 On Aug. 5, Matthews International announced financial results for its third quarter of fiscal 2025.
Consolidated sales for the quarter ended June 30, 2025, were $349.4 million, compared to $427.8 million for the same quarter a year ago. The decrease primarily reflected the divestiture of SGK on May 1, 2025. The consolidated sales impact of the SGK divestiture was $80.2 million for the current quarter. Sales for the Industrial Technologies segment were lower for the quarter, offset partially by higher sales for the Memorialization segment. SGK also reported sales growth for the current quarter prior to its divestiture.
Net income attributable to the company for the quarter ended June 30, 2025, was $15.4 million, or $0.49 per share, compared to $1.8 million, or $0.06 per share in the prior year. The gain on the divestiture of SGK (net of transaction-related costs) was the most significant factor in the increase. On a non-GAAP adjusted basis, earnings for the fiscal 2025 third quarter were $0.28 per share, compared to $0.56 per share a year ago. These results do not reflect the company’s 40% interest in the results of Propelis. Although adjusted EBITDA was relatively consistent with the same quarter a year ago, interest expense increased primarily reflecting the higher rate on the new bonds compared to the previous bonds. Also, the third quarter last year benefited from significant discrete tax benefits which did not repeat in the current quarter.
In discussing the results for the company’s fiscal 2025 third quarter, Joseph C. Bartolacci, president and chief executive officer, stated:
“We were pleased with our operating results for the fiscal 2025 third quarter. The company reported earnings per share on a GAAP basis of $0.49 per share for the current quarter compared to $0.06 a year ago. We realized a gain on the divestiture of the SGK business. Additionally, the Memorialization and Industrial Technologies segments each reported higher adjusted EBITDA compared to a year ago while we continued to lower our corporate and other non-operating costs. Non-GAAP adjusted earnings per share was $0.28 for the current quarter.”
He continued, “Sales for the Memorialization segment for the fiscal 2025 third quarter were higher than a year ago primarily reflecting the recent acquisition of The Dodge Company. We expect this acquisition to be nicely accretive to earnings as we leverage the benefits of our Memorialization commercial platform, and we have already begun to realize synergies from integration. Sales volumes for caskets and cemetery memorials were modestly lower for the quarter primarily reflecting lower U.S. casketed deaths and the prior year sales benefit of granite backlog reductions. However, the earnings impact of these declines were offset by inflationary price realization and benefits from the segment’s ongoing productivity initiatives, which were significant factors in the segment’s improved operating margins.”
He also said, “During the fiscal 2025 third quarter, we reduced consolidated outstanding debt by $120 million. The reduction primarily reflected the proceeds from the SGK divestiture, offset partly by the acquisition of The Dodge Company, settlement of currency hedges in connection with SGK-related assets, and SGK transaction-related costs. Based on our current operating cash flow projections and the potential sale of our European packaging business, we expect further debt reduction in the fiscal 2025 fourth quarter.
Read the full earnings news release.
