor. ​ SSAT currently provides terminal and stevedoring services to various carriers at seven terminal facilities on the U.S.
For additional information on Ocean Transportation revenues for the years ended December 31, 2024, 2023 and 2022, see Note 2 to the Consolidated Financial Statements in Item 8 of Part II below. ​ Seasonality: ​ Historically, Matson’s Ocean Transportation services have typically experienced seasonality in volume, generally following a pattern of increasing volume starting in the second quarter of each year culminating in the early part of the fourth quarter.
For additional information on Ocean Transportation revenues for the years ended December 31, 2025, 2024 and 2023, see Note 2 to the Consolidated Financial Statements in Item 8 of Part II below. ​ Seasonality: ​ Historically, Matson’s Ocean Transportation services have typically experienced seasonality in volume, generally following a pattern of increasing volume starting in the second quarter of each year culminating in the early part of the fourth quarter.
West Coast and Guam, as part of its CLX service. Matson also provides weekly U.S. flag barge service connecting Guam to the Commonwealth of the Northern Mariana Islands.
West Coast and Guam, as part of its CLX service. Matson also provides weekly U.S. flag service connecting Guam to the Commonwealth of the Northern Mariana Islands.
Details of Matson’s active and reserve fleet as of December 31, 2024 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Usable Cargo Capacity ​ ​ ​ Vessel ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Containers (1) ​ Vehicles ​ ​ ​ Design ​ Approximate ​ Charter ​ Year Official ​ Reefer Speed Deadweight Expiration Name of Vessel ​ Built ​ Number ​ TEUs ​ Slots ​ Autos ​ Length ​ (Knots) (2) ​ (Long Tons) ​ Date (3) Vessels-Owned: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DANIEL K.
Details of Matson’s active and reserve fleet as of December 31, 2025 are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Usable Cargo Capacity ​ ​ ​ Vessel ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Containers (1) ​ Vehicles ​ ​ ​ Design ​ Approximate ​ Charter ​ ​ ​ ​ Year ​ ​ ​ Official ​ ​ ​ ​ ​ ​ ​ Reefer ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Speed ​ ​ ​ Deadweight ​ ​ ​ Expiration Name of Vessel ​ Built ​ Number ​ TEUs ​ Slots ​ Autos ​ Length ​ (Knots) (2) ​ (Long Tons) ​ Date (3) Vessels-Owned: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ DANIEL K.
Matson has no present intention of withdrawing from and does not anticipate the termination of any of the multi-employer pension plans to which it contributes (see Notes 11 and 12 to the Consolidated Financial Statements in Item 8 of Part II below for a discussion of withdrawal liabilities under certain multi-employer pension plans). ​ ​ D.
Matson has no present intention of withdrawing from and does not anticipate the termination of any of the multi-employer pension plans to which it contributes (see Notes 11 and 12 to the Consolidated Financial Statements in Item 8 of Part II below for a discussion of withdrawal liabilities under certain multi-employer pension plans). ​ ​ 11 Table of Contents D.
As shown in the chart below, Matson’s shoreside and seagoing union employees comprise 69 percent of Matson’s global workforce. ​ ​ Matson and SSAT are also members of the Pacific Maritime Association (“PMA”), which on behalf of its members negotiates collective bargaining agreements with the International Longshore and Warehouse Union (“ILWU”) on the U.S. West Coast.
As shown in the chart below, Matson’s shoreside and seagoing union employees comprise 68 percent of Matson’s global workforce. ​ ​ Matson and SSAT are also members of the Pacific Maritime Association (“PMA”), which on behalf of its members negotiates collective bargaining agreements with the International Longshore and Warehouse Union (“ILWU”) on the U.S. West Coast.
INOUYE (4)(8) ​ 2018 1274136 3,160 408 ​ — 854’ 0” 23.5 51,000 — KAIMANA HILA (4)(8) ​ 2019 ​ 1274135 ​ 3,020 ​ 408 ​ — ​ 854’ 0” ​ 23.5 52,000 — MANOA (4)(7) 1982 651627 2,824 408 — 860’ 2” 23.0 35,000 — MAHIMAHI (4)(7) 1982 653424 2,824 408 — 860’ 2” 23.0 35,000 — LURLINE (4) ​ 2019 ​ 1274143 ​ 2,750 ​ 432 ​ 500 ​ 869’ 5” ​ 23.0 ​ 51,000 ​ — MATSONIA (4) ​ 2020 ​ 1274123 ​ 2,750 ​ 432 ​ 500 ​ 869’ 5” ​ 23.0 ​ 51,000 ​ — MANULANI (4)(7) 2005 1168529 2,378 284 — 712’ 0” 22.5 38,000 — MAUNAWILI (4)(7) 2004 1153166 2,378 326 — 711’ 9” 22.5 37,000 — MANUKAI (4)(7)(8) 2003 1141163 2,000 270 — 711’ 9” 22.5 36,000 — R.J.
INOUYE (4)(8) ​ 2018 1274136 3,160 408 ​ — 854’ 0” 23.5 49,000 — KAIMANA HILA (4)(8) ​ 2019 ​ 1274135 ​ 3,020 ​ 408 ​ — ​ 854’ 0” ​ 23.5 52,000 — MANOA (4)(7) 1982 651627 2,824 408 — 860’ 2” 23.0 35,000 — MAHIMAHI (4)(7) 1982 653424 2,824 408 — 860’ 2” 23.0 35,000 — LURLINE (4) ​ 2019 ​ 1274143 ​ 2,750 ​ 432 ​ 500 ​ 869’ 5” ​ 23.0 ​ 51,000 ​ — MATSONIA (4) ​ 2020 ​ 1274123 ​ 2,750 ​ 432 ​ 500 ​ 869’ 5” ​ 23.0 ​ 51,000 ​ — MANULANI (4)(7) 2005 1168529 2,378 284 — 711’ 11” 23.0 38,000 — MAUNAWILI (4)(7) 2004 1153166 2,378 326 — 711’ 11” 22.5 37,000 — MANUKAI (4)(7)(8) 2003 1141163 2,000 270 — 711’ 9” 22.5 36,000 — R.J.
Other competitors include air freight carriers. ​ Matson’s China service (CLX and MAX) competes by offering fast and reliable service from the ports of Ningbo and Shanghai in China, and feeder services from other Asian ports of origin connecting in Shanghai, China, to Long Beach, California. Matson provides fixed day-of-the-week arrivals and industry leading cargo availability.
Other competitors include air freight carriers. ​ Matson’s China service (CLX and MAX) competes by offering fast and reliable service from the ports of Ningbo and Shanghai in China, and feeder services from other Asian origins connecting in Ningbo and Shanghai, China, to Long Beach, California. Matson provides fixed day-of-the-week arrivals and industry leading cargo availability.
Span Alaska also provides trucking services to its Auburn cross-dock facility and from its Alaska based cross-dock facilities to final customer destinations in Alaska.
Span Alaska also provides trucking services to its Auburn cross-dock facilities and from its Alaska-based cross-dock facilities to final customer destinations in Alaska.
Accordingly, the Company’s total rewards program contains several pay-for-performance components tied to individual, business unit and Company performance, as well as Matson’s stock price performance. ​ Succession and Career Planning: ​ Matson’s workforce is characterized by uniquely skilled, long-tenured employees.
Accordingly, the Company’s total rewards program contains several pay-for-performance components tied to individual, business unit and Company performance, as well as Matson’s stock price performance. ​ Succession and Career Planning: ​ We believe Matson’s workforce is characterized by uniquely skilled, long-tenured employees.
Established in 1987, Matson Logistics extends the geographic reach of Matson’s transportation network throughout North America and Asia, and is an asset-light business that provides a variety of logistics services to its customers including: (i) multimodal transportation brokerage of domestic and international rail intermodal services, long-haul and regional highway trucking services, specialized hauling, flat-bed and project services, less-than-truckload services, and expedited freight services (collectively, “Transportation Brokerage” services); (ii) less-than-container load (“LCL”) consolidation and freight forwarding services (collectively, “Freight Forwarding” services); (iii) warehousing, trans-loading, value-added packaging and distribution services (collectively, “Warehousing” services); and (iv) purchase order management, booking services, and non-vessel operating common carrier (“NVOCC”) freight forwarding services (collectively, “Supply Chain Management” services). ​ Our Mission and Vision: ​ Our mission is to move freight better than anyone.
Established in 1987, Matson Logistics extends the geographic reach of Matson’s transportation network throughout North America and Asia, and provides a variety of logistics services to its customers including: (i) multimodal transportation brokerage of domestic and international rail intermodal services, long-haul and regional highway trucking services, specialized hauling, flat-bed and project services, less-than-truckload services, and expedited freight services (collectively, “Transportation Brokerage” services); (ii) less-than-container load (“LCL”) consolidation and freight forwarding services (collectively, “Freight Forwarding” services); (iii) warehousing, trans-loading, value-added packaging and distribution services (collectively, “Warehousing” services); and (iv) purchase order management, booking services, and non-vessel operating common carrier (“NVOCC”) freight forwarding services (collectively, “Supply Chain Management” services). ​ Our Mission and Vision: ​ Our mission is to move freight better than anyone.
Matson has offices located in Shanghai, Ningbo, Shenzhen, Xiamen and Hong Kong, and has contracted with terminal operators in Ningbo and Shanghai. ​ Guam Service: Matson’s Guam service has one major competitor, APL, a subsidiary of CMA CGM, which operates a U.S. flagged container service connecting the U.S.
Matson has offices located in Shanghai, Ningbo, Shenzhen, Xiamen and Hong Kong, and has contracted with terminal operators in Ningbo and Shanghai. ​ Guam Service: Matson’s Guam service has one primary competitor, APL, a subsidiary of CMA CGM, which operates a U.S. flagged container service connecting the U.S.
EMPLOYEES AND LABOR RELATIONS ​ Human Capital Strategy: ​ In support of Matson’s vision to be a great place to work for all employees, the Company focuses on a variety of human capital programs that have been developed to attract, retain and motivate its employee workforce.
EMPLOYEES AND LABOR RELATIONS ​ Human Capital Strategy: ​ In support of Matson’s vision to be a great place to work, the Company focuses on a variety of human capital programs that have been developed to attract, retain and motivate its employee workforce.
Matson’s owned fleet represents an investment of approximately $2.5 billion. The majority of Matson’s owned fleet is made up of U.S. flagged and Jones Act qualified vessels that operate in Matson’s Hawaii, China, Guam, Japan, Micronesia and Alaska services.
Matson’s owned fleet represents an investment of approximately $2.4 billion. The majority of Matson’s owned fleet is made up of U.S. flagged and Jones Act qualified vessels that operate in Matson’s Hawaii, China, Guam, Japan, Micronesia and Alaska services.
Warehousing Services: Matson Logistics operates two warehouses in Georgia and two warehouses in Northern California providing warehousing, trans-loading, value-added packaging and distribution services. ​ Supply Chain Management and Other Services: Matson Logistics provides customers with a variety of logistics services including purchase order management, booking services, customs brokerage, LCL and full container load NVOCC 9 Table of Contents freight forwarding services.
Warehousing Services: Matson Logistics operates two warehouses in Georgia and two warehouses in Northern California providing warehousing, trans-loading, value-added packaging and distribution services. ​ Supply Chain Management and Other Services: Matson Logistics provides customers with a variety of logistics services including purchase order management, booking services, customs brokerage, LCL and full container load NVOCC freight forwarding services.
Matson’s fuel-related surcharge is correlated to market rates for fuel prices and other factors, and is intended to help Matson recover fuel-related expenses . ​ Other Environmental Regulations: ​ In addition to the vessel emission regulations discussed above, Matson’s operations are required to comply with other environmental regulations and requirements including the Oil Pollution Act of 1990, the Comprehensive Environmental Response Compensation & Liability Act of 1980, the Rivers and Harbors Act of 1899, the Clean Water Act, the Invasive Species Act and the Clean Air Act.
Matson’s fuel-related surcharge is correlated to market rates for fuel prices and other factors, and is intended primarily to help Matson recover fuel-related expenses . ​ 8 Table of Contents Other Environmental Regulations: ​ In addition to the vessel emission regulations discussed above, Matson’s operations are required to comply with other environmental regulations and requirements including the Oil Pollution Act of 1990, the Comprehensive Environmental Response Compensation & Liability Act of 1980, the Rivers and Harbors Act of 1899, the Clean Water Act, the Invasive Species Act and the Clean Air Act.
SSAT currently provides terminal and stevedoring services to various carriers at eight terminal facilities on the U.S. West Coast, including three facilities dedicated for MatNav’s use.
SSAT currently provides terminal and stevedoring services to various carriers at seven terminal facilities on the U.S. West Coast, including three facilities dedicated for MatNav’s use.
The primary competitor of Matson’s AAX service is CMA CGM, which provides services between Dutch Harbor, Alaska and Asia. ​ Matson offers customers twice weekly scheduled service from Tacoma, Washington to Anchorage and Kodiak, Alaska, and a weekly service to Dutch Harbor, Alaska. The Company also provides a barge service between Dutch Harbor and Akutan in Alaska.
The primary competitor of Matson’s AAX service is CMA CGM, which provides services between Dutch Harbor, Alaska and Asia. ​ Matson offers customers twice weekly departures from Tacoma, Washington to Anchorage and Kodiak, Alaska, and a weekly service to Dutch Harbor, Alaska. Matson also provides a barge service between Dutch Harbor and Akutan in Alaska.
CII measures how efficiently a ship transports goods, and uses calculated carbon dioxide (“CO 2 ”) emissions to determine an annual rating. For ships that are not in compliance, a corrective action plan needs to be developed as part of the vessels’ Ship Energy Efficiency Management Plan (“SEEMP”) and approved by port state authorities.
CII measures how efficiently a ship transports goods, and uses calculated carbon dioxide emissions to determine an annual rating. For ships that are not in compliance, a corrective action plan needs to be developed as part of the vessels’ Ship Energy Efficiency Management Plan and approved by port state authorities.
Matson Logistics has supply chain operations in North America, China, Southeast Asia and other locations. ​ Operating Costs: ​ Matson Logistics’ operating costs include transportation costs, transportation brokerage expenses, agency commissions, leases of warehouses, cross-dock and other facility operating costs, wages and other related costs, and other operating overhead. ​ Competition: ​ Matson Logistics competes with hundreds of local, regional, national and international companies that provide transportation and third-party logistics services.
Matson Logistics has supply chain operations in North America, China and other Asian countries, and other locations. ​ Operating Costs: ​ Matson Logistics’ operating costs include transportation costs, transportation brokerage expenses, agency commissions, leases of warehouses, cross-dock and other facility operating costs, wages and other related costs, and other operating overhead. ​ Competition: ​ Matson Logistics competes with hundreds of local, regional, national and international companies that provide transportation and third-party logistics services.
These numbers include seagoing personnel who rotate through billets (as described below) and temporary employees, but do not include employees of SSAT or other non-employee affiliates such as agents and contractors. The composition of Matson’s workforce by geography is as follows: ​ ​ As of December 31, 2024, Matson’s fleet of active vessels requires 370 billets to operate.
These numbers include seagoing personnel who rotate through billets (as described below) and temporary employees, but do not include employees of SSAT or other non-employee affiliates such as agents and contractors. The composition of Matson’s workforce by geography is as follows: ​ ​ As of December 31, 2025, Matson’s fleet of active vessels requires 329 billets to operate.
Southbound cargo from Alaska primarily consists of seafood, household goods and automobiles. ​ Matson’s Alaska-Asia Express (“AAX”) service provides carriage of seafood primarily from Kodiak and Dutch Harbor, Alaska to many locations in Asia via Matson’s transshipment ports of Shanghai and Ningbo, China.
Southbound cargo from Alaska primarily consists of seafood, household goods and automobiles. ​ 2 Table of Contents Matson’s Alaska-Asia Express (“AAX”) service provides carriage of seafood primarily from Kodiak and Dutch Harbor, Alaska to many locations in Asia via Matson’s transshipment ports of Shanghai and Ningbo, China.
Matson also provides a barge service between Dutch Harbor and Akutan in Alaska, and transportation services to other locations in Alaska including the Kenai Peninsula, Fairbanks and the North Slope. ​ 2 Table of Contents Northbound cargo to Alaska consists mainly of dry containers of mixed commodities, refrigerated commodities, food, beverages, retail merchandise, household goods and automobiles.
Matson also provides a barge service between Dutch Harbor and Akutan in Alaska, and transportation services to other locations in Alaska including the Kenai Peninsula, Fairbanks and the North Slope. ​ Northbound cargo to Alaska consists mainly of dry containers of mixed commodities, refrigerated commodities, food, beverages, retail merchandise, household goods and automobiles, and other industrial cargo.
West Coast, Hawaii and Alaska on foreign-built or foreign-documented vessels is prohibited. ​ During the years ended December 31, 2024, 2023 and 2022, approximately 50 percent, 55 percent and 39 percent, respectively, of Matson’s Ocean Transportation revenues came from the Hawaii and Alaska trades that were subject to the Jones Act.
West Coast, Hawaii and Alaska on foreign-built or foreign-documented vessels is prohibited. ​ During the years ended December 31, 2025, 2024 and 2023, approximately 51 percent, 50 percent and 55 percent, respectively, of Matson’s Ocean Transportation revenues came from the Hawaii and Alaska trades that were subject to the Jones Act.
Matson Logistics competes by relying on the depth, scale and scope of its customer relationships; vendor relationships and rates; network capacity; real-time visibility into the movement of customers’ goods; and other technology solutions.
Matson Logistics competes by relying on the depth, scale and scope of its customer relationships; vendor relationships and rates; network capacity; real-time visibility into the movement of customers’ goods; and other 9 Table of Contents technology solutions.
West Coast to the port of Naha in Okinawa, Japan. 7 Table of Contents ​ Matson offers customers a fast and reliable weekly service to the port of Naha in Okinawa, Japan as part of the CLX service from three ports on the U.S.
West Coast to the port of Naha in Okinawa, Japan. ​ Matson offers customers a fast and reliable weekly service to the port of Naha in Okinawa, Japan as part of the CLX service from three ports on the U.S.
In addition, in the China trade, volume demand is generally stronger in the second and third quarters primarily driven by U.S. consumer demand for goods ahead of key retail selling seasons.
In addition, in the China trade, volume 7 Table of Contents demand is generally stronger in the second and third quarters primarily driven by U.S. consumer demand for goods ahead of key retail selling seasons.
The Company also provided nearly 3,000 hours of employee training and professional development training, and tuition reimbursement programs, while giving annual performance reviews to its non-union workforce. ​ For more information on Matson’s human capital programs, see Matson’s Sustainability Report which is available at https:// www.matson.com/sustainability . ​ 11 Table of Contents Bargaining Agreements: ​ Matson’s shoreside and seagoing employees are represented by a variety of unions.
The Company also provided nearly 4,500 hours of employee training and professional development training, and tuition reimbursement programs, while giving annual performance reviews to its non-union workforce. ​ For more information on Matson’s human capital programs, see Matson’s Sustainability Report which is available at https:// www.matson.com/sustainability . ​ Bargaining Agreements: ​ Matson’s shoreside and seagoing employees are represented by a variety of unions.
Matson’s AAX service also offers customers a service from Kodiak and Dutch Harbor, Alaska to Ningbo and Shanghai, China, and Busan, South Korea, with transshipment services from those ports to other locations in Asia. ​ China Service: Major competitors to Matson’s China service include international transpacific carriers such as CMA CGM, Zim, Hede and Cosco.
Matson’s AAX service also offers customers a service from Kodiak and Dutch Harbor, Alaska to Ningbo and Shanghai, China, with connecting services from those ports to other locations in Asia. ​ China Service: Major competitors to Matson’s China service include international transpacific carriers such as CMA CGM, Zim, Hede and Cosco.
AMP seeks to inform elected officials and the public about the economic, national security, commercial, safety and environmental benefits of the Jones Act and similar cabotage laws. ​ Other U.S. maritime laws require vessels operating between Guam, a U.S. territory, and U.S. ports to be U.S. flagged and predominantly U.S. crewed, but not U.S. built. ​ 8 Table of Contents Cabotage laws are not unique to the United States, and similar laws exist around the world in over 90 countries, including regions in which Matson provides ocean transportation services.
AMP seeks to inform elected officials and the public about the economic, national security, commercial, safety and environmental benefits of the Jones Act and similar cabotage laws. ​ Other U.S. maritime laws require vessels operating between Guam, a U.S. territory, and U.S. ports to be U.S. flagged and predominantly U.S. crewed, but not U.S. built. ​ Cabotage laws are not unique to the United States, and similar laws exist in virtually every maritime country around the world, including regions in which Matson provides ocean transportation services.
Matson is currently performing surveying, planning and design work in preparation for this expansion. ​ Ocean Transportation Equipment: ​ As a complement to its fleet of vessels and barges, Matson owns a variety of equipment including terminal cranes and equipment, containers, chassis and other property which represents an investment of approximately $0.9 billion as of December 31, 2024.
Matson is currently performing surveying, planning and design work in preparation for this expansion. ​ Ocean Transportation Equipment: ​ As a complement to its fleet of vessels and barges, Matson owns a variety of equipment including terminal cranes and equipment, containers, chassis and other property which represents an investment of approximately $900 million as of December 31, 2025.
Other competitors in the Hawaii service include proprietary operators and contract carriers of bulk cargo, and air freight carriers. 6 Table of Contents ​ Matson operates three strings of vessels to Hawaii. These strings provide customers an industry-leading five departures from ports on the U.S.
Other competitors in the Hawaii market include proprietary operators and contract carriers of bulk cargo, and air freight carriers. ​ Matson operates three strings of vessels to Hawaii. These strings provide customers an industry-leading five weekly departures from ports on the U.S.
MatNav also operates premium, expedited services from China to Long Beach, California, provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Alaska to Asia.
MatNav also operates premium, expedited services from China to Long Beach, California, which includes cargo from other Asia origins, provides services to Okinawa, Japan and various islands in the South Pacific, and operates an international export service from Alaska to Asia.
In addition, subsidiaries of MatNav provide stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav on the Hawaiian islands of Oahu, Hawaii, Maui and Kauai, and in Alaska. ​ Matson has a 35 percent ownership interest in SSA Terminals, LLC (“SSAT”), a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc.
In addition, subsidiaries of MatNav provide stevedoring, refrigerated cargo services, inland transportation and other terminal services for MatNav in Hawaii and Alaska. ​ Matson has a 35 percent ownership interest in SSA Terminals, LLC (“SSAT”), a joint venture between Matson Ventures, Inc., a wholly-owned subsidiary of MatNav, and SSA Ventures, Inc., a subsidiary of Carrix, Inc.
