Matthews International Maintains $180M EBITDA Guidance, Redeems $300M Bonds
MATW•Matthews International reported Q2 fiscal 2026 non-GAAP adjusted EPS growth while redeeming $300 million of 8.625% notes to lower interest expense and maintained full-year adjusted EBITDA guidance at $180 million. Memorialization segment sales and adjusted EBITDA rose on the Dodge acquisition, and an arbitrator upheld Matthews' rights to sell dry battery electrode solutions despite a narrow injunction.
1. Fiscal Q2 results and guidance
Matthews International reported fiscal 2026 second quarter non-GAAP adjusted earnings per share growth despite unusual charges and divestitures. The company redeemed $300 million of 8.625% senior secured second lien notes due 2027, lowering recurring interest expense and maintained full-year adjusted EBITDA guidance of $180 million including its 40% share of Propelis results.
2. Memorialization and Product Identification performance
Memorialization segment sales and adjusted EBITDA increased, driven by the acquisition of The Dodge Company and realized cost synergies, though casket volumes declined due to lower U.S. casketed deaths. The Product Identification business logged its first commercial MPERIA Axian Inkjet system sales and is scaling its supply chain to meet significant customer demand.
3. Propelis JV integration and synergies
The Propelis joint venture successfully converted to a unified business system platform expected to unlock substantial graphics production integration and activate a significant portion of the targeted $60 million in cost synergies in the second half of calendar 2026. The company also anticipates Propelis will redeem a portion of preferred shareholder interests in the second half of its fiscal year.
4. Arbitration ruling and energy storage outlook
An arbitrator reaffirmed Matthews' right to develop, produce, market and sell proprietary dry battery electrode solutions, issuing a narrow injunction on certain machine parts that Matthews has readily replaceable alternatives for. Customer interest in its DBE technology remains strong, with order conversions expected in the second half of the fiscal year.
