Matthews International boosts adjusted earnings amid portfolio shifts
The company reported growth in non-GAAP adjusted earnings per share for the second quarter of fiscal 2026 despite the impact of recent divestitures
Matthews International (MATW) reported growth in non-GAAP adjusted earnings per share for the second quarter of fiscal 2026. The industrial manufacturer saw a shift in its operational profile as it integrated new acquisitions while shedding legacy business units.
The Memorialization segment posted higher sales and adjusted EBITDA compared to the prior year. This growth was driven by productivity initiatives and the acquisition of The Dodge Company, which offset a decline in sales volumes for cemetery memorials and caskets caused by a decrease in U.S. casketed deaths.
Conversely, the Industrial Technologies segment saw a decline in sales. The drop was primarily due to the divestiture of its warehouse automation business in the first quarter of fiscal 2026 and ongoing challenges within its engineering business related to a dispute with Tesla.
Within the Product Identification business, the company recorded its first commercial sales of MPERIA® Axian Inkjet (XIJ) systems during the quarter.
Operating costs shifted as the Propelis JV activated a significant portion of $60 million in targeted cost synergies following the conversion to a new business system platform. Corporate and other non-operating costs also declined meaningfully compared to the prior year.
Financial expenses eased as recurring interest expense decreased. The decline was due to reduced debt levels and the refinancing of bonds.