The MAX service primarily uses chartered vessels and operates weekly from Ningbo and Shanghai, China where they are loaded with cargo to be discharged primarily at Long Beach, California, calling at an SSAT-operated terminal. ​ Both services also carry transshipment cargo originating in many locations throughout Asia, including Vietnam and Southern China to the U.S. via Shanghai, China. ​ Eastbound cargo from China to Long Beach, California consists mainly of e-commerce related goods, garments, consumer electronics, footwear and other merchandise. ​ Guam Service: Matson’s Guam service provides weekly carriage between the U.S.
The MAX service primarily uses chartered vessels and operates weekly from Ningbo and Shanghai, China where they are loaded with cargo to be discharged at Long Beach, California, calling at an SSAT-operated terminal. ​ Both services carry cargo originating in China and other Asian countries to the U.S. via Shanghai, China. ​ Eastbound cargo from China to Long Beach, California consists mainly of e-commerce related goods, garments, consumer electronics, footwear and other merchandise. ​ Guam Service: Matson’s Guam service provides weekly carriage between the U.S.
Additional projects for the second phase relate to improvements to its existing backup power generators and other terminal upgrades, which are expected to be completed within the next two years. ​ The third phase represents a broader and long-term expansion program at the Sand Island terminal facility.
Additional projects for the second phase relate to improvements to its existing backup power generators and other terminal upgrades, which are expected to be completed within the next year. ​ 5 Table of Contents The third phase represents a broader and long-term expansion program at the Sand Island terminal facility.
The barge operators have historically shipped lower value commodities that can accommodate a longer transit time, as well as construction materials and other cargo that are not conducive to movement in containers. Other competitors include air freight carriers and over-the-road trucking services.
The barge operators have historically shipped lower value commodities that can accommodate longer transit times, as well as construction materials and other cargo that are not conducive to movement in containers. Other competitors include air freight carriers and over-the-road 6 Table of Contents trucking services.
As part of this program, Matson completed the installation of three new 65 long- ton capacity gantry cranes, upgraded and renovated three existing cranes, demolished four outdated cranes, and installed upgrades to the electrical infrastructure at the terminal. In addition, Matson completed the installation, energization and transition to a new redundant main switchgear.
In the first phase of this program, Matson completed the installation of three new 65 long- ton capacity gantry cranes, upgraded and renovated three existing cranes, and installed upgrades to the electrical infrastructure at the terminal. In addition, Matson completed the installation, energization and transition to a new redundant main switchgear.
The Company’s success depends in part on employing a diverse, talented and engaged workforce that reflects its local communities, supports an environment of high standards and performance, and thrives in the Company’s collaborative and respectful culture. ​ 10 Table of Contents As of December 31, 2024, Matson had 4,356 employees worldwide, of which 161 employees were based in international locations and 3,017 employees were covered by collective bargaining agreements with unions.
The Company’s success depends in part on employing a diverse, talented and engaged workforce that reflects its local communities, supports an environment of high standards and performance, and thrives in the Company’s collaborative and respectful culture. ​ As of December 31, 2025, Matson had 4,170 employees worldwide, of which 161 employees were based in international locations and 2,843 employees were covered by collective bargaining agreements with unions.
West Coast to Guam and Saipan, via transshipments to U.S. flagged feeder vessels in Yokohama, Japan and Busan, South Korea via a two-ship feeder service, and a third-party U.S. flagged service with transshipments from Guam to Saipan.
West Coast to Guam and Saipan, via transshipments to U.S. flagged feeder vessels in Yokohama, Japan, Busan, South Korea, and Naha, Japan via a two-ship feeder service.
The Company’s 10 largest Ocean Transportation customers account for approximately 18 percent of the Company’s Ocean Transportation revenue.
The Company’s 10 largest Ocean Transportation customers account for approximately 1 9 percent of the Company’s Ocean Transportation revenue.
West Coast – two each from Long Beach and Oakland, California and one from Tacoma, Washington, with three arrivals in Honolulu each week. Each of these strings operates on a fixed day-of-the-week schedule. One of the vessel strings continues from Honolulu to China before returning to Long Beach. Matson’s frequent sailings and punctuality permit customers to reduce inventory carrying costs.
West Coast – two each from Long Beach and Oakland, California and one from Tacoma, Washington, with three arrivals in Honolulu each week. Each of these strings operates on a fixed day-of-the-week schedule. One of the vessel strings, the CLX, continues from Honolulu to China before returning to Long Beach.
Matson also competes by offering a comprehensive service network to customers, including: the only container service to and from the three largest U.S. West Coast ports; the most efficient terminal network on the U.S.
Matson’s frequent sailings and punctuality permit customers to reduce inventory carrying costs. Matson also competes by offering a comprehensive service network to customers, including: the only container service to and from the three largest U.S. West Coast ports; the most efficient terminal network on the U.S.
(8) Vessel can operate on liquified natural gas (“LNG”), conventional or alternative fuels. ​ ​ ​ 4 Table of Contents Fleet Renewal Program: ​ Matson is constructing three new vessels with the following specifications and expected delivery dates: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Usable Cargo Capacity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Containers ​ ​ ​ Maximum ​ Maximum ​ Type of Expected Reefer ​ ​ Speed Deadweight Class of Vessel ​ Vessel ​ Delivery Date ​ TEUs ​ Slots ​ Length ​ (Knots) ​ (Long Tons) Aloha Class Containership Q1 2027 ​ 3,620 400 ​ 853’ 2” 23.5 53,000 Aloha Class ​ Containership ​ Q3 2027 ​ 3,620 ​ 400 ​ 853’ 2” ​ 23.5 ​ 53,000 Aloha Class ​ Containership ​ Q2 2028 ​ 3,620 ​ 400 ​ 853’ 2” ​ 23.5 ​ 53,000 ​ Matson expects to deploy the three new Aloha Class vessels in the CLX service and redeploy three existing vessels into the Alaska service.
(8) Vessel can operate on liquefied natural gas (“LNG”), conventional or alternative fuels. ​ ​ ​ 4 Table of Contents Fleet Renewal Program: ​ Matson is constructing three new Aloha Class vessels with the following specifications and expected delivery dates: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Usable Cargo Capacity ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Containers (1) ​ ​ ​ Maximum ​ Maximum ​ ​ Type of ​ Expected ​ ​ ​ ​ ​ Reefer ​ ​ ​ Speed ​ Deadweight Name of Vessel ​ Vessel ​ Delivery Date ​ TEUs ​ Slots ​ Length ​ (Knots) ​ (Long Tons) MAKUA Containership Q1 2027 ​ 3,440 400 ​ 853’ 2” 23.5 53,000 MALAMA ​ Containership ​ Q3 2027 ​ 3,440 ​ 400 ​ 853’ 2” ​ 23.5 ​ 53,000 MAKENA ​ Containership ​ Q2 2028 ​ 3,440 ​ 400 ​ 853’ 2” ​ 23.5 ​ 53,000 (1) TEU container numbers represent estimated loadable containers.
Matson expects to expand into Pier 51A and portions of Pier 51B after Pasha Hawaii (“Pasha”) relocates to, and is operational at, the Kapalama Container Terminal (“KCT”) facility in late 2025 or early 2026.
Matson expects to expand into Pier 51A and portions of Pier 51B after Pasha Hawaii (“Pasha”) relocates to, and is operational at, the Kapalama Container Terminal facility which is scheduled to occur in 2027.
In 2024, 49 percent of open positions were filled with internal candidates.
In 2025, 53 percent of open positions were filled with internal candidates.
Some vessel charter agreements include options for the Company to further extend the charter period. (4) U.S. flagged and Jones Act qualified vessel or barge. (5) U.S. flagged vessel or barge. (6) Foreign-flagged vessel. (7) Vessel installed with exhaust gas cleaning systems (commonly referred to as “scrubbers”).
(4) U.S. flagged and Jones Act qualified vessel or barge. (5) U.S. flagged vessel or barge. (6) Foreign-flagged vessel. (7) Vessel installed with exhaust gas cleaning systems (commonly referred to as “scrubbers”).
A U.S. flagged Jones Act barge operator, Aloha Marine Lines, offers barge service between Seattle, Washington and Hawaii. ​ Foreign-flagged vessels carrying cargo to Hawaii from non-U.S. locations also provide alternatives for companies shipping to Hawaii.
A U.S. flagged Jones Act barge operator, Aloha Marine Lines, offers barge service between Seattle, Washington and Oahu, Hawaii. ​ Foreign-flagged vessels, including ONE and CMA CGM, carry cargo to Oahu, Hawaii from non-U.S. locations, providing alternatives for companies importing goods to Hawaii.
Each new vessel is expected to provide approximately 500 containers of additional capacity per voyage in the CLX service. ​ The initial contract cost of the new vessel program is approximately $1.0 billion, with milestone payments expected to be financed with cash currently on deposit in the Company’s Capital Construction Fund, cash and cash equivalents on the Company’s Consolidated Balance Sheets and through cash flows generated from future operations, borrowings available under the Company’s unsecured revolving credit facility or additional debt financings .
Each new vessel is expected to provide approximately 500 containers of additional capacity per voyage in the China service, representing an annual capacity increase of approximately 15,000 containers. ​ The cost of the fleet renewal program is approximately $1.0 billion (excluding owner’s items and change orders), with milestone payments to be funded by cash deposits and Treasury securities currently in the Company’s Capital Construction Fund (“CCF”), interest earned in the CCF, cash and cash equivalents on the Company’s Consolidated Balance Sheets and through cash flows generated from future operations, borrowings available under the Company’s unsecured revolving credit facility or additional debt financings .
In addition, since August 1, 2012, the California Air Resources Board has reduced the fuel oil maximum sulfur content to ≤0.1 percent within 24 miles of the California coastline. ​ Matson’s vessels are designed to operate in compliance with current IMO and ECA regulations as applicable. ​ 5 Table of Contents Beginning in 2023, IMO regulations require containerships operating internationally with over 5,000 gross tonnage to comply with annual Carbon Intensity Indicator (“CII”) requirements that become increasingly stringent towards 2030.
Matson’s vessels are designed to operate in compliance with current IMO and ECA regulations as applicable. ​ IMO regulations require containerships operating internationally with over 5,000 gross tonnage to comply with annual Carbon Intensity Indicator (“CII”) requirements that become increasingly stringent towards 2030.
Matson is the only Jones Act containership operator providing service to Kodiak and Dutch Harbor in Alaska, which are the primary loading ports for southbound seafood. Matson offers dedicated terminal services at the Alaska ports of Anchorage, Kodiak and Dutch Harbor performed by Matson, and at the port of Tacoma, Washington performed by SSAT.
Matson offers dedicated terminal services at the Alaska ports of Anchorage, Kodiak and Dutch Harbor performed by Matson, and at the port of Tacoma, Washington performed by SSAT.
Effective January 1, 2020, the IMO imposed regulations that generally require all vessels to burn fuel oil with a maximum sulfur content of ≤0.5 percent. With respect to North America, all waters, with certain limited exceptions, within 200 nautical miles of U.S. and Canadian coastlines have been designated emission control areas (“ECAs”). Since January 1, 2015, U.S.
With respect to North America, all waters, with certain limited exceptions, within 200 nautical miles of U.S. and Canadian coastlines have been designated emission control areas (“ECAs”).
Twenty-foot Equivalent Units (“TEU”) is a standard measure of cargo volume correlated to a standard 20-foot dry cargo container. Actual loadable containers may vary from these amounts. (2) Operating speed of the vessel may vary from the Vessel Design Speed. (3) Charter expiration dates represent the approximate month the vessel can be returned to its owner.
TEU container numbers represent estimated loadable containers. Actual loadable containers may vary from these amounts. (2) Operating speed of the vessel may vary from the Vessel Design Speed. (3) Charter expiration dates represent the approximate month the vessel can be returned to its owner. Some vessel charter agreements include options for the Company to further extend the charter period.
West Coast and the islands of Kwajalein, Ebeye and Majuro in the Republic of the Marshall Islands, the islands of Yap, Pohnpei, Chuuk and Kosrae in the Federated States of Micronesia, and the Republic of Palau. Cargo destined for these locations is transshipped through Guam and consists mainly of general sustenance cargo, building materials, hardware and retail merchandise.
West Coast and the islands of Kwajalein, Ebeye and Majuro in the Republic of the Marshall Islands, the islands of Yap, Pohnpei, Chuuk and Kosrae in the Federated States of Micronesia, and the Republic of Palau.
The new vessels will have dual-fuel engines and be equipped with tanks, piping and cryogenic equipment designed to operate on LNG, conventional and alternative fuels. The new vessels are also being designed with state-of-the-art green technology features and fuel-efficient hulls.
The new vessels are also being designed with state-of-the-art green technology features and fuel-efficient hulls.
For more information on Matson’s environmental stewardship initiatives, including GHG emission reduction goals, see Matson’s Sustainability Report and other information available at https://www.matson.com/sustainability. ​ Hawaii Terminal Modernization and Expansion Program: ​ Matson completed the first phase of its program to modernize and renovate its terminal facility at Sand Island, Honolulu, and is progressing on the second phase.
The Company believes that its vessels are currently in compliance with these regulations. ​ Hawaii Terminal Modernization and Expansion Program: ​ Matson completed the first phase of its program to modernize and renovate its terminal facility at Sand Island, Honolulu, and is progressing on the second phase.
Actual and future vessel construction progress milestone payments based on signed agreements and change orders, excluding vessel steel price adjustments, owners’ items and capitalized interest, are expected to be as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Paid ​ Future Milestone Payments ​ ​ ​ Vessel Construction Obligations (in millions) As of December 31, 2024 2025 2026 2027 2028 Thereafter Total Three Aloha Class Containerships ​ $ 189.5 ​ $ 290.3 ​ $ 313.6 ​ $ 185.0 ​ $ 22.2 ​ $ 2.9 ​ $ 1,003.5 ​ The three new Aloha Class vessels represent an important step towards Matson’s medium-term greenhouse gas (“GHG”) emissions goal to reduce Scope 1 GHG emissions from its owned fleet by 40% by 2030, using 2016 as a baseline year.
Actual and future vessel construction progress milestone payments based on signed agreements and change orders, excluding vessel steel price adjustments, owner’s items and capitalized interest, are expected to be as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Paid ​ Future Milestone Payments ​ ​ ​ Vessel Construction Obligations (in millions) ​ ​ ​ As of December 31, 2025 ​ ​ ​ 2026 ​ ​ ​ 2027 ​ ​ ​ 2028 ​ ​ ​ 2029 ​ ​ ​ Thereafter ​ ​ ​ Total Three Aloha Class Containerships ​ $ 426.8 ​ $ 373.4 ​ $ 180.6 ​ $ 22.3 ​ $ 2.9 ​ $ — ​ $ 1,006.0 ​ ​ Vessel Emission Regulations: ​ The International Maritime Organization (“IMO”), of which the U.S. and over 150 other countries are members, is a specialized agency of the United Nations that sets international environmental standards applicable to vessels operating under the flag of any member state.
The service to Kwajalein is provided by a U.S. flag vessel or barge. ​ Alaska Service: Matson’s Alaska service provides ocean carriage between the port of Tacoma, Washington, and the ports of Anchorage, Kodiak and Dutch Harbor, Alaska.
Cargo destined for these locations is transshipped through Guam and consists mainly of general sustenance cargo, building materials, hardware and retail merchandise. ​ Alaska Service: Matson’s Alaska service provides ocean carriage between the port of Tacoma, Washington, and the ports of Anchorage, Kodiak and Dutch Harbor, Alaska.
The Company utilizes both internal and external learning and development programs to encourage and promote career opportunities for all employees. Matson is also focused on supporting a more diverse talent pool over the long-term by encouraging historically underrepresented groups to pursue careers in the maritime and logistics sectors.
The Company utilizes both internal and external learning and development programs to encourage and promote career opportunities for employees.
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Matson has also set a long-term goal to achieve net zero Scope 1 GHG emissions from its owned fleet by 2050. For more information on Matson’s environmental stewardship initiatives, including GHG reduction goals, see Matson’s Sustainability Report and other information available at https://www.matson.com/sustainability. ​ Vessel Emission Regulations: ​ Being a leader in environmental stewardship is one of Matson’s core values.
Added
Actual loadable containers may vary from these amounts. ​ Matson expects to deploy the three new Aloha Class vessels in the CLX service and redeploy three existing vessels into the Alaska service. The new vessels will have dual-fuel engines and will be equipped with tanks, piping and cryogenic equipment designed to operate on LNG, conventional fuels and alternative fuels.
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Matson’s vessels transit through some of the most environmentally sensitive areas in the United States including the Hawaiian Islands and the coasts of California, Oregon, Washington and Alaska.
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Matson is also focused on driving greater awareness of and interest in careers in the maritime and logistics sectors to support a more diverse talent pool 10 Table of Contents over the long-term to help proactively address gaps in market skills and talent to serve our future needs.
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In particular, Matson is focused on reducing transportation emissions, including carbon dioxide, methane, nitrous oxide, particulate matter and sulfur dioxide through improvements in vessel fuel consumption, choice of fuel types and the development of more fuel-efficient transportation solutions.
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Matson further contributes positively to the environment by testing and deploying leading technologies as the fleet is modernized. ​ The International Maritime Organization (“IMO”), of which the U.S. and over 150 other countries are members, is a specialized agency of the United Nations that sets international environmental standards applicable to vessels operating under the flag of any member state.
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Environmental Protection Agency regulations have reduced the fuel oil maximum sulfur content in designated ECAs to ≤0.1 percent.
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The Company believes that its vessels are currently in compliance with these regulations.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

66 edited+7 added−9 removed59 unchanged
Biggest changeThe Company’s practices, policies and other efforts, including as described in Part I, Item 1C of this Annual Report on Form 10-K, may not be sufficient to prevent, detect or remediate all cybersecurity risks or other disruptions, and the Company and its service providers have in the past experienced and may in the future experience cybersecurity incidents, disruptions, threats and vulnerabilities such as malware (including computer viruses and ransomware), software bugs, denial-of-service (“DoS”) attacks, phishing, spoofing, identity-based attacks, code injection attacks, cyber terrorism, sabotage, circumvention of security systems (whether physical or virtual), malfeasance, breaches due to employee error, natural disasters, accidents, power disruptions or loss, telecommunications failure, unauthorized access or other catastrophic events or failures at the Company’s facilities, aboard its vessels or at third-party locations. ​ Any failure, breach or unauthorized access to the Company’s systems or those of third parties on which the Company relies could result in the loss of confidential, sensitive or proprietary information, interruptions in its service or production or otherwise impact the Company’s ability to conduct business operations, and potentially could result in reductions in revenue and profits, damage to its reputation or liability. ​ Risks Related to Financial Matters ​ A deterioration of the Company’s credit profile, disruptions of the credit markets or higher interest rates could restrict its ability to access the debt capital markets or increase the cost of debt. ​ Deterioration in the Company’s credit profile may have an adverse effect on the Company’s ability to access the private or public debt markets and also may increase its borrowing costs.
Biggest changeThe Company’s practices, policies and other efforts, including as described in Part I, Item 1C of this Annual Report, may not be sufficient to prevent, detect or remediate all cybersecurity risks or other disruptions, and the Company and its service providers have in the past experienced and may in the future experience cybersecurity incidents, disruptions, threats and vulnerabilities such as malware (including computer viruses and ransomware), software bugs, denial-of-service attacks, phishing, spoofing, deep fakes, identity-based attacks, code injection attacks, cyber terrorism, sabotage, circumvention of security systems (whether physical or virtual), malfeasance, breaches due to employee error, natural disasters, accidents, power disruptions or loss, telecommunications failure, unauthorized access or other catastrophic events or failures at the Company’s facilities, aboard its vessels or at third-party locations.
The likelihood of these risks is compounded by uncertainties regarding the reliability of renewable energy sources as well as any increased frequency of extreme weather events that may disrupt the generation or transmission of electricity. ​ In addition, compliance with climate change requirements or regulations such as the IMO’s CII requirements, or any amendments, modifications or changes in the interpretation, application or enforcement of any such requirements or regulations, may create schedule disruptions and could require Matson’s fleet to slow down if efficiency improvements or transitions to alternative fuels together are not enough to reduce GHG emissions sufficiently, thus impacting Matson’s expedited business model and competitive advantage. ​ New environmental requirements for vessel performance and operation could also require the Company to accelerate the building of new vessels, increase the construction costs for new vessels and equipment to accommodate even newer technology as it emerges while today’s technology becomes obsolete, initiate unexpected retrofit projects for existing vessels, retire older vessels earlier than expected, or render reserve vessels unusable.
The likelihood of these risks is compounded by uncertainties regarding the reliability of renewable energy sources as well as any increased frequency of extreme weather events that may disrupt the generation or transmission of electricity. ​ In addition, compliance with regulations such as the IMO’s CII requirements, or any amendments, modifications or changes in the interpretation, application or enforcement of any such requirements or regulations, may create schedule disruptions and could require Matson’s fleet to slow down if efficiency improvements or transitions to alternative fuels together are not enough to reduce GHG emissions sufficiently, thus impacting Matson’s expedited business model and competitive advantage. ​ New environmental requirements for vessel performance and operation could also require the Company to accelerate the building of new vessels, increase the construction costs for new vessels and equipment to accommodate even newer technology as it emerges while today’s technology becomes obsolete, initiate unexpected retrofit projects for existing vessels, retire older vessels earlier than expected, or render reserve vessels unusable.
These factors may result in periodic revisions to the Company’s effective income tax rate, which could affect the Company’s cash flow and results of operations. ​ Changes in the value of pension assets, or a change in pension law or key assumptions, may adversely affect the Company’s financial performance. ​ The amount of the Company’s employee pension and post-retirement benefit costs and obligations is calculated on assumptions used in the relevant actuarial calculations.
These factors may result in periodic revisions to the Company’s effective income tax rate, which could affect the Company’s financial condition, results of operations and cash flow. ​ Changes in the value of pension assets, or a change in pension law or key assumptions, may adversely affect the Company’s financial performance. ​ The amount of the Company’s employee pension and post-retirement benefit costs and obligations is calculated on assumptions used in the relevant actuarial calculations.
If the Jones Act were to be repealed, substantially amended or waived and, as a consequence, competitors were to enter the Hawaii or Alaska markets with lower operating costs by utilizing their ability to acquire and operate foreign-flagged and foreign-built vessels and/or being exempt from other U.S. regulations, the Company’s business would be adversely affected.
If the Jones Act were to be repealed, invalidated, substantially amended or waived and, as a consequence, competitors were to enter the Hawaii or Alaska markets with lower operating costs by utilizing their ability to acquire and operate foreign-flagged and foreign-built vessels and/or being exempt from other U.S. regulations, the Company’s business would be adversely affected.
