Matthews International Q1 revenue falls

Overview

• Memorialization products maker's fiscal Q1 adjusted EBITDA beat analyst expectations

• Fiscal Q1 sales showed slight beat, driven by Memorialization segment growth

• Company reduced debt by $174 mln through divestitures

Outlook

• Company maintains fiscal 2026 adjusted EBITDA guidance of at least $180 mln

• Matthews expects dry battery electrode orders in second half of fiscal 2026

• Company anticipates $60 mln cost synergies from Propelis in calendar 2026

Result Drivers

• MEMORIALIZATION GROWTH - Higher sales and adjusted EBITDA in the Memorialization segment were driven by The Dodge Company acquisition and increased sales volumes for caskets and cemetery memorials

• INDUSTRIAL TECHNOLOGIES CHALLENGES - Sales decline in Industrial Technologies due to engineering business challenges and Tesla dispute, though strong interest in dry battery electrode solutions remains

• DEBT REDUCTION - Company reduced outstanding debt by $174 mln, primarily from proceeds of divestitures

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal products peer group is "buy"

• Wall Street's median 12-month price target for Matthews International Corp is $38.00, about 42.6% above its February 2 closing price of $26.65

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release: ID:nPn1fq4Vya

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