Honolulu-based Matson, Inc. (NYSE: MATX) is pulling in outsized earnings from its premium China express services, with second-quarter profit and revenue far ahead of Wall Street forecasts, according to FreightWaves. Net income rose 36.6% to $129.4 million, and revenue totaled $969.4 million, up 16.7% from $830.5 million in Q2 2025, driven by stronger-than-expected freight rates and a 15.2% jump in China service container volume.
China service drives record performance
FreightWaves reported that Matson's China service container volume surged to 37,200 forty-foot equivalent units (FEUs) in the second quarter of 2026, up from the prior-year period. The growth was fueled by tighter trans-Pacific capacity as international carriers carefully managed tonnage, avoiding large backlogs or significant blank sailings — capacity discipline that has supported higher rates.
E-commerce, apparel, and e-goods showed particular strength, and freight rates exceeded expectations on Matson's premium CLX and MAX services. Cargo originating from Southeast Asia now accounts for 20–25% of China service volume, reflecting Matson's expansion beyond traditional China-origin shipments.
Financial results at a glance
The carrier's ocean transportation segment operating income jumped 46% to $144.0 million, with revenue increasing 13.6% to $767.4 million. Companywide, operating margin widened to 16.4% from 13.1% a year earlier.
| Metric | Q2 2026 | Change vs Q2 2025 |
|---|---|---|
| Net income | $129.4 million | +36.6% |
| Diluted EPS | $4.27 | +46.2% |
| Revenue | $969.4 million | +16.7% |
| Operating income | $158.9 million | +40.6% |
| EBITDA | $211.0 million | +28.9% |
| Operating margin | 16.4% | vs. 13.1% |
Earnings per share beat consensus estimates by approximately $0.45–$0.55 per share, while revenue exceeded expectations by roughly $75 million, according to FreightWaves. EBITDA came in at $211.0 million versus $163.6 million a year earlier.
Hawaii, Alaska, and the broader network
Not all lanes were positive. FreightWaves said domestic Hawaii volume was off 1.1%, and Alaska traffic slowed 2.3%, the latter due to lower export seafood volume. Those declines were offset by the China service's record performance, which carried companywide earnings.
Guidance and peak-season outlook
Matson raised its full-year 2026 outlook. FreightWaves reported that ocean transportation operating income in Q3 is expected to be approximately 45% higher than Q3 2025's $147.4 million. Q4 is projected to be modestly lower than Q4 2025's $136.0 million, reflecting a tough comparison to elevated demand following the U.S.-China trade agreement announced in October 2025. Full-year 2026 consolidated operating income is expected to exceed 2025's total of $499.8 million.
Peak-season outlook: Matson expects its China service to operate at or near capacity through peak season, with demand reflecting more traditional seasonality patterns in the fourth quarter, according to FreightWaves.
Chief Executive Matt Cox expects the China service to stay at or near capacity through peak season, with demand reflecting more traditional seasonality patterns in Q4, the report said. For freight forwarders and shippers using Matson's CLX and MAX services, the practical takeaway is straightforward: capacity on the premium trans-Pacific lane remains tight, and rates are running above plan. Shippers with cargo originating in Southeast Asia should note that 20–25% of Matson's China service volume now comes from that region, reflecting a broader origin mix beyond China.
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