Matthews International Highlights Support from Investment Community Following Fiscal 2025 First Quarter Earnings Announcement
Matthews International (MATW) has received significant support from sell-side analysts following its fiscal 2025 Q1 earnings announcement. The company reported solid performance in Memorialization and SGK Brand Solutions segments, while Industrial Technologies faced challenges due to Tesla litigation. An arbitrator recently ruled in Matthews' favor, confirming their right to sell Dry Battery Electrode (DBE) solutions to customers beyond Tesla.
Analysts highlighted several positive aspects, including the DBE technology's potential in the EV market, with its process reducing energy and labor costs by 75% and requiring 70% less capital investment. Multiple analysts provided optimistic price targets, with CJS Securities suggesting a $42 target, representing ~60% upside potential. GAMCO Asset Management, a top 5 shareholder, endorsed Matthews' director nominees, supporting the company's current strategy and leadership.
Matthews International (MATW) ha ricevuto un supporto significativo da parte degli analisti sell-side dopo l'annuncio dei risultati finanziari del primo trimestre dell'anno fiscale 2025. L'azienda ha riportato una performance solida nei segmenti di Memorializzazione e Soluzioni di Marca SGK, mentre le Tecnologie Industriali hanno affrontato delle sfide a causa della controversia legale con Tesla. Un arbitro ha recentemente emesso una sentenza a favore di Matthews, confermando il loro diritto di vendere soluzioni di Elettrodo a Secco (DBE) a clienti al di là di Tesla.
Gli analisti hanno evidenziato diversi aspetti positivi, tra cui il potenziale della tecnologia DBE nel mercato dei veicoli elettrici, con un processo che riduce i costi energetici e di manodopera del 75% e richiede il 70% in meno di investimento di capitale. Molti analisti hanno fornito obiettivi di prezzo ottimisti, con CJS Securities che suggerisce un obiettivo di $42, rappresentando un potenziale di rialzo di circa il 60%. GAMCO Asset Management, uno dei primi 5 azionisti, ha sostenuto le nomination dei direttori di Matthews, appoggiando la strategia e la leadership attuale dell'azienda.
Matthews International (MATW) ha recibido un apoyo significativo de los analistas sell-side tras el anuncio de sus resultados del primer trimestre del año fiscal 2025. La compañía reportó un sólido desempeño en los segmentos de Memorialización y Soluciones de Marca SGK, mientras que Tecnologías Industriales enfrentó desafíos debido a la litigación con Tesla. Un árbitro falló recientemente a favor de Matthews, confirmando su derecho a vender soluciones de Electrodos Secos (DBE) a clientes más allá de Tesla.
Los analistas destacaron varios aspectos positivos, incluyendo el potencial de la tecnología DBE en el mercado de vehículos eléctricos, con un proceso que reduce los costos de energía y mano de obra en un 75% y requiere un 70% menos de inversión de capital. Varios analistas proporcionaron objetivos de precio optimistas, con CJS Securities sugiriendo un objetivo de $42, lo que representa un potencial de aumento de aproximadamente el 60%. GAMCO Asset Management, uno de los cinco principales accionistas, respaldó las nominaciones de directores de Matthews, apoyando la estrategia y liderazgo actual de la empresa.
매튜스 인터내셔널 (MATW)는 2025 회계연도 1분기 실적 발표 이후 매도 측 분석가들로부터 상당한 지원을 받았습니다. 회사는 기념화 및 SGK 브랜드 솔루션 부문에서 견고한 성과를 보고했으며, 산업 기술 부문은 테슬라 소송으로 어려움에 직면했습니다. 최근 중재자가 매튜스에 유리한 판결을 내렸습니다, 이는 그들이 테슬라를 넘어 고객에게 건식 배터리 전극(DBE) 솔루션을 판매할 권리가 있다는 것을 확인했습니다.
분석가들은 EV 시장에서 DBE 기술의 잠재력을 포함하여 여러 긍정적인 측면을 강조했습니다. 이 과정은 에너지 및 인건비를 75% 줄이고 자본 투자도 70% 적게 요구합니다. 여러 분석가들이 낙관적인 가격 목표를 제시했으며, CJS 증권은 $42의 목표를 제안하여 약 60%의 상승 잠재력을 나타냅니다. GAMCO 자산 관리, 상위 5대 주주 중 한 곳은 매튜스의 이사 후보를 지지하며 회사의 현재 전략과 리더십을 지원했습니다.