Any vessel-generated pollution from incidents in U.S. waters within three nautical miles, and in some cases, within the 200-mile exclusive economic zone, for example, could expose us to such fines or penalties. ​ The Company is subject to, and may in the future be subject to, disputes, legal or other proceedings, and government inquiries or investigations that could have an adverse effect on the Company. ​ The nature of the Company’s business exposes it to the potential for disputes, legal or other proceedings, and government inquiries or investigations relating to antitrust matters, labor and employment matters, personal injury, loss of life and property damage, environmental, shore power and other matters, as discussed in the other risk factors disclosed in this section or in other Company filings with the SEC.
Any vessel-generated pollution from incidents in U.S. waters within three nautical miles, and in some cases, within the 200-mile exclusive economic zone, for example, could expose us to such fines or penalties. ​ 22 Table of Contents The Company is subject to, and may in the future be subject to, disputes, legal or other proceedings, and government inquiries or investigations that could have an adverse effect on the Company. ​ The nature of the Company’s business exposes it to the potential for disputes, legal or other proceedings, and government inquiries or investigations relating to antitrust matters, labor and employment matters, personal injury, loss of life and property damage, environmental, shore power and other matters, as discussed in the other risk factors disclosed in this section or in other Company filings with the SEC.
As a result of these risks, the Company may not fully realize the benefits of these investments. ​ The Company’s vessel construction agreements with Philly Shipyard subject the Company to risks. ​ On November 1, 2022, MatNav and Philly Shipyard entered into vessel construction agreements pursuant to which Philly Shipyard will construct three new 3,600-TEU Aloha Class dual-fuel capable containerships, with expected delivery dates during the first quarter 2027, the third quarter 2027 and the second quarter 2028.
As a result of these risks, the Company may not fully realize the benefits of these investments. ​ The Company’s vessel construction agreements with Philly Shipyard subject the Company to risks. ​ On November 1, 2022, MatNav and Philly Shipyard entered into vessel construction agreements pursuant to which Philly Shipyard will construct three new 3,400-TEU Aloha Class dual-fuel capable containerships, with expected delivery dates during the first quarter 2027, the third quarter 2027 and the second quarter 2028.
Efforts to achieve or accurately track the Company’s initiatives and goals face numerous risks and may be untimely, be unsuccessful, result in additional costs or experience delays, and as a result may have an adverse impact on the Company, including its brand, reputation, financial performance and growth and stock price, and may expose the Company to increased scrutiny from the investment community as well as enforcement authorities. ​ The Company may not be timely or successful in completing its fleet upgrade initiatives, which may result in significant costs and adversely impact the Company’s ability to meet its climate goals. ​ The Company’s four commissioned Aloha and Kanaloa class vessels include dual fuel capable engines that can run on low sulfur fuel oil or LNG.
Efforts to achieve or accurately track the Company’s initiatives and goals face numerous risks and may be untimely, be unsuccessful, result in additional costs or experience delays, and as a result may have an adverse impact on the Company, including its brand, reputation, financial performance and growth and stock price, and may expose the Company to increased scrutiny from the investment community as well as enforcement authorities. ​ The Company may not be timely or successful in completing its fleet upgrade initiatives, which may result in significant costs and adversely impact the Company’s ability to meet its emission reduction goals. ​ The Company’s four commissioned Aloha and Kanaloa class vessels include dual fuel capable engines that can run on low sulfur fuel oil or LNG.
The entry of a new competitor or the addition of new vessels or capacity by existing competitors on any of the Company’s existing routes could result in a significant increase in available shipping capacity that could have an adverse effect on the Company’s volumes and rates. ​ The loss of or damage to key customer relationships may adversely affect the Company’s business. ​ The Company’s businesses are dependent on their relationships with customers and derive a significant portion of their revenues from the Company’s largest customers.
The entry of a new competitor or the addition of new vessels or capacity by existing competitors on any of the Company’s existing routes could result in a significant increase in available shipping capacity that could have an adverse effect on the Company’s volume and rates. ​ The loss of or damage to key customer relationships may adversely affect the Company’s business. ​ The Company’s businesses are dependent on their relationships with customers and derive a significant portion of their revenues from the Company’s largest customers.
In addition, the time when a vessel is out of service for maintenance is determined by a number of factors, including regulatory deadlines, market conditions, shipyard availability, shipyard location, availability of employees and repairmen, and customer requirements, and accordingly, the length of time that a vessel may be out of service may be longer than anticipated, which could adversely affect the Company’s business, financial condition, results of operations and cash flows.
In addition, the time when a vessel is out of service for maintenance is determined by a number of factors, including regulatory deadlines, market conditions, shipyard availability, shipyard location, availability of employees and repairmen, and customer requirements, and accordingly, the length of time that a vessel may be out of service may be longer than anticipated, which could adversely affect the Company’s business, financial condition, results of operations and cash flow.
In addition, the Company is subject to environmental laws and regulations, including those relating to air quality initiatives at port locations; air 22 Table of Contents emissions; use of shore power at California ports; wastewater discharges; management of storm water; the storage, transportation, handling, emission and disposal of solid and hazardous materials, oil and oil related products, hazardous substances and wastes; the investigation and remediation of contamination and liability for damages to the environment; health, safety and the protection of the environment and natural resources; and climate change, including any regulations, mandates or restrictions related to GHG emissions, such as a potential carbon tax, and energy use.
In addition, the Company is subject to environmental laws and regulations, including those relating to air quality initiatives at port locations; air emissions; use of shore power at California ports; wastewater discharges; management of storm water; the storage, transportation, handling, emission and disposal of solid and hazardous materials, oil and oil related products, hazardous substances and wastes; the investigation and remediation of contamination and liability for damages to the environment; health, safety and the protection of the environment and natural resources; and climate change, including any regulations, mandates or restrictions related to GHG emissions, such as a potential carbon tax, and energy use.
The Company has completed the installation of tanks, piping and cryogenic equipment on Daniel K. Inouye and Kaimana Hila and re-engined Manukai to operate on LNG. In addition, construction has begun on three new LNG-ready Aloha Class vessels. The Company has made and anticipates making significant capital expenditures in connection with these fleet initiatives.
The Company has completed the installation of tanks, piping and cryogenic equipment on its two Aloha class vessels, Daniel K. Inouye and Kaimana Hila , and re-engined Manukai to operate on LNG. In addition, construction has begun on three new LNG-ready Aloha Class vessels. The Company has made and anticipates making significant capital expenditures in connection with these fleet initiatives.
Additional operating costs may be incurred to the extent use of LNG presents new maintenance requirements or unforeseen complications. ​ The Company’s investments in LNG-ready vessels, whether on their own or in addition to other Company initiatives, may be insufficient to meet the Company’s previously announced GHG emission reduction goals on a timely basis or at all.
The Company may incur additional operating costs to the extent use of LNG presents new maintenance requirements or unforeseen complications. ​ The Company’s investments in LNG-ready vessels, whether on their own or in addition to other Company initiatives, may be insufficient to meet the Company’s previously announced GHG emission reduction goals on a timely basis or at all.
In addition, adoption of new and rapid changes in technology, such as the rise in artificial intelligence applications, may impact the transportation and logistics industry.
In addition, adoption of new and rapid changes in technology, such as the rise in artificial intelligence (“AI”) applications, may impact the transportation and logistics industry.
Vessels may also have to be dry-docked or repaired at sea in the event of accidents or other unforeseen damage. Unexpected dry-dockings or repairs could require the Company to activate a reserve vessel, purchase additional fuel and operate a less- efficient, smaller vessel for a period of time.
Vessels may also have to be drydocked or repaired at sea in the event of accidents or other unforeseen damage. Unexpected dry-dockings or repairs could require the Company to activate a reserve vessel, purchase additional fuel and operate a less- efficient, smaller vessel for a period of time.
Any changes in applicable laws and regulations, including their enforcement, interpretation or implementation that results in more stringent requirements than currently anticipated, as well as any new laws and regulations that are adopted could impose significant additional costs and limitations on the Company’s ability to operate.
Any changes in applicable laws and regulations, including their enforcement, interpretation or implementation that result in more stringent requirements than currently anticipated, as well as any new laws and regulations that are adopted could impose significant additional costs and limitations on the Company’s ability to operate.
There can be no assurance that the Company will be successful in limiting future cost and expense increases, and continued upward pressure in costs and expenses could further reduce the profitability of the Company’s businesses. ​ The Company may have exposure under its multi-employer pension and post-retirement plans in which it participates that extends beyond its funding obligation with respect to the Company’s employees. ​ The Company contributes to various multi-employer pension plans.
There can be no assurance that the Company will be successful in limiting future cost and expense increases, and continued upward pressure in costs and expenses could further reduce the profitability of the Company’s businesses. ​ 21 Table of Contents The Company may have exposure under its multi-employer pension and post-retirement plans in which it participates that extends beyond its funding obligation with respect to the Company’s employees. ​ The Company contributes to various multi-employer pension plans.
The loss of or damage to any of these key relationships may adversely affect the Company’s business and revenue. ​ The Company is dependent upon key vendors and third parties for equipment, capacity, facilities, infrastructure and services essential to operate its business, and if the Company fails to secure sufficient third-party services, its business could be adversely affected. ​ The Company’s businesses are dependent upon key vendors who provide terminal, rail, truck, agent and ocean transportation services.
The loss of or damage to any of these key relationships may adversely affect the Company’s business and revenue. ​ 13 Table of Contents The Company is dependent upon key vendors and third parties for equipment, capacity, facilities, infrastructure and services essential to operate its business, and if the Company fails to secure sufficient third-party services, its business could be adversely affected. ​ The Company’s businesses are dependent upon key vendors who provide terminal, rail, truck, agent and ocean transportation services.
The adoption and expansion of related legislation and regulations have also resulted and may again result in increased capital expenditures and compliance, operational and other costs to the Company. For example, the state of California has adopted climate change disclosure requirements.
The adoption and expansion of related legislation and regulations have also resulted and may again result in increased capital expenditures and compliance, operational and other costs to the Company. For example, the state of California has adopted greenhouse gas and climate change disclosure requirements.
Furthermore, the Company’s results of operations have been and may continue to be impacted by lower share of income from SSAT, including as a result of declines in lift volumes due to reduced carrier volumes into U.S.
Furthermore, the Company’s results of operations have been and may continue to be impacted by lower share of income from SSAT, including as a result of declines in lift volume due to reduced carrier volume into U.S.
Such a failure could happen for a variety of reasons, including but not limited to (i) delivery delays, (ii) delivery of vessels that fail to meet any of the required operating specifications (for example, capacity, fuel efficiency or speed), (iii) events in South Korea that prevent one or more significant 15 Table of Contents subcontractors to Philly Shipyard from performing, (iv) loss of key personnel at either Philly Shipyard or any of its subcontractors, (v) work stoppages or other labor disruptions that may occur as a result of the failure of Philly Shipyard to negotiate collective bargaining agreements with its unions, (vi) the insolvency of, or the refusal or inability to perform for any reason, by Philly Shipyard or any of its subcontractors, (vii) the ability of Hanwha Ocean and Hanwha Systems (collectively, “Hanwha”) to integrate Philly Shipyard successfully into their global operations following Hanwha’s acquisition of Philly Shipyard, or (viii) delays in the construction of vessels scheduled to be completed before the Company’s vessels.
Such a failure could happen for a variety of reasons, including but not limited to (i) delivery delays, (ii) delivery of vessels that fail to meet any of the required operating specifications (for example, capacity, fuel efficiency or speed), (iii) events in South Korea that prevent one or more significant subcontractors to Philly Shipyard from performing, (iv) loss of key personnel at either Philly Shipyard or any of its subcontractors, (v) work stoppages or other labor disruptions that may occur as a result of the failure of Philly Shipyard to negotiate collective bargaining agreements with its unions, (vi) the insolvency of, or the refusal or inability to perform for any reason, by Philly Shipyard or any of its subcontractors, (vii) the ability of Hanwha Ocean and Hanwha Systems (collectively, “Hanwha”) to integrate Philly Shipyard successfully into their global operations, or (viii) delays in the construction of vessels scheduled to be completed before the Company’s vessels.
The price and supply of fuel are difficult to predict and fluctuate based on events beyond the Company’s control, including impacts from global macroeconomic conditions and geopolitical events. Increases in the price of fuel may adversely affect the Company’s results of operations.
The price and supply of fuel are difficult to predict and fluctuate based on events beyond the Company’s control, including impacts from global macroeconomic conditions, geopolitical events and governmental policies. Increases in the price of fuel may adversely affect the Company’s results of operations.
Changing macroeconomic and geopolitical conditions, including geopolitical conflict, may also result increased attacks on vessels, piracy or terrorism. ​ Such events could interfere with the Company’s ability to provide on-time scheduled service, require evacuation of personnel or stoppage of services or impact the Company’s customer’s operations, resulting in increased expenses and potential loss of business associated with such events.
Changing macroeconomic and geopolitical conditions, including geopolitical conflict, may also result in increased attacks on vessels, piracy or terrorism. 15 Table of Contents ​ Such events could interfere with the Company’s ability to provide on-time scheduled service, require evacuation of personnel or stoppage of services, or impact the Company’s customer’s operations, resulting in increased expenses and potential loss of business associated with such events.
Such an event could result in the Company’s ineligibility to engage in coastwise trade and the imposition of substantial penalties against the Company, including seizure or forfeiture of its vessels. ​ Risks Related to the Company’s Operations ​ Changes in macroeconomic conditions, geopolitical developments, or governmental policies, including due to outbreaks of disease, have affected and could in the future affect the Company. ​ The transportation industry in which the Company operates has been and could in the future be impacted by macroeconomic fluctuations, volatility, downturns, inflation, recessions, interest rates and other economic shifts or market instabilities, including due to outbreaks of disease and instability in financial institutions, as well as the development of and changes in governmental policies, relations, priorities and budgeting constraints, and uncertainties resulting from the U.S. political environment, including increased political polarization and the potential for political gridlock (such as the prospect of a shutdown of the U.S. federal government), and geopolitical developments across the jurisdictions in which it operates.
Such an event could result in the Company’s ineligibility to engage in coastwise trade and the imposition of substantial penalties against the Company, including seizure or forfeiture of its vessels. 12 Table of Contents ​ Risks Related to the Company’s Operations ​ Changes in macroeconomic conditions, geopolitical developments, or governmental policies have affected and could in the future affect the Company. ​ The transportation industry in which the Company operates has been and could in the future be impacted by macroeconomic fluctuations, volatility, downturns, inflation, recessions, interest rates and other economic shifts or market instabilities, including due to instability in financial institutions, as well as the development of and changes in governmental policies, relations, priorities and budgeting constraints, and uncertainties resulting from the U.S. political environment, including increased political polarization and the potential for political gridlock (such as a shutdown of the U.S. federal government), and geopolitical developments across the jurisdictions in which it operates.
Actual or threatened public health crises can have a number of adverse impacts, including volatility in the global economy, impacts to the Company’s customers’ business operations, reduced tourism in the markets the Company serves, potential restrictions on employee travel, or significant disruptions in ocean-borne transportation of goods, logistics demand and supply chain activity, caused by a variety of factors such as quarantines, factory and office closures, port closures, or other government-imposed restrictions, any of which can adversely impact the Company’s business, financial condition, operating results and cash flows. ​ The Company’s significant operating agreements and leases could be renewed/replaced on less favorable terms or may not be renewed/replaced on acceptable terms, if at all. ​ The significant operating agreements and leases entered into by the Company in the course of its operations, including those related to terminals, chartered vessels, bonded and unbonded container yards, cross-dock facilities, warehouses and offices as well as those entered into with SSAT, expire at various points in time and may not be renewed/replaced with comparable assets with the specifications necessary for the Company’s or SSAT’s businesses or could be 17 Table of Contents renewed/replaced on less favorable terms, if at all, thereby adversely affecting the Company’s future financial position, results of operations and cash flows. ​ The Company may face unexpected dry-docking or repair costs for its vessels. ​ The Company routinely engages shipyards to dry-dock its vessels for regulatory compliance and to provide repair and maintenance, and capital enhancements.
Actual or threatened public health crises can have a number of adverse impacts, including volatility in the global economy, impacts to the Company’s customers’ business operations, reduced tourism in the markets the Company serves, potential restrictions on employee travel, or significant disruptions in ocean-borne transportation of goods, logistics demand and supply chain activity, caused by a variety of factors such as quarantines, factory and office closures, port closures, or other government-imposed restrictions, any of which can adversely impact the Company’s business, financial condition, results of operation and cash flow. ​ The Company’s significant operating agreements and leases could be renewed/replaced on less favorable terms or may not be renewed/replaced on acceptable terms, if at all. ​ The significant operating agreements and leases entered into by the Company in the course of its operations, including those related to terminals, chartered vessels, bonded and unbonded container yards, cross-dock facilities, warehouses and offices as well as those entered into with SSAT, expire at various points in time and may not be renewed/replaced with comparable assets with the specifications necessary for the Company’s or SSAT’s businesses or could be renewed/replaced on less favorable terms, if at all, thereby adversely affecting the Company’s business, financial condition, results of operations and cash flow. ​ The Company may face unexpected dry-docking or repair costs for its vessels. ​ The Company routinely engages shipyards to drydock its vessels for regulatory compliance and to provide repair and maintenance, and capital enhancements.
Additionally, fluctuations in the price of oil could further impact the Alaskan economy, which in turn could impact the Company’s business. ​ 13 Table of Contents The shipping industry is competitive, and the Company has been and may continue to be impacted by new or increased competition. ​ The Company has faced and may continue to face new competition by established or start-up shipping operators that enter into the Company’s markets.
Additionally, fluctuations in the price of oil could further impact the Alaskan economy, which in turn could impact the Company’s business. ​ The shipping industry is competitive, and the Company has been and may continue to be impacted by new or increased competition. ​ The Company has faced and may continue to face new competition by established or start-up shipping operators that enter into the Company’s markets.
All forward-looking statements made in this Form 10-K are qualified by the risks and uncertainties described below. ​ 12 Table of Contents Risks Related to the Jones Act ​ Repeal, substantial amendment, or waiver of the Jones Act or changes in its application would have an adverse effect on the Company’s business. ​ The Merchant Marine Act of 1920 (commonly referred to as the Jones Act) regulates all interstate and intrastate marine commerce within the U.S.
All forward-looking statements made in this Form 10-K are qualified by the risks and uncertainties described below. ​ Risks Related to the Jones Act ​ Repeal, invalidation, substantial amendment, or waiver of the Jones Act or changes in its application would have an adverse effect on the Company’s business. ​ The Merchant Marine Act of 1920 (commonly referred to as the Jones Act) regulates all interstate and intrastate marine commerce within the U.S.
West Coast ports. ​ The Company is subject to risks associated with conducting business in foreign markets. ​ Matson’s China service and other international services are subject to risks associated with conducting business in foreign markets, which include: ​ ● Challenges associated with operating in foreign countries and developing relationships with foreign companies, business associates and governments, including as a result of cultural differences; ● Difficulties in staffing and managing foreign operations, including dynamic employment and immigration laws; ● The Company’s ability to comply with U.S. and foreign legal and regulatory restrictions, including anti-corruption laws such as the Foreign Corrupt Practices Act; ● Not having continued access to existing port facilities or feeder vessels; ● The Company’s ability to manage changes in the cost of goods or currency exchange rate fluctuations; ● Geopolitical and economic instability; ● Economic downturns or slower growth in the local markets or geographic areas in which we conduct business; ● Dynamics involving U.S. trade relations with other countries, including the imposition or threatening of or uncertainty associated with the level , magnitude and product range of tariffs, non-tariff trade barriers or sanctions, including the use of export control restrictions and sanctions against certain countries and individual companies, or other governmental actions, and responsive actions taken by the Company’s customers, including with respect to their supply chains; 18 Table of Contents ● The Company’s ability to offer a differentiated service for which customers are willing to pay a significant premium; and ● Customer preferences to diversify supply chains away from, or otherwise limit sourcing from, certain countries. ​ The Company’s terminals in Hawaii and Alaska require modernization. ​ The Company has completed the first phase of renovating and modernizing its Sand Island terminal in Honolulu Harbor.
West Coast ports or increases in SSAT’s operating costs. ​ 17 Table of Contents The Company is subject to risks associated with conducting business in foreign markets. ​ Matson’s China service and other international services are subject to risks associated with conducting business in foreign markets, which include: ​ ● Challenges associated with operating in foreign countries and developing relationships with foreign companies, business associates and governments, including as a result of cultural differences; ● Difficulties in staffing and managing foreign operations, including dynamic employment and immigration laws; ● The Company’s ability to comply with U.S. and foreign legal and regulatory restrictions, including anti-corruption laws such as the Foreign Corrupt Practices Act; ● Not having continued access to existing port facilities or feeder vessels; ● The Company’s ability to manage changes in the cost of goods or currency exchange rate fluctuations; ● Geopolitical and economic instability; ● Economic downturns or slower growth in the local markets or geographic areas in which we conduct business; ● Dynamics involving U.S. trade relations with other countries, including uncertainty associated with the scope, level , magnitude, duration and product range of tariffs, port entry fees, non-tariff trade barriers or sanctions, including the use of export control restrictions and sanctions against certain countries and individual companies, or other retaliatory governmental actions, and responsive actions taken by the Company’s customers, including with respect to their supply chains; ● The Company’s ability to offer a differentiated service for which customers are willing to pay a significant premium; and ● Customer preferences to diversify supply chains away from, or otherwise limit sourcing from, certain countries. ​ The Company’s terminals in Hawaii and Alaska require modernization. ​ The Company has completed the first phase of renovating and modernizing its Sand Island terminal in Honolulu Harbor.
Employees and Labor Relations of this Annual Report. ​ 19 Table of Contents Previously, the Company has been adversely affected by actions taken by employees of the Company or other companies in related industries against efforts by management of the Company or other companies to control labor costs, restrain wage or benefit increases or modify work practices.
Employees and Labor Relations of this Annual Report. ​ Previously, the Company has been adversely affected by actions taken by employees of the Company or other companies in related industries against efforts by management of the Company or other companies to control labor costs, restrain wage or benefit increases or modify work practices.
Failure of any party to the vessel construction agreements to fulfill its obligations under the agreements could have an adverse effect on the Company’s financial position and results of operations.
Failure of any party to the vessel construction agreements to fulfill its obligations under the agreements could have an adverse effect on the Company’s financial condition and results of operations.
The Company’s use of disclosure frameworks and standards, and the interpretation or application of those frameworks and standards, may change from time to time or differ from those of others. This may result in a lack of consistent or meaningful comparative data from period to period or between the Company and other companies in the same industry.
The Company’s use, interpretation or application of disclosure frameworks and standards may change from time to time or differ from those of others. This may result in a lack of consistent or meaningful comparative data from period to period or between the 14 Table of Contents Company and other companies in the same industry.
Even if suitable candidates are identified, such transactions may result in regulatory scrutiny, litigation or difficulties assimilating acquired assets or companies, and may result in the diversion of the Company’s capital and its management attention from other business issues and opportunities.
