SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2025

SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

Principles of Consolidation: The Consolidated Financial Statements include the accounts of Matson, Inc. and all wholly-owned subsidiaries, after elimination of intercompany amounts and transactions. Significant investments in businesses, partnerships, and limited liability companies in which the Company does not have a controlling financial interest, but has the ability to exercise significant influence, are accounted for under the equity method. The Company accounts for its investment in SSAT using the equity method of accounting (see Note 4).

Fiscal Year

Fiscal Year: The year end for Matson is December 31. The period end for MatNav occurred on the last Friday in December, except for certain Company subsidiaries whose period closed on December 31. Included in these Consolidated Financial Statements are 52 weeks in fiscal years 2025, 2024 and 2023 for MatNav.

Foreign Currency Transactions

Foreign Currency Transactions: The United States (U.S.) dollar is the functional currency for substantially all of the financial statements of the Company’s foreign subsidiaries. Foreign currency denominated assets and liabilities of the Company’s foreign subsidiaries are translated into U.S. dollars at exchange rates existing at the respective balance sheet dates. Translation adjustments resulting from fluctuations in exchange rates are recorded as a component of accumulated other comprehensive loss (gain) within shareholders’ equity. The Company translates the result of operations of its foreign subsidiaries at the average exchange rate during the respective periods. Gains and losses

resulting from foreign currency transactions are included in Costs and Expenses in the Consolidated Statements of Income and Comprehensive Income.

Use of Estimates

Use of Estimates: The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported. Estimates and assumptions are used for, but not limited to: useful lives of property and equipment, impairment of investments; impairment of long-lived assets, intangible assets and goodwill; capitalized interest; allowance for credit losses; legal contingencies; insurance reserves and other related liabilities; accrual estimates; pension and post-retirement estimates; multi-employer withdrawal liabilities; operating lease assets and liabilities; estimates of income (loss) from SSAT including estimates for impairment charges; and income tax estimates. Future results could be materially affected if actual results differ from these estimates and assumptions.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash: Cash equivalents consist of highly-liquid investments with original maturities of three months or less. The Company carries these investments at cost, which approximates fair value. Cash is restricted when there is a contractual agreement that governs the use of or withdrawal of these funds.

Accounts Receivable, net

Accounts Receivable, net: Accounts receivable represent amounts due from customers arising in the normal course of business, and are shown net of allowance for credit losses in the Consolidated Balance Sheets. Allowance for credit losses is established by management based on estimates of collectability. Estimates of collectability are principally based on an evaluation of the current financial condition of the customer and the potential risks to collection, the customer’s payment history, expected future credit losses and other factors which are regularly monitored by the Company.

Changes in the allowance for credit losses for the three years ended December 31, 2025, 2024 and 2023 were as follows:

	Balance at				Write-offs		Balance at
Year (in millions)	Beginning of Year		Expense (1)		and Other		End of Year
2025	$	9.8	$	(0.3)	$	(0.9)	$	8.6
2024	$	9.9	$	0.8	$	(0.9)	$	9.8
2023	$	13.0	$	(2.1)	$	(1.0)	$	9.9

(1) Expense is shown net of amounts recovered from previously reserved credit losses.

Prepaid Expenses and Other Assets

Prepaid Expenses and Other Assets: Prepaid expenses and other assets consist of the following at December 31, 2025 and 2024:

	As of December 31,
Prepaid Expenses and Other Assets (in millions)	2025		2024
Vessel fuel	$	25.3	$	31.2
Prepaid insurance and insurance related receivables		21.9		19.1
Prepaid operating expenses		11.6		8.8
Other prepaid expenses		11.1		9.9
Other assets		3.3		4.9
Total	$	73.2	$	73.9

Deferred Loan Fees

Deferred Loan Fees: The Company records deferred loan fees, excluding those related to the revolving credit facility, as a reduction to Total Debt in the Company’s Consolidated Balance Sheets. These costs are being amortized over the life of the related debt using the effective interest method.

Deferred loan fees related to the Company’s revolving credit facility are recorded in other long-term assets in the Company’s Consolidated Balance Sheets and are amortized using the straight-line method, as the difference between that method and the use of the effective interest method is not material. Additional information on the Company’s deferred loan fees is included in Note 8.

