The Honolulu-based ocean carrier reported net income of $129.4 million, or $4.27 per diluted share. That was up 36.6% and 46.2%, respectively, compared with the same quarter last year.
Revenue climbed 16.7% to $969.4 million, up from $830.5 million in the second quarter of 2025.
Operating income increased 40.6% to $158.9 million, while earnings before interest, taxes, depreciation and amortization, or EBITDA, rose 28.9% to $211 million from $163.6 million a year earlier.
Matson’s operating margin also improved to 16.4%, compared with 13.1% during the same period last year.
The results came in well above expectations. Earnings per share beat Wall Street estimates by roughly 45 to 55 cents, while revenue was about $75 million higher than analysts had projected.
China service leads growth
Matson’s China service was one of the biggest drivers behind the company’s strong quarter.
Container volume on the service jumped 15.2% year-over-year to 37,200 forty-foot equivalent units, or FEUs.
The company said tighter capacity across the trans-Pacific market helped support stronger freight rates as international carriers continued to carefully manage available tonnage.
Demand was particularly strong from e-commerce, apparel and electronic goods, while freight rates on Matson’s premium CLX and MAX services came in higher than expected.
Matson has also continued expanding beyond traditional China-origin freight.
Cargo coming from Southeast Asia now accounts for roughly 20% to 25% of the company’s China service volume.
The company’s ocean transportation segment generated $144 million in operating income during the quarter, a 46% increase from last year. Revenue for the segment climbed 13.6% to $767.4 million.
Matson’s domestic markets were softer during the quarter.
Hawaii container volume declined 1.1%, while Alaska volume fell 2.3%, partly because of lower seafood export shipments.
Matson raises 2026 outlook
Following the stronger-than-expected quarter, Matson raised its outlook for the remainder of 2026.
The company now expects third-quarter ocean transportation operating income to come in approximately 45% higher than the $147.4 million reported during the third quarter of 2025.
Fourth-quarter operating income is expected to be modestly below the $136 million reported during the same quarter last year.
Matson said the year-over-year comparison will be difficult because demand was unusually strong following the U.S.-China trade agreement announced in October 2025.
For the full year, Matson expects consolidated operating income to exceed the $499.8 million reported in 2025.
CEO Matt Cox said the company expects its China service to operate at or near full capacity through the peak shipping season.
Matson also expects demand to return to more traditional seasonal patterns as the company moves into the fourth quarter.