Revenue has entered a period of severe contraction, falling 39.5% year-over-year in 2026Q2, while operating margins have deteriorated to -1.2% due to ineffective scaling of fixed costs.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Sales/Revenue | 1.21B | 1.5B | 1.8B | 1.88B | 1.76B | 1.67B | 1.5B | 1.54B | 1.6B | 1.52B | 1.48B | 1.43B | 1.11B | 985.36M | 900.32M | 898.82M | 821.83M | 780.91M | 818.62M | 749.35M | 715.89M | 639.82M | 508.8M | 458.87M | 428.09M | 283.28M | 262.37M | 239.3M | 211.6M | 189.2M | 172M |
| Revenue Growth % | -28.9% | -16.6% | -4.53% | 6.72% | 5.47% | 11.53% | -2.54% | -4.07% | 5.74% | 2.37% | 3.81% | 28.87% | 12.3% | 9.45% | 0.17% | 9.37% | 5.24% | -4.61% | 9.24% | 4.67% | 11.89% | 25.75% | 10.88% | 7.19% | 51.12% | 7.97% | 9.64% | 13.09% | 11.84% | 10% | 3.18% |
| Cost of Goods Sold | 778.74M | 1.01B | 1.26B | 1.33B | 1.28B | 1.2B | 1.06B | 1.04B | 1.05B | 952.22M | 924.01M | 896.69M | 714.1M | 628.84M | 563.75M | 547.16M | 498.44M | 477.13M | 495.66M | 468.89M | 443.96M | 416.75M | 315.05M | 288.56M | 267.72M | 163.85M | 132.27M | 125.7M | 110.5M | 99.6M | 88M |
| COGS % of Revenue | - | 67.45% | 70.38% | 70.88% | 72.89% | 71.58% | 70.72% | 67.53% | 65.33% | 62.83% | 62.41% | 62.88% | 64.53% | 63.82% | 62.62% | 60.88% | 60.65% | 61.1% | 60.55% | 62.57% | 62.01% | 65.13% | 61.92% | 62.89% | 62.54% | 57.84% | 50.41% | 52.53% | 52.22% | 52.64% | 51.16% |
| Gross Profit | 432.86M | 487.52M | 531.88M | 547.8M | 477.79M | 474.9M | 438.65M | 499.11M | 555.66M | 563.39M | 556.45M | 529.38M | 392.5M | 356.52M | 336.57M | 351.66M | 323.39M | 303.78M | 322.96M | 280.46M | 271.93M | 223.07M | 193.75M | 170.3M | 160.36M | 119.44M | 130.1M | 113.6M | 101.1M | 89.6M | 84M |
| Gross Margin % | 35.73% | 32.55% | 29.62% | 29.12% | 27.11% | 28.42% | 29.28% | 32.47% | 34.67% | 37.17% | 37.59% | 37.12% | 35.47% | 36.18% | 37.38% | 39.12% | 39.35% | 38.9% | 39.45% | 37.43% | 37.99% | 34.87% | 38.08% | 37.11% | 37.46% | 42.16% | 49.59% | 47.47% | 47.78% | 47.36% | 48.84% |
| Gross Profit Growth % | - | -8.34% | -2.91% | 14.65% | 0.61% | 8.26% | -12.11% | -10.18% | -1.37% | 1.25% | 5.12% | 34.87% | 10.09% | 5.93% | -4.29% | 8.74% | 6.46% | -5.94% | 15.16% | 3.13% | 21.9% | 15.13% | 13.77% | 6.2% | 34.27% | -8.19% | 14.52% | 12.36% | 12.83% | 6.67% | 5.53% |
| Operating Expenses | 307.28M | 467.21M | 463.78M | 434.99M | 399.58M | 398.06M | 379.75M | 371.87M | 390M | 415.58M | 405.54M | 387.47M | 289.77M | 256.7M | 242.99M | 233.14M | 206.81M | 186.27M | 190.01M | 159.87M | 158.05M | 124.66M | 95.96M | 89.17M | 92.18M | 68.26M | 82.32M | 72.7M | 65.1M | 58.6M | 57.2M |
| OpEx % of Revenue | - | 31.2% | 25.83% | 23.13% | 22.67% | 23.82% | 25.35% | 24.19% | 24.34% | 27.42% | 27.39% | 27.17% | 26.19% | 26.05% | 26.99% | 25.94% | 25.16% | 23.85% | 23.21% | 21.33% | 22.08% | 19.48% | 18.86% | 19.43% | 21.53% | 24.09% | 31.38% | 30.38% | 30.77% | 30.97% | 33.26% |
| Selling, General & Admin | 307.28M | 467.21M | 447.82M | 419.43M | 384.04M | 384.86M | 357.46M | 345.69M | 365.02M | 399.22M | 390.75M | 374.44M | 281.96M | 245.25M | 240.77M | 231.44M | 204.9M | 184.07M | 187.91M | 157.17M | 155.25M | 121.36M | 92.96M | 89.17M | 92.18M | 68.26M | 70.31M | 62.1M | 57.1M | 52.6M | 49.9M |