Other Long-Term Assets

Other Long-Term Assets: Other long-term assets consist of the following at December 31, 2025 and 2024:

	As of December 31,
Other Long-Term Assets (in millions)	2025		2024
Pension plan assets	$	59.8	$	49.0
Vessel and equipment spare parts		19.8		15.9
Insurance related receivables		6.2		9.8
Other		10.9		4.9
Total	$	96.7	$	79.6

Property and Equipment

Property and Equipment: Property and equipment is stated at cost, less accumulated depreciation and amortization. Property and equipment is depreciated using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the useful life of the asset or the applicable minimum term of the lease, whichever is shortest. The estimated useful lives of property and equipment range up to the following maximum lives:

Classification	Life
Vessels	40 years
Terminal cranes	30 years
Containers and chassis	15 years
Terminal equipment and other property	35 years

Capitalized Interest

Capitalized Interest: The Company capitalizes interest costs during the period the qualified assets are being readied for their intended use. The Company determined that vessel construction costs are considered qualifying assets for the purposes of capitalizing interest on these assets. The amount of capitalized interest is calculated based on the amount of payments incurred related to the construction of these vessels using a weighted average interest rate. The weighted average interest rate is determined using the Company’s average borrowings outstanding during the period. Capitalized interest is included in vessel construction in progress in property and equipment in the Company’s Consolidated Balance Sheets. During the years ended December 31, 2025, 2024 and 2023, the Company capitalized $4.0 million, $4.4 million and $2.6 million of interest related to the construction of new vessels, respectively.

Leases

Leases: Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”) requires lessees to record leases on their balance sheets but recognize the expenses in their income statements. ASC 842 states that a lessee would recognize a lease liability for the obligation to make lease payments, and a right-of-use asset for the underlying leased asset for the period of the lease term. Additional information on the Company’s leases is included in Note 9.

Deferred Dry-docking Costs

Deferred Dry-docking Costs: U.S. flagged vessels must meet specified seaworthiness standards established by U.S. Coast Guard rules and classification society rules. These standards require U.S. flagged vessels to undergo two dry-docking inspections within a five-year period, with a maximum of 36 months between them. However, U.S. flagged vessels that are enrolled in the U.S. Coast Guard’s Underwater Survey in lieu of Dry-docking (“UWILD”) program are allowed to have their Intermediate Survey dry-docking requirement met with a less costly underwater inspection. Non-U.S. flagged vessels are required to meet applicable classification society rules and their own local standards for seaworthiness, which also mandate vessels to undergo two dry-docking inspections every five years.

The Company is responsible for maintaining its vessels in compliance with U.S. and international standards. As costs associated with dry-docking inspections provide future economic benefits to the Company through continued operation of the vessels, the costs are deferred and amortized until the estimated date of the next required dry-docking, which is usually over a two to five-year period. Amortization of deferred dry-docking costs are charged to operating expenses of the Ocean Transportation segment in the Consolidated Statements of Income and Comprehensive Income. Routine vessel maintenance and repairs are charged to expense as incurred.

Goodwill and Intangible Assets

Goodwill and Intangible Assets: Goodwill and intangible assets arise as a result of acquisitions made by the Company. Intangible assets consist of customer relationships which are being amortized using the straight-line method over the expected useful lives ranging up to 21 years, and a trade name that has an indefinite life. Additional information on the Company’s goodwill and intangible assets is included in Note 6.

Impairment Evaluation of Long-Lived Assets, Intangible Assets and Goodwill

Impairment Evaluation of Long-Lived Assets, Intangible Assets and Goodwill: The Company evaluates its long-lived assets, intangible assets and goodwill for possible impairment in the fourth quarter, or whenever events or changes in circumstances indicate that it is more likely than not that the fair value is less than its carrying amount. The Company has reporting units within the Ocean Transportation and Logistics reportable segments.

Long-lived assets and finite-lived intangible assets are grouped at the lowest level reporting unit for which identifiable cash flows are available. In evaluating for impairment, the estimated future undiscounted cash flows generated by each of these asset groups are compared with the carrying value recorded for each asset group to determine if its carrying value is recoverable. If this review determines that the amount recorded will not be recovered, the amount recorded for the asset group is reduced to its estimated fair value. The Company did not identify any impairment of its long-lived assets and finite-lived intangible assets during the years ended December 31, 2025, 2024 and 2023.

Indefinite-life intangible assets and goodwill are grouped at the lowest level reporting unit for which identifiable cash flows are available. In estimating the fair value of a reporting unit, the Company uses a combination of a discounted cash flow model and fair value based on market multiples of earnings before interest, taxes, depreciation and amortization. Based upon the Company’s evaluation of its indefinite-life intangible assets and goodwill for impairment, the Company determined that the fair value of each reporting unit exceeds book value. The Company did not identify any impairment of its indefinite-life intangible assets and goodwill during the years ended December 31, 2025, 2024 and 2023.

Impairment Evaluation of SSAT

Impairment Evaluation of SSAT: The Company’s investment in SSAT, a related party, is evaluated for impairment whenever there is evidence of impairment during the reporting period. If any impairment is identified, the Company evaluates if the decrease in the fair value of the investment below its carrying value is other-than-temporary. The Company did not identify any impairment of its equity investment in SSAT during the years ended December 31, 2025, 2024 and 2023.

