Matthews International Corporation (NASDAQ: MATW) reported fiscal 2026 first‑quarter results that included a GAAP earnings per share of $1.39, a turnaround from the $0.11 loss recorded a year earlier. Total revenue for the quarter was $284.8 million, a 29.1% decline from $401.8 million in the same period last year, largely attributable to the divestiture of its Brand Solutions segment and the sale of the Warehouse Automation and European packaging businesses.
Adjusted EBITDA for the quarter was $35.2 million, down from $40.0 million in Q1 2025. The decline reflects one‑time legal fees and working‑capital impacts related to the ongoing Tesla dispute, which have weighed on the Industrial Technologies segment. The corrected figure replaces the erroneous $187.5 million reported in the original draft.
Revenue in the Memorialization segment grew modestly, driven by strong demand for caskets and cremation equipment, while the Industrial Technologies segment saw a decline as Tesla‑related litigation and customer delays in energy‑storage projects reduced sales. The company’s focus on high‑margin core businesses is evident in the segment mix shift.
Net debt fell by $174 million, a result of the $225.4 million cash inflow from the sale of the Warehouse Automation business and the $41 million divestiture of the European packaging business. The debt reduction aligns with management’s strategy to streamline operations and improve financial flexibility.
Matthews reiterated its fiscal 2026 guidance, maintaining a target of at least $180 million in adjusted EBITDA. The unchanged guidance signals confidence in the company’s strategic pivot and the expected recovery of its core segments.
Analysts had projected an adjusted EPS of $0.05 and revenue of $285.0 million. Matthews reported an adjusted EPS loss of $0.19 and revenue of $284.76 million, missing both estimates. CEO Joseph C. Bartolacci said, “We are very pleased with our operating results for the fiscal 2026 first quarter,” emphasizing the progress made through divestitures and debt reduction while noting continued focus on the Memorialization and dry‑battery electrode technology pipelines.
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