| SG&A % of Revenue | - | 31.2% | 24.94% | 22.3% | 21.79% | 23.03% | 23.86% | 22.49% | 22.78% | 26.34% | 26.39% | 26.26% | 25.48% | 24.89% | 26.74% | 25.75% | 24.93% | 23.57% | 22.95% | 20.97% | 21.69% | 18.97% | 18.27% | 19.43% | 21.53% | 24.09% | 26.8% | 25.95% | 26.98% | 27.8% | 29.01% |
| Research & Development | 16.73M | 16.73M | 15.96M | 15.56M | 15.54M | 13.21M | 22.29M | 26.18M | 24.98M | 16.36M | 14.79M | 13.03M | 7.81M | 11.45M | 2.22M | 1.71M | 1.91M | 2.2M | 2.1M | 2.7M | 2.8M | 3.3M | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | 1.12% | 0.89% | 0.83% | 0.88% | 0.79% | 1.49% | 1.7% | 1.56% | 1.08% | 1% | 0.91% | 0.71% | 1.16% | 0.25% | 0.19% | 0.23% | 0.28% | 0.26% | 0.36% | 0.39% | 0.52% | 0.59% | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | -16.73M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12.01M | 10.6M | 8M | 6M | 7.3M |
| Operating Income | -5.71M | 20.31M | 68.1M | 112.82M | 78.22M | 76.83M | 58.91M | 127.24M | 165.66M | 147.8M | 150.91M | 141.91M | 102.72M | 99.81M | 93.58M | 118.52M | 116.58M | 117.51M | 132.95M | 120.59M | 113.88M | 98.41M | 97.79M | 80.08M | 68.19M | 53.36M | 47.78M | 40.9M | 36M | 31M | 26.8M |
| Operating Margin % | -0.47% | 1.36% | 3.79% | 6% | 4.44% | 4.6% | 3.93% | 8.28% | 10.34% | 9.75% | 10.19% | 9.95% | 9.28% | 10.13% | 10.39% | 13.19% | 14.19% | 15.05% | 16.24% | 16.09% | 15.91% | 15.38% | 19.22% | 17.45% | 15.93% | 18.84% | 18.21% | 17.09% | 17.01% | 16.38% | 15.58% |
| Operating Income Growth % | - | -70.17% | -39.63% | 44.24% | 1.8% | 30.43% | -53.71% | -23.19% | 12.08% | -2.06% | 6.35% | 38.15% | 2.91% | 6.67% | -21.04% | 1.66% | -0.79% | -11.61% | 10.25% | 5.89% | 15.72% | 0.63% | 22.11% | 17.45% | 27.79% | 11.68% | 16.81% | 13.61% | 16.13% | 15.67% | 9.84% |
| EBITDA | 38M | 92.06M | 162.87M | 209.35M | 182.27M | 210.35M | 177.97M | 218.04M | 242.63M | 215.78M | 216.4M | 204.53M | 145.59M | 137.68M | 122.4M | 146.18M | 143.9M | 147.8M | 157.89M | 141.12M | 135.35M | 118.31M | 113.42M | 94.96M | 82.04M | 66.29M | 59.78M | 51.5M | 44M | 37M | 34.1M |
| EBITDA Margin % | 3.14% | 6.15% | 9.07% | 11.13% | 10.34% | 12.59% | 11.88% | 14.18% | 15.14% | 14.24% | 14.62% | 14.34% | 13.16% | 13.97% | 13.59% | 16.26% | 17.51% | 18.93% | 19.29% | 18.83% | 18.91% | 18.49% | 22.29% | 20.69% | 19.17% | 23.4% | 22.79% | 21.52% | 20.79% | 19.56% | 19.83% |
| EBITDA Growth % | -70.41% | -43.48% | -22.2% | 14.85% | -13.35% | 18.2% | -18.38% | -10.14% | 12.44% | -0.28% | 5.8% | 40.48% | 5.74% | 12.49% | -16.27% | 1.58% | -2.64% | -6.39% | 11.88% | 4.26% | 14.4% | 4.31% | 19.45% | 15.74% | 23.77% | 10.88% | 16.08% | 17.05% | 18.92% | 8.5% | 16.38% |
| D&A (Non-Cash Add-back) | 43.71M | 71.75M | 94.77M | 96.53M | 104.06M | 133.51M | 119.06M | 90.79M | 76.97M | 67.98M | 65.48M | 62.62M | 42.86M | 37.87M | 28.82M | 27.66M | 27.32M | 30.29M | 24.93M | 20.53M | 21.46M | 19.89M | 15.63M | 14.87M | 13.86M | 12.93M | 12.01M | 10.6M | 8M | 6M | 7.3M |
