Matthews International — Financial Results
Revenue Has Shrunk Significantly Over Three Years, Led by Industrial Technologies
| Segment | FY2023 Sales | FY2024 Sales | FY2025 Sales |
|---|---|---|---|
| Memorialization | $843.0M | $829.7M | $809.5M |
| Industrial Technologies | $505.8M | $433.2M | $342.2M |
| Brand Solutions | $532.1M | $532.9M | $345.9M |
| Total | $1.88B | $1.80B | $1.50B |
Consolidated sales have fallen from $1.88 billion in FY2023 to $1.50 billion in FY2025 — a drop of about 20%. The largest single cause in FY2025 was the sale of the SGK Brand Solutions business ($200.5 million reduction), but Industrial Technologies has also lost roughly a third of its revenue over two years, driven by weaker electric vehicle equipment orders and discontinued automotive engineering services.
The SGK Business Was Sold, Reshaping the Company's Structure
Matthews contributed its SGK Brand Solutions business to a new entity called Propelis on May 1, 2025, receiving a 40% ownership stake plus other consideration and $228 million in net cash proceeds. This means SGK's revenues and costs are no longer fully consolidated into Matthews' results — instead, the company now records only its share of Propelis' profits as an investment. This is a meaningful structural change: SGK was roughly a quarter of total company revenue.
Overall Profitability Is Deteriorating, Though Memorialization Holds Up
| Segment | FY2023 Adj. EBITDA | FY2024 Adj. EBITDA | FY2025 Adj. EBITDA |
|---|---|---|---|
| Memorialization | $164.0M | $162.6M | $169.5M |
| Industrial Technologies | $66.3M | $39.7M | $27.9M |
| Brand Solutions | $57.1M | $61.6M | $40.3M |
| Total (after corporate costs) | $225.8M | $205.2M | $187.5M |
Adjusted EBITDA (a measure of operating profit before interest, taxes, and certain one-time items) has declined from $225.8 million to $187.5 million over two years. Memorialization is the one bright spot, actually growing profits slightly despite lower death rates, thanks to pricing improvements and cost discipline. Industrial Technologies is the main drag, with profits down 58% from FY2023.
The Tesla Dispute Is Costing Real Money and Creating Uncertainty
Matthews is in an ongoing legal dispute with Tesla, its largest energy storage customer. Legal costs related to this dispute totaled $22.2 million in FY2025, up from $12.4 million in FY2024. Separately, the company carries $99.7 million in net contract assets (largely unbilled revenues) on its balance sheet that predominantly relate to Tesla projects. Customer delays from Tesla have slowed project timelines and delayed invoicing, meaning cash collection on significant work already done remains outstanding.
Operating Cash Flow Turned Negative While Interest Costs Rose
Net cash used in operating activities was $23.6 million in FY2025, compared to positive $79.3 million in FY2024. At the same time, interest expense climbed to $62.9 million from $50.5 million, reflecting higher average interest rates. The company still carries $300 million in senior secured notes at 8.625% due October 2027, alongside $384 million drawn on its revolving credit facility — meaning debt refinancing is a near-term priority.
A Board-Led Strategic Review Is Actively Reshaping the Business
The Matthews board launched a comprehensive review of strategic alternatives across its entire portfolio, announced publicly in November 2024. Beyond the SGK divestiture, the company has also announced a proposed sale of its Warehouse Automation business. Further cost-reduction actions are planned for FY2026, building on programs initiated in Q4 FY2024. This suggests the company is in active transition, and its shape a year from now may look meaningfully different from today.