In This Article:
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Matthews International Corp (NASDAQ:MATW) has re-engaged with multiple battery manufacturers and auto OEMs, issuing quotes in excess of $100 million for their dry battery electrode technology solutions.
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The company expects to receive $350 million in consideration from the SGK transaction, which will be used primarily to reduce debt.
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Matthews International Corp (NASDAQ:MATW) has entered into a partnership with Terradyne Incorporated to market autonomous robotic solutions, enhancing their warehouse automation offerings.
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The SGK brand solution segment reported its best sales quarter since the fourth quarter of fiscal 2022, driven by new account growth in the Americas.
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Cost reduction initiatives are on track to generate savings in excess of the initial $50 million projection, with $20 million expected this year and $30 million next year.
Negative Points
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Consolidated sales for the fiscal 2025 second quarter were $427.6 million, down from $471.2 million a year ago, primarily due to lower sales in the industrial technology segment.
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The company reported a net loss of $8.9 million for the quarter, compared to a net income of $9 million in the same period last year.
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Memorialization revenues declined by 7% in the second quarter compared to the prior year, mainly due to volume declines in bronze and granite businesses.
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Warehouse automation sales were lower year over year, reflecting a slow market recovery.
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Outstanding debt increased modestly during the quarter, with net debt at $782 million at the end of the current quarter.
Q & A Highlights
Q: How does the $100 million plus in customer quotes since early February compare to the same period last year, and where are you seeing the most renewed interest? A: The $100 million plus in quotes is dramatically higher than the same period last year. Interest is coming from South Korea, North America, and Europe, with a growing interest in grid storage solutions. The dry battery electrode technology is applicable to all forms of battery storage, indicating significant market potential. - Joe Bartolay, CEO
Q: Can you discuss the year-over-year declines in the Memorialization segment and expectations for organic growth? A: The decline was partly due to higher than normal granite-related sales last year as we worked off pandemic backlogs. We are seeing normalization in death rates, which impacted this quarter's results. - Steve Nicola, CFO