Even if suitable candidates are 18 Table of Contents identified, such transactions may result in regulatory scrutiny, litigation or difficulties assimilating acquired assets or companies, and may result in the diversion of the Company’s capital and its management attention from other business issues and opportunities.
If these outcomes were to occur, the Company’s business, results of operations, cash flows and financial condition could be adversely affected. ​ The Company faces risks related to actual or threatened health epidemics, outbreaks of disease, pandemics or other major health crises, which could significantly disrupt the Company’s business. ​ The Company’s business has in the past, and could in the future, be impacted adversely by outbreaks of disease, the effects of public health epidemics, pandemics or other major heath crises (which the Company refers to collectively as public health crises), such as the COVID-19 pandemic.
If these outcomes were to occur, the Company’s business, financial condition, results of operations and cash flow could be adversely affected. ​ 16 Table of Contents The Company faces risks related to actual or threatened health epidemics, outbreaks of disease, pandemics or other major health crises, which could significantly disrupt the Company’s business. ​ The Company’s business has in the past, and could in the future, be impacted adversely by outbreaks of disease, the effects of public health epidemics, pandemics or other major heath crises (which the Company refers to collectively as public health crises), such as the COVID-19 pandemic.
In complying with applicable laws and regulations, the Company has incurred expenses and may incur material future costs and expenses related to vessel and equipment modifications, new equipment, higher-priced fuel, changes in operating practices and procedures, tracking emissions, changing routes, adopting or modifying energy sources and undergoing additional oversight inspections, all of which could adversely affect the Company’s business and financial condition.
In complying with applicable laws and regulations, the Company has incurred expenses and may incur material future costs and expenses related to vessel and equipment modifications, new equipment, higher-priced fuel, changes in operating practices and procedures, tracking emissions, changing routes, adopting or modifying energy sources and undergoing additional oversight inspections, all of which could adversely affect the Company’s financial condition, results of operations and cash flow.
The occurrence of these or the risks and uncertainties described below may, in ways the Company may not be able to accurately predict, recognize or mitigate, adversely affect the Company’s business, competitive environment, strategy, financial condition, operating results, cash flows, liquidity, demand, revenue, growth, prospects, reputation or stock price.
The occurrence of these or the risks and uncertainties described below may, in ways the Company may not be able to accurately predict, recognize or mitigate, adversely affect the Company’s business, competitive environment, strategy, financial condition, results of operations, cash flow, liquidity, demand, revenue, growth, prospects, reputation or stock price.
Because the Company relies on its ability to draw on its revolving credit facility to support its operations when required, any volatility or disruption in the credit and financial markets or other development that prevents the Company from accessing funds (for example, a lender that does not fulfill its lending obligation) or renewing its revolving credit facility could have an adverse effect on the Company’s financial condition and cash flows.
Because the Company relies on its ability to draw on its revolving credit facility to support its operations when required, any volatility or disruption in the credit and financial markets or other development that prevents the Company from accessing funds (for example, a lender that does not fulfill its lending obligation) or renewing its revolving credit facility could have an adverse effect on the Company’s financial condition, results of operation and cash flow.
If this were to occur, the Company’s business, results of operations and financial condition could be adversely affected.
If this were to occur, the Company’s business, financial condition, results of operations and cash flow could be adversely affected.
Adverse changes in any of these assumptions due to economic or other factors, changes in discount rates, higher health care costs, or lower actual or expected returns on plan assets, may adversely affect the Company’s operating results, cash flows, and financial condition.
Adverse changes in any of these assumptions due to economic or other factors, changes in discount rates, higher health care costs, or lower actual or expected returns on plan assets, may adversely affect the Company’s financial condition, results of operations and cash flow.
Based on the limited information available from plan administrators, which the Company cannot independently validate, the Company believes that its portion of the contingent liability in the case of a full withdrawal or termination may be material to its financial position and results of operations.
Based on the limited information available from plan administrators, which the Company cannot independently validate, the Company believes that its portion of the contingent liability in the case of a full withdrawal or termination may be material to its financial condition, results of operations and cash flow.
If maritime cabotage services were included in the General Agreement on Trade in Services, the United States-Mexico-Canada Agreement, or other international trade agreements, or if the restrictions contained in the Jones Act were otherwise altered, the shipping of cargo between covered U.S. ports could be opened to foreign-flagged or foreign-built vessels, which could have other adverse impacts to our business. ​ The Company’s business would be adversely affected if the Company were determined not to be a U.S. citizen under the Jones Act. ​ Certain provisions of the Company’s articles of incorporation protect the Company’s ability to maintain its status as a U.S. citizen under the Jones Act.
If maritime cabotage services were included in international trade agreements, or if the restrictions contained in the Jones Act were otherwise altered, the shipping of cargo between covered U.S. ports could be opened to foreign-flagged or foreign-built vessels, which could have other adverse impacts to our business. ​ The Company’s business would be adversely affected if the Company were determined not to be a U.S. citizen under the Jones Act. ​ Certain provisions of the Company’s articles of incorporation protect the Company’s ability to maintain its status as a U.S. citizen under the Jones Act.
These efforts and the Company’s reputation may also be impacted by any failure or perceived failure to meet or timely progress on publicly disclosed human capital-related goals and initiatives, or to compare favorably with the progress or goals of its industry or peers. ​ Risks Related to Information Technology ​ If the Company is not able to use its information technology and communications systems effectively, the Company’s ability to conduct business might be negatively impacted. ​ The Company is highly dependent on the proper functioning of its information technology systems to enable operations and compete effectively.
These efforts and the Company’s reputation may also be impacted by any failure or perceived failure to meet or timely progress on publicly disclosed human capital-related goals and initiatives, or to compare favorably with the progress or goals of its industry or peers, and stakeholders may have differing views on these goals and initiatives. ​ 19 Table of Contents Risks Related to Information Technology ​ If the Company is not able to use its information technology and communications systems effectively, the Company’s ability to conduct business might be negatively impacted. ​ The Company is highly dependent on the proper functioning of its information technology systems to enable operations and compete effectively.
For example, damage to the Company’s vessels could require repair at a dry-docking facility. The costs of repairs may be substantial which may adversely affect the Company’s business and financial condition.
For example, damage to the Company’s vessels could require repair at a dry-docking facility. The costs of repairs may be substantial which may adversely affect the Company’s business, financial condition, results of operation and cash flow.
Significant delays in the delivery of the new vessels could limit our ability to replace aging vessels in the Alaska service without substantial modifications and delay the Company’s ability to upsize the CLX service, which could also have an adverse impact on our business plans, financial condition and results of operations. ​ The Company’s operations are susceptible to weather, natural disasters, risks arising from climate change, maritime accidents, spill events and other physical and operating risks. ​ As a maritime transportation company, the Company’s operations are vulnerable to delay, disruptions and loss of life and property as a result of weather, natural disasters and other climate-driven events, such as rising temperatures and heat waves, rising sea levels, bad weather at sea (including increased storm severity), lightning strikes, wildfires, lava flows, hurricanes, typhoons, tsunamis, droughts, windstorms, floods and earthquakes.
Significant delays in the delivery of the new vessels could limit our ability to replace aging vessels in the Alaska service without substantial modifications and delay the Company’s ability to upsize the CLX service, which could also have an adverse impact on the Company’s business, financial condition, results of operations and cash flow. ​ The Company’s operations are susceptible to weather, natural disasters, maritime accidents, spill events and other physical and operating risks. ​ As a maritime transportation company, the Company’s operations are vulnerable to delay, disruptions and loss of life and property as a result of weather, natural disasters, bad weather at sea (including increased storm severity), lightning strikes, wildfires, heat waves, lava flows, hurricanes, typhoons, tsunamis, droughts, windstorms, floods and earthquakes.
These factors include, but are not limited to changes in tax rates; changes in tax laws, regulations, and rulings; changes in interpretations of existing tax laws, regulations and rulings; changes in the evaluation of the Company’s ability to realize deferred tax assets, and changes in uncertain tax positions; changes in accounting principles; changes in current pre-tax income as well as changes in forecasted pre-tax income; changes in the level of Capital Construction Fund (“CCF”) deductions, non-deductible expenses, and expenses eligible for tax credits; changes in the mix of earnings among countries with varying tax rates; changes to the allowable amounts of foreign derived intangible income deductions; and acquisitions and changes in the Company’s corporate structure.
These factors include, but are not limited to changes in tax rates; changes in tax laws, regulations, and rulings; changes in interpretations of existing tax laws, regulations and rulings; changes in the evaluation of the Company’s ability to realize deferred tax assets, and changes in uncertain tax positions; changes in accounting principles; changes in current pre-tax income as well as changes in forecasted pre-tax income; changes in the level of CCF deductions, non-deductible expenses, and expenses eligible for tax credits; changes in the mix of earnings among countries with varying tax rates; changes to the allowable amounts of foreign-derived deduction eligible income; and changes in the Company’s corporate structure, including potential acquisitions.
Disruptions to the credit markets as a result of macroeconomic, geopolitical, or financial market developments could increase the Company’s cost of capital and limit the Company’s access to capital. ​ Failure to comply with certain restrictive financial covenants contained in the Company’s credit facilities could preclude the payment of dividends, impose restrictions on the Company’s business segments, capital resources or other activities or otherwise adversely affect the Company. ​ The Company’s credit facilities contain certain restrictive financial covenants, the most restrictive of which include a maximum ratio of debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”), a minimum ratio of EBITDA to interest expense, certain prohibitions on additional priority debt and the maintenance of minimum 21 Table of Contents shareholders’ equity.
Disruptions to the credit markets as a result of macroeconomic, geopolitical, or financial market developments could increase the Company’s cost of capital and limit the Company’s access to capital. ​ Failure to comply with certain restrictive financial covenants contained in the Company’s credit facilities could preclude the payment of dividends, impose restrictions on the Company’s business segments, capital resources or other activities or otherwise adversely affect the Company. ​ The Company’s credit facilities contain certain restrictive financial covenants, the most restrictive of which include a maximum ratio of debt to earnings before interest, taxes, depreciation and amortization (“EBITDA”) and certain limitations on additional priority debt.
These evolving regulations and expectations may impact the Company’s reputation, business and attractiveness as an investment, employer or business partner to the extent the Company – including its initiatives, goals and reporting – fails to satisfy or is perceived to fail to satisfy those regulations and expectations, including as a result of any third-party rating or assessment.
Evolving regulations in certain of the jurisdictions in which the Company operates and stakeholder expectations may impact the Company’s reputation, business and attractiveness as an investment, employer or business partner to the extent the Company – including its initiatives, goals and reporting – fails to satisfy or is perceived to fail to satisfy those regulations and expectations, including as a result of any third-party rating or assessment.
If these disputes develop into proceedings, these proceedings, individually or collectively, could involve or result in significant expenditures or losses by the Company, or result in significant changes to Matson’s tariffs, rates, rules and practices in dealing with its customers. ​ ​
If these disputes develop into proceedings, these proceedings, individually or collectively, could involve or result in significant expenditures or losses by the Company, or result in significant changes to Matson’s tariffs, rates, rules and practices in dealing with its customers. ​ ​ ITEM 1B. UNRESOLVED STAFF COMMENTS ​ None. ​ ​
Mainland, inflation, interest rates, recession, increased political polarization and the potential for political gridlock (such as the prospect of a shutdown of the U.S. federal government), and the effect of a change in the strength of the U.S. dollar against other foreign currencies has reduced and could in the future reduce the demand for goods, adversely affecting inland and ocean transportation volumes or rates.
Mainland, inflation, interest rates, recession, increased political polarization and the potential for political gridlock, and the effect of a change in the strength of the U.S. dollar against other foreign currencies has reduced and could in the future reduce the demand for goods, adversely affecting inland and ocean transportation volume or rates.
In addition, overcapacity in the global or transpacific ocean transportation markets, a change in the cost of goods or currency exchange rates, pressure from U.S. or foreign governments, imposition of or increases in tariffs and uncertainties regarding tariff policies or other changes in international trade policies could adversely affect freight volumes and rates in the Company’s China services.
In addition, overcapacity in the global or transpacific ocean transportation markets, a change in the cost of goods or currency exchange rates, pressure from U.S. or foreign governments, and changes in tariff policies or international trade policies and related uncertainties could adversely affect freight volume and rates in the Company’s China services.
If the Company’s credit profile deteriorates significantly, its access to the debt capital markets or its ability to renew its revolving credit facility and other committed lines of credit may become restricted, or the Company may not be able to refinance debt at the same levels or on the same terms.
If the Company’s credit profile deteriorates 20 Table of Contents significantly, its access to the debt capital markets or its ability to renew its committed lines of credit may become restricted, or the Company may not be able to refinance debt at the same levels or on the same terms.
It is also uncertain to what extent charter vessel owners may be willing to experiment with, or make the necessary investments to utilize, alternative fuels. ​ 14 Table of Contents Evolving regulations and stakeholder expectations related to sustainability matters exposes the Company to heightened scrutiny, additional costs, operational challenges and a number of risks. ​ The SEC, the state of California, and other regulators, investors, advisory firms, employees, customers, suppliers, governments and other stakeholders are increasingly focused on and have established regulations and expectations related to sustainability matters and related corporate practices, disclosures and initiatives.
It is also uncertain to what extent charter vessel owners may be willing to experiment with, or make the necessary investments to utilize, alternative fuels. ​ Evolving regulations and stakeholder expectations related to sustainability matters exposes the Company to heightened scrutiny, additional costs, operational challenges and a number of risks. ​ Certain regulators, investors, advisory firms, employees, customers, suppliers, governments and certain other stakeholders have increased their focus and scrutiny on sustainability matters and related corporate practices, disclosures and initiatives.
Regulatory, construction or other delays or cost overruns related to the expansion and modernization of the terminals could have an adverse impact on the Company’s business plans, financial condition and results of operations.
Regulatory, construction or other delays or cost overruns related to the expansion and modernization of the terminals as well as delays or cost overruns related to the refurbishing, delivery and commissioning of the cranes, could have an adverse impact on the Company’s business plans, financial condition, results of operations and cash flow.
For example, the aging cranes and dock facilities of the port are increasingly exposed to the risk of failure due to corrosion, deterioration, and the loss of load-bearing capacity particularly in the event of extreme seismic events or other natural disasters.
For example, the aging cranes and dock facilities of the port are increasingly exposed to the risk of failure due to corrosion, deterioration, and the loss of load-bearing capacity particularly in the event of extreme seismic events or other natural disasters. The Company has purchased three used utility-powered cranes for the new terminal to replace the aging cranes.
Significant upgrades to the terminal and port facilities at the Port of Alaska are needed to improve operational safety and efficiency, accommodate modern shipping operations, and improve resiliency, including to risks due to severe weather events, natural disasters and climate-change related risks.
While reconstruction of the Port of Alaska has begun, significant upgrades are needed to improve operational safety and efficiency, accommodate modern shipping operations, and improve resiliency, including to risks due to severe weather events and natural disasters.
The Company’s vessels and their cargoes, terminals and other facilities are also subject to operating risks such as mechanical failure, collisions and human error. ​ The occurrence of any of these events may result in damage to or loss of terminals, port facilities and infrastructure, vessels, containers, cargo and other equipment, increased maintenance expense, loss of life or physical injury to its employees or people, pollution, or the slow down or suspension of operations.
The occurrence of any of these events may result in damage to or loss of terminals, port facilities and infrastructure, cranes, vessels, containers, cargo and other equipment, increased maintenance expense, loss of life or physical injury to its employees or people, pollution, or the slow down or suspension of operations.
Heightened security measures, including customs inspections and related procedures in countries of origin and destination, potentially slow the movement and increase the cost of freight through U.S. or foreign ports, across borders or on U.S. or foreign railroads or highways. ​ Acquisitions may have an adverse effect on the Company’s business. ​ The Company’s growth strategy includes expansion through acquisitions, including, for example, the Company’s acquisitions of Horizon Lines, Inc.
Heightened security measures, including customs inspections and related procedures in countries of origin and destination, potentially slow the movement and increase the cost of freight through U.S. or foreign ports, across borders or on U.S. or foreign railroads or highways. ​ Acquisitions may have an adverse effect on the Company’s business. ​ The Company’s growth strategy includes expansion through acquisitions, but there is no assurance that the Company will be successful in identifying, negotiating or consummating any future acquisitions.
In addition, severe weather and natural disasters can result in interference with the Company’s terminal operations and may cause serious damage to its vessels and cranes. These impacts could be particularly acute in ports such as Dutch Harbor and Kodiak, Alaska where the Company is dependent on a single crane.
In addition, severe weather and natural disasters can result in interference with the Company’s or its partners’ terminal operations. These impacts could be particularly acute in Hawaii and Alaska given the local economies’ dependence on these ports for ocean cargo, and in ports such as Dutch Harbor and Kodiak, Alaska where the Company is dependent on a single crane.
The Company’s initiatives and goals may not be favored by certain stakeholders and could impact the attraction and retention of investors, customers and employees, as well as the Company’s willingness to do business with other companies or customers or their willingness to do business with the Company.
The Company’s sustainability initiatives and goals, including human capital practices, may not satisfy all stakeholders and could impact the attraction and retention of investors, customers and employees, legal enforcement or reputation risk, as well as the Company’s willingness to do business with other companies or customers or their willingness to do business with the Company.
For example, there have been increases in geopolitical and trade tensions among a number of the world’s major economies.
For example, there have been increases in geopolitical and trade tensions among a number of the world’s major economies, including the United States’ imposition of tariffs and the imposition by other countries of new or increased tariffs.
If the Company’s information technology and communications systems experience 20 Table of Contents reliability issues, integration or compatibility concerns or if the Company’s third-party providers are unable to perform effectively or experience disruptions, cyber attacks or failures, there could be an adverse impact on the availability and functioning of the Company’s information technology and communications systems, which could lead to business disruption or inefficiencies, reputational harm or loss of customers. ​ The Company’s information technology systems have in the past and may in the future be exposed to cybersecurity risks and other disruptions that could impair the Company’s ability to operate and adversely affect its business. ​ The shipping industry is a more frequent target of cyber attacks than some other industries because of the essential nature of these services.
If the Company’s information technology and communications systems experience reliability issues, integration or compatibility concerns or if the Company’s third-party providers are unable to perform effectively or experience disruptions, cyber attacks or failures, there could be an adverse impact on the availability and functioning of the Company’s information technology and communications systems, which could lead to business disruption or inefficiencies, reputational harm or loss of customers. ​ The Company’s information technology systems have in the past and may in the future be exposed to cybersecurity risks and other disruptions that could impair the Company’s ability to operate and adversely affect its business. ​ The Company relies extensively on its information technology systems and third-party service providers in many aspects of its business, including cloud services for accounting, billing, disbursement, cargo booking and tracking, vessel scheduling and stowage, equipment tracking, customer service, banking, payroll and employee communication systems.
In addition, the Company’s customers and the island communities it serves throughout the Pacific are particularly vulnerable to rising sea levels and severe storms, which may drive inhabitants away from these regions and reduce demand for the Company’s services in the affected areas and adversely impact our business. ​ The Company’s operations are also vulnerable to risks related to the operation of ocean- going vessels, including risks of potential marine accidents, or disasters, including grounding, fires, explosions, collisions, mechanical failures, human error, maintenance issues, latent defects, oil or other spill or environmental accidents, whale strikes, war, terrorism and piracy, lost or damaged cargo, delays, injury and loss of life.
The Company’s operations are also vulnerable to risks related to the operation of ocean- going vessels, including risks of potential marine accidents, or disasters, including grounding, fires, explosions, collisions, mechanical failures, human error, maintenance issues, latent defects, oil or other spill or environmental accidents, whale strikes, war, terrorism and piracy, lost or damaged cargo, delays, injury and loss of life.
However, significant upgrades remain, including the long-term expansion program at the Sand Island terminal and projects to improve resiliency to risks from events such as severe weather, natural disasters, sea level rise and other climate- change related risks. The Company is continuing discussions with state and local authorities regarding a port modernization program for the Port of Alaska.
However, significant upgrades remain, including the long-term expansion program at the Sand Island terminal and projects to improve resiliency to risks from events such as severe weather and natural disasters.
Further, the Company may be unable to find space at a suitable dry-docking facility, the vessels may be forced to wait for space or be towed to a different facility, all of which could result in additional expenses and delays, and may adversely affect the Company’s business. ​ These events can also expose the Company to reputational harm and liability for resulting damages, including for loss of life and property, and possible penalties that, pursuant to typical maritime industry policies, it must pay and then seek reimbursement from its insurer.
These events can also expose the Company to reputational harm and liability for resulting damages, including for loss of life and property, and possible penalties that, pursuant to typical maritime industry policies, it must pay and then seek reimbursement from its insurer.
The timing and expense required for repairs could be exacerbated by compliance with MARAD and Jones Act requirements. ​ The Company is involved in a joint venture and is subject to risks associated with joint venture relationships. ​ The Company is involved in a terminal joint venture with SSAT (and through SSAT, other joint ventures at various U.S.
Department of Transportation Maritime Administration and Jones Act requirements. ​ The Company is involved in a joint venture and is subject to risks associated with joint venture relationships. ​ The Company is involved in a terminal joint venture with SSAT (and through SSAT, other joint ventures at various U.S. West Coast terminals), and may initiate future joint venture projects.
These disclosures are aspirational and based on standards and frameworks for presenting and measuring progress that are not harmonized and are still developing, assumptions that may change, disclosure controls and procedures that continue to evolve, and with respect to our GHG emissions targets, dependent in part on the industry’s successful and timely development of alternative fuels and technologies.
Compliance with these rules and regulations could require significant effort and resources and result in changes to the Company’s current GHG emission reduction goals. ​ The Company’s sustainability and related initiatives are aspirational and based on standards and frameworks for presenting and measuring progress that are not harmonized and are still developing, assumptions that may change, disclosure controls and procedures that continue to evolve, and technological, policy and other progress and changes outside of our control (particularly those relating to the development of alternative fuels).
These tensions have resulted in the rising threat, implementation or increase of tariffs, non-tariff trade barriers and sanctions, including the use of export control restrictions and sanctions against certain countries and individual companies, which have, and may continue to have, an adverse economic impact in the markets in which the Company operates and could result in a reduced demand for the Company’s services. ​ These adverse economic conditions may also impact the Company’s customers’ business levels and needs.
These actions and uncertainty regarding domestic and foreign tariff policy, including uncertainty associated with the scope, level, magnitude, duration and product range of tariffs, have, and may continue to have, an adverse economic impact in the markets in which the Company operates and could result in a reduced demand for the Company’s services. ​ These adverse economic conditions can also impact the Company’s customers’ business levels and needs.