Insurance Related Liabilities

Insurance Related Liabilities: The Company purchases insurance with deductibles or self-insured retentions to mitigate significant risks that it is exposed to. Such insurance includes, but is not limited to, employee health, workers’ compensation, marine liability, cybersecurity, auto liability and physical damage to property and equipment. For certain risks, the Company elects to not purchase insurance because of the excessive cost of insurance, the perceived remoteness of the risk or insurance coverage is not commercially available. The Company retains the risk of loss for insurance deductibles and self-insured retentions, for amounts that exceed the limits of the Company’s insurance policies, and for other risks not covered by insurance.

When estimating its reserves for retained risks and related liabilities, the Company considers a number of factors, including historical claims experience, demographic factors, current trends, and analyses provided by independent third parties. Periodically, management reviews its assumptions and estimates used to determine the adequacy of the Company’s reserves for retained risks and other related liabilities.

Other Liabilities

Other Liabilities: Other liabilities consist of the following at December 31, 2025 and 2024:

	As of December 31,
Other Liabilities (in millions)	2025		2024
Employee incentives and other benefits	$	27.9	$	36.6
Payroll and vacation		36.2		36.1
Insurance reserves and other related liabilities - short term		29.3		27.2
Income tax and other tax related liabilities		6.0		8.6
Deferred revenues		5.7		5.5
Multi-employer withdrawal liabilities - short term		4.1		4.1
Other short-term liabilities		5.1		5.1
Total	$	114.3	$	123.2

Other Long-Term Liabilities

Other Long-Term Liabilities: Other long-term liabilities consist of the following at December 31, 2025 and 2024:

	As of December 31,
Other Long-Term Liabilities (in millions)	2025		2024
Multi-employer withdrawal liability	$	41.9	$	44.2
Insurance reserves and other related liabilities		13.8		25.6
Pension and post-retirement liabilities		16.1		21.3
Income tax liabilities		7.0		9.1
Other long-term liabilities		9.6		9.1
Total	$	88.4	$	109.3

Pension and Post-Retirement Plans

Pension and Post-Retirement Plans: The Company is a member of the Pacific Maritime Association (“PMA”) and the Hawaii Stevedoring Industry Committee, which negotiate multi-employer pension plans covering certain shoreside bargaining unit personnel. The Company directly negotiates multi-employer pension plans covering other bargaining unit personnel. Pension costs are accrued in accordance with contribution rates established by the PMA, the parties to a plan or the trustees of a plan. Several trusteed, non-contributory, single employer defined benefit plans and defined contribution plans cover substantially all other employees.

The estimation of the Company’s pension and post-retirement benefit expenses and liabilities requires that the Company make various assumptions. These assumptions include factors such as discount rates, expected long-term rates of return on pension plan assets, salary growth, health care cost trend rates, inflation, retirement rates, mortality rates, and expected contributions. Actual results that differ from the assumptions made could materially affect the Company’s financial condition or its future operating results. Additional information about the Company’s pension and post-retirement plans is included in Note 11.

Recognition of Revenues and Expenses

Recognition of Revenues and Expenses: Revenue and expenses in the Company’s Consolidated Financial Statements are presented net after the elimination of intercompany amounts and transactions. The following is a description of the Company’s principal revenue generating activities by segment, and the Company’s revenue and expense recognition policy for each activity for the periods presented:

	Years Ended December 31,
Ocean Transportation (in millions) (1)	2025		2024		2023
Ocean Transportation services	$	2,715.1	$	2,762.0	$	2,420.8
Terminal and other related services		8.6		32.0		36.9
Fuel sales		11.8		12.4		12.3
Vessel management and related services		—		3.3		7.0
Total	$	2,735.5	$	2,809.7	$	2,477.0

(1) Ocean Transportation revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Ocean Transportation services revenue and fuel sales revenue categories which are denominated in foreign currencies.

● Ocean Transportation services revenue is recognized ratably over the duration of a voyage based on the relative transit time completed in each reporting period. Vessel operating costs and other ocean transportation operating costs, such as terminal operating overhead and general and administrative expenses, are charged to operating costs as incurred.

● Terminal and other related services revenue is recognized as the services are performed. Terminal and other related service costs are recognized as incurred.

● Fuel sales revenue and related costs are recognized when the Company has completed delivery of the product to the customer in accordance with the terms and conditions of the contract.

● Vessel management and related services revenue is recognized in proportion to the services completed. Related costs are recognized as incurred. In July 2024, the Company discontinued its vessel management and related services.

