Financial Analysis

17. COMMITMENTS AND CONTINGENCIES Commitments: Commitments and contractual obligations, excluding debt obligations (see Note 8), lease commitments (see Note 9), pension and post-retirement plan obligations (see Note 11), and multi-employer withdrawal liabilities (see Note 12), are as follows as of December 31, 2025: Commitments and Contractual Obligations (in millions) Total Standby letters of credit (1) $ 5.7 Bonds (2) $ 84.0 Vessel construction obligations (3) $ 579.2 Vendor and other obligations (4) $ 186.0 (1) Standby letters of credit are required for the Companys uninsured workers compensation and other insurance programs, and other needs. (2) Bonds represent U.S. Customs bonds, contract guarantee related performance bonds, and bonds related to other matters. (3) Vessel construction obligations represent remaining contractual obligations (excluding owners items and change orders) entered into for the construction of three new Jones Act vessels. (4) Vendor and other obligations include: (i) non-cancellable contractual capital project obligations; (ii) dry-docking related obligations; and (iii) other contractual obligations. Amounts are considered obligations if a contract has been agreed to specifying significant terms of the contract, and the amounts are not reflected in the Consolidated Balance Sheets as of December 31, 2025. These amounts are not recorded on the Companys Consolidated Balance Sheet as of December 31, 2025 and it is not expected that the Company or its …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

8. DEBT The Companys debt consists of the following as of December 31, 2025 and 2024: As of December 31, (In millions) 2025 2024 Private Placement Term Loans: 3.37 %, payable through 2027 $ 23.1 $ 34.6 3.14 %, payable through 2031 85.8 100.1 Title XI Debt: 1.22 %, payable through 2043 142.4 150.3 1.35 %, payable through 2044 109.9 115.9 Revolving credit facility, maturity date of July 23, 2030 Total Debt 361.2 400.9 Less: Current portion (39.7) (39.7) Total Long-term Debt 321.5 361.2 Less: Deferred loan fees (9.4) (10.4) Total Long-term Debt, net of deferred loan fees $ 312.1 $ 350.8 The following is a description of the Companys debt: Private Placement Term Loans : In September 2016, the Company issued $200.0 million of 15-year senior unsecured notes (the Series D Notes) at an interest rate of 3.14 percent, payable semi-annually. In December 2016, the Company issued $75 million of 11-year senior unsecured notes at an interest rate of 3.37 percent, payable semi-annually. Title XI Bonds: In April 2020, MatNav issued $185.9 million in U.S. government guaranteed vessel financing bonds to partially refinance debt incurred in connection with the construction of Daniel K. Inouye (the DKI Title XI Debt). The secured DKI Title XI Debt matures in October 2043 and has a cash interest rate of 1.22 percent, payable semi-annually in arrears. In June 2020, MatNav issued $139.6 million in U.S. government guaranteed vessel financing bonds to partially refinance debt incurred in connection wi …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

15. SHARE-BASED AWARDS Effective April 24, 2025, the shareholders of the Company adopted and approved the Matson, Inc. 2025 Incentive Compensation Plan (the 2025 Plan) which serves as a successor to the Amended and Restated 2016 Plan. Under the 2025 Plan, 1.4 million shares of common stock were reserved for issuance. The 2025 Plan consists of three separate incentive compensation programs: (i) the discretionary grant program, (ii) the stock issuance program, and (iii) the automatic grant program for the non-employee members of the Companys Board of Directors, which are described as follows. Discretionary Grant Program Under the Discretionary Grant Program, stock options may be granted with an exercise price no less than 100 percent of the fair market value (defined as the closing market price) of the Companys common stock on the date of the grant. No stock options have been granted under the 2025 Plan. Stock Issuance Program Under the Stock Issuance Program, shares of common stock, restricted stock units or performance shares may be granted. Time-based equity awards generally vest ratably over three years . Provided certain three-year performance targets are achieved, performance-based equity awards generally vest on the three-year anniversary date of the grant. Automatic Grant Program At each annual shareholder meeting, non-employee directors will receive an award of restricted stock units that entitle the holder to an equivalent number of shares of common stock upon vesting …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