Matthews International (MATW) a reçu un soutien significatif de la part des analystes sell-side suite à l’annonce de ses résultats du premier trimestre de l’exercice 2025. L’entreprise a rapporté de solides performances dans les segments de la Mémorialisation et des Solutions de Marque SGK, tandis que les Technologies Industrielles ont rencontré des difficultés en raison des litiges avec Tesla. Un arbitre a récemment rendu une décision en faveur de Matthews, confirmant leur droit de vendre des solutions d’Électrode à Sec (DBE) à des clients au-delà de Tesla.
Les analystes ont souligné plusieurs aspects positifs, y compris le potentiel de la technologie DBE sur le marché des véhicules électriques, avec un processus réduisant les coûts énergétiques et de main-d'œuvre de 75% et nécessitant 70% d'investissement en capital en moins. Plusieurs analystes ont proposé des objectifs de prix optimistes, CJS Securities suggérant un objectif de 42 $, représentant un potentiel de hausse d’environ 60%. GAMCO Asset Management, l’un des cinq principaux actionnaires, a soutenu les nominations des directeurs de Matthews, appuyant la stratégie et le leadership actuels de l’entreprise.
Matthews International (MATW) hat nach der Bekanntgabe der Ergebnisse für das erste Quartal des Geschäftsjahres 2025 erhebliche Unterstützung von Analysten erhalten. Das Unternehmen berichtete von soliden Leistungen in den Bereichen Memorialisierung und SGK Brand Solutions, während die Industrietechnologien aufgrund der Rechtsstreitigkeiten mit Tesla vor Herausforderungen standen. Ein Schiedsrichter hat kürzlich zugunsten von Matthews entschieden und damit deren Recht bestätigt, Dry Battery Electrode (DBE)-Lösungen an Kunden über Tesla hinaus zu verkaufen.
Analysten hoben mehrere positive Aspekte hervor, darunter das Potenzial der DBE-Technologie im EV-Markt, da der Prozess die Energie- und Arbeitskosten um 75% senkt und 70% weniger Investitionskapital erfordert. Mehrere Analysten gaben optimistische Preisziele an, wobei CJS Securities ein Ziel von 42 $ vorschlug, was ein Aufwärtspotenzial von etwa 60% darstellt. GAMCO Asset Management, einer der fünf größten Aktionäre, unterstützte die Direktorennominierungen von Matthews und befürwortete die aktuelle Strategie und Führung des Unternehmens.
- Arbitrator ruled in favor of MATW, allowing DBE sales to other customers
- DBE technology offers 75% reduction in energy/labor costs and 70% lower capital investment
- Analyst price targets suggest significant upside (CJS target of $42, ~60% potential)
- Top 5 shareholder GAMCO endorses current strategy and board nominees
- Solid performance in Memorialization and SGK Brand Solutions segments
- Industrial Technologies segment challenged by Tesla litigation impact
- Customer delays related to Tesla lawsuit affected revenue and EBITDA
Insights
The recent arbitration victory against Tesla marks a pivotal moment for Matthews International's growth trajectory in the electric vehicle battery market. The ruling effectively removes a significant barrier to commercialization, enabling MATW to leverage its proprietary DBE technology across the entire EV industry. The technology's value proposition is particularly compelling in the current market environment, where EV manufacturers are aggressively seeking cost reductions to improve margins and accelerate mass-market adoption.
The DBE technology's economic advantages are substantial:
- 75% reduction in energy and labor costs
- 70% lower capital investment requirements
- Simplified production process with reduced environmental impact
The company's financial restructuring through the SGK transaction demonstrates strategic foresight in unlocking shareholder value. The expected $50 million in cost synergies over the next few years, combined with reduced leverage, creates financial flexibility for future growth initiatives. The Memorialization segment's normalization post-COVID provides a stable foundation, while the Industrial Technologies segment's recovery potential, particularly in DBE, represents a significant growth catalyst.
The market appears to be significantly undervaluing MATW's potential, particularly in the Industrial Technology segment. Current trading levels primarily reflect the value of Memorialization and SGK businesses, essentially providing investors with a free option on the DBE technology's substantial growth potential in the expanding EV market. The endorsement from GAMCO Asset Management, a major long-term shareholder, validates the company's strategic direction and governance approach.
