Shares of Matthews International Corporation (NASDAQ: MATW) soared following the release of its fiscal fourth-quarter 2024 financial results. During the extended trading session on Thursday, MATW stock rose 11.81% to $28.50. This surge reflected investor confidence in the company’s ability to navigate challenges and sustain its core operations.
Financial Performance Overview
Matthews’ consolidated operating results demonstrated resilience amid ongoing headwinds. Although the company’s fiscal Q4 2024 sales came to $446.7 million, a $33.5 million drop from the $480.2 million sales of the prior year, these difficulties were effectively overcome. Lower performance in the Industrial Technologies division was the main cause of the modest decline in adjusted EBITDA, which went from $61.9 million to $58.1 million in the previous year.
Additionally, as demonstrated by GAAP charges this quarter, MATW made headway on its cost-cutting initiative. Matthews further reduced outstanding debt by $53.8 million and refinanced its senior notes, opting for a three-year maturity with flexibility to call in one year, a strategic move amid high interest rates.
Segment-Wise Performance
- Memorialization Segment: This segment’s adjusted EBITDA was greater even though unit volumes decreased due to reduced U.S. mortality rates. Improved price realization and robust cost controls bolstered operating margins, demonstrating stability even in the face of pandemic-related demand shifts.
- SGK Brand Solutions Segment: This division reported year-over-year sales growth for another consecutive quarter. The rebound was fueled by better pricing tactics, robust retailing and private label business success, and expansion in the Asia-Pacific region. The section is still recovering from regional and worldwide setbacks, such as the epidemic and the war between Russia and Ukraine.
- Industrial Technologies Segment: This segment faced declining sales due to customer delays in the energy business and a subdued warehouse automation market. However, improving order rates suggest potential recovery in the coming fiscal year.
Exploration of Strategic Alternatives
To analyze strategic possibilities for its company portfolio, Matthews has enlisted J.P. Morgan. This program reflects the company’s proactive commitment to long-term value development and is in line with new growth prospects in the Industrial Technologies area. The fiscal Q4 2024 results of MATW demonstrate its adaptability and durability, laying a solid basis for future expansion.