6. GOODWILL AND INTANGIBLE ASSETS Goodwill by segment consists of the following as of December 31, 2025 and 2024: As of December 31, 2025 As of December 31, 2024 Ocean Ocean (In millions) Transportation Logistics Total Transportation Logistics Total Goodwill $ 222.6 $ 105.2 $ 327.8 $ 222.6 $ 105.2 $ 327.8 Ocean Transportation goodwill of $222.6 million includes $221.8 million related to the acquisition of Horizon Lines, Inc. (Horizon) in May 2015. Logistics goodwill of $105.2 million includes $78.6 million related to the acquisition of Span Intermediate, LLC (Span Alaska) in August 2016 that was allocated to the Span Alaska reporting unit, and $26.6 million of other Logistics acquisitions that were allocated to the Logistics reporting unit. Intangible assets by segment consist of the following as of December 31, 2025 and 2024: As of December 31, 2025 As of December 31, 2024 Gross Accumulated Gross Accumulated (In millions) Amount Amortization Net Book Value Amount Amortization Net Book Value Ocean Transportation - Customer relationships $ 140.6 $ 71.0 $ 69.6 $ 140.6 $ 64.4 $ 76.2 Logistics: Customer relationships 106.6 56.9 49.7 106.2 50.3 55.9 Trade name 27.3 27.3 27.3 27.3 Total Logistics 133.9 56.9 77.0 133.5 50.3 83.2 Total $ 274.5 $ 127.9 $ 146.6 $ 274.1 $ 114.7 $ 159.4 Ocean Transportation intangible assets of $140.6 million relate to customer relationships acquired as part of the acquisition of Horizon, and are being amortized over 21 years . Logistics intangible asset …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

10. INCOME TAXES Income Taxes: Income taxes consist of the following for the years ended December 31, 2025, 2024 and 2023: Years Ended December 31, (In millions) 2025 2024 2023 Current: Federal $ 70.6 $ 86.8 $ 44.0 State 7.8 12.4 9.2 Foreign 3.8 3.5 3.0 Total current tax expense 82.2 102.7 56.2 Deferred: Federal 7.9 17.9 18.2 State (1.3) 2.8 Foreign 0.2 (0.4) 1.5 Total deferred tax expense 6.8 20.3 19.7 Total income taxes $ 89.0 $ 123.0 $ 75.9 Income taxes for the years ended December 31, 2025, 2024 and 2023 vary from amounts computed by applying the statutory U.S. federal income tax rate due to the following: Years Ended December 31, Income Taxes and Effective Income Tax Rate (Dollars in millions) 2025 2024 2023 U.S. federal statutory tax and rate $ 112.1 21.0 % $ 125.9 21.0 % $ 78.3 21.0 % State and local taxes, net of federal income tax effect (1)(2) (8.7) (1.6) % 13.4 2.2 % 4.5 1.2 % Foreign tax effects 2.9 0.5 % 2.0 0.3 % 2.7 0.7 % Enactment of new tax laws or rates enacted in the current period % % % Effect of cross-border tax laws: Foreign-derived intangible income (FDII) (13.1) (2.5) % (18.5) (3.1) % (17.9) (4.8) % Tax credits (0.1) % (0.1) % (0.1) % Valuation allowances % % % Nontaxable or nondeductible items: Share-based payment awards 1.0 0.3 % 1.3 0.2 % 2.0 0.5 % Other 0.1 % 0.1 0.1 % 3.3 0.9 % Changes in unrecognized tax benefits (2.5) (0.5) % (1.0) (0.2) % 3.1 0.8 % Other adjustments (2.7) (0.5) % (0.1) % % Income taxes and effective income tax rate (3) $ 89.0 1 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