GAMCO Asset Management, Top 5 and Long-Term Shareholder, Endorses Matthews’ Director Nominees
Urges Shareholders to Vote “FOR” All Three of Matthews’ Director Nominees on the WHITE Proxy Card and “WITHHOLD” on Barington’s Director Nominees
PITTSBURGH, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Matthews International Corporation (Nasdaq GSM: MATW) (“Matthews” or the “Company”) today commented on the significant support it has received from its sell-side analysts following its recent fiscal 2025 first quarter earnings announcement.
On February 6, 2025, Matthews announced financial results for its first quarter of fiscal 2025, highlighting that Memorialization and SGK Brand Solutions continued their solid performance, and that the Industrial Technologies segment was challenged by the impact of the Tesla litigation. Importantly, last week Matthews announced that an arbitrator affirmed that the Company has the right to sell its Dry Battery Electrode (“DBE”) solutions to customers other than Tesla, and, as a result, Matthews intends to immediately resume marketing, selling and delivering its DBE products to other customers in the growing electric vehicle market.
On the earnings call, Matthews also highlighted the benefits of the SGK transaction and other actions the Board has taken to unlock the value of our businesses. Following the earnings announcement, the Company’s sell-side analysts noted the positive momentum underway:
- “Revenue and EBITDA results reflected customer delays related to the Tesla lawsuit. MATW announced that an arbitrator issued a ruling in favor of Matthews in its case against Tesla. The ruling supported Matthews’ pre-Tesla history in manufacturing advanced DBE technology and affirmed that MATW has the right to sell its solutions to customers other than Tesla. Matthews will immediately resume marketing efforts to rebuild its order pipeline, and we expect the segment to see renewed sales growth as backlog builds.” – B. Riley
- “On a sum of the parts basis, we believe a higher valuation could be justified. As described in the chart below, applying a 9x EBITDA multiple to our pro forma FY26 estimates for Memorialization, 8x for SGK and SGS, 10x for the higher growth Industrial business and 7x for corporate expense equates to a fair value in the
$45 range. Looking out 1-2 years further, and utilizing those same multiples, fair value could approach$50 /share.” – CJS Securities - “Although it is still in an early stage of market development, the economic benefits of the DBE platform compared to the traditional wet process are compelling, in our view. The DBE process reduces energy and labor costs by
75% and requires70% less capital investment. With significantly lower capital costs, the price of the DBE system becomes less of an issue with potential customers. One major customer is commercially developing the DBE process, but both battery producers and automotive OEMs are recognizing the benefits of DBE systems.” – B. Riley - “Our price target of
$42 equates to 9x our back of the envelope estimate of EBITDA post the SGS transaction, offering nearly ~60% upside potential. Our positive opinion reflects; 1) meaningfully reduced financial leverage and increased flexibility, post-traction, 2) the improved trajectory of the Brand Solutions business under the JV, including$50m m (or more) potential cost synergies over the next few years, 3) the potential for accelerated debt refinancing given the reduction in leverage, and 4) the potential for further monetization events going forward.” – CJS Securities - “As Industrial Technologies recovers and SGK is divested, we believe management is in a good position to maximize the growth opportunities of the business to enhance shareholder value. Shares trade just above what the Memorialization and SGK businesses are worth, net of overhead expenses, with little value assigned to Industrial Technology.” – B. Riley
- “Post-covid mortality rates have normalized, and the company continues to see multiple growth opportunities despite the likely return of Memorialization sales growth to historic levels. The segment saw significantly higher covid-related casket sales and EBITDA margins, but as casket sales growth moderates, we believe other areas of the business are poised for growth. The company will not only see the revenue benefits from the improvement of their traditional end markets but should also see incremental revenue contribution from new applications such as battery storage.” – B. Riley
Furthermore, a recent Bank of America analysis on global EV batteries underscores the significant value embedded in our DBE business. The analysis stated that: “We view price-competitiveness of EV battery (
This analysis reinforces the significant market opportunity Matthews maintains in the DBE space given its strategic investment in its highly proprietary solutions arising from its core calendaring technology. We continue to expect the recent Tesla ruling to expand the reach of our innovative DBE offerings and have a positive impact on our performance moving forward.