This, in turn, could adversely affect transportation volumes or rates in Alaska and adversely impact the Company’s Ocean Transportation business and Span Alaska’s freight forwarding business, particularly given the Alaskan economy’s dependence on this port for ocean cargo. 16 Table of Contents ​ There is no assurance that our efforts to mitigate the impact of these risks, including from severe weather or other climate-driven events on our operations, will be effective.
Affected vessels may also be removed from service and thus would be unavailable for income-generating activity. ​ There is no assurance that our efforts to mitigate the impact of these risks, including from severe weather or other events on our operations, will be effective.
Removed
Compliance with such rules could require significant effort and resources and result in changes to the Company’s current GHG emission reduction goals. ​ The Company’s public disclosures on its climate, sustainability, human capital and other initiatives include its goals or expectations with respect to those matters, including GHG emission reduction targets.
Added
From time to time, various interests have sought to repeal, amend or waive the Jones Act. For example, in February 2025, a lawsuit was filed in the U.S. District Court for the District of Columbia challenging the Jones Act, arguing that it violates the Port Preference Clause of the U.S.
Removed
Climate change has increased and may continue to increase the frequency, severity and uncertainty of such events. For example, sea level rise could potentially impact coastal and other low-lying areas, cause erosion of shorelines, higher water tables and increased flooding, which could damage the Company’s vessels, terminals or facilities.
Added
Constitution; the Company has intervened in this lawsuit and believes this lawsuit is without merit.
Removed
These risks could be exacerbated by severe weather or other climate-driven events.
Added
These tensions have resulted in measures by governments, including reciprocal tariffs, port entry fees, non-tariff trade barriers, and sanctions, including the use of export control restrictions and sanctions against certain countries and individual companies. In the past, the U.S.
Removed
Affected vessels may also be removed from service and thus would be unavailable for income-generating activity.
Added
Trade Representative has imposed entry fees on certain Chinese-owned, -operated, or - built vessels entering U.S. ports and additional duties on cranes, certain chassis and spare parts. China has also imposed port entry fees on certain U.S.-owned or operated, or U.S.-flagged vessels entering Chinese ports.
Removed
Furthermore, the Port of Alaska requires upgrades to its port facilities and infrastructure to improve operational safety and efficiency, accommodate modern shipping operations and improve resiliency, as well as to mitigate the risk of failure due to corrosion, deterioration or loss of load bearing capacity.
Added
Further, the Company may be unable to find space at a suitable dry-docking facility, the vessels may be forced to wait for space or be towed to a different facility, all of which could result in additional expenses and delays, and may adversely affect the Company’s business.
Removed
As a result, there is an increased risk that an earthquake or other natural disaster could damage or render inoperable, in whole or in part, port facilities and infrastructure at the Port of Alaska.
Added
The timing and expense required for repairs could be exacerbated by compliance with the U.S.
Removed
West Coast terminals), and may initiate future joint venture projects.
Added
In addition, as AI capabilities improve and are increasingly adopted, cybersecurity attacks perpetrated through the use of AI may proliferate, leading to an increase in the frequency, speed, scale and automation of such attacks. ​ Any failure, breach or unauthorized access to the Company’s systems or those of third parties on which the Company relies could result in the loss of confidential, sensitive or proprietary information, interruptions in its service or production or otherwise impact the Company’s ability to conduct business operations, and potentially could result in reductions in revenue and profits, damage to its reputation or liability. ​ Risks Related to Financial Matters ​ A deterioration of the Company’s credit profile, disruptions of the credit markets or higher interest rates could restrict its ability to access the debt capital markets or increase the cost of debt. ​ Deterioration in the Company’s credit profile may have an adverse effect on the Company’s ability to access the private or public debt markets and also may increase its borrowing costs.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Company also has specific escalation processes and resources in place for employees to raise a concern should they notice anything suspicious. ​ The design of Matson’s information technology systems is informed in part by the following third-party frameworks or standards: ● ISO 27001 ● NIST Cybersecurity Framework ● NIST 800-171 ● NIST 800-82 ● DFARS 252.204-7012 ● IMO MSC-FAL.1/Circ.3/Rev.2 ● BIMCO’s Guidelines for Cyber Security Onboard Ships ● IAPH’s Cybersecurity Guidelines for Ports and Port Facilities 24 Table of Contents ​ In addition, Matson participates in the following organizations in its effort to better understand best practices and advance its systems and policies over time: ● National Security Administration (“NSA”)’s Cybersecurity Collaboration Center ● U.S.
Biggest changeThe Company also has specific escalation processes and resources in place for employees to raise a concern should they notice anything suspicious. ​ The design of Matson’s information technology systems is informed in part by the following third-party frameworks or standards: ● ISO 27001 ● NIST Cybersecurity Framework ● NIST 800-171 ● Cybersecurity Maturity Model Certification (“CMMC”) 2.0 ● NIST 800-82 ● DFARS 252.204-7012 ● IMO MSC-FAL.1/Circ.3/Rev.3 ● United States Coast Guard – Final Rule: Cybersecurity in the Marine Transportation System (“MTS”) ● BIMCO’s Guidelines for Cyber Security Onboard Ships ● IAPH’s Cybersecurity Guidelines for Ports and Port Facilities ​ In addition, Matson participates in the following organizations in its effort to better understand best practices and advance its systems and policies over time: ● National Security Administration (“NSA”)’s Cybersecurity Collaboration Center ● U.S.
In addition, the Company has established a zero trust network access roadmap that includes key security controls designed to help protect Matson employees and contractors with access to Matson systems against phishing and brute force password attacks. ​ The risk management process occurs throughout the organization, but is facilitated through a risk management steering committee comprised of senior management whose members meet regularly to identify and address specific significant risks.
In addition, the Company has implemented a zero trust network access framework that includes key security controls designed to help protect Matson employees and contractors with access to Matson systems against phishing and brute force password attacks. ​ The risk management process occurs throughout the organization, but is facilitated through a risk management steering committee comprised of senior management whose members meet regularly to identify and address specific significant risks.
The Company’s quarterly information security update to the Chief Executive Officer and Chief Financial Officer includes an update on the results of these reviews. ​ Training, education and awareness-building are mechanisms Matson uses to help embed a strong culture of cyber and information security within its workplace.
The Company’s quarterly information security update to the Chief Executive Officer and Chief Financial Officer includes an update on the results of these reviews. 23 Table of Contents ​ Training, education and awareness-building are mechanisms Matson uses to help embed a strong culture of cyber and information security within its workplace.
In addition, executive sessions of the Board, which are led by the Lead Independent Director, have focused on certain risk oversight topics from time to time. The Lead Independent Director consults with the Chairman of the Board regarding risk-focused topics at Board meetings. ​ ​ 25 Table of Contents
In addition, executive sessions of the Board, which are led by the Lead Independent Director, have focused on certain risk oversight topics from time to time. The Lead Independent Director consults with the Chairman of the Board regarding risk-focused topics at Board meetings. ​ ​
These processes are part of the risk management processes described in the risk management and strategy section above. ​ The Audit Committee also oversees Matson’s ERM program, which includes cyber and information security risks.
These processes are part of the risk management processes described in the risk management and strategy section above. 24 Table of Contents ​ The Audit Committee also oversees Matson’s ERM program, which includes cyber and information security risks.
Furthermore, Matson requires enhanced training for employees with access to particularly sensitive information.
Furthermore, Matson requires enhanced training for employees with access to particularly sensitive information or critical systems.
Matson’s information security efforts are led by its Chief Information Officer, who has over 25 years of experience in enterprise software development, infrastructure and management, including over 18 years with Matson and 7 years at Charles Schwab as Senior Manager of Middleware Security, and the Chief Information Security Officer , who is a Certified Information Systems Security Professional, Certified Information Systems Auditor, and is AWS Certified.
Matson’s information security efforts are led by its Chief Information Officer, who has over 25 years of experience in enterprise software development, infrastructure and management, and its Chief Information Security Officer , who is a Certified Information Systems Security Professional, Certified Information Systems Auditor, and is AWS Certified.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeMaterial terminal facilities used by the Company’s Ocean Transportation segment include the following: ​ ​ ​ ​ ​ Terminal Location Acreage Honolulu, Hawaii 105 Anchorage, Alaska 38 Dutch Harbor, Alaska 24 Kodiak, Alaska 6 Tacoma, Washington ​ 15 ​ Polaris Point, Guam ​ 30 ​ The Company’s other primary terminal facilities located at the ports of Oakland and Long Beach, California, and Tacoma, Washington are leased by SSAT. ​ Other material facilities used by the Company’s Logistics segment include the following: ​ ​ ​ ​ ​ ​ ​ Other Material Facilities Description of Facility Square Footage Leased facilities: ​ ​ ​ ​ ​ Pooler, Georgia Warehouse 710,844 ​ Oakland, California Warehouse 406,463 ​ Pooler, Georgia Warehouse 324,832 ​ Oakland, California Warehouse 132,000 ​ Auburn, Washington Office / Cross-dock 51,250 ​ Owned facilities: ​ ​ ​ ​ ​ Anchorage, Alaska ​ Office / Cross-dock ​ 54,000 ​ Fairbanks, Alaska ​ Office / Cross-dock ​ 25,350 ​ ​ ​ ​
Biggest changeMaterial facilities used by the Company’s Ocean Transportation segment include the following: ​ ​ ​ ​ ​ ​ ​ Terminal Location ​ ​ ​ Description of Facility ​ ​ ​ Acreage ​ ​ ​ Honolulu, Hawaii Terminal facility 105 Anchorage, Alaska Terminal facility 38 Dutch Harbor, Alaska Terminal facility 24 Tacoma, Washington ​ Terminal facility ​ 15 ​ Kodiak, Alaska Terminal facility 6 ​ Polaris Point, Guam ​ Terminal storage ​ 30 Carson, California ​ Off-dock container yard ​ 60 ​ The Company’s other primary terminal facilities located at the ports of Oakland and Long Beach, California, and Tacoma, Washington are leased by SSAT. ​ Other material facilities used by the Company’s Logistics segment include the following: ​ ​ ​ ​ ​ ​ ​ Other Material Facilities ​ ​ ​ Description of Facility ​ ​ ​ Square Footage Leased facilities: ​ ​ ​ ​ ​ Pooler, Georgia Warehouse 710,844 ​ Oakland, California Warehouse 406,463 ​ Pooler, Georgia Warehouse 324,832 ​ Oakland, California Warehouse 132,000 ​ Auburn, Washington Office / Cross-dock 51,250 ​ Auburn, Washington Office / Cross-dock 13,200 ​ Owned facilities: ​ ​ ​ ​ ​ Anchorage, Alaska ​ Office / Cross-dock ​ 54,000 ​ Fairbanks, Alaska ​ Office / Cross-dock ​ 25,350 ​ ​ ​ ​ 25 Table of Contents
ITEM 2. PROPERTIES ​ Matson leases terminal facilities including berth, yard, office and storage spaces.
ITEM 2. PROPERTIES ​ Matson leases terminal facilities including berth, yard, office, storage spaces and off-dock container yards.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe graph above represents $100 invested on December 31, 2019 in the Company’s stock or the indicated index, including reinvestment of dividends. ​ Trading volume averaged 271,862 shares a day in 2024, compared with 274,339 shares a day in 2023 and 431,336 shares a day in 2022, as reported by the New York Stock Exchange. ​ ​ 27 Table of Contents Dividends: Dividends per share of common stock declared by the Company for each fiscal quarter during 2024, 2023 and 2022 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends Declared ​ 2024 ​ 2023 ​ 2022 First Quarter ​ $ 0.32 $ 0.31 $ 0.30 ​ Second Quarter ​ ​ 0.32 ​ 0.31 ​ ​ 0.30 ​ Third Quarter ​ ​ 0.34 ​ 0.32 ​ ​ 0.31 ​ Fourth Quarter ​ ​ 0.34 ​ 0.32 ​ ​ 0.31 ​ Total ​ $ 1.32 $ 1.26 ​ $ 1.22 ​ ​ The Board also declared a cash dividend of $0.34 per share for the first quarter 2025, payable on March 6, 2025 to shareholders of record on February 6, 2025.
Biggest changeThe graph is a historical representation of past performance only and is not necessarily indicative of future performance. ​ The graph above represents $100 invested on December 31, 2020 in the Company’s stock or the indicated index, including reinvestment of dividends. ​ Trading volume averaged 384,675 shares a day in 2025, compared with 271,862 shares a day in 2024 and 274,339 shares a day in 2023, as reported by the New York Stock Exchange. ​ ​ 27 Table of Contents Dividends: Dividends per share of common stock declared by the Company for each fiscal quarter during 2025, 2024 and 2023 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Dividends Declared ​ 2025 ​ 2024 ​ 2023 First Quarter ​ $ 0.34 $ 0.32 $ 0.31 ​ Second Quarter ​ ​ 0.34 ​ 0.32 ​ ​ 0.31 ​ Third Quarter ​ ​ 0.36 ​ 0.34 ​ ​ 0.32 ​ Fourth Quarter ​ ​ 0.36 ​ 0.34 ​ ​ 0.32 ​ Total ​ $ 1.40 $ 1.32 ​ $ 1.26 ​ ​ The Board declared a cash dividend of $0.36 per share for the first quarter 2026, payable on March 5, 2026 to shareholders of record on February 5, 2026.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES ​ General Information: Matson’s common stock is traded on the New York Stock Exchange under the ticker symbol “MATX”.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES ​ General Information: Matson’s common stock is traded on the New York Stock Exchange under the stock ticker symbol “MATX”.
As of February 14, 2025, there were 1,796 shareholders of record of Matson common stock. ​ Stockholder Return Performance Graph and Trading Information: The following information in this Item 5 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933. ​ The cumulative total return listed below assumed an initial investment of $100 and reinvestment of dividends at each fiscal end and measures the performance of this investment as of the last trading day in the month of December for each of the five years ended December 31, 2024.
As of February 13, 2026, there were 1,720 shareholders of record of Matson common stock. ​ Stockholder Return Performance Graph and Trading Information: The following information in this Item 5 shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933. ​ The cumulative total return listed below assumed an initial investment of $100 and reinvestment of dividends at each fiscal end and measures the performance of this investment as of the last trading day in the month of December for each of the five years ended December 31, 2025.
Although Matson expects to continue paying quarterly cash dividends on its common stock, the declaration and payment of dividends are subject to the discretion of the Board and depends upon Matson’s financial condition, results of operations, cash requirements and other factors deemed relevant by the Board. ​ Share Repurchases: The following is a summary of common stock repurchased by the Company during the three months ended December 31, 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of Maximum Number ​ ​ ​ ​ ​ ​ ​ Shares Purchased ​ of Shares that May ​ ​ Total Number of ​ ​ ​ ​ as Part of Publicly ​ Yet Be Purchased ​ ​ Shares ​ Average Price ​ Announced Plans or ​ Under the Plans or Period ​ Purchased ​ Paid Per Share ​ Programs (1) (2) ​ Programs October 1 – 31, 2024 ​ 75,000 $ 136.20 ​ 75,000 ​ 969,077 ​ November 1 – 30, 2024 ​ 61,550 ​ ​ 157.20 61,550 ​ 907,527 ​ December 1 – 31, 2024 ​ 77,000 ​ ​ 148.86 77,000 ​ 830,527 ​ Total 213,550 ​ $ 146.81 213,550 ​ ​ ​ (1) On June 24, 2021, Matson’s Board approved a share repurchase program of up to 3.0 million shares of common stock, with subsequent approvals for the addition of 3.0 million shares on each of January 27, 2022, August 23, 2022 and April 27, 2023, for an aggregate total authorization of 12.0 million shares of common stock.
Although Matson expects to continue paying quarterly cash dividends on its common stock, the declaration and payment of dividends are subject to the discretion of the Board and depends upon Matson’s financial condition, results of operations, cash flow requirements and other factors deemed relevant by the Board. ​ Repurchase of Shares: The following is a summary of common stock repurchased by the Company during the three months ended December 31, 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total Number of ​ ​ ​ Maximum Number ​ ​ ​ ​ ​ ​ ​ Shares Purchased ​ of Shares that May ​ ​ Total Number of ​ ​ ​ ​ as Part of Publicly ​ Yet Be Purchased ​ ​ Shares ​ Average Price ​ Announced Plans or ​ Under the Plans or Period ​ Purchased ​ Paid Per Share ​ Programs (1) (2) ​ Programs October 1 – 31, 2025 ​ 337,401 $ 95.55 ​ 337,401 ​ 1,518,555 ​ November 1 – 30, 2025 ​ 187,920 ​ ​ 106.30 ​ 187,920 ​ 1,330,635 ​ December 1 – 31, 2025 ​ 207,500 ​ ​ 120.65 ​ 207,500 ​ 1,123,135 ​ Total 732,821 ​ $ 105.41 732,821 ​ ​ ​ (1) On June 24, 2021, Matson’s Board approved a share repurchase program of up to 3.0 million shares of common stock, with subsequent approvals for the addition of 3.0 million shares on each of January 27, 2022, August 23, 2022 and April 27, 2023 and February 27, 2025, for an aggregate total authorization of 15.0 million shares of common stock.
The share repurchase program expires on December 31, 2025. Shares may be repurchased in the open market from time to time, and may be made pursuant to a trading plan in accordance with Rule 10b5-1 of the Security Exchange Act of 1934.
The share repurchase program expires on December 31, 2027. Shares will be repurchased in the open market from time to time, and may be made pursuant to a trading plan in accordance with Rule 10b5-1 of the Security Exchange Act of 1934. (2) Amounts exclude shares withheld for employee taxes upon vesting of stock-based awards. ​ ​ ITEM 6.
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The graph is a historical representation of past performance only and is not necessarily indicative of future performance.
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(2) Amounts exclude shares withheld for employee taxes upon vesting of stock-based awards. ​ On February 27, 2025, the Company’s Board approved an additional 3.0 million shares of common stock to be added to the Company’s existing share repurchase program and extended the program’s expiration date to December 31, 2027. ​ ​ ​ ITEM 6.

Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 6. ​ Removed and Reserved ‌ 28 Item 7. ​ Management’s Discussion and Analysis of Financial Condition and Results of Operations ‌ 29 Item 7A. ​ Quantitative and Qualitative Disclosures About Market Risk ‌ 40 Item 8. ​ Financial Statements and Supplementary Data ‌ 41
Biggest changeItem 6. ​ Removed and Reserved ‌ 28 Item 7. ​ Management’s Discussion and Analysis of Financial Condition and Results of Operations ‌ 29 Item 7A. ​ Quantitative and Qualitative Disclosures About Market Risk ‌ 39 Item 8. ​ Financial Statements and Supplementary Data ‌ 41

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

64 edited+10 added−15 removed27 unchanged
Biggest changeThe information should be read in conjunction with Item 8, “Financial Statements and Supplementary Data.” All fiscal years include 52 weeks, except for the year ended December 31, 2021 which includes 53 weeks (a description of the Company’s fiscal year is included in Note 2 to the Consolidated Financial Statements in Item 8 of Part II below): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions, except per share amounts) 2024 2023 2022 2021 2020 Operating Revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ocean Transportation ​ $ 2,809.7 ​ $ 2,477.0 ​ $ 3,544.6 ​ $ 3,132.8 ​ $ 1,853.9 ​ Logistics ​ 612.1 ​ 617.6 ​ 798.4 ​ 792.5 ​ 529.4 ​ Total Operating Revenue ​ $ 3,421.8 ​ $ 3,094.6 ​ $ 4,343.0 ​ $ 3,925.3 ​ $ 2,383.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating and Net Income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ocean Transportation (1) ​ $ 500.9 ​ $ 294.8 ​ $ 1,281.2 ​ $ 1,137.7 ​ $ 244.8 ​ Logistics ​ 50.4 ​ 48.0 ​ 72.4 ​ 49.8 ​ 35.5 ​ Total Operating Income ​ 551.3 ​ 342.8 ​ 1,353.6 ​ 1,187.5 ​ 280.3 ​ Interest income ​ ​ 48.3 ​ ​ 36.0 ​ ​ 8.2 ​ ​ — ​ ​ — ​ Interest expense ​ (7.5) ​ (12.2) ​ (18.0) ​ (22.6) ​ (27.4) ​ Other income (expense), net ​ 7.3 ​ 6.4 ​ 8.5 ​ 6.4 ​ 6.1 ​ Income before Taxes ​ 599.4 ​ 373.0 ​ 1,352.3 ​ 1,171.3 ​ 259.0 ​ Income taxes ​ (123.0) ​ (75.9) ​ (288.4) ​ (243.9) ​ (65.9) ​ Net Income ​ $ 476.4 ​ $ 297.1 ​ $ 1,063.9 ​ $ 927.4 ​ $ 193.1 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital Expenditures (2): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ocean Transportation ​ $ 298.9 ​ $ 240.2 ​ $ 190.9 ​ $ 322.4 ​ $ 190.0 ​ Logistics ​ 11.2 ​ 8.2 ​ 18.4 ​ 2.9 ​ 2.3 ​ Total Capital Expenditures ​ $ 310.1 ​ $ 248.4 ​ $ 209.3 ​ $ 325.3 ​ $ 192.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and Amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ocean Transportation ​ $ 141.1 ​ $ 130.6 ​ $ 131.1 ​ $ 124.8 ​ $ 104.7 ​ Logistics ​ 12.0 ​ 11.6 ​ 8.1 ​ 7.3 ​ 7.5 ​ ​ ​ ​ 153.1 ​ ​ 142.2 ​ ​ 139.2 ​ ​ 132.1 ​ ​ 112.2 ​ Deferred Dry-docking Amortization — Ocean Transportation ​ ​ 27.2 ​ ​ 25.3 ​ ​ 24.9 ​ ​ 24.3 ​ ​ 25.1 ​ Total Depreciation and Amortization ​ $ 180.3 ​ $ 167.5 ​ $ 164.1 ​ $ 156.4 ​ $ 137.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings Per Share in Net Income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 14.14 ​ $ 8.42 ​ $ 27.28 ​ $ 21.67 ​ $ 4.48 ​ Diluted ​ $ 13.93 ​ $ 8.32 ​ $ 27.07 ​ $ 21.47 ​ $ 4.44 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash dividends per share declared ​ $ 1.32 ​ $ 1.26 ​ $ 1.22 ​ $ 1.06 ​ $ 0.90 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 266.8 ​ $ 134.0 ​ $ 249.8 ​ $ 282.4 ​ $ 14.4 ​ Capital Construction Fund (“CCF”) (3) ​ $ 642.6 ​ $ 599.4 ​ $ 518.2 ​ $ — ​ $ — ​ Total Debt (before deferred loan fees deduction) (4) ​ $ 400.9 ​ $ 440.6 ​ $ 517.5 ​ $ 629.0 ​ $ 760.1 ​ Total Shareholders’ equity ​ $ 2,652.0 ​ $ 2,400.7 ​ $ 2,296.9 ​ $ 1,667.4 ​ $ 961.2 ​ Shares outstanding ​ 33.0 ​ 34.4 ​ 36.3 ​ 41.0 ​ 43.2 ​ (1) The Ocean Transportation segment includes $(1.0) million, $2.2 million, $83.1 million, $56.3 million and $26.3 million of equity in (loss)/income from the Company’s investment in SSAT for 2024, 2023, 2022, 2021 and 2020, respectively.
