Matthews International Reports Strong Second-Quarter Results

On April 30, Matthews International Corp. reported financial results for its second quarter of fiscal 2026.

For the three months ended March 31, 2026, revenue was $258.6 million compared with $427.6 million in the year-ago period. Non-GAAP earnings were 37 cents per share compared with 34 cents in the year-ago period. The non-GAAP results significantly topped the expectations of analysts, sending shares higher.

Specifically, for the Memorialization segment, third quarter sales were $215.2 million compared with $205.6 million in the year-ago period.

One of the highlights from the company is that it successfully completed the early redemption of $300 million in high-cost senior secured notes, significantly improving its balance sheet and reducing long-term debt by over $240 million. Its investment in Propellus, in which it holds a 40% stake, is performing well.

In discussing the results, Joseph C. Bartolacci, president and chief executive officer, stated:

“We are pleased with our operating results for the fiscal 2026 second quarter. While our GAAP earnings were unfavorably impacted by unusual charges and amortization, we are happy to report non-GAAP adjusted earnings per share growth this quarter compared to last year despite recent divestitures. The Memorialization segment reported higher sales and adjusted EBITDA, and the Product Identification business also delivered higher sales. Although we continue to experience challenges in our energy storage solutions business, customer interest remains very strong. Corporate and other non-operating costs also declined meaningfully compared to last year. We continue to work on additional cost reduction plans to scale our structure as post-divestiture support obligations expire over the coming quarters.”

“Sales for the Memorialization segment for the fiscal 2026 second quarter were higher than a year ago primarily reflecting the recent acquisition of The Dodge Company. This acquisition continues to be nicely accretive to earnings as we leverage the benefits of our Memorialization commercial platform and have already begun to realize cost synergies from integration. Sales volumes of caskets and cemetery memorials declined in the quarter due to lower U.S. casketed deaths. Inflationary price realization offset lower sales volumes of caskets and cemetery memorials in the quarter. The earnings impact of these sales increases and benefits from the segment’s ongoing productivity initiatives were significant factors in the segment’s improved operating margins.”

He later added, “For the remainder of fiscal 2026, we expect the Memorialization segment to continue to deliver modest year-to-year sales growth.” He added, “Based on our results through March 31, 2026, and projections for the remainder of fiscal 2026, we are maintaining our previous earnings guidance of adjusted EBITDA of $180 million (which includes our estimated 40% share of Propelis adjusted EBITDA) for fiscal 2026.”