| EBIT | 161.12M | 75.45M | -17.63M | 91.3M | -79.63M | 32.22M | -72.96M | 8.46M | 137.84M | 125.48M | 122.72M | 103.95M | 71.75M | 86.39M | 89.89M | 116.07M | 114.16M | 100.91M | 135.27M | 114.57M | 115.37M | 101.8M | 99.35M | 81.13M | 68.19M | 51.18M | 47.78M | 40.95M | 36M | 31M | 26.8M |
| Net Interest Income | -43.02M | -59.24M | -50.53M | -44.65M | -27.73M | -28.68M | -34.88M | -40.96M | -37.43M | -26.37M | -24.34M | -20.61M | -12.63M | -12.93M | -11.48M | -8.24M | -7.42M | -12.05M | -10.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 32.98M | 59.24M | 50.53M | 44.65M | 27.73M | 28.68M | 34.88M | 40.96M | 37.43M | 26.37M | 24.34M | 20.61M | 12.63M | 12.93M | 11.48M | 8.24M | 7.42M | 12.05M | 10.4M | 7M | 7M | 2.97M | 2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 95.76M | -4.11M | -137.76M | -71.91M | -182.44M | -67.6M | -165.24M | -165.33M | -67.66M | -51.52M | -55.68M | -52.25M | -36.65M | -19.64M | -9.66M | -6.5M | -6.17M | -26.52M | -8.09M | -14.14M | -5.5M | 418K | -443K | -6.73M | -5.73M | -1.9M | -1.84M | 377K | 1.1M | 1.3M | 6.8M |
| Pretax Income | 90.05M | 16.21M | -69.66M | 40.91M | -104.22M | 9.23M | -106.34M | -38.08M | 97.99M | 96.29M | 95.23M | 89.65M | 66.08M | 80.18M | 83.92M | 112.02M | 110.41M | 90.99M | 124.86M | 103.72M | 108.38M | 93.06M | 89.12M | 73.35M | 62.46M | 51.46M | 45.94M | 41.3M | 37.1M | 32.3M | 33.6M |
| Pretax Margin % | 7.43% | 1.08% | -3.88% | 2.17% | -5.91% | 0.55% | -7.1% | -2.48% | 6.11% | 6.35% | 6.43% | 6.29% | 5.97% | 8.14% | 9.32% | 12.46% | 13.44% | 11.65% | 15.25% | 13.84% | 15.14% | 14.54% | 17.52% | 15.99% | 14.59% | 18.16% | 17.51% | 17.26% | 17.53% | 17.07% | 19.53% |
| Income Tax | 92.77M | 40.68M | -10M | 1.77M | -4.39M | 6.38M | -18.68M | 806K | -9.12M | 22.35M | 29.07M | 26.36M | 22.8M | 26.17M | 28.72M | 38.56M | 38.64M | 30.81M | 42.09M | 38.99M | 38.96M | 34.98M | 35.64M | 28.46M | 24.23M | 19.86M | 18.02M | 16.3M | 14.6M | 12.7M | 13.3M |
| Effective Tax Rate % | 103.02% | 250.97% | 14.35% | 4.34% | 4.21% | 69.05% | 17.57% | -2.12% | -9.3% | 23.22% | 30.53% | 29.41% | 34.51% | 32.64% | 34.22% | 34.42% | 34.99% | 33.86% | 33.71% | 37.59% | 35.95% | 37.6% | 39.99% | 38.8% | 38.79% | 38.59% | 39.22% | 39.47% | 39.35% | 39.32% | 39.58% |
| Net Income | 9.71M | -24.47M | -59.66M | 39.29M | -99.83M | 2.91M | -87.16M | -37.99M | 107.37M | 74.37M | 66.75M | 63.45M | 42.63M | 54.89M | 55.84M | 72.37M | 69.06M | 57.73M | 79.48M | 64.73M | 66.44M | 58.07M | 56.2M | 44.89M | 35.01M | 31.6M | 27.92M | 25M | 22.5M | 19.6M | 20.3M |
| Net Margin % | 0.8% | -1.63% | -3.32% | 2.09% | -5.66% | 0.17% | -5.82% | -2.47% | 6.7% | 4.91% | 4.51% | 4.45% | 3.85% | 5.57% | 6.2% | 8.05% | 8.4% | 7.39% | 9.71% | 8.64% | 9.28% | 9.08% | 11.04% | 9.78% | 8.18% | 11.15% | 10.64% | 10.45% | 10.63% | 10.36% | 11.8% |
| Net Income Growth % | 112.33% | 58.98% | -251.84% | 139.36% | -3530.52% | 103.34% | -129.43% | -135.38% | 44.38% | 11.41% | 5.2% | 48.85% | -22.34% | -1.71% | -22.84% | 4.8% | 19.62% | -27.37% | 22.8% | -2.59% | 14.42% | 3.34% | 25.18% | 28.24% | 10.78% | 13.16% | 11.69% | 11.11% | 14.8% | -3.45% | 30.97% |