	Years Ended December 31,
Logistics (in millions) (1)	2025		2024		2023
Transportation Brokerage and Freight Forwarding services	$	537.6	$	538.1	$	546.8
Warehousing services		39.1		40.0		42.5
Supply Chain Management services		32.3		34.0		28.3
Total	$	609.0	$	612.1	$	617.6

(1) Logistics revenue transactions are primarily denominated in U.S. dollars except for less than 3 percent of Transportation Brokerage and Freight Forwarding services revenue, and Supply Chain Management services revenue categories which are denominated in foreign currencies.

● Transportation Brokerage and Freight Forwarding services revenue consists of amounts billed to customers for services provided. The primary costs include third-party purchased transportation services, agent commissions, labor and equipment. Revenue and the related purchased third-party transportation costs are recognized over the duration of a delivery based upon the relative transit time completed in each reporting period. Labor, agent commissions and other operating costs are expensed as incurred. The Company reports revenue on a gross basis as the Company serves as the principal in these transactions because it is responsible for fulfilling the contractual arrangements with the customer and has latitude in establishing prices.

● Warehousing services revenue consist of amounts billed to customers for storage, handling, and value-added packaging of customer merchandise. Storage revenue is recognized in the month the service is provided to the customer. Storage related costs are recognized as incurred. Other Warehousing services revenue and related costs are recognized in proportion to the services performed.

● Supply Chain Management and other services revenue, and related costs are recognized in proportion to the services performed.

The Company generally invoices its customers at the commencement of the voyage or the transportation service being provided, or as other services are being performed. Revenue is deferred when services are invoiced in advance to the customer. The Company’s receivables are classified as short-term as collection terms are for periods of less than one year. Sales commissions and contract acquisition costs are expensed as incurred because the amounts are generally immaterial, and are included in general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income.

Dividends

Dividends: The Company recognizes dividends as a liability when approved by the Board of Directors.

Repurchase of Shares

Repurchase of Shares: On February 27, 2025, the Company’s Board of Directors approved an additional 3.0 million shares of common stock to be added to the Company’s existing share repurchase program and extended the program’s expiration date to December 31, 2027. During the years ended December 31, 2025, 2024 and 2023, the Company repurchased approximately 2.7 million, 1.6 million and 2.1 million shares, for $307.4 million, $201.0 million and $158.2 million, respectively. As of December 31, 2025, the number of remaining shares that may be repurchased under the Company’s share repurchase program was approximately 1.1 million shares. Shares may be repurchased in the open market from time to time, and may be made pursuant to a trading plan in accordance with Rule 10b5-1 of the Security Exchange Act of 1934.

Share-Based Compensation

Share-Based Compensation: The Company records compensation expense for all share-based awards made to employees and directors. Stock based awards made under the Company’s stock plans are measured at fair value on the date of the grant and the cost for all grants is generally recognized ratably over the vesting period of the restricted stock unit (“RSU”) or restricted stock award. The Company accounts for forfeitures as they occur. The Company’s share-based awards are more fully described in Note 15.

Income Taxes

Income Taxes: The Company’s income tax expense requires the Company to make various judgments and estimates. These judgments and estimates are applied in the calculation of taxable income, tax credits, tax benefits, CCF related tax deductions, foreign-derived deduction eligible income and other tax deductions, and in the calculation of certain deferred tax assets and liabilities, which arise from differences in the timing of recognition of revenue, costs and expenses for tax purposes. The Company also considers the impact of expected future events such as changes in tax rates, changes in tax laws, regulations and rulings. Deferred tax assets and liabilities are adjusted to the extent necessary to reflect tax rates expected to be in effect when the temporary differences reverse.

The Company records a valuation allowance if, based on the weight of available evidence, management believes that it is more likely than not that some portion or all of a recorded deferred tax asset would not be realized in future periods. The Company’s income taxes are more fully described in Note 10.

Rounding

Rounding: Amounts in the Consolidated Financial Statements and Notes to the Consolidated Financial Statements are rounded to tenth of millions, except for per share calculations and percentages which were determined based on amounts before rounding. Accordingly, a recalculation of some per-share amounts and percentages, if based on the reported data, may be slightly different.

Recently adopted accounting pronouncements and New Accounting Pronouncements

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 entity’s 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 the effects of adopting ASU 2024-03 but does not expect it will have a material impact on the Company’s consolidated financial statements.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. ASU 2025-05 provides optional simplified methods for estimating credit losses on current accounts receivable. ASU 2025-05 is effective for interim and annual periods beginning after December 15, 2025. The Company is currently evaluating the effects of adopting ASU 2025-05 but does not expect it to have a material impact on the Company’s consolidated financial statements.