9. LEASES Description of Operating Leases: The Company has different types of operating leases, the specific terms and conditions of which vary from lease to lease. Certain operating lease agreements include terms such as: (i) renewal and early termination options; (ii) early buy-out and purchase options; and (iii) rent escalation clauses. The lease agreements also include provisions for the maintenance of the leased asset and payment of lease related costs. The Company reviews the specific terms and conditions of each lease and, as appropriate, notifies the lessor of any intent to exercise any option in accordance with the terms of the lease. In the normal course of business, the Company expects to be able to renew or replace most of its operating leases with other similar leases as they expire. The Companys leases do not contain any residual value guarantees. The Company did not have any finance leases during the years ended December 31, 2025 and 2024. Certain of the Companys lease agreements include rental payments that may be adjusted in the future based on economic conditions and others include rental payments adjusted periodically for inflation. Variable lease expense is disclosed for the adjusted portion of such payments. The lease type by underlying asset class and maximum terms of the Companys operating leases are as follows: Lease Type: Term Real estate and terminal leases 50 years Vessel and barge charter leases 4 years Operations equipment and other leases 14 year …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recently adopted accounting pronouncements: In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2023-09, Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires disaggregated information about a reporting entitys effective tax rate reconciliation as well as information on income taxes paid. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, and interim periods within fiscal years beginning after December 15, 2025. The Company adopted ASU 2023-09 during the year ended December 31, 2025 and applied it retrospectively (see Note 10). New Accounting Pronouncements: In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (ASU 2024-03). ASU 2024-03 requires disclosure of certain expenses in the financial statements including employee compensation, depreciation and amortization of intangible assets on an annual and interim basis. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. ASU 2024-03 can be adopted either: (i) prospectively to the financial statements issued for reporting periods after the effective date of the ASU or (ii) retrospectively to any or all prior periods presented in the financial statements. The Company is currently evaluating …

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11. PENSION AND POST-RETIREMENT PLANS Qualified Pension and Post-retirement Benefits Plans: The Company provides a funded qualified single employer defined benefit pension plan that covers most non-bargaining employees and certain clerical bargaining unit employees. The Company also provides a post-retirement benefit plan that provides health and life insurance benefits, and covers substantially all salaried, non-bargaining employees hired before 2008, and certain bargaining unit employees. Employees are generally eligible for such benefits upon retirement and completion of a specified number of years of service. The Company does not pre-fund the post-retirement benefit plan and has the right to modify or terminate the plan in the future, with the exception of the benefits pertaining to the bargaining unit employees. Most non-bargaining retirees pay a portion of these post-retirement benefit costs. Plan Administration, Investments and Asset Allocations: The Company has a Benefits Investment Committee that meets regularly with investment advisors to establish investment policies, direct investments and select investment options for the qualified plan. The Benefits Investment Committee is also responsible for appointing investment managers and monitoring their performance. The Companys investment policy permits investments in marketable equity securities, such as domestic and foreign stocks, domestic and foreign bonds, real estate investments, and cash equivalents. The Companys …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

3. REPORTABLE SEGMENTS Reportable segments are components of an enterprise that engage in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the chief operating decision maker (CODM) to make decisions about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available. The Companys CODM is its Chief Executive Officer. The Company identified two reportable segments on the basis of internal information provided to the CODM: Ocean Transportation and Logistics which are described in Note 1. Each segment is managed separately based upon fundamental differences in the operations of each segment. The Companys Ocean Transportation service primarily involves the transportation of customer cargo on Company owned and chartered vessels. The Companys Logistics service provides customers with logistics solutions primarily using third-party purchased transportation. The Companys CODM assesses the performance of each segment using operating income. The Companys CODM reviews the performance of each segment using monthly internal reports which provide variance analysis of actual results by segment compared to budget, forecast and prior year. The Companys CODM uses this information when making decisions about the allocation of operating and capital resources to each segment. Segment balance sheet information is not provided to the CODM as capital decisions are …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing