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.

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.

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.

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.