| Net Income (Continuing) | 9.71M | -24.47M | -59.66M | 39.14M | -99.83M | 2.86M | -87.65M | -38.89M | 107.11M | 73.93M | 66.16M | 63.29M | 43.27M | 54.01M | 55.2M | 73.46M | 71.77M | 60.18M | 82.78M | 64.73M | 66.44M | 58.07M | 54.53M | 44.89M | 38.23M | 31.6M | 27.92M | 25.02M | 22.5M | 19.6M | 20.3M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 48K | -387K | -276K | -145K | 626K | 1.13M | 363K | 552K | 669K | 3.23M | 4.06M | 3.46M | 13.09M | 3.45M | 31.78M | 31.8M | 30.89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | - | -0.79 | -1.93 | 1.26 | -3.18 | 0.09 | -2.79 | -1.21 | 3.37 | 2.28 | 2.03 | 1.91 | 1.33 | 1.98 | 1.98 | 2.46 | 2.31 | 1.90 | 2.55 | 2.04 | 2.06 | 1.79 | 1.68 | 1.35 | 1.10 | 1.01 | 0.88 | 0.77 | 0.67 | 0.56 | 0.57 |
| EPS Growth % | 112.24% | 59.07% | -253.17% | 139.62% | -3594.51% | 103.26% | -130.58% | -135.91% | 47.81% | 12.32% | 6.28% | 43.61% | -32.83% | 0% | -19.51% | 6.49% | 21.58% | -25.49% | 25% | -0.97% | 15.08% | 6.55% | 24.44% | 22.73% | 8.91% | 14.77% | 14.29% | 14.93% | 19.64% | -1.75% | 29.55% |
| EPS (Basic) | - | -0.79 | -1.93 | 1.28 | -3.18 | 0.09 | -2.79 | -1.21 | 3.39 | 2.31 | 2.08 | 1.93 | 1.33 | 2.01 | 2.02 | 2.47 | 2.32 | 1.90 | 2.57 | 2.05 | 2.08 | 1.81 | 1.69 | 1.37 | 1.14 | 1.03 | 0.90 | 0.79 | 0.69 | 0.57 | 0.57 |
| Diluted Shares Outstanding | 0 | 31.1M | 30.91M | 31.29M | 31.37M | 31.99M | 31.19M | 31.42M | 31.86M | 32.62M | 32.88M | 33.2M | 32.88M | 27.72M | 28.2M | 28.81M | 29.71M | 30.5M | 31.16M | 31.73M | 32.25M | 32.38M | 32.54M | 33.25M | 31.82M | 31.29M | 31.73M | 32.49M | 33.58M | 35.31M | 35.56M |
| Basic Shares Outstanding | 0 | 30.98M | 30.6M | 30.47M | 31.37M | 31.7M | 31.19M | 31.42M | 31.67M | 32.15M | 32.14M | 32.94M | 32.88M | 27.25M | 27.62M | 28.77M | 29.66M | 30.43M | 30.93M | 31.57M | 31.94M | 32.12M | 32.22M | 32.77M | 30.71M | 30.68M | 31.03M | 31.67M | 32.61M | 34.39M | 35.56M |
| Dividend Payout Ratio | - | - | - | 71.78% | - | 952.03% | - | - | 22.95% | 29.26% | 29.08% | 28.13% | 31.43% | 20.55% | 18.49% | 13.31% | 12.58% | 18.17% | 9.36% | 10.94% | 9.86% | 10.2% | 9.47% | 8.69% | 9.38% | 9.74% | 10.66% | 11.51% | 12.44% | 14.29% | 12.81% |
Fixed cost deleveraging risks
As evidenced by the most recent quarterly data, Matthews International has experienced a severe revenue decline of 39.5% year-over-year, signaling that the company's top-line trajectory is currently in a state of significant contraction across its diversified industrial and brand solution segments.
The consistent downward trend in quarterly revenue suggests that the company is struggling to maintain volume in its core segments, potentially exacerbated by the lumpy nature of its Industrial Technologies projects. Investors should monitor whether this contraction reflects a structural loss of market share or merely the cyclical volatility inherent in its project-based business model.
Based on reported financial statements, the company's gross margin has fluctuated between 28.1% and 39.4% over the last ten quarters, indicating that Matthews International faces significant challenges in maintaining pricing power while navigating a volatile raw material cost environment.