As a reminder, a Top 5 and long-term shareholder, GAMCO Asset Management, recently announced that it will support Matthews’ director nominees. In its press release, GAMCO stated: “After a thorough review, GAMCO believes that Matthews’ proposed slate of nominees is best positioned, at this time, to focus and execute on the Company’s efforts to surface underlying value for all shareholders.”
This is a clear message from a top shareholder that Matthews is taking the right actions and has the right team and Board in place to continue the execution of the current strategy.
J.P. Morgan Securities LLC is serving as financial advisor to Matthews. Sidley Austin LLP is serving as legal counsel to Matthews.
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1 Bank of America: Global Electric Vehicle Battery (H); Battery wars: entering new EV battery era; diverse technologies race to be winners; February 10, 2025
About Matthews International
Matthews International Corporation is a global provider of memorialization products, industrial technologies, and brand solutions. The Memorialization segment is a leading provider of memorialization products, including memorials, caskets, cremation-related products, and cremation and incineration equipment, primarily to cemetery and funeral home customers that help families move from grief to remembrance. The Industrial Technologies segment includes the design, manufacturing, service and sales of high-tech custom energy storage solutions; product identification and warehouse automation technologies and solutions, including order fulfillment systems for identifying, tracking, picking and conveying consumer and industrial products; and coating and converting lines for the packaging, pharma, foil, décor and tissue industries. The SGK Brand Solutions segment is a leading provider of packaging solutions and brand experiences, helping companies simplify their marketing, amplify their brands and provide value. The Company has over 11,000 employees in more than 30 countries on six continents that are committed to delivering the highest quality products and services.
| YOUR VOTE IS IMPORTANT! |
| Your vote is important, and we ask that you please vote “FOR” the election of our three nominees: Terry L. Dunlap, Alvaro Garcia-Tunon and J. Michael Nauman using the WHITE proxy card and “WITHHOLD” on Barington’s nominees. |
| Simply follow the easy instructions on the enclosed WHITE proxy card to vote by internet or by signing, dating and returning the WHITE proxy card in the postage-paid envelope provided. If you received this letter by email, you may also vote by pressing the WHITE “VOTE NOW” button in the accompanying email. The Board of Directors urges you to disregard any such materials and does not endorse any of Barington’s nominees. |
| If you have any questions or require any assistance with voting your shares, please call the Company’s proxy solicitor at: |
| (888) 755-7097 or email MATWinfo@Georgeson.com |
Additional Information
In connection with the Company’s 2025 Annual Meeting, the Company has filed with the U.S. Securities and Exchange Commission (“SEC”) and commenced mailing to the shareholders of record entitled to vote at the 2025 Annual Meeting a definitive proxy statement and other documents, including a WHITE proxy card. SHAREHOLDERS ARE ENCOURAGED TO READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) FILED BY THE COMPANY AND ALL OTHER RELEVANT DOCUMENTS WHEN FILED WITH THE SEC AND WHEN THEY BECOME AVAILABLE BECAUSE THOSE DOCUMENTS WILL CONTAIN IMPORTANT INFORMATION. Investors and other interested parties will be able to obtain the documents free of charge at the SEC’s website, www.sec.gov, or from the Company at its website: http://www.matw.com/investors/sec-filings. You may also obtain copies of the Company’s definitive proxy statement and other documents, free of charge, by contacting the Company’s Investor Relations Department at Matthews International Corporation, Two NorthShore Center, Pittsburgh, Pennsylvania 15212-5851, Attention: Investor Relations, telephone (412) 442-8200.
Participants in the Solicitation
The participants in the solicitation of proxies in connection with the 2025 Annual Meeting are the Company, Alvaro Garcia-Tunon, Gregory S. Babe, Joseph C. Bartolacci, Katherine E. Dietze, Terry L. Dunlap, Lillian D. Etzkorn, Morgan K. O’Brien, J. Michael Nauman, Aleta W. Richards, David A. Schawk, Jerry R. Whitaker, Francis S. Wlodarczyk, Steven F. Nicola and Brian D. Walters.