Biggest changeThe information should be read in conjunction with Item 8, “Financial Statements and Supplementary Data.” All fiscal years include 52 weeks, except for the year ended December 31, 2021 which includes 53 weeks (a description of the Company’s fiscal year is included in Note 2 to the Consolidated Financial Statements in Item 8 of Part II below): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions, except per share amounts) ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2022 ​ ​ ​ 2021 Operating Revenue: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ocean Transportation ​ $ 2,735.5 ​ $ 2,809.7 ​ $ 2,477.0 ​ $ 3,544.6 ​ $ 3,132.8 ​ Logistics ​ 609.0 ​ 612.1 ​ 617.6 ​ 798.4 ​ 792.5 ​ Total Operating Revenue ​ $ 3,344.5 ​ $ 3,421.8 ​ $ 3,094.6 ​ $ 4,343.0 ​ $ 3,925.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Operating and Net Income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ocean Transportation (1) ​ $ 455.6 ​ $ 500.9 ​ $ 294.8 ​ $ 1,281.2 ​ $ 1,137.7 ​ Logistics ​ 44.2 ​ 50.4 ​ 48.0 ​ 72.4 ​ 49.8 ​ Total Operating Income ​ 499.8 ​ 551.3 ​ 342.8 ​ 1,353.6 ​ 1,187.5 ​ Interest income ​ ​ 31.7 ​ ​ 48.3 ​ ​ 36.0 ​ ​ 8.2 ​ ​ — ​ Interest expense ​ (6.8) ​ (7.5) ​ (12.2) ​ (18.0) ​ (22.6) ​ Other income (expense), net ​ 9.1 ​ 7.3 ​ 6.4 ​ 8.5 ​ 6.4 ​ Income before Taxes ​ 533.8 ​ 599.4 ​ 373.0 ​ 1,352.3 ​ 1,171.3 ​ Income taxes ​ (89.0) ​ (123.0) ​ (75.9) ​ (288.4) ​ (243.9) ​ Net Income ​ $ 444.8 ​ $ 476.4 ​ $ 297.1 ​ $ 1,063.9 ​ $ 927.4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Capital Expenditures (2): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ocean Transportation ​ $ 386.1 ​ $ 298.9 ​ $ 240.2 ​ $ 190.9 ​ $ 322.4 ​ Logistics ​ 7.3 ​ 11.2 ​ 8.2 ​ 18.4 ​ 2.9 ​ Total Capital Expenditures ​ $ 393.4 ​ $ 310.1 ​ $ 248.4 ​ $ 209.3 ​ $ 325.3 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Depreciation and Amortization: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Ocean Transportation ​ $ 154.0 ​ $ 141.1 ​ $ 130.6 ​ $ 131.1 ​ $ 124.8 ​ Logistics ​ 12.9 ​ 12.0 ​ 11.6 ​ 8.1 ​ 7.3 ​ ​ ​ ​ 166.9 ​ ​ 153.1 ​ ​ 142.2 ​ ​ 139.2 ​ ​ 132.1 ​ Deferred Dry-docking Amortization — Ocean Transportation ​ ​ 28.9 ​ ​ 27.2 ​ ​ 25.3 ​ ​ 24.9 ​ ​ 24.3 ​ Total Depreciation and Amortization ​ $ 195.8 ​ $ 180.3 ​ $ 167.5 ​ $ 164.1 ​ $ 156.4 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Earnings Per Share in Net Income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic ​ $ 13.99 ​ $ 14.14 ​ $ 8.42 ​ $ 27.28 ​ $ 21.67 ​ Diluted ​ $ 13.81 ​ $ 13.93 ​ $ 8.32 ​ $ 27.07 ​ $ 21.47 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash dividends per share declared ​ $ 1.40 ​ $ 1.32 ​ $ 1.26 ​ $ 1.22 ​ $ 1.06 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Cash and cash equivalents ​ $ 141.9 ​ $ 266.8 ​ $ 134.0 ​ $ 249.8 ​ $ 282.4 ​ Capital Construction Fund (“CCF”) (3) ​ $ 532.7 ​ $ 642.6 ​ $ 599.4 ​ $ 518.2 ​ $ — ​ Total Debt (before deferred loan fees deduction) (4) ​ $ 361.2 ​ $ 400.9 ​ $ 440.6 ​ $ 517.5 ​ $ 629.0 ​ Total Shareholders’ equity ​ $ 2,759.0 ​ $ 2,652.0 ​ $ 2,400.7 ​ $ 2,296.9 ​ $ 1,667.4 ​ Shares outstanding ​ 30.4 ​ 33.0 ​ 34.4 ​ 36.3 ​ 41.0 ​ (1) The Ocean Transportation segment includes $32.5 million, $(1.0) million, $2.2 million, $83.1 million and $56.3 million of equity in income/(loss) from the Company’s investment in SSAT for 2025, 2024, 2023, 2022 and 2021, respectively.
Additionally, these unamortized gains and losses are amortized and reclassified to income (loss) over future periods. ​ Additional information about the Company’s pension and post-retirement plans and assumptions used is included in Note 11 to the Consolidated Financial Statements in Item 8 of Part II below. ​ Income Taxes: The Company’s income tax expense requires the Company to make various estimates and judgments.
Additionally, these unamortized gains and losses are amortized and reclassified to income (loss) over future periods. ​ Additional information about the Company’s pension and post-retirement plans and assumptions used is included in Note 11 to the Consolidated Financial Statements in Item 8 of Part II below. ​ Income Taxes: The Company’s income tax expense requires the Company to make various judgments and estimates.
The Company’s estimate of insurance related liabilities could change if management uses different assumptions or if different conditions occur in future periods, however the Company does not expect any such change would have a material impact on the Company’s financial condition and results of operations. ​ Pension and Post-Retirement Plans: The estimation of the Company’s pension and post-retirement benefit expenses and liabilities requires the Company to make various assumptions.
The Company’s estimate of insurance related liabilities could change if management uses different assumptions or if different conditions occur in future periods, however the Company does not expect any such change would have a material impact on the Company’s financial condition, results of operations or cash flows. ​ Pension and Post-Retirement Plans: The estimation of the Company’s pension and post-retirement benefit expenses and liabilities requires the Company to make various assumptions.
The Company has evaluated its long-lived assets and finite-lived intangible assets for impairment and determined that there was no impairment for the years ended December 31, 2024, 2023, and 2022. ​ Indefinite-life Intangible Assets and Goodwill: The Company’s intangible assets include goodwill and a trade name, and are grouped at the lowest level reporting unit for which identifiable cash flows are available.
The Company has evaluated its long-lived assets and finite-lived intangible assets for impairment and determined that there was no impairment for the years ended December 31, 2025, 2024, and 2023. ​ Indefinite-life Intangible Assets and Goodwill: The Company’s indefinite-life intangible assets include goodwill and a trade name, and are grouped at the lowest level reporting unit for which identifiable cash flows are available.
Significant changes to these estimates may result in an increase or decrease to the Company’s income taxes in a subsequent period. ​ Additional information about the Company’s income taxes is included in Note 10 to the Consolidated Financial Statements in Item 8 of Part II below. ​ ​ OTHER MATTERS ​ New Accounting Pronouncements: See Note 2 to the Consolidated Financial Statements in Item 8 of Part II below for additional information on new accounting pronouncements. ​ ​
Significant changes to these judgments and estimates may result in an increase or decrease to the Company’s income taxes in a subsequent period. ​ Additional information about the Company’s income taxes is included in Note 10 to the Consolidated Financial Statements in Item 8 of Part II below. ​ ​ OTHER MATTERS ​ New Accounting Pronouncements: See Note 2 to the Consolidated Financial Statements in Item 8 of Part II below for additional information on new accounting pronouncements. ​ ​
The Company has evaluated its indefinite-life intangible assets and goodwill for impairment and determined that there was no impairment for the years ended December 31, 2024, 2023, and 2022. ​ Insurance Related Liabilities: The Company purchases insurance with deductibles or self-insured retentions to mitigate significant risks that it is exposed to.
The Company has evaluated its indefinite-life intangible assets and goodwill for impairment and determined that there was no impairment for the years ended December 31, 2025, 2024, and 2023. ​ Insurance Related Liabilities: The Company purchases insurance with deductibles or self-insured retentions to mitigate significant risks that it is exposed to.
Discussion and analysis of the financial condition and results of operations of Matson for the year ended December 31, 2023 compared with the year ended December 31, 2022 can be found in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 , filed with the SEC on February 23, 2024. ​ The MD&A is presented in the following sections: ​ ◾ Historical Financial Information ◾ Fourth Quarter 2024 Discussion and Outlook for 2025 ◾ Consolidated Results of Operations ◾ Analysis of Operating Revenue and Income by Segment ◾ Liquidity and Capital Resources ◾ Commitments, Contingencies and Off-Balance Sheet Arrangements ◾ Critical Accounting Estimates ◾ Other Matters ​ ​ ​ 29 Table of Contents HISTORICAL FINANCIAL INFORMATION ​ The comparative selected financial information of the Company is presented for each of the past five years ended December 31, 2024.
Discussion and analysis of the financial condition and results of operations of Matson for the year ended December 31, 2024 compared with the year ended December 31, 2023 can be found in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 28, 2025 . ​ The MD&A is presented in the following sections: ​ ◾ Historical Financial Information ◾ Fourth Quarter 2025 Discussion and Outlook for 2026 ◾ Consolidated Results of Operations ◾ Analysis of Operating Revenue and Income by Segment ◾ Liquidity and Capital Resources ◾ Commitments, Contingencies and Off-Balance Sheet Arrangements ◾ Critical Accounting Estimates ◾ Other Matters ​ ​ ​ 29 Table of Contents HISTORICAL FINANCIAL INFORMATION ​ The comparative selected financial information of the Company is presented for each of the past five years ended December 31, 2025.
Future milestone payments are expected to be financed with cash currently on deposit in the Company’s CCF, cash and cash equivalents on the Consolidated Balance Sheets, cash flows generated from future operations, borrowings available under the Company’s unsecured revolving credit facility or additional debt financings. 37 Table of Contents ​ Maintenance and other capital expenditures include amounts that the Company expects to spend on various capital projects, including capital expenditures related to the second and third phase of its program to modernize and renovate its terminal facility at Sand Island, Honolulu, Hawaii, repurchases of leased equipment, vessel capital maintenance and annual equipment purchases to support the Company’s operations.
Future construction milestone payments are expected to be financed with cash currently on deposit in the Company’s CCF, cash and cash equivalents on the Consolidated Balance Sheets, cash flows generated from future operations, borrowings available under the Company’s unsecured revolving credit facility or additional debt financings. ​ Maintenance and other capital expenditures include amounts that the Company expects to spend on various capital projects, including capital expenditures related to the second and third phase of its program to modernize and renovate its terminal facility at Sand Island, Honolulu, Hawaii, repurchases of leased equipment, vessel capital maintenance and annual equipment purchases to support the Company’s operations.
These asset impairment analyses are highly subjective because they require management to make assumptions and apply considerable judgments to, among other things, estimates of the timing and amount of future cash flows, expected useful lives of the assets, potential impact of future events, including changes in economic conditions and operating performance, and future costs 38 Table of Contents of maintenance and improvements of the assets.
These asset impairment analyses are highly subjective because they require management to make assumptions and apply considerable judgments to, among other things, estimates of the timing and amount of future cash flows, expected useful lives of the assets, potential impact of future events, including changes in economic conditions and operating performance, and future costs of maintenance and improvements of the assets.
These assumptions include factors such as discount rates, expected long-term rate of return on pension plan assets, salary growth, health care cost trend rates, inflation, retirement rates, mortality rates and expected contributions. Actual results that differ from the assumptions made could materially affect the Company’s financial condition or its future operating results.
These assumptions include factors such as discount rates, expected long-term rate of return on pension plan assets, salary growth, health care cost trend rates, inflation, retirement rates, mortality rates and expected contributions. Actual results that differ from the assumptions made could 38 Table of Contents materially affect the Company’s financial condition or its future operating results.
These include, for example, all references to 2025 or future years, including such references included under “Fourth Quarter 2024 Discussion and Outlook for 2025,” as well as statements generally identified through the inclusion of words such as “anticipate,” “believe,” “can,” “commit,” “estimate,” “expect,” “goal,” “intend,” “may,” “plan,” “seek,” “should,” “target,” and “will,” or similar statements or variations of such terms and other similar expressions.
These include, for example, all references to 2026 or future years, including such references included under “Fourth Quarter 2025 Discussion and Outlook for 2026,” as well as statements generally identified through the inclusion of words such as “anticipate,” “believe,” “can,” “commit,” “estimate,” “expect,” “focus,” “goal,” “hope,” “intend,” “may,” “plan,” “seek,” “should,” “target,” and “will,” or similar statements or variations of such terms and other similar expressions.
These estimates and judgments are applied in the calculation of taxable income, tax credits, tax benefits, CCF related tax deductions, foreign-derived intangible income and other tax deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue, costs and expenses for tax purposes.
These judgments and estimates are applied in the calculation of taxable income, tax credits, tax benefits, CCF related tax deductions, foreign-derived deduction eligible income and other tax deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue, costs and expenses for tax purposes.
The Company’s retained risks and other related liabilities contain uncertainties because management is required to apply judgment and make long-term assumptions to estimate the ultimate cost to settle reported claims, and of claims incurred but not reported, as of the balance sheet date. Insurance related liabilities were $52.8 million and $41.3 million at December 31, 2024 and 2023, respectively.
The Company’s retained risks and other related liabilities contain uncertainties because management is required to apply judgment and make long-term assumptions to estimate the ultimate cost to settle reported claims, and of claims incurred but not reported, as of the balance sheet date. Insurance related liabilities were $43.1 million and $52.8 million at December 31, 2025 and 2024, respectively.
The calculation of deferred tax assets and liabilities may be impacted by various factors including but not limited to changes in tax rates; changes in tax laws, regulations, rulings and interpretations of existing tax laws; and 39 Table of Contents changes in the evaluation of the Company’s ability to realize deferred tax assets including operating loss and tax credit carryforwards.
The calculation of deferred tax assets and liabilities may be impacted by various factors including but not limited to changes in tax rates; changes in tax laws, regulations, rulings and interpretations of existing tax laws; and changes in the evaluation of the Company’s ability to realize deferred tax assets including operating loss and tax credit carryforwards in future years.
Changes in accounts payable, accruals and other liabilities were primarily due to the timing of payments associated with those liabilities. Changes in operating lease liabilities were primarily due to new operating leases entered into during the year ended December 31, 2024, offset by operating leases that expired during the year ended December 31, 2024.
Changes in accounts payable, accruals and other liabilities were primarily due to the timing of payments associated with those liabilities. Changes in operating lease assets and liabilities, net, were primarily due to new operating leases entered into during the year ended December 31, 2025, offset by lease payments and operating leases that expired during the same year.
Changes in prepaid expenses and other assets were primarily due to a decrease in prepaid income tax receivables at 35 Table of Contents December 31, 2024 due to a refund of $118.6 million related to the Company’s 2021 federal tax return that was received during the year ended December 31, 2024, offset by higher prepaid fuel.
Changes in prepaid expenses and other assets were primarily due to a decrease in prepaid income tax receivables at December 31, 2024 due to a refund of $118.6 million related to the Company’s 2021 federal tax return that was received during the year ended December 31, 2024.
The decrease in interest expense was due to lower outstanding debt and a higher offset of capitalized interest related to the construction of new vessels during the year ended December 31, 2024, compared to the prior year. ​ Other Income (Expense), net was $7.3 million for the year ended December 31, 2024, compared to $6.4 million in the prior year, and relates to the amortization of certain components of net periodic benefit costs or gains related to the Company’s pension and post-retirement plans.
The decrease in interest expense was due to lower outstanding debt, offset by capitalized interest related to the construction of new vessels during the year ended December 31, 2025, compared to the prior year. ​ Other Income (Expense), net was $9.1 million for the year ended December 31, 2025, compared to $7.3 million in the prior year, and relates to the amortization of certain components of net periodic benefit costs or gains related to the Company’s pension and post-retirement plans.
The value of shares withheld by the Company for taxes related to the settlement of restricted stock units was $17.6 million for the year ended December 31, 2024, compared to $12.6 million in the prior year. ​ 36 Table of Contents Capital Construction Fund: The Company utilizes its CCF to fund milestone payments for the construction of new vessels.
The value of shares withheld by the Company for taxes related to the settlement of restricted stock units was $16.4 million for the year ended December 31, 2025, compared to $17.6 million in the prior year. ​ Capital Construction Fund: The Company utilizes its CCF to fund milestone payments for the construction of new vessels.
The increase in other income (expense) was due to favorable adjustments reflected in the Company’s pension and post-retirement plan liabilities during the year ended December 31, 2024, compared to the prior year. ​ Income Taxes for the year ended December 31, 2024 were $123.0 million, or 20.5 percent of income before income taxes, compared to $75.9 million, or 20.3 percent of income before income taxes in the prior year.
The increase in other income (expense) was due to an increase in the amortization of favorable adjustments reflected in the Company’s pension and post-retirement plan liabilities. ​ Income Taxes for the year ended December 31, 2025 were $89.0 million, or 16.7 percent of income before income taxes, compared to $123.0 million, or 20.5 percent of income before income taxes in the prior year.
The Company expects to fund these capital expenditures with cash and cash equivalents on the Consolidated Balance Sheets and through cash flows generated from future operating activities. ​ Repurchase of Shares: During the year ended December 31, 2024, the Company repurchased approximately 1.6 million shares for a total cost of $201.0 million.
The Company expects to fund capital expenditures with cash and cash equivalents on the Consolidated Balance Sheets and through cash flows generated from future operating activities. ​ Repurchase of Shares: During the year ended December 31, 2025, the Company repurchased approximately 2.7 million shares for a total cost of $307.4 million.
The increase was primarily due to higher northbound volume, partially offset by an additional sailing in the year ago period. In the near term, the Company expects continued economic growth in Alaska supported by a low unemployment rate, jobs growth and continued oil and gas exploration and production activity.
The decrease was primarily due to one less northbound sailing compared to the year ago period, partially offset by higher export seafood volume on AAX. In the near term, the Company expects continued economic growth in Alaska supported by a low unemployment rate, jobs growth and continued oil and gas exploration and production activity.
Changes in other long-term liabilities primarily related to payments of pension and post-retirement liabilities, and multi-employer liabilities. ​ (2) Changes in Net Cash Used in Investing Activities: Changes in net cash used in investing activities for the years ended December 31, 2024, 2023 and 2022 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change (In millions) 2024-2023 2023-2022 Cash deposits and interest into the CCF ​ $ 7.8 ​ $ 454.3 Withdrawals from CCF ​ ​ 39.7 ​ ​ (14.7) Capitalized vessel construction expenditures ​ ​ (42.7) ​ ​ 9.5 Capital expenditures (excluding vessel construction expenditures) ​ ​ (19.0) ​ ​ (48.6) Proceeds from disposal of property and equipment, net, and other ​ 4.7 ​ ​ — Payments for asset acquisitions ​ ​ 11.6 ​ ​ (9.4) Total ​ $ 2.1 ​ $ 391.1 ​ During the year ended December 31, 2024, cash and interest deposited into the CCF were $50.0 million and $18.8 million, compared to $100.0 million and $31.1 million in the prior year, respectively.
Changes in other long-term liabilities primarily related to payments of pension and post-retirement liabilities, and multi-employer liabilities. ​ (2) Changes in Net Cash Used in Investing Activities: Changes in net cash used in investing activities for the years ended December 31, 2025, 2024 and 2023 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change (In millions) ​ ​ ​ 2025-2024 2024-2023 Cash deposits and interest into the CCF ​ $ 2.1 ​ $ 7.8 Withdrawals from CCF ​ ​ 147.7 ​ ​ 39.7 Vessel construction expenditures ​ ​ (148.7) ​ ​ (42.7) Capital expenditures (excluding vessel construction expenditures) ​ ​ 65.4 ​ ​ (19.0) Proceeds from disposal of property and equipment, net, and other ​ 3.2 ​ ​ 4.7 Payments for asset acquisitions ​ ​ 0.8 ​ ​ 11.6 Total ​ $ 70.5 ​ $ 2.1 ​ During the year ended December 31, 2025, cash deposits into the CCF included $100.7 million from the repurchase of assigned accounts receivables and $17.9 million of interest income, compared to $50.0 million of cash deposits, $53.8 million from the repurchase of assigned accounts receivable and $16.9 million of interest income in the prior year, respectively.
Deferred dry-docking payments were $30.2 million for the year ended December 31, 2024, compared to $24.1 million in the prior year. The increase in deferred dry-docking payments was due to an increase in vessel dry-dock related activities during the year ended December 31, 2024.
Deferred dry-docking payments were $49.4 million for the year ended December 31, 2025, compared to $30.2 million in the prior year. The increase in deferred dry-docking payments was due to an increase in vessel drydock related activities during the year ended December 31, 2025.
(4) The Company’s debt is described in Note 8 to the Consolidated Financial Statements in Item 8 of Part II. ​ ​ ​ 30 Table of Contents FOURTH QUARTER 2024 DISCUSSION AND OUTLOOK FOR 2025 ​ Ocean Transportation: The Company’s container volume in the Hawaii service in the fourth quarter 2024 was 1.7 percent lower year-over-year.
(4) The Company’s debt is described in Note 8 to the Consolidated Financial Statements in Item 8 of Part II. ​ ​ ​ 30 Table of Contents FOURTH QUARTER 2025 DISCUSSION AND OUTLOOK FOR 2026 ​ Ocean Transportation: The Company’s container volume in the Hawaii service in the fourth quarter 2025 was 0.6 percent higher year-over-year primarily due to higher general demand.
On February 27, 2025, the Company’s Board approved an additional 3.0 million shares of common stock to be added to the Company’s existing share repurchase program and extended the program’s expiration date to December 31, 2027. ​ ​ COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS ​ Commitments and Contingencies: A description of other commitments and contingencies is set forth in Note 9, Note 11 and Note 17 to the Consolidated Financial Statements in Item 8 of Part II below, and is incorporated herein by reference. ​ Off-balance Sheet Arrangements: The Company is not currently party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on the Company’s financial condition, results of operations or cash flows. ​ ​ CRITICAL ACCOUNTING ESTIMATES ​ The Company’s significant accounting policies are described in Note 2 to the Consolidated Financial Statements in Item 8 of Part II below.