While the recent expansion to 39.4% in 2026Q2 appears positive, it must be interpreted against the backdrop of sharply lower revenue, which may imply a shift in product mix rather than improved operational efficiency. The inability to stabilize these margins suggests that the company remains highly sensitive to commodity price fluctuations and manufacturing utilization rates.
According to recent SEC filings, the company's operating income has frequently dipped into negative territory, with a 2026Q2 operating margin of -1.2%, demonstrating that the firm's high fixed-cost structure is currently failing to scale effectively against declining revenue levels.
The persistent difficulty in maintaining positive operating income suggests that SG&A expenses are not adjusting downward in proportion to the revenue decline. This lack of operating leverage warrants further investigation into the company's ability to rationalize its manufacturing footprint and reduce overhead in a sustained downturn.
As reported in financial statements, the company's net income has exhibited extreme volatility, swinging from a $43.6 million profit in 2026Q1 to a $21.8 million loss in 2026Q2, which suggests that non-operating items and accounting adjustments are significantly distorting the underlying earnings power.
The frequent use of non-GAAP adjustments and the impact of stock-based compensation, which reached $5.1 million in the most recent quarter, complicate the assessment of true operational performance. Investors should be cautious of headline EPS figures, as they appear heavily influenced by one-time charges and restructuring costs rather than core business profitability.
Based on the provided figures, the company's net margin of -1.63% and the recent revenue decline of 16.60% suggest that the conglomerate strategy may be failing to provide the intended defensive buffer, potentially exposing shareholders to significant margin compression risks.
Short-sellers would likely focus on the company's inability to generate consistent profitability despite its niche market positions in memorialization and industrial technology. The reliance on debt-funded acquisitions to drive growth appears to be backfiring, as the current interest expense environment likely exacerbates the bottom-line pressure.
Quick answers to the most common questions about buying MATW stock.
For fiscal year 2025, Matthews International Corporation (MATW) reported total revenue of $1.50B. This represents a 770.7% increase compared to $172.0M in 1996.
Matthews International Corporation (MATW) reported a net loss of $24.5M for the fiscal year ending 2025.
Matthews International Corporation (MATW) reported an operating income of $20.3M, resulting in an operating profit margin of 1.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Matthews International Corporation (MATW) generated $487.5M in gross profit for the year, representing a gross profit margin of 32.6%. This demonstrates the company's core pricing power and production efficiency.