Certain information about the compensation of the Company’s named executive officers and non-employee directors and the participants’ holdings of the Company’s Common Stock is set forth in the sections entitled “Compensation of Directors” (on page 36 and available here), “Stock Ownership of Certain Beneficial Owners and Management” (on page 64 and available here), “Executive Compensation and Retirement Benefits” (on page 66 and available here), and “Appendix A” (on page A-1 and available here), respectively, in the Company’s definitive proxy statement, dated January 7, 2025, for its 2025 Annual Meeting as filed with the SEC on Schedule 14A, available here. Additional information regarding the interests of these participants in the solicitation of proxies in respect of the 2025 Annual Meeting and other relevant materials will be filed with the SEC when they become available. These documents are or will be available free of charge at the SEC’s website at www.sec.gov.
Forward-Looking Statements
Any forward-looking statements contained in this release are included pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements regarding the expectations, hopes, beliefs, intentions or strategies of the Company regarding the future, including statements regarding the anticipated timing and benefits of the proposed joint venture transaction, and may be identified by the use of words such as “expects,” “believes,” “intends,” “projects,” “anticipates,” “estimates,” “plans,” “seeks,” “forecasts,” “predicts,” “objective,” “targets,” “potential,” “outlook,” “may,” “will,” “could” or the negative of these terms, other comparable terminology and variations thereof. Such forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to be materially different from management’s expectations, and no assurance can be given that such expectations will prove correct. Factors that could cause the Company’s results to differ materially from the results discussed in such forward-looking statements principally include the possibility that the terms of the final award to be issued by the Arbitrator in the Tesla, Inc. (“Tesla”) dispute may differ from the terms of the interim award issued by the Arbitrator and may be challenged, our ability to satisfy the conditions precedent to the consummation of the proposed joint venture transaction on the expected timeline or at all, our ability to achieve the anticipated benefits of the proposed joint venture transaction, uncertainties regarding future actions that may be taken by Barington in furtherance of its intention to nominate director candidates for election at the Company’s 2025 Annual Meeting, potential operational disruption caused by Barington’s actions that may make it more difficult to maintain relationships with customers, employees or partners, changes in domestic or international economic conditions, changes in foreign currency exchange rates, changes in interest rates, changes in the cost of materials used in the manufacture of the Company’s products, including changes in costs due to adjustments to tariffs, any impairment of goodwill or intangible assets, environmental liability and limitations on the Company’s operations due to environmental laws and regulations, disruptions to certain services, such as telecommunications, network server maintenance, cloud computing or transaction processing services, provided to the Company by third-parties, changes in mortality and cremation rates, changes in product demand or pricing as a result of consolidation in the industries in which the Company operates, or other factors such as supply chain disruptions, labor shortages or labor cost increases, changes in product demand or pricing as a result of domestic or international competitive pressures, ability to achieve cost-reduction objectives, unknown risks in connection with the Company’s acquisitions divestitures, and business combinations, cybersecurity concerns and costs arising with management of cybersecurity threats, effectiveness of the Company’s internal controls, compliance with domestic and foreign laws and regulations, technological factors beyond the Company’s control, impact of pandemics or similar outbreaks, or other disruptions to our industries, customers, or supply chains, the impact of global conflicts, such as the current war between Russia and Ukraine, the Company’s plans and expectations with respect to its exploration, and contemplated execution, of various strategies with respect to its portfolio of businesses, the Company’s plans and expectations with respect to its Board, and other factors described in the Company’s Annual Report on Form 10-K and other periodic filings with the U.S. Securities and Exchange Commission.
Matthews International Corporation
Corporate Office
Two NorthShore Center
Pittsburgh, PA 15212-5851
Phone: (412) 442-8200
Contacts
Matthews International Co.
Steven F. Nicola
Chief Financial Officer and Secretary
(412) 442-8262
Sodali & Co.
Michael Verrechia/Bill Dooley
(800) 662-5200
MATW@investor.sodali.com
Georgeson LLC
Bill Fiske / David Farkas
MATWinfo@Georgeson.com
Collected Strategies
Dan Moore / Scott Bisang / Clayton Erwin
MATW-CS@collectedstrategies.com
FAQ
What was the outcome of MATW's arbitration with Tesla regarding DBE technology?
What are the cost benefits of MATW's DBE technology compared to traditional processes?
What is CJS Securities' price target for MATW stock and why?
How did MATW's different segments perform in Q1 fiscal 2025?