The remaining number of shares that may be repurchased under the Company’s stock repurchase program was approximately 1.1 million shares at December 31, 2025. ​ ​ COMMITMENTS, CONTINGENCIES AND OFF-BALANCE SHEET ARRANGEMENTS ​ Commitments and Contingencies: A description of other commitments and contingencies is set forth in Note 9, Note 11 and Note 17 to the Consolidated Financial Statements in Item 8 of Part II below, and is incorporated herein by reference. ​ Off-balance Sheet Arrangements: The Company is not currently party to any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on the Company’s financial condition, results of operations or cash flows. ​ ​ CRITICAL ACCOUNTING ESTIMATES ​ The Company’s significant accounting policies are described in Note 2 to the Consolidated Financial Statements in Item 8 of Part II below.
The increase was due to an increase in Ocean Transportation operating income of $206.1 million and an increase in Logistics operating income of $2.4 million. ​ The reasons for changes in operating revenue, operating costs and expenses, and operating income are described below, by business segment, in “Analysis of Operating Revenue and Income by Segment.” ​ Interest Income was $48.3 million for the year ended December 31, 2024, compared to $36.0 million in the prior year.
The decrease was due to a decrease in Ocean Transportation operating income of $45.3 million and a decrease in Logistics operating income of $6.2 million. ​ The reasons for changes in operating revenue, operating costs and expenses, and operating income are described below, by business segment, in “Analysis of Operating Revenue and Income by Segment.” ​ Interest Income was $31.7 million for the year ended December 31, 2025, compared to $48.3 million in the prior year.
The decrease was primarily due to lower revenue in transportation brokerage, partially offset by higher revenue in supply chain management. ​ Logistics operating income increased $2.4 million, or 5.0 percent, during the year ended December 31, 2024, compared with the year ended December 31, 2023.
The decrease was primarily due to lower revenue in transportation brokerage and supply chain management, partially offset by higher revenue in freight forwarding. ​ Logistics operating income decreased $6.2 million, or 12.3 percent, during the year ended December 31, 2025, compared with the year ended December 31, 2024.
For additional information on the CCF, see Note 7 to the Consolidated Financial Statements. ​ Changes in the Company’s cash and cash equivalents and restricted cash for the years ended December 31, 2024, 2023 and 2022 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change (In millions) 2024 2023 2022 2024-2023 2023-2022 Net cash provided by operating activities (1) ​ $ 767.8 ​ $ 510.5 ​ $ 1,271.9 ​ $ 257.3 ​ $ (761.4) Net cash used in investing activities (2) ​ (336.1) ​ (338.2) ​ (729.3) ​ 2.1 ​ 391.1 Net cash used in financing activities (3) ​ (301.2) ​ (289.7) ​ (576.6) ​ (11.5) ​ 286.9 Net increase (decrease) in cash, cash equivalents and restricted cash ​ 130.5 ​ (117.4) ​ (34.0) ​ 247.9 ​ (83.4) Cash and cash equivalents, and restricted cash, beginning of the period ​ 136.3 ​ 253.7 ​ 287.7 ​ (117.4) ​ (34.0) Cash and cash equivalents, and restricted cash, end of the period ​ $ 266.8 ​ $ 136.3 ​ $ 253.7 ​ $ 130.5 ​ $ (117.4) ​ (1) Changes in Net Cash Provided by Operating Activities: Changes in net cash provided by operating activities for the years ended December 31, 2024, 2023 and 2022 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ Change (In millions) 2024-2023 2023-2022 Net income ​ $ 179.3 ​ $ (766.8) Non-cash depreciation and amortization ​ ​ 10.9 ​ ​ 3.0 Deferred income taxes ​ ​ 1.3 ​ ​ (70.6) Other non-cash related changes, net ​ ​ (10.0) ​ ​ 5.0 Income and distribution from SSAT, net ​ ​ 17.2 ​ ​ 33.6 Accounts receivable, net ​ 20.7 ​ (85.5) Prepaid expenses and other assets ​ 61.3 ​ 78.7 Accounts payable, accruals and other liabilities ​ (16.5) ​ 42.6 Operating lease assets and liabilities, net ​ 5.3 ​ ​ 9.3 Non-cash amortization of operating lease right of use assets ​ ​ (8.3) ​ ​ (11.0) Deferred dry-docking payments ​ (6.1) ​ 1.6 Non-cash deferred dry-docking amortization ​ ​ 1.9 ​ ​ 0.4 Other long-term liabilities ​ 0.3 ​ (1.7) Total ​ $ 257.3 ​ $ (761.4) ​ Loss from SSAT was $1.0 million for the year ended December 31, 2024, compared to income from SSAT of $2.2 million in the prior year.
For additional information on the CCF, see Note 7 to the Consolidated Financial Statements. ​ Changes in the Company’s cash and cash equivalents and restricted cash for the years ended December 31, 2025, 2024 and 2023 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change (In millions) ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ 2023 ​ ​ ​ 2025-2024 ​ ​ ​ 2024-2023 Net cash provided by operating activities (1) ​ $ 547.1 ​ $ 767.8 ​ $ 510.5 ​ $ (220.7) ​ $ 257.3 Net cash used in investing activities (2) ​ (265.6) ​ (336.1) ​ (338.2) ​ 70.5 ​ 2.1 Net cash used in financing activities (3) ​ (406.4) ​ (301.2) ​ (289.7) ​ (105.2) ​ (11.5) Net (decrease) increase in cash, cash equivalents and restricted cash ​ (124.9) ​ 130.5 ​ (117.4) ​ (255.4) ​ 247.9 Cash and cash equivalents, and restricted cash, beginning of the period ​ 266.8 ​ 136.3 ​ 253.7 ​ 130.5 ​ (117.4) Cash and cash equivalents, and restricted cash, end of the period ​ $ 141.9 ​ $ 266.8 ​ $ 136.3 ​ $ (124.9) ​ $ 130.5 ​ 34 Table of Contents (1) Changes in Net Cash Provided by Operating Activities: Changes in net cash provided by operating activities for the years ended December 31, 2025, 2024 and 2023 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Change (In millions) ​ ​ ​ 2025-2024 2024-2023 Net income ​ $ (31.6) ​ $ 179.3 Non-cash depreciation and amortization ​ ​ 13.8 ​ ​ 10.9 Deferred income taxes, net ​ ​ (12.7) ​ ​ 1.3 Other non-cash related changes, net ​ ​ (2.6) ​ ​ (10.0) Income and distribution from SSAT, net ​ ​ (26.5) ​ ​ 17.2 Accounts receivable, net ​ 2.5 ​ 20.7 Prepaid expenses and other assets ​ (119.7) ​ 61.3 Accounts payable, accruals and other liabilities ​ (28.2) ​ (16.5) Operating lease assets and liabilities, net ​ 11.4 ​ ​ 5.3 Non-cash amortization of operating lease right-of-use assets ​ ​ (0.6) ​ ​ (8.3) Deferred dry-docking payments ​ (19.2) ​ (6.1) Non-cash deferred dry-docking amortization ​ ​ 1.7 ​ ​ 1.9 Other long-term liabilities ​ (9.0) ​ 0.3 Total ​ $ (220.7) ​ $ 257.3 ​ Income from SSAT was $32.5 million for the year ended December 31, 2025, compared to a loss from SSAT of $1.0 million in the prior year, which included the Company’s portion of an impairment charge of $18.4 million related to the write-down of a terminal operating lease asset.
The increase was due to an increase in Ocean Transportation operating costs and expenses of $126.6 million which was partially offset by a decrease in Logistics operating costs and expenses of $7.9 million. ​ Operating Income for the year ended December 31, 2024 increased $208.5 million, or 60.8 percent, compared to the prior year.
The decrease was due to a decrease in Ocean Transportation operating costs and expenses of $28.9 million which was partially offset by an increase in Logistics operating costs and expenses of $3.1 million. ​ Operating Income for the year ended December 31, 2025 decreased $51.5 million, or 9.3 percent, compared to the prior year.
The decrease was due to an impairment charge related to the write-down of a terminal operating lease asset in the fourth quarter 2024 of $18.4 million, partially offset by higher lift volume. ​ Logistics: 2024 compared with 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, (Dollars in millions) 2024 2023 Change Logistics revenue ​ $ 612.1 ​ $ 617.6 $ (5.5) (0.9) % Operating costs and expenses ​ (561.7) ​ (569.6) 7.9 ​ (1.4) % Operating income ​ $ 50.4 ​ $ 48.0 $ 2.4 ​ 5.0 % Operating income margin ​ 8.2 % 7.8 % ​ ​ ​ ​ ​ ​ Logistics revenue decreased $5.5 million, or 0.9 percent, during the year ended December 31, 2024, compared with the year ended December 31, 2023.
The increase was primarily due to an impairment charge related to the write-down of a terminal operating lease asset at SSAT in the year ago period which impacted operating income by $18.4 million and higher lift volume. ​ Logistics: 2025 compared with 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, (Dollars in millions) ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ Change Logistics revenue ​ $ 609.0 ​ $ 612.1 $ (3.1) ​ ​ (0.5) % Operating costs and expenses ​ (564.8) ​ (561.7) (3.1) ​ 0.6 % Operating income ​ $ 44.2 ​ $ 50.4 $ (6.2) ​ (12.3) % Operating income margin ​ 7.3 % 8.2 % ​ ​ ​ ​ ​ ​ Logistics revenue decreased $3.1 million, or 0.5 percent, during the year ended December 31, 2025, compared with the year ended December 31, 2024.
In estimating the fair value of a reporting unit, the Company uses a combination of a discounted cash flow model and fair value based on market multiples of earnings before interest, income taxes, depreciation and amortization (“EBITDA”).
In estimating the fair value of a reporting unit, the Company uses a combination of a discounted cash flow model and fair value based on market multiples of EBITDA.
The Company did not issue any new fixed interest debt during the years ended December 31, 2024 and 2023. The Company paid $39.7 million of scheduled fixed interest debt principal payments during the year ended December 31, 2024, compared to $76.9 million of prepaid and scheduled fixed interest debt principal payments during the prior year.
The Company did not issue any new fixed interest debt during the years ended December 31, 2025 and 2024. The Company paid $39.7 million of scheduled fixed interest debt principal payments in each of the years ended December 31, 2025 and 2024.
Total debt as of December 31, 2024 and 2023 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, ​ (In millions) ​ 2024 2023 Change ​ Variable interest debt ​ $ — ​ $ — ​ $ — ​ Fixed interest debt ​ ​ 400.9 ​ ​ 440.6 ​ ​ (39.7) ​ Total Debt (excluding deferred loan fees) ​ $ 400.9 ​ $ 440.6 ​ $ (39.7) ​ ​ Total debt decreased by $39.7 million during the year ended December 31, 2024 compared to the prior year.
Total debt as of December 31, 2025 and 2024 is as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, ​ (In millions) ​ 2025 ​ ​ ​ 2024 ​ ​ ​ Change ​ Variable interest debt - Revolving credit facility ​ $ — ​ $ — ​ $ — ​ Fixed interest debt - Title XI debt and private placement term loans ​ ​ 361.2 ​ ​ 400.9 ​ ​ (39.7) ​ Total Debt (excluding deferred loan fees) ​ $ 361.2 ​ $ 400.9 ​ $ (39.7) ​ ​ Total debt decreased by $39.7 million during the year ended December 31, 2025 compared to the prior year.
The 2023 income tax rate benefited from certain discrete tax adjustments that lowered the effective tax rate in the prior year. ​ Net Income during the year ended December 31, 2024 increased $179.3 million, or 60.4 percent, to $476.4 million, compared to the prior year. ​ ANALYSIS OF OPERATING REVENUE AND INCOME BY SEGMENT ​ The following analysis of operating revenue and income by segment for the years ended December 31, 2024 and 2023 should be read in conjunction with the Company’s reportable segments information included in Note 3 to the Consolidated Financial Statements in Item 8 of Part II. ​ 33 Table of Contents Ocean Transportation: 2024 compared with 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, (Dollars in millions) 2024 2023 Change Ocean Transportation revenue ​ $ 2,809.7 ​ $ 2,477.0 ​ $ 332.7 13.4 % Operating costs and expenses ​ (2,308.8) ​ (2,182.2) ​ (126.6) ​ 5.8 % Operating income ​ $ 500.9 ​ $ 294.8 ​ $ 206.1 ​ 69.9 % Operating income margin ​ 17.8 % 11.9 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Volume (Forty-foot equivalent units (FEU), except for automobiles) (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hawaii containers ​ 140,700 ​ 144,000 ​ (3,300) ​ (2.3) % Hawaii automobiles ​ 30,400 ​ 39,400 ​ (9,000) ​ (22.8) % Alaska containers ​ 80,500 ​ 80,000 ​ 500 ​ 0.6 % China containers ​ 144,100 ​ 140,700 ​ 3,400 ​ 2.4 % Guam containers ​ 18,800 ​ 20,100 ​ (1,300) ​ (6.5) % Other containers (2) ​ 17,000 ​ 17,500 ​ (500) ​ (2.9) % (1) Approximate volume included for the period are based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period.
Excluding this adjustment, the effective tax rate for the year ended December 31, 2025 would have been 20.1 percent. ​ Net Income during the year ended December 31, 2025 decreased $31.6 million, or 6.6 percent, to $444.8 million, compared to the prior year. ​ ANALYSIS OF OPERATING REVENUE AND INCOME BY SEGMENT ​ The following analysis of operating revenue and income by segment for the years ended December 31, 2025 and 2024 should be read in conjunction with the Company’s reportable segments information included in Note 3 to the Consolidated Financial Statements in Item 8 of Part II. ​ Ocean Transportation: 2025 compared with 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, (Dollars in millions) ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ Change Ocean Transportation revenue ​ $ 2,735.5 ​ $ 2,809.7 ​ $ (74.2) ​ ​ (2.6) % Operating costs and expenses ​ (2,279.9) ​ (2,308.8) ​ 28.9 ​ (1.3) % Operating income ​ $ 455.6 ​ $ 500.9 ​ $ (45.3) ​ (9.0) % Operating income margin ​ 16.7 % 17.8 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Volume (Forty-foot equivalent units (FEU)) (1) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Hawaii containers ​ 143,000 ​ 140,700 ​ 2,300 ​ 1.6 % Alaska containers ​ 81,900 ​ 80,500 ​ 1,400 ​ 1.7 % China containers (2) ​ 130,400 ​ 144,100 ​ (13,700) ​ (9.5) % Guam containers ​ 18,000 ​ 18,800 ​ (800) ​ (4.3) % Other containers (3) ​ 17,200 ​ 17,000 ​ 200 ​ 1.2 % (1) Approximate volume included for the period are based on the voyage departure date, but revenue and operating income are adjusted to reflect the percentage of revenue and operating income earned during the reporting period for voyages in transit at the end of each reporting period.
For the full year 2025, the Company expects its effective tax rate to be approximately 22.0 percent. ​ Capital and Vessel Dry-docking Expenditures: For the full year 2024, the Company made capital expenditure payments excluding new vessel construction expenditures of $214.5 million, new vessel construction expenditures (including capitalized interest and owner’s items) of $95.6 million, and dry-docking payments of $30.2 million.
For the full year 2026, the Company expects its effective tax rate to be approximately 21.0 percent. ​ Capital and Vessel Dry-docking Expenditures: For the full year 2025, the Company made capital expenditure payments excluding new vessel construction expenditures of $149.1 million, new vessel construction expenditures (including capitalized interest and owner’s items) of $244.3 million, and dry-docking payments of $49.4 million.
Cash on deposit and investments in the CCF and assigned accounts receivable as of December 31, 2024 and 2023 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, (In millions) 2024 2023 Capital Construction Fund: ​ ​ ​ ​ ​ ​ Cash and cash equivalents, and investments account ​ $ 642.6 ​ $ 599.4 Assigned accounts receivables ​ $ 178.1 ​ $ 218.1 ​ Cash on deposit in the CCF is invested in a U.S.
Cash on deposit and investments in the CCF as of December 31, 2025 and 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, (In millions) ​ 2025 ​ ​ ​ 2024 Capital Construction Fund - Cash and cash equivalents, and investments account ​ $ 532.7 ​ $ 642.6 ​ Cash on deposit in the CCF is invested in a U.S.
For the full year 2025, the Company expects to make other capital expenditure payments, including maintenance capital expenditures, of approximately $120 to $140 million, new vessel construction expenditures (including capitalized interest and owner’s items) of approximately $305 million, and dry-docking payments of approximately $40 million. ​ ​ CONSOLIDATED RESULTS OF OPERATIONS ​ The following analysis of the financial results of operations of Matson for the years ended December 31, 2024 and 2023 should be read in conjunction with the Consolidated Financial Statements in Item 8 of Part II below. ​ Consolidated Results: 2024 compared with 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, (Dollars in millions, except per share amounts) ​ 2024 ​ 2023 ​ Change Operating revenue $ 3,421.8 $ 3,094.6 $ 327.2 10.6 % Operating costs and expenses ​ (2,870.5) ​ (2,751.8) ​ (118.7) 4.3 % Operating income ​ 551.3 ​ 342.8 ​ 208.5 60.8 % Interest income ​ ​ 48.3 ​ ​ 36.0 ​ ​ 12.3 34.2 % Interest expense ​ (7.5) ​ (12.2) ​ 4.7 (38.5) % Other income (expense), net ​ 7.3 ​ 6.4 ​ 0.9 14.1 % Income before taxes ​ 599.4 ​ 373.0 ​ 226.4 60.7 % Income taxes ​ (123.0) ​ (75.9) ​ (47.1) 62.1 % Net income ​ $ 476.4 ​ $ 297.1 ​ $ 179.3 60.4 % Basic earnings per share ​ $ 14.14 ​ $ 8.42 ​ $ 5.72 67.9 % Diluted earnings per share ​ $ 13.93 ​ $ 8.32 ​ $ 5.61 67.4 % ​ 32 Table of Contents Fiscal Year: Fiscal years ended December 31, 2024 and 2023 include 52 weeks. ​ Consolidated Operating Revenue for the year ended December 31, 2024 increased $327.2 million, or 10.6 percent, compared to the prior year.
For the full year 2026, the Company expects to make other capital expenditure payments, including maintenance capital expenditures, of approximately $150 to $170 million, new vessel construction expenditures (including capitalized interest and owner’s items) of approximately $425 million, and dry-docking payments of approximately $45 million. ​ ​ CONSOLIDATED RESULTS OF OPERATIONS ​ The following analysis of the financial results of operations of Matson for the years ended December 31, 2025 and 2024 should be read in conjunction with the Consolidated Financial Statements in Item 8 of Part II below. ​ Consolidated Results: 2025 compared with 2024: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Years Ended December 31, (Dollars in millions, except per share amounts) ​ 2025 ​ 2024 ​ Change Operating revenue ​ ​ ​ $ 3,344.5 ​ ​ ​ $ 3,421.8 ​ ​ ​ $ (77.3) ​ ​ ​ (2.3) % Operating costs and expenses ​ (2,844.7) ​ (2,870.5) ​ 25.8 (0.9) % Operating income ​ 499.8 ​ 551.3 ​ (51.5) (9.3) % Interest income ​ ​ 31.7 ​ ​ 48.3 ​ ​ (16.6) (34.4) % Interest expense ​ (6.8) ​ (7.5) ​ 0.7 (9.3) % Other income (expense), net ​ 9.1 ​ 7.3 ​ 1.8 24.7 % Income before taxes ​ 533.8 ​ 599.4 ​ (65.6) (10.9) % Income taxes ​ (89.0) ​ (123.0) ​ 34.0 (27.6) % Net income ​ $ 444.8 ​ $ 476.4 ​ $ (31.6) (6.6) % Basic earnings per share ​ $ 13.99 ​ $ 14.14 ​ $ (0.15) (1.1) % Diluted earnings per share ​ $ 13.81 ​ $ 13.93 ​ $ (0.12) (0.9) % ​ Fiscal Year: Fiscal years ended December 31, 2025 and 2024 include 52 weeks. ​ Consolidated Operating Revenue for the year ended December 31, 2025 decreased $77.3 million, or 2.3 percent, compared to the prior year.
The increase in interest income was due to interest of $10.2 million earned on a federal income tax refund received during the year ended December 31, 2024.
The interest income for the year ended December 31, 2024 included interest of $10.2 million earned on a federal income tax refund.
Sources of liquidity available to the Company as of December 31, 2024 compared to December 31, 2023, were as follows: ​ Cash and Cash Equivalents, Restricted Cash and Accounts Receivable : Cash and cash equivalents, restricted cash and accounts receivable, net as of December 31, 2024 and 2023 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, (In millions) 2024 2023 Change Cash and cash equivalents ​ $ 266.8 ​ $ 134.0 ​ $ 132.8 ​ Restricted cash ​ $ — ​ $ 2.3 ​ $ (2.3) ​ Accounts receivable, net (1) ​ $ 268.9 ​ $ 279.4 ​ $ (10.5) ​ CCF - cash and cash equivalents, and investments account ​ $ 642.6 ​ $ 599.4 ​ $ 43.2 ​ (1) Eligible accounts receivable of $178.1 million and $218.1 million at December 31, 2024 and 2023, respectively, were assigned to the CCF.
Sources of liquidity available to the Company as of December 31, 2025 compared to December 31, 2024, were as follows: ​ Cash and Cash Equivalents, Restricted Cash and Accounts Receivable : Cash and cash equivalents, restricted cash and accounts receivable, net as of December 31, 2025 and 2024 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, (In millions) ​ ​ ​ 2025 ​ ​ ​ 2024 ​ ​ ​ Change Cash and cash equivalents ​ $ 141.9 ​ $ 266.8 ​ $ (124.9) ​ Accounts receivable, net (1) ​ $ 256.8 ​ $ 268.9 ​ $ (12.1) ​ CCF - cash and cash equivalents, and investments account ​ $ 532.7 ​ $ 642.6 ​ $ (109.9) ​ (1) Eligible accounts receivable of $82.3 million and $178.1 million at December 31, 2025 and 2024, respectively, were assigned to the CCF.
(2) Includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan. ​ Ocean Transportation revenue increased $332.7 million, or 13.4 percent, during the year ended December 31, 2024, compared with the year ended December 31, 2023.
(2) Includes containers from China and other Asia origins. (3) Includes containers from services in various islands in Micronesia and the South Pacific, and Okinawa, Japan. ​ Ocean Transportation revenue decreased $74.2 million, or 2.6 percent, during the year ended December 31, 2025, compared with the year ended December 31, 2024.
Capitalized vessel construction expenditures were $95.6 million for the year ended December 31, 2024, compared to $52.9 million in the prior year. The increase in capitalized vessel construction expenditures was due to the timing of milestone payments related to the Company’s fleet renewal program.
