MATW - Matthews International Q2: Warehouse Automation Muting Energy Growth

2024-05-06 16:01:33 ET

Summary

• Matthews International Corporation reported Q2 earnings with impacts from warehouse automation and delayed EV plans, but expects incremental improvement in coming quarters.
• Memorialization segment is facing volume issues due to lower death rates compared to 2022, but underlying trends are positive.
• The industrial technologies segment is suffering from warehouse automation, but the company believes the situation will turn around, and energy solutions are growing even without the major order realized.
• SGK restructuring efforts have improved EBITDA performance considerably.
• The continued underlying strength in energy solutions, focused on EV markets, is reassuring, and assuages fears about the major order delay. A turnaround could be coming.

Matthews International Corporation ( MATW ) just reported fiscal Q2 results . We are seeing quite major impacts from warehouse automation, but as mentioned in our last quarterly coverage , MATW is still on track to see some incremental improvement into the next quarters. Energy is doing fine within industrial tech, but the major order that came in early 2023 is still only half resolved, and has been that way now for a few quarters as EV plans get pushed out by major OEMs. Memorialization is alright, it should have a good performance as we move further away from tougher COVID-19 comps, and SGK is way more efficient now and less of a burden....

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