Matthews International: Finally figuring out who they are?

May 5, 2026/Finance/

Matthews International reported their 2nd Quarter 2026 (January thru March period) last Thursday evening after the markets closed. Here’s what their CEO Joseph Bartolacci had to say in prepared remarks in the press release which you can access here:

“We are pleased with our operating results for the fiscal 2026 second quarter. While our GAAP earnings were unfavorably impacted by unusual charges and amortization, we are happy to report non-GAAP adjusted earnings per share growth this quarter compared to last year despite recent divestitures. The Memorialization segment reported higher sales and adjusted EBITDA. . . . .

Sales for the Memorialization segment for the fiscal 2026 second quarter were higher than a year ago primarily reflecting the recent acquisition of The Dodge Company. This acquisition continues to be nicely accretive to earnings as we leverage the benefits of our Memorialization commercial platform and have already begun to realize cost synergies from integration. Sales volumes of caskets and cemetery memorials declined in the quarter due to lower U.S. casketed deaths. Inflationary price realization offset lower sales volumes of caskets and cemetery memorials in the quarter. The earnings impact of these sales increases and benefits from the segment’s ongoing productivity initiatives were significant factors in the segment’s improved operating margins.”

A Diversified Company — From my point of view looking into the financials for the total company is somewhat of a moot point. In 2025 Matthews International operated in three business segments but during that year one segment, the Brand Solutions segment, was sold in a somewhat unique sale. So, obviously the companies financials would reflect the revenues of the Brand Solutions segment in 2025 but have no revenues for 2026. Matthews International continues to operate in two segments today — Memorialization and Industrial Technologies.

Looking at Memorialization — Again from my point of view, it is important to look at the Memorialization segment outside of the other portions of the company to get a better reflection of their Death Care related business platform. Fortunately, Matthews International does break out those sales in the quarterly reports.

The Memorialization segment showed Revenue of $215.2 million for 2Q2026 as compared to $205.6 million for the same quarter of 2025. That’s a $9.6 million increase or about 4.5%. And, the company’s Memorial segment EBITDA for the quarter was up 8.4% over the same quarter of 2025.

Because Matthews operates on a fiscal year beginning in October they now have a half-year down in their financial year. For the six-month period of the 2026 fiscal year, the Memorialization segment has an increase in revenue of about 5.9% and EBITDA increase of about 7.5% over the first half of 2025.

Revenue for the Memorialization segment for the first two quarters of the 2026 fiscal year totals $419.4 million. That number is about 77% of the company’s total revenues so you can see how important Memorialization is to Matthews.

Included in the company’s Memorialization segment are the Matthews Aurora Caskets, The Dodge Company, Matthews Cemetery Products, Matthews Granite, and Matthews Environmental Solutions (Cremation equipment and supplies).

Tom Anderson
Funeral Director Daily

Funeral Director Daily take: Matthews International CEO Joseph Bartolacci alluded to it in his prepared remarks when he mentioned “The Board, with the support of J.P. Morgan, identified several alternatives for evaluation and consideration toward improving shareholder value and better alignment with the underlying value of the organization. The divestitures of SGK in 2025, and the warehouse automation and European packaging businesses in the first quarter are all outcomes of this effort to simplify Matthews’ business structure and enhance shareholder value. The Company’s strategic alternatives review remains ongoing.” (Bold emphasis by Funeral Director Daily).

The “it” being the idea of the company’s loss of shareholder value over the past decade. Over the past couple of years a large shareholder has insisted on looking to unlock shareholder value for the company and Matthews is now in the midst of that “strategic alternative” review. If you look at the stock price of Matthews International you will discover that investors have lost about 43% of the value of their investment over the past decade. In May 2016 a share of stock in Matthews International sold for $51.29 and as of Friday, May 1, 2026, as this article is being written that same share is selling for only $29.52 — again a drop of 43%.

The history of Matthews International dates to 1850 when Pittsburgh resident John Dixon Matthews opened an engraving shop in that community. In 1927 the company produced their first “Bronze Memorial” for a cemetery and eventually through innovation and acquisition the company moved into the cremation and casket business. . . . and just last year Matthews International purchased the Dodge Company to expand their offerings in the Memorialization segment.

In my opinion, there is a parallel to this story with the Batesville Casket Company. Batesville was the cornerstone of the Hillenbrand Industries company much like the Memorialization segment is the cornerstone of Matthews International.

Growing your business by spidering out in tangents is okay and can be profitable. However, if you forget the cornerstone and the anchor of the business like I believe Hillenbrand did with its Batesville segment, a business can become disaligned and spin out of control in a hurry. I’m of the opinion, and hopeful, that Matthews International, with 77% of its revenues in Memorialization, is figuring that out before it is too late.

Investors might agree with me –– I’m on a limb here because there will be 1 1/2 days of stock market action before you read what I am writing as of Friday morning. However, Matthews International issued this earnings release press release on Thursday after the markets closed and as of noon on Friday, May 1, their stock has jumped 3.45% in less than 24 hours. . . bringing their year-to-date increase to about 13%. I think stockholders are excited about this “strategic thinking” of who they are and excited to see some concentration on the cornerstone and anchor segment of the company.

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