The increase in capitalized vessel construction expenditures was due to the timing of milestone payments related to the Company’s fleet renewal program. Capital expenditures (excluding vessel construction expenditures) were 35 Table of Contents $149.1 million for the year ended December 31, 2025, compared to $214.5 million for the prior year.
The increase in the Company’s working capital surplus during the year ended December 31, 2024 was due to the increase in cash provided by operating activities offset by higher capital expenditures during the year. ​ Capital Expenditures: The Company expects to make the following capital expenditures during the years ending December 31, 2025, 2026 and 2027: ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) 2025 2026 2027 ​ New vessel construction milestone payments and related costs ​ $305 ​ $350 ​ $220 ​ Maintenance and other capital expenditures ​ 120 - 140 ​ ~100 ​ ~100 ​ Total Estimated Capital Expenditures ​ $425 - $445 ​ ~$450 ​ ~$320 ​ ​ New vessel construction milestone payments and related costs are for the Company’s construction of three new vessels at a cost of approximately $1.0 billion (excluding owners’ items and change orders) with expected delivery dates during the first quarter 2027, the third quarter 2027 and the second quarter 2028.
The decrease in the Company’s working capital during the year ended December 31, 2025 was due to a decrease in cash provided by operating activities and higher capital expenditures during the year. 36 Table of Contents ​ Capital Expenditures: The Company expects to make the following capital expenditures during the years ending December 31, 2026, 2027 and 2028: ​ ​ ​ ​ ​ ​ ​ ​ ​ (In millions) ​ ​ ​ 2026 ​ ​ ​ 2027 ​ ​ ​ 2028 ​ New vessel construction milestone payments and related costs, owner’s items and change orders ​ $425 ​ $205 ​ $25 ​ Maintenance and other capital expenditures ​ 150 - 170 ​ 100 - 120 ​ 100 - 120 ​ Total Estimated Capital Expenditures ​ $575 - $595 ​ $305 - $325 ​ $125 - $145 ​ ​ New vessel construction milestone payments and related costs (including owner’s items and change orders) are for the Company’s construction of three new Aloha class vessels with expected delivery dates during the first quarter 2027, the third quarter 2027 and the second quarter 2028.
The decrease was due to a $18.4 million impairment charge related to the write-down of a terminal operating lease asset, partially offset by higher year-over-year lift volume. On an after-tax basis, the impairment charge impacted fourth quarter 2024 net income and diluted EPS by $14.0 million and $0.42 per share, respectively.
The increase was primarily due to an impairment charge related to the write-down of a terminal operating lease asset at SSAT which impacted fourth quarter 2024 operating income, net income and diluted earnings per share by $18.4 million, $14.0 million and $0.42 per share, respectively.
During the year ended December 31, 2024, the Company paid $0.8 million related to asset acquisitions, compared to $12.4 million in the prior year. ​ (3) Changes in Net Cash Used in Financing Activities: Changes in net cash used in financing activities for the years ended December 31, 2024, 2023 and 2022 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change (In millions) 2024-2023 2023-2022 Repurchase of Matson common stock ​ $ (43.9) ​ $ 241.8 Repayments of fixed interest debt ​ ​ 37.2 ​ ​ 34.6 Shares withheld for taxes related to settlement of restricted stock units ​ ​ (5.0) ​ ​ 7.5 Dividends paid ​ ​ 0.2 ​ ​ 3.0 Total ​ $ (11.5) ​ $ 286.9 ​ The Company paid $199.1 million to repurchase common stock during the year ended December 31, 2024, compared to $155.2 million in the prior year.
Capital expenditures (excluding vessel construction expenditures) during the year ended December 31, 2025 included the purchase of containers, chassis and other terminal equipment to support the Company’s operating activities. ​ (3) Changes in Net Cash Used in Financing Activities: Changes in net cash used in financing activities for the years ended December 31, 2025, 2024 and 2023 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ Change (In millions) ​ ​ ​ 2025-2024 2024-2023 Repurchase of Matson common stock ​ $ (104.2) ​ $ (43.9) Repayments of fixed interest debt ​ ​ — ​ ​ 37.2 Shares withheld for taxes related to settlement of restricted stock units ​ ​ 1.2 ​ ​ (5.0) Dividends paid ​ ​ (0.1) ​ ​ 0.2 Payments of deferred loan fees ​ ​ (2.1) ​ ​ — Total ​ $ (105.2) ​ $ (11.5) ​ The Company paid $303.3 million to repurchase common stock during the year ended December 31, 2025, compared to $199.1 million in the prior year.
Management has discussed the development and selection of these critical accounting estimates with the Audit Committee of our Board. ​ Long-Lived Assets, Intangible Assets and Goodwill: The Company evaluates its long-lived assets, intangible assets and goodwill for possible impairment in the fourth quarter, or whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than its carrying amount.
The critical accounting policies and estimates considered in the preparation of the Company’s Consolidated Financial Statements are described below. ​ 37 Table of Contents Long-Lived Assets, Intangible Assets and Goodwill: The Company evaluates its long-lived assets, intangible assets and goodwill for possible impairment in the fourth quarter, or whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than its carrying amount.
For the full year 2025, the Company expects volume to approximate the level achieved last year. ​ The loss in the fourth quarter 2024 from the Company’s SSAT joint venture investment was $9.5 million, or $13.6 million lower than the income of $4.1 million in fourth quarter 2023.
For full year 2026, the Company expects volume to be comparable to the level achieved last year. ​ The contribution in the fourth quarter 2025 from the Company’s SSAT joint venture investment was $9.3 million, or $18.8 million higher than fourth quarter 2024.
The increase in interest income was also due to increased amounts of cash and cash equivalent accounts, and cash on deposit within the Capital Construction Fund that were invested in interest bearing accounts during the year ended December 31, 2024, compared to the prior year. ​ Interest Expense was $7.5 million for the year ended December 31, 2024, compared to $12.2 million in the prior year.
Excluding that amount, the decrease in interest income was due to a decreased amount of cash and cash 32 Table of Contents equivalent accounts, and cash on deposit and investments within the CCF that were invested in interest bearing accounts during the year ended December 31, 2025, compared to the prior year. ​ Interest Expense was $6.8 million for the year ended December 31, 2025, compared to $7.5 million in the prior year.
The increase was primarily due to a higher contribution from supply chain management. ​ 34 Table of Contents LIQUIDITY AND CAPITAL RESOURCES ​ The Company’s primary sources of liquidity are its cash flows generated from operating activities and its debt.
The decrease was primarily due to lower contributions from freight forwarding and transportation brokerage. ​ LIQUIDITY AND CAPITAL RESOURCES ​ The Company’s primary sources of liquidity are its cash flows generated from operating activities and its debt.
The increase was primarily due to significantly higher freight rates in China, higher freight rates in the domestic tradelanes, and higher volume in China, partially offset by lower domestic tradelane volume. ​ On a year-over-year FEU basis, Hawaii container volume decreased 2.3 percent primarily due to lower general demand; Alaska volume increased 0.6 percent due to higher general demand, partially offset by one less northbound sailing; China volume increased 2.4 percent due to stronger seasonal volume in the fourth quarter 2024 and one additional sailing; Guam volume decreased 6.5 percent primarily due to lower general demand; and Other containers volume decreased 2.9 percent. ​ Ocean Transportation operating income increased $206.1 million, or 69.9 percent, during the year ended December 31, 2024, compared with the year ended December 31, 2023.
The decrease was primarily due to lower volume in China. ​ On a year-over-year FEU basis, Hawaii container volume increased 1.6 percent primarily due to higher general demand and the dry-docking of a competitor’s vessel in the first half of 2025; Alaska volume increased 1.7 percent primarily due to higher export seafood volume on AAX, partially offset by one less northbound sailing; China volume decreased 9.5 percent primarily due to the difficult trading environment in the Transpacific in the last three quarters of 2025 marked by continued uncertainty and volatility arising from tariffs and global trade; Guam volume decreased 4.3 percent primarily due to lower general demand; and Other containers volume increased 1.2 percent. ​ Ocean Transportation operating income decreased $45.3 million, or 9.0 percent, during the year ended December 31, 2025, compared with the year ended December 31, 2024.
The increase was due to an increase in Ocean Transportation revenue of $332.7 million which was partially offset by a decrease in Logistics revenue of $5.5 million. ​ Operating Costs and Expenses for the year ended December 31, 2024 increased $118.7 million, or 4.3 percent, compared to the prior year.
The decrease was due to a decrease in Ocean Transportation revenue of $74.2 million and a decrease in Logistics revenue of $3.1 million. ​ Operating Costs and Expenses for the year ended December 31, 2025 decreased $25.8 million, or 0.9 percent, compared to the prior year.
Excluding the Company’s portion of an impairment charge of $18.4 million that was included in the loss from SSAT during the year ended December 31, 2024 related to the write-down of a terminal operating lease asset, the increase in income from SSAT was due to higher operating profits generated by SSAT during the year ended December 31, 2024 due to increased lift volume.
Excluding this impairment charge, the increase in income from SSAT was due to higher operating profits generated by SSAT during the year ended December 31, 2025 due to increased lift volume. No impairment charge was recorded by SSAT during the year ended December 31, 2025.
During the year ended December 31, 2024, cash withdrawals from the CCF were $89.6 million, compared to $49.9 million in the prior year, related to vessel construction milestone payments. During the year ended December 31, 2024, the Company repurchased $53.8 million of assigned accounts receivable. No assigned accounts receivable were repurchased during the year ended December 31, 2023.
During the year ended December 31, 2025, cash withdrawals from the CCF for the payment of vessel construction milestone payments were $237.3 million, compared to $89.6 million in the prior year. Capitalized vessel construction expenditures were $244.3 million for the year ended December 31, 2025, compared to $95.6 million in the prior year.
In the near term, the Company expects Guam’s economy to grow modestly supported by a low unemployment rate and an increase in construction activity. For the full year 2025, the Company expects volume to be modestly higher than the level achieved last year. ​ In Alaska, the Company’s container volume for the fourth quarter 2024 increased 1.1 percent year-over-year.
In the near term, the Company expects Guam’s economy to moderate reflecting a challenging tourism environment. For full year 2026, the Company expects volume to be comparable to the level achieved last year. ​ In Alaska, the Company’s container volume for the fourth quarter 2025 decreased 3.3 percent year-over-year.
For 2025, the Company expects the contribution from SSAT to approximate the level achieved in 2024, without taking into account the $18.4 million impairment charge in the fourth quarter 2024. ​ Based on the outlook trends noted above, the Company expects Ocean Transportation operating income for the first quarter 2025 to be meaningfully higher than the $27.6 million achieved in the first quarter 2024.
For full year 2026, the Company expects the contribution from SSAT to be comparable to the $32.5 million achieved in full year 2025. ​ Based on the outlook trends noted above, the Company expects Ocean Transportation operating income for the first quarter 2026 to be approximately $50 million.
The increase was primarily due to significantly higher freight rates in China, higher freight rates in the domestic tradelanes, and higher volume in China, partially offset by higher operating costs and general and administrative expenses. ​ The Company’s SSAT terminal joint venture investment incurred a loss of $1.0 million during the year ended December 31, 2024, compared to income of $2.2 million during the year ended December 31, 2023.
The decrease was primarily due to a lower contribution from China, partially offset by a higher contribution from SSAT. 33 Table of Contents ​ The Company’s SSAT terminal joint venture investment contributed $32.5 million during the year ended December 31, 2025, compared to a loss of $1.0 million during the year ended December 31, 2024.
For the first quarter 2025, the Company expects Logistics operating income to be modestly lower than the $9.3 million achieved in the first quarter 2024. 31 Table of Contents ​ Consolidated Operating Income: For the first quarter 2025, the Company expects consolidated operating income to be meaningfully higher than the $36.9 million achieved in the first quarter 2024.
For full year 2026, the Company expects Logistics operating income to approach the $44.2 million achieved in full year 2025. ​ Consolidated Operating Income: For the first quarter 2026, the Company expects consolidated operating income to be lower than the $82.1 million achieved in the first quarter 2025.
The Company’s debt is described in Note 8 to the Consolidated Financial Statements in Item 8 of Part II. ​ Working Capital: The Company had a working capital surplus of $49.2 million at December 31, 2024, compared to a working capital surplus of $40.0 million at December 31, 2023.
The Company’s debt is described in Note 8 to the Consolidated Financial Statements in Item 8 of Part II.
However, if trade conditions in the Red Sea remain disrupted through year end and there are no significant changes from today in the other factors noted above, the Company expects full year 2025 consolidated operating income to approach the level achieved in 2024. ​ Depreciation and Amortization: For full year 2025, the Company expects depreciation and amortization expense to be approximately $200 million, inclusive of dry-docking amortization of approximately $26 million. ​ Interest Income: The Company expects interest income for the full year 2025 to be approximately $31 million. ​ Interest Expense: The Company expects interest expense for the full year 2025 to be approximately $7 million. ​ Other Income (Expense): The Company expects full year 2025 other income (expense) to be approximately $9 million in income, which is attributable to the amortization of certain components of net periodic benefit costs or gains related to the Company’s pension and post-retirement plans. ​ Income Taxes: In the fourth quarter 2024, the Company’s effective tax rate was 19.1 percent.
For full year 2026, the Company expects consolidated operating income to approach the level achieved in full year 2025 based on our expectations of continued solid U.S. consumer demand and a stable trading environment. ​ Depreciation and Amortization: For full year 2026, the Company expects depreciation and amortization expense to be approximately $210 million, inclusive of dry-docking amortization of approximately $35 million. ​ Interest Income: The Company expects interest income for the full year 2026 to be approximately $15 million. ​ Interest Expense: The Company expects interest expense for the full year 2026 to be approximately $6 million. 31 Table of Contents ​ Other Income (Expense): The Company expects full year 2026 other income (expense) to be approximately $7 million in income, which is attributable to the amortization of certain components of net periodic benefit costs or gains related to the Company’s pension and post-retirement plans. ​ Income Taxes: In the fourth quarter 2025, the Company’s effective tax rate was 5.2 percent and benefited from a one-time tax adjustment of $18.5 million, or $0.59 per share, related to the Company’s deferred tax assets and liabilities.
Capital expenditures (excluding vessel construction expenditures) during the year ended December 31, 2024 included costs associated with LNG installations, the reengining of an existing vessel, and the purchase of additional containers, chassis and other terminal equipment to support the Company’s operating activities.
Capital expenditures for the year ended December 31, 2024 included costs associated with LNG installations and the reengining of an existing vessel, which were completed during that year. No comparable costs were incurred during the year ended December 31, 2025.
Cash distributions from SSAT are dependent on the level of cash available for distribution after consideration of SSAT’s operational and capital needs. Changes in accounts receivable were primarily due to the timing of collections associated with those receivables.
Changes in accounts receivable were primarily due to the timing of collections associated with those receivables.
No impairment charge was recorded by SSAT during the year ended December 31, 2023. Cash dividends received from SSAT was $14.0 million for the year ended December 31, 2024, compared to no cash distributions received in the prior year.
Cash dividends received from SSAT was $21.0 million for the year ended December 31, 2025, compared to $14.0 million in the prior year. Cash distributions from SSAT are dependent on the level of cash available for distribution after consideration of SSAT’s operational and capital needs.
The Company expects volume in 2025 to be comparable to the level achieved in 2024, reflecting modest economic growth in Hawaii and stable market share. ​ In China, the Company achieved significantly higher freight rates in the fourth quarter 2024 compared to the year ago period.
The Company expects volume in full year 2026 to be comparable to the level achieved in 2025, reflecting similar economic conditions and stable market share. ​ In China, the Company’s container volume in the fourth quarter 2025 decreased 7.2 percent year-over-year. The Company saw higher than expected freight rates and volume driven by strong e-commerce and e-goods demand.
The decrease in fixed interest debt was due to the scheduled debt repayments made during the year ended December 31, 2024. ​ As of December 31, 2024, the Company had $643.9 million of unused capacity under the revolving credit facility, with a maturity date of March 31, 2026.
The decrease in fixed interest debt was due to the scheduled debt repayments made during the year ended December 31, 2025.
The increase was primarily due to a higher contribution from supply chain management. For 2025, the Company expects challenging business conditions for transportation brokerage for most of the year and a lower contribution from supply chain management, which the Company expects to lead to modestly lower operating income compared to the level achieved in 2024.
The decrease was primarily due to a lower contribution from supply chain management. For the first quarter 2026, the Company expects Logistics operating income to be modestly lower than the $8.5 million achieved in the first quarter 2025.
Removed
The decrease was primarily due to lower general demand. Hawaii’s economy is expected to continue to grow slowly supported by modest gains in tourism, a low unemployment rate, and increased construction activity, but partially restrained by continued challenges in population growth and lower discretionary income as a result of high inflation and interest rates.
Added
Hawaii’s economy remains sluggish as softer tourism and ongoing inflationary pressures, including elevated interest rates, more than offset strength in construction activity.
Removed
The Company’s container volume in the fourth quarter 2024 also increased 7.2 percent year-over-year due to seasonally stronger freight demand. The elevated freight rates in the fourth quarter 2024 were supported by a resilient U.S. economy and a stable consumer demand environment coupled with tighter supply chain conditions.
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The Company benefited from strong freight demand in its key customer segments as well as a more stable trading environment in the Transpacific tradelane as a result of the U.S.-China trade and economic deal announced on October 30, 2025, which reduced uncertainty regarding tariffs, port entry fees, global trade and other geopolitical factors.
Removed
The Company expects elevated freight rates to continue into the first quarter 2025. Beyond the first quarter, the Company expects freight rates will largely be driven by the timing of trade flow normalization in the Red Sea, other geopolitical factors, supply chain activity and the trajectory of the U.S. economy.
Added
In the first quarter 2026, the Company expects lower volume compared to the prior year period.
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With respect to the Red Sea, assuming trade conditions normalize by the middle of the year, the Company expects freight rates to moderate in the second half of the year.
Added
The Company expects volume in full year 2026 to be modestly higher than the level achieved in 2025 based on our expectations of continued solid U.S. consumer demand and a stable trading environment in the Transpacific tradelane. ​ In Guam, the Company’s container volume in the fourth quarter 2025 increased 4.4 percent year-over-year primarily due to higher general demand.
Removed
However, if the Red Sea remains disrupted through year end, the Company expects freight rates to remain elevated throughout the year. ​ In Guam, the Company’s container volume in the fourth quarter 2024 decreased 10.0 percent year-over-year. The decrease was primarily due to lower demand from retail and food and beverage segments.
Added
For full year 2026, the Company expects Ocean Transportation operating income to approach the level achieved in full year 2025 .
Removed
For full year 2025, the Company expects Ocean Transportation operating income to be largely driven by the timing of trade flow normalization in the Red Sea, other geopolitical factors, supply chain activity and the trajectory of the U.S. economy.
Added
For 2026 compared to 2025, the Company also expects to see a more normal operating income seasonality pattern with second and third quarters being the strongest relative to the first and fourth quarters. ​ Logistics: In the fourth quarter 2025, operating income for the Company’s Logistics segment was $7.7 million, or $2.4 million lower compared to the level achieved in the fourth quarter 2024.
Removed
Assuming trade conditions in the Red Sea normalize by the middle of the year and there are no significant changes from today in the other factors referenced above, the Company expects full year 2025 Ocean Transportation operating income to be moderately lower than the $500.9 million achieved in 2024.
Added
For the full year 2025, the Company’s effective tax rate was 16.7 percent.
Removed
However, if trade conditions in the Red Sea remain disrupted through year end and there are no significant changes from today in the other factors noted above, the Company expects full year 2025 Ocean Transportation operating income to approach the level achieved in 2024. ​ Logistics: In the fourth quarter 2024, operating income for the Company’s Logistics segment was $10.1 million, or $1.2 million higher compared to the level achieved in the fourth quarter 2023.
Added
The effective tax rate for the year ended December 31, 2025 benefited from a one-time adjustment of $18.5 million or 3.5 percent related to the Company’s deferred tax assets and liabilities.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeA one percent change in interest rates is not expected to have a material impact on the fair value of these investments or on the Company’s results of operations. ​ The Company may invest funds on deposit in the CCF in money market funds, U.S. Treasury Obligation Funds or other eligible credit-based investments for maturities of up to three years.
Biggest changeA one percent change in interest rates is not expected to have a material impact on the fair value of these investments or on the Company’s financial condition, results of operations or cash flows. ​ The Company may invest funds on deposit in the CCF in money market funds, U.S.
For fixed rate debt, changes in market interest rates would not affect the Company’s financial condition or results of operations. ​ Additional information about the Company’s debt is included in Note 8 to the Consolidated Financial Statements in Item 8 of Part II below. ​ Investment Risks: The Company invests excess cash in short-term money market funds that purchase government securities or corporate debt securities, or in other deposit products.
For fixed rate debt, changes in market interest rates would not affect the Company’s financial condition, results of operations or cash flows. ​ Additional information about the Company’s debt is included in Note 8 to the Consolidated Financial Statements in Item 8 of Part II below. ​ Investment Risks: The Company invests excess cash in short-term money market funds that purchase government securities, corporate debt securities or other deposit products.
A one percent change in interest rates is not expected to have a material impact on the fair value of these investments or on the Company’s results of operations. ​ Foreign Currency Risks: The Company has no material exposure to foreign currency risks, although it is indirectly affected by changes in currency rates to the extent that changes in rates affect tourism in Hawaii, Guam, Alaska and other locations.
A one percent change in interest rates is not expected to have a material impact on the fair value of these investments or on the Company’s financial condition, results of operations or cash flows. ​ Foreign Currency Risks: The Company has no material exposure to foreign currency risks, although it is indirectly affected by changes in currency rates to the extent that changes in rates affect tourism in Hawaii, Guam, Alaska and other locations.
Transactions related to the Company’s China and Japan services are primarily denominated in U.S. dollars, and therefore, a one percent change in the Chinese Yuan or Japanese Yen exchange rate would not have a material effect on the Company’s results of operations. Transactions related to the Company’s South Pacific service are primarily denominated in New Zealand dollars.
Transactions related to the Company’s China and Japan services are primarily denominated in U.S. dollars, and therefore, a one percent change in the Chinese Yuan or Japanese Yen exchange rate would not have a 39 Table of Contents material effect on the Company’s results of operations.
A one percent change in the New Zealand dollar exchange rate is not expected to have a material effect on the Company’s results of operations. ​ ​ 40 Table of Contents
Transactions related to the Company’s South Pacific service are primarily denominated in New Zealand dollars. A one percent change in the New Zealand dollar exchange rate is not expected to have a material effect on the Company’s financial condition, results of operations or cash flows. ​ ​ 40 Table of Contents
Added
Treasury Obligation Funds or other eligible credit-based investments for maturities